That R2.18/litre you pay funding “opportunistic” RAF claims of R3bn

The beleaguered Road Accident Fund (RAF) is losing an estimated R3 billion a year to opportunistic loss of income claims from people who suffered only minor injuries in a motor vehicle accident. In this interview with BizNews, actuary and damages expert Gregory Whittaker shares his research for the Actuarial Society of South Africa (ASSA). He says statistics for the financial year ending 31 March 2021 show that loss of income settlements totalled R18.4 billion - of which about 14% was paid to those with non-serious injuries - while in the financial year ending 31 March 2023, the RAF paid R22 billion in loss of income claims. Whittaker lists his recommendations to prevent such excessive compensation - and thus also address the worsening financial situation of the RAF where the deficit had grown, by the end of March 2022, to R344.8 billion from R3.8 billion at the end of the 1994 financial year.