What is the impact of RABS? The Road Accident Benefit Scheme (RABS) bill was published in 2014 and is intended to replace the current Road Accident Fund (RAF). However, if this proposed legislation is signed into law, what effect will it have on road users in South Africa?
The RAF was established to protect the rights of a person injured in an accident that was the result of another person’s negligent driving. The RAF is a fault-based system, so if you can prove negligence on the part of the insured driver, you can institute a claim against the RAF for injuries sustained as a result of the accident. What many people don’t know is that if one is in an accident where there is no other driver involved, the RAF will not respond to the driver’s claim even if he or she is badly injured.
The current RAF faces many challenges and is a complex system with high administration costs, often extensive and expensive litigations. Government wants to replace the RAF with RABS – a system of defined and structured benefits.
What is RABS?
This social benefit scheme is based on a no-fault system, so that fault will no longer be a consideration on the part of the claimant or any person involved in the road accident. A person who can prove that he/she was injured in a road accident can submit a claim to RABS. The key objectives of government are to assist claimants and to reach more victims quickly and efficiently. RABS will be a social security scheme for all road accident victims and their dependents, regardless of who is at fault.
What are some of the fundamental changes in benefits?
– Payments will be made directly to claimants, medical service providers and beneficiaries.
– Structured benefits will be paid on a monthly, quarterly or annual basis or as a lump sum (under certain conditions).
– There will be no compensation for general damages, such as pain and suffering.
– Benefits will include medical and healthcare services and income support benefits which will be subject to thresholds.
– Income will be limited to the pre-accident income cap as published by the minister in the Government Gazette.
– A maximum of 75% of a 100% disabled victim’s income will be paid.
– Loss of earning capacity will depend on the degree of disability and actual income after the accident.
– There will also be a family support benefit, also subject to the prescribed thresholds.
– Funeral cover up to a maximum of R10 000 will be provided.
– Any benefit granted terminates upon the death of the beneficiary.
– Foreigners’ health care services benefit will be limited to health care services provided within the RSA only.
– The RABS may review and even terminate a claimant’s benefits after reviewing a victim’s medical assessment.
– The RABS may terminate, suspend or revise any benefit of the beneficiary under certain circumstances as listed in the Bill.
As is the case with the current RAF legislation, under RABS there will be no civil claims against the driver/owner of the negligent vehicle.
To find out more about the Road Accident Benefit Scheme, look out for part two of this series, where we discuss practical examples of how this system will be applied.
When it comes to getting the right insurance advice, speak to your Indwe advisor on 0860 13 13 14 to make sure that you and your loved ones are properly protected.