The Road Accident Fund (RAF) has been dealt a significant blow in a recent Mpumalanga High Court ruling, which stated that delays in processing claims cannot be used against claimants when the Fund itself is responsible for the delays. This ruling is expected to have far-reaching implications for those who have been affected by the RAF’s sluggish claim processing times.
In the case of Bheki Cele v Road Accident Fund, the court considered whether a claim had prescribed after more than five years had passed since the underlying accident. Cele had lodged his claim directly with the RAF, which employs Information Officers to assist claimants free of charge. However, the RAF failed to process the claim or alert Cele that it was approaching prescription, resulting in a delay of four years and seven months.
Understanding the RAF Claim Process
According to the RAF’s own website, once a claim is lodged, the Fund must be offered a reasonable period of time to assess its liability, enter the claims into the relevant computer system, and arrange for electronic funds transfer. Claimants will be advised by letter which claims have been admitted, how any payment was made up, and which claims require further explanation or have been rejected. The Road Accident Fund also encourages claimants to employ a lawyer, who will be entitled to charge a fee for professional services rendered.
Key Takeaways from the Ruling
The court’s decision highlights the importance of the RAF’s duty to ensure that claims are properly dealt with. The ruling also emphasizes that claimants should have the full benefit of the five-year period afforded to them by the statute. In this instance, the fund wasted four years and seven months, and no explanation has been offered for this. Some key points to note include:
- The RAF’s delay in processing a claim cannot be used against the claimant.
- Claimants have five years to institute a claim from the date of the accident.
- The RAF has a duty to ensure that claims are properly dealt with.
The Department of Justice and Constitutional Development has also emphasized the importance of ensuring that claimants are treated fairly and that their claims are processed in a timely manner. As the RAF continues to process claims, it is essential that claimants are aware of their rights and the procedures in place to ensure that their claims are handled efficiently.
