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Road Accident Fund payment problems

updated: 24-Nov-15

There have been many articles in the media about the problems that the Road Accident Fund currently has with payments.  This is as a result of the Road Accident Fund going on mass settlement drives, where they try to settle as many cases as possible, and many cases under-settling then with direct claimants, having no regard to people whose cases have been in the system the longest and no regard to their actual cash position.  

De Broglio Attorneys Inc are terribly concerned about this situation and Michael himself has written to the CEO of the Road Accident Fund, Dr Eugene Watson, on a number of occasions with regard to this.  In particular, Michael feels strongly that the Road Accident Fund should pay those with the bigger claims first, as opposed to their current policy of paying claims settled for R100 000,00 or less first and delaying the cases on the biggest payments for the longest.  Michael says, “It really is not moral that those with the smallest injuries and who need the money the least are paid first.  I assume they do this to try and reduce the number of complaining calls that they get, but surely the focus should be on those who are the most seriously injured and need the money most desperately?”

Michael went on to explain that many cases involve loss of support matters where for example a widow no longer has money to feed her children, let alone send them to school, and just because a great result has been achieved for them by de Broglio Attorneys Inc, the client has now to wait 6 or 9 months for payment whereas somebody else whose case might have been under-settled for R90 000,00 is going to get immediate payment!  

This also explains why some people believe there are no payment issues with the Road Accident Fund – it may well be that their case has been settled for a small amount of money and it is only somebody whose case has been settled for R500 000,00 or more, and particularly in cases settled for R1 million or more, who will truly appreciate the delays in the system at the moment.

Michael says that de Broglio Attorneys Inc do everything that they can to keep their clients advised as to the problems with payment at the Road Accident Fund including letting them all have a Payment Guide, and sending them the circulars which are received from the Road Accident Fund setting out the financial issues when those circulars are received from the Road Accident Fund.  He says that 99% of clients understand the problems, but you will always get those who unfortunately, no matter how many ways you try to explain the matter to them, simply will not accept the reality.  He says that is unfortunate, because at the end of the day abusing one’s attorney and blaming one’s attorney, while it may make a frustrated person feel better, is certainly not going to lead to the payments being made any faster.  The Road Accident Fund has a payment queue, they go in order of oldest cases and in order of how big the case is and the bottom line is if your case has been settled for R1 million or more, you are going to be waiting somewhere between 6 to 9 months to receive payment. 

Case results depend upon a variety of factors unique to each case. Case results do not guarantee or predict a similar result in any future case.