Top stories




Marketing & MediaThe New Generation Awards announces WesBank as its official headline naming sponsor
Lavello Marketing Solutions 2 days


More news






Energy & Mining
Schneider Electric launches first Innovation Hub in Africa










Amount recoverable previously unlimited
Before 1 August, 2008, anyone injured (or killed) in a motor vehicle accident could recover compensation from the Road Accident Fund (RAF). The compensation that could be recovered from the RAF was unlimited, the exception being in regard to passengers when the negligence of the driver of the vehicle conveying those passengers was the sole cause of the accident. The damages were calculated on the victim's actual financial expenditure on past hospital and medical expenses, projected future medical expenses and past and future loss of earnings. Provision was also made for payment of general damages, commonly referred to as damages for pain and suffering. Essentially, this amounted to a form of insurance with unlimited cover, the "premium" for which was paid as a levy included in the fuel price.
The Road Accident Fund Amendment Act No. 19 of 2005 came into operation on 1 August, 2008. The most important features of this legislation are that:
The Law Society of South Africa and others mounted a constitutional challenge to the provisions in the amendments:
The Constitutional Court gave judgment on 25 November, 2010. Only the last of these provisions was challenged successfully.
The current situation leaves road users exposed to potentially crippling expenses and certainly gives scope to insurance companies to design insurance cover to cover those risks.