1111 Department of Transport Road Accident Fund Amendment Bill Presentation to the Portfolio Committee on Transport 6 September 2005

2222 Department of Transport Long Title To amend the Road Accident Fund Act, 1996, so as to adjust the definition of “ third party ” ; to extend the powers of the Fund regarding the conclusion of agreements; to alter the financial year of the Fund; to make new provision regarding the Board of the Fund; to further regulate the Fund ’ s obligation to compensate a third party for non- pecuniary loss, for certain hospital or medical expenses, and for loss of income or support; to require the Fund to compensate a provider of emergency medical treatment directly, in accordance with a certain tariff; to repeal certain provisions limiting the liability of the Fund to R in respect of claims; to abolish certain common law claims; to make further provision for the prescription of certain claims; to substitute the provision authorising the Minister to make regulations; to authorise the Minister to adjust certain amounts in order to counter the effect of inflation; and to provide for matters connected therewith. Note: Definition of Third Party

3333 Department of Transport Transparency: Limitation on Foreign Claimants S(1) (xv) substitution "third party" means the third party referred to in section 17(1) who is a South African citizen or the holder of a permit for permanent residence in the Republic;

4444 Department of Transport Governance: Powers and Function of Fund S(4) addition of s(2)(i) S(4) addition of s(4)(a) Conclude any agreement with any person for the performance of any particular act or particular work or the rendering of particular services contemplated in this Act. The Fund may conclude an agreement with any other organ of State regarding any matter provided for in this Act in order to improve or ensure – (i)the effective management of the Fund; (ii)the efficiency of the Fund; (iii)co-ordination of functions; (iv)co-operative governance contemplated in Chapter 3 of the Constitution.

5555 Department of Transport Governance: Financial year and budgeting S(6) substitution s(1) The financial year of the Fund shall run from 1 April of any year to 31 March of the following year

6666 Department of Transport Governance: Board of Fund S(10) substitution s(1)(a) s(2)(c) s(4) s(6) & (7) deletion of s(8) the Director-General: Transport or any other senior officer in the Department of Transport, designated by him or her; members hold office for a period of three years and may, subject to nomination, be reappointed for further terms of office not exceeding three years at a time, provided that such a member may not serve for more than three consecutive terms of office. Only a member of the Board referred to in section (1)(b) shall, have a vote on any matter before the Board. The Minister shall appoint two of the members of the Board as Chairperson and Vice-Chairperson, respectively. Abolish Executive Committee

7777 Department of Transport Governance: Appointment of Board S(10) substitution of s(9) Revision of process of appointment. the Minister shall by notice in the Gazette and the national news media, invite persons or bodies who have an interest in the operations of the Fund to nominate persons who comply with the criteria; publish a list of nominees received in response to such invitation, which list shall include the names of the relevant nominators The Minister shall cause the name of a member appointed, or reappointed, to be published in the Gazette.

8888 Department of Transport Governance: Appointment of CEO S(12) substitution of s(1)(a)(b) The Minister shall upon the recommendation of the Board, appoint the Chief Executive Officer of the Fund on such terms and conditions of employment as the Board may determine. The Chief Executive Office shall be a person who is suitably qualified and experienced to manage the day to day affairs of the Fund.

9999 Department of Transport Fairness: Threshold to access general damages S(17) substitution of S(17) with S(17)(1) Provided further that the Fund's obligation to compensate a third party for non-pecuniary loss shall be limited to compensation for a serious injury

10 Department of Transport Fairness: Assessment of Serious Injury S(17) substitution of S(17) with S(17)(1A) (a)Assessment of a serious injury shall be based on a prescribed method adopted after consultation with medical service providers. (b)The assessment shall be carried out by a medical practitioner registered as such under the Health Professions Act, 1974 (Act No. 56 of 1974), who shall be accredited with the Fund in the prescribed manner.

11 Department of Transport Fairness: Remove statutory obligation to pay party-to-party costs S(17) deletion of s(17)(2) Upon acceptance of the amount offered the third party shall be entitled to the agreed party and party costs or taxed party and party costs in respect of the claim concerned.

12 Department of Transport Transparency: Undertakings S(17) substitution with S(17)(4)(a) Fund shall be entitled, after furnishing the third party concerned with an undertaking to that effect or a competent court has directed the Fund or the agent to furnish such undertaking, to compensate: a) the third party in respect of the said costs after the costs have been incurred and on proof thereof; or b) the provider of such service or treatment directly, in accordance with the tariff

13 Department of Transport Transparency: Method of payment S(17) substitution with S(17)(4)(b) (b)includes a claim for [future] non-pecuniary loss or for loss of income or support, the Fund or an agent shall be entitled, after furnishing the third party in question with an undertaking to that effect or a competent court has directed the Fund or the agent to furnish such undertaking, to pay the amount payable by it or the agent in respect of the said loss, by instalments in arrear as agreed upon or as ordered by the court.

14 Department of Transport Transparency: Cap loss income and support S(17) substitution with S(17)(4)(c) (i)includes a claim for loss of income or support, the gross annual income in terms of which the loss shall be calculated shall be calculated up to an amount not exceeding− R per year in the case of a claim for loss of income; and R per year, in respect of each deceased breadwinner, in the case of a claim for loss of support.; (ii)The Fund shall, by notice in the Gazette, adjust the amounts referred to in subparagraph (i) quarterly, in order to counter the effect of inflation. (iii)In respect of any claim for loss of income or support the amounts adjusted in terms of subparagraph (i) shall be the amounts set out in the last notice issued prior to the date on which the cause of action arose.

15 Department of Transport Transparency: Medical Tariffs S(17) addition of s(4A) The liability of the Fund or an agent regarding any tariff contemplated in subsections (4)(a), (5) and (6) shall be based on the tariffs for health services provided by public health establishments contemplated in the National Health Act, 2003 (Act No. 61 of 2003), and shall be prescribed after consultation with the Minister of Health.

16 Department of Transport Fairness: Emergency Medical Treatment S(17) addition of s(7)(a) Proposed amendment removed.

17 Department of Transport Equity: Removal of limitation on passengers S(18) deletion of s(1)(a) Substitution of 18(2)(a) The liability to compensate a third party who was being conveyed in or on the motor vehicle concerned, for reward; or in the course of the lawful business of the owner of that motor vehicle; or in the case of an employee of the driver or owner of that motor vehicle, in respect of whom subsection (2) does not apply, in the course of his or her employment; or for the purposes of a lift club where that motor vehicle is a motor car, or in the case of a person who was being conveyed under circumstances other than those referred to in paragraph (a), shall be limited to the sum of R25000 Removal of limitation on passengers protected by COIDA

18 Department of Transport Equity: Removal of Exclusions on Passengers S(18) deletion of 19(b) Fund shall not be obliged to compensated any person for loss or damage suffered as a result of bodily injury whilst being conveyed for reward on a motor cycle is a person referred to in Section 18 and a member of the household

19 Department of Transport Governance: Excluded liability S(19) addition of (g) suffered as a result of an emotional shock sustained by that person when that person witnessed or observed or was informed of the bodily injury or the death of another person as a result of the driving of a motor vehicle

20 Department of Transport Common Law Rights: Claim for compensation against other S(21) substitution (1)No claim for compensation in respect of loss or damage resulting from bodily injury to or the death of any person caused by or arising from the driving of a motor vehicle shall lie against the owner or driver of a motor vehicle; or against the employer of the driver. (2) Subsection (1) does not apply− (a)if the Fund or an agent does not have the financial resources to pay any compensation; (b)to an action for compensation in respect of loss or damage sustained by a person other than a third party; or to an action for compensation in respect of loss or damage resulting from emotional shock sustained by a person when that person witnessed or observed or was informed of the bodily injury or the death of another person as a result of the driving of a motor vehicle. ”.

21 Department of Transport Finalisation of Bill Thank you. Marissa du Toit Director: Policy Advocacy and Coordination Constitutional Issues not finalised: Medical Tariffs - Access to healthcare - Application on both past and future medical (drafting) Undertakings - Removal of Fault Foreigners - Exclusion Need to revisit approach to provide an interim solution?