30 September 2005
The new board of the Road Accident Fund is developing a rescue plan to improve the fund’s financial position.
In a written reply to a parliamentary question, Transport Minister Jeff Radebe this week outlined several steps undertaken to make the fund financially stable.
“Management has undertaken, as part of the total process review, a review of the claims-management system,” he said.
Plans to update the system will be presented to the board for implementation in 2006.
Other measures include the Road Accident Fund Amendment Bill, currently before Parliament, which will introduce a limited system of compensation to curb the rise in claims against the fund.
In a National Assembly debate earlier this month, the minister said experts estimate that the bill will lead to proposed savings to the fund of between R500-million and R1.6-billion over five years.
Since June 2005 the fund has a new board of directors, with a new chief executive officer, Joseph Modise, taking over the reigns a few months ago.
A process to review the impact and consequences of a systemic change in road accident compensation is being completed by the Department of Transport.
“The findings of this work will be presented to Cabinet shortly,” Radebe said.
The department also aims to reduce the burden of road accidents by setting up a National Accident Bureau, publishing the Annual Road Traffic Offence Surveys and conducting ongoing road safety campaigns.
A Road Traffic Management Corporation will be established to improve intergovernmental road traffic management and enforcement.
The net total liability of the fund is at R19.8-billion, the minister said.