Arrive Alive

Road Accident Fund and Assistance to Road Crash Victims


Corporate and Statutory Form

  • Road Accident Fund Act, 1996 (Act No. 56 of 1996)
  • Road Accident Fund Amendment Act, 2005 (Act No. 19 of 2005)
    • Payment of compensation in accordance with this Act for loss or damage
    • wrongfully caused by the driving of a motor vehicle”
    • Provide compulsory cover to all users of South African roads against injuries sustained or death arising from accidents involving motor vehicles within the borders of South Africa
  • Constitutional Court Rulings and legal precedents have shaped the mandate
  • PFMA
    • National public entity - Schedule 3A

The unfortunate legacy

  • The Fund carries an extensive legacy which has been built over decades - partly true and partly perceived
  • Perceptions include:
    • Compensation scheme that has struggled to be sustainable
    • ‘Insolvent and bankrupt’
    • A lawyers business
    • Intensely bureaucratic
    • Inefficient, uncaring and impersonal
    • Unable to complete programmes and tasks
    • Frozen in a state of perpetual change
    • Fraught with fraud

Early signs of change are visible...

Business Model

Business Process

Points of contact

  • Physical
    • Head office in Centurion
    • Five regional processing centres
      • Pretoria, Johannesburg, Durban, East London and Cape Town
    • Customer service centres
      • Nelspruit
      • Mafikeng, Bloemfontein, Polokwane and Kimberley
  • Virtual


Mission, vision and values

  • Minister of Transport approved the new 2013-2017 Strategic Plan and the 2013/14 Annual Performance Plan (APP)
  • Mission: To provide the highest standard of care to road accident victims to restore balance in the social system.
  • Vision: To provide appropriate cover to all road users within the borders of South Africa; to rehabilitate persons injured, compensate for injuries or death and indemnify wrongdoers as a result of motor vehicle accidents in a timely, caring and  sustainable manner; and to support the safe use of our roads.
  • Values:
    • Ubuntu
    • Pride in what we do
    • Solution focused
    • Excellence
    • Efficiency

Where the business is…

Highlights in 2013/14

  • Revenue increased by 13% to R20,6 billion
  • Claims processing improved by 47% to a record high of R22.2 billion
  • The number of open claims reduced
  • Cash expenditure on claims exceeded the net Fuel Levy by R1.9 billion (9%)
  • Proactively made business operations more accessible and efficient
    • Interacted with more than 20,000 claimants throughout the year
    • Engaged road accident victims through our „RAF on the Road?
      • 16,000 claimants and settled R376 million in claims
    • More than 250,000 calls were responded to by the Call Centre
    • Over 25,000 people follow RAF?s social media presence
  • Quality Assurance managers tested operational performance and compliance
  • Service perception increased to 64% from 52% and customer satisfaction went up to 72.8% from 66%
  • New organisational structure and business processes were fully rolled out
    • Staff complement has grown to 2,288
  • Implemented a performance management system and succession management plan
  • Combined Assurance Forum and Policy business unit formally established
  • Maintained an Enterprise-wide Risk Management Framework
    • Risk maturity level has improved to Level 4 out o 5 (EY)
  • Executed the strategic plan
    • 83% of Annual Performance targets in 2013/14
  • Audit findings were resolved and many risk mitigation measures implemented.
  • Clean Audits by the Auditor-General of South Africa
    • 2012/13 and 2013/14
  • Rolled out a revised fraud prevention plan and strategy
    • 478 arrests and 573 convictions
  • The draft Road Accident Benefit Scheme (RABS) Bill was published for a second round of public comments
  • Significant Court Rulings clarified the scope and limitations of Contingency Fees
  • A seriousness has been introduced in respect of what the Fund is, what it should be and what its employees, as loyal officers, are required to do
  • Overall, a shift was made in respect of the focus on the socioeconomic impact of crashes on families, homes and communities
  • And people were put first – Batho Pele


2013/14 2012/13 2011/12

Fuel levy




Total revenue




Claims expenditure




Provision for claims incurred (liability)




Growth in o/s claims provision












  • Compensation pay-outs
    • General damages
    • Income support
    • Medical costs
  • 17.5bn (78%)
    • 5.9bn
    • 10.4bn
    • 1.2bn
  • 11.3bn (74%)
    • 4bn
    • 6.2bn
    • 1.1bn
  • 9bn (73%)
    • 3.9bn
    • 4.3bn
    • 800m

Cash balance




Claim payments




Status at the end of 2013/14

Challenges managed

  • Inherent adversarial ‘fault-based’ Compensation System
    • Restricted access to compensation, long settlement periods, spiralling costs,
    • Multiple, complex and legalistic hurdles
    • Uncertainty as to whether compensation is ultimately used for the intended purpose
  • Compensation for Loss of Support and Earnings
    • Amendment Act increased passenger claim payments
    • Claims for future loss-of-earnings have increased, with minimal proof of loss of earnings often required
    • Forecast reports on career progression and promotions are now factored in
  • Legal Costs
    • Untenable that 21% of the total claims payment of R22 billion (an improvement on 25% in the prior year) is spent on legal fees
      • R1.7 billion spent on RAF's and R2.9 billion on claimant's legal costs
  • Financial Sustainability
    • Fuel Levy
      • Funding via the Fuel levy is not associated with claim frequencies and costs
    • Claim entitlements
      • Beneficiary base is not constituted by past, present or future contributors
      • Benefits are not defined and in some instances are not limited to a maximum value
      • Social security assistance is not limited to protecting income, lending support or funding healthcare needs, but extends to all three key
    • Claims expenditure
      • Provision for claims incurred has increased at levels far greater than CPI
      • Cash claim payments exceed the fuel levy income and this is compounded by operational efficiencies and productivity improvements
      • Claim values have increased as a result of the Amendment Act which excludes minor injuries and market forces aimed at higher value "pay-outs"

Where the business needs to go…

Priorities for 2014/15


Transformation underway





Strategic plan validity

Not aligned to strategy and erroneous

Aligned to strategy and SMART targets

Strategy executed and mature

Fuel Levy

R16.9 bn

R17.8 bn

R20.2 bn

Staff count

1 844

1 881

2 288

Open Claims

264 579

279 212

232 285

Settled Claims

170 043

162 130

240 783

Claims Payment

R12.5 bn

R15 bn

R22 bn

Legal Costs as % of




Reopened claims

41 480

16 648

14 899

National footprint - Offices



6 + 4 CSC's

National footprint - HSC’s




Direct Claims Originated

15 %





13 155

20 490


11 656

7 844

5 595

Call Centre

  • Agents
  • Number of Calls
  • % Abandoned calls


  • 5
  • N/A
  • N/A


  • 16
  • 215 624
  • 33.3%


  • 20
  • 254 338
  • 3.9%

Fraud Arrests




Audit Opinions


Clean Audit Award

Clean Audit Award

Internal Audit Findings




Risk Maturity (1 - 5)




Compliance Unit




Strategy and Reporting

Verification and Validation

Quality Assurance

Complaints Management


  • In 2013/14 the Fund improved productivity, paid record claims, reduced the number of open claims, deployed cash efficiently and improved controls
  • Great expectation rests on our shoulders based on recent performance despite the challenging environment in which the Fund operates
  • Next phase of transformation will be difficult as fundamental challenges need to be resolved
  • It is important that the RAF remains focused on fulfilling it's mandate and strategy, whilst pursuing excellence….

Also View:

Post accident Medical claims and the RAF

Road Accidents and Personal Accident Insurance and Benefits


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