The Road Accident Fund Transitional Provisions Bill Presentation

The Road Accident Fund (Transitional Provisions) Bill Presentation to the Select Committee on Public Services (NCo. P) 30 October 2012

Purpose To amplify certain matters raised at the Select Committee on Public Services on 16 October 2012 concerning the Road Accident Fund (Transitional Provisions) Bill

Background At the last meeting held on 16 October 2012, three aspects were raised which we would like to revisit with the permission of the Committee.

Background These aspects are: • the transitional nature of the Bill • the Contingency Fees Agreement Act • payment for the transfer of a matter to the High Court in terms of clause 2(1)(e)(ii)

Transitional Nature The Bill is not an amendment to the RAF Act. “Stand alone” legislation. Measured lifespan. Purposive. Once the Bill has served its function it will fall into disuse. Focused. The Bill only addresses some claimants – not all claimants.

Target Group The Bill only addresses between 8 000 to 10 000 claimants who were: • passengers • injured before 1 August 2008 • injured in circumstances where their driver was the “sole cause” of collision

Target Group The target group includes passengers whose claims have not : • become prescribed • been settled; or • been finally determined by court

Target Group The target group excludes: • all passengers with limited claims who were injured before 1 August 2008 and whose claims have become prescribed or have been settled or determined by a court.

Target Group The target group also excludes: • all passengers who were injured before 1 August 2008 in circumstances where there was contributory negligence on the part of another driver

Contingency Fees Act : Department of Justice and Constitutional Development Common law contingency agreement unlawful Lesser of: 25% of capital or double normal fee Payment after settlement Act provides for mechanisms to protect

Contingency Fees RAF is concerned about excessive fees RAF has addressed instances of overcharging RAF has compelled compliance with Contingency Fees Act RAF has revised offers of settlement RAF has obtained court judgments compelling compliance

Transfer to High Court Clause 2(1)(e)(ii) facilitates access to increased compensation Protects rights of claimants by allowing transfer and preventing prescription. Subject to High Court Rules and Magistrates’ Court Act (Do. J&CD))

Transfer to High Court Only the following matters will be transferred : • where the claim cannot be settled with RAF AND summons has already been issued in Magistrates Court AND the amount of the claim now exceeds R 100 000

Transfer to High Court Only claimants who are funding their own litigation will have to pay the “out of pocket’ expenses upfront. RAF is ultimately liable for the claimants party and party costs upon settlement

Thank you Questions and discussion