Department of Transport
The Road Accident Fund has announced a consumer price index (CPI)-related adjustment to the statutory limit in respect of claims for loss of income and support as a result of a motor vehicle accident.
The amount referred to under section 17(4)(c) of Road Accident Fund (RAF) Act 56 of 1996 has been adjusted to R194 043.00 (one hundred and ninety-four thousand and forty-three rand) with effect from 31 January 2012.
The announcement appears in notice 7 of Government Gazette 34963 dated 27 January 2012.
According to the notice, the purpose of the adjustment is to “counter the effects” of consumer price index (CPI) inflation.
The statutory limit was last adjusted on 29 July 2011: to R189 017.00 (one hundred and eighty-nine thousand eight and seventeen rand), as announced in notice 130 of Government Gazette 34478.
In 2009, Statistics South Africa changed the basket of good and weights used to calculate the CPI. Based on this new data, the CPI for November 2011 was 119.7.
The new statutory limit was calculated accordingly, with the base year 2008 being equal to100.
Section 17(4)(c) of the act refers to lump-sum compensation to a third party for loss or damage as a result of bodily injury or death caused by negligence or wrongful behaviour in the driving of a motor vehicle.
Following a lengthy consultation process, government’s revised policy on the RAF benefit scheme was published for general information on 21 November 2011 in notice 815 of Government Gazette 34765.
According to an introduction to the policy, it sets out a framework for the proposed new motor vehicle accident benefit scheme that will replace the current motor vehicle accident compensation system administered by the RAF.
The scheme will expand “the social security safety net” and will form part of government’s envisaged comprehensive social security system.
It will provide structured and defined benefits to those seriously affected by road accidents in accordance with social insurance principles, as opposed to liability insurance principles as is currently the case.
Sabinet Cape Town Office
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