1. Amendment of the Road Accident Fund Act PRESENTATION TO PARLIAMENTARY
Department
of Transport
PRESENTATION TO
PARLIAMENTARY
PORTFOLIO COMMITTEE
8 th September 2004
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

2. Key Processes Department of Transport Equity Amendment Process
RAF
Fairness
Transparency
Governance
Competency
Governance
Efficiency
Fraud and corruption
Consultation
Future of the RAF
Policy changes
Restructuring

3. Current Bill before Parliament
Department
of Transport
Objective
RAF Amendment Bill 2003
RAF Amendment Bill (2004)
Parliament resolved to continue with all Bills tabled pre-elections
Objective of Bill to limit liability of RAF
Objective remains unchanged
Proposed corrections and improvements based on submission and representation made in Oct – Nov 2003
Ethos of proposed changes is to provide for universal application of Act to all road users
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

4. Current Bill before Parliament
Department
of Transport
Details
RAF Amendment Bill 2003: Portfolio Committee Recommendations
RAF Amendment Bill (2004)
Corrections to acceptable clauses
Liability in term of medical tariffs
Limit liability wrt non-residents
Exclude liability wrt emotional shock of secondary victims
Liability linked to medical tariffs, transformative objections and payment schedules
Make Act universal in its application
Remains unchanged
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

5. Current Bill before Parliament
Department
of Transport
RAF Amendment Bill 2003
RAF Amendment Bill (2004)
Corrections to acceptable clauses continue
Mediation and arbitration
Deductibility of Collateral Damages
Mediation and arbitration processes are first interventions?
Proposed cap may necessitate reliance on private insurance?
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

6. Current Bill before Parliament
Department
of Transport
Amendment Bill 2003
Amendment Bill 2004
Improvements to “un- acceptable” clauses
Compulsory provision of medical undertakings
Provision of compensation for income and general damages in the form of installments
Transitional arrangements
Regulated method of payment to ensure reasonableness (Fund to determine payment method subject to guidelines in Act).
Limitation on liability will focus on capping liability and not postponement of liability.
Removed
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

7. Current Bill before Parliament
Department
of Transport
Amendment Bill 2003
Amendment Bill 2004
Improvements Amendment Bill
Regulated level of funeral compensation
RAF legal fees excluded from Contingency Fees Act, 1997?
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

8. Key Principles underpinning the Amendment Bill
Department
of Transport
Equity
Fairness
Amendment Bill
Transparency
Governance

9. Application of Principles
Department
of Transport
Application of Principles
Make the Act universal in application
Increase limit for all passengers
Equity
Ensure compensation for victims /their families
Emotional Shock
General Damages/ Pain and suffering
Contingency Payment System
Fairness
Transparent system of compensation
Capping General Damages and Income/Support
Provide Medical Tariffs
Specified Funeral Cover
Transparency
Structure
Appointment of Chairperson and CEO
Abolish Executive Committee
Governance

10. Key Principles Equity Department of Transport
Makes the Act universal in application
Align Act with Section 9 (1) of Constitution which protects the rights to equal protection and benefits
Increase limit for passengers
- Public Transport
- Lift clubs
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

11. Key Principles Fairness Department of Transport
Ensure reasonable compensation for victims and their families
Emotional Shock: Compensation for emotional shock should be directed to road accident victims and their families and not to secondary victims
General Damage: Place medical threshold on access to general damages to ensure those who are seriously injured are compensated to adjust their lifestyle
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

12. Key Principles Department of Transport Fairness Continued
Ensure reasonable compensation for victims and their families
Contingency Payment System: Remove link between contingency payment system and victim’s compensation so that victims benefit more than other parties
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

13. Key Principles Transpa-rency Department of Transport
Provide for a transparent system of compensation allowing for greater efficiency
Capping General Damages and Income/Support: Transparent system based on maximum compensation limited only by proportion of fault
Method of payment will be regulated to allow for decision regarding payment method – whether installments, lump-sum or undertakings – to be reasonable whilst financially sound
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

14. Key Principles Department of Transport Transpa-rency Continued
Provide for a transparent system of compensation allowing for greater efficiency
Provide Medical Tariffs: Allow for certainty, introduce transformative measures and provide acceptable payment schedules
Specified Funeral Cover: Provide certainty on level of compensation and expedite process
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

15. Key Principles Gover-nance Department of Transport
Ensure RAF governance is in line with Public Finance Management Act and Protocol on Corporate Governance
Abolish Executive Committee
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.

16. Department
of Transport
Way forward
Key principles and proposals presented here address the concern of the various stakeholders whilst taking forward the objectives that Government had set itself through this Bill. Passage of these amendments, whilst not solving all problems faced by the RAF, is a necessary step in turning the RAF around.
We thank you
for your continued participation and
assistance in this process
Nonkululeko Msomi –
Deputy Director-General Department of Transport
General: The presentation seek to show the interaction between the institutional processes and the amendment, highlights concerns where these two areas are intertwined; proposed a decision on the systemic issues and puts forward the current amendments on the table. Please note that the stakeholders are expecting a new amendment act next week.