Speech by
MR JH VAN DER MERWE MP

Madame Speaker

The gigantic failures of the Road Accident Fund is worst than a tragic Greek Drama.

The vital question that the House has to decide upon, is what is the root cause of the failures?

* Are the failures the result of a defective system?

* Or are the failures caused by administrative incompetence?

That is the basic question.

I will in the few minutes at my disposal argue strongly that the problem is NOT a defective system, but massive administrative incompetence.

The best proof that the current system works, lies in the fact that adequate compensation is finally paid to claimants, no matter how long it takes.

Motorists have the assurance of adequate compensation for what has been estimated an average of R60-00 per month, taking into account the fuel levy paid by motorists.

The best proof of the RAF's gigantic administrative failures, are, inter alia, the following:

The RAF -

. has become a massive embarrassment for South Africa;

. It's liabilities run up to around R20 billion;

. Hundreds of millions of rands are being wasted on unnecessary legal costs;

. As a result thereof in excess of 6 000 summonses are issued against the RAF every month.

. Which leads to thousands of warrants of execution and other court orders being issued by our courts against the RAF, due to mismanagement of summonses;

. Thousands of summonses are defended only to have 99% of those settled on the steps of court. Obviously at massive unnecessary legal costs, due to mismanagement.

. RAF Area Managers declare under oath that an special audit is correct, only to later discover that it is a massive misrepresentation.

Madame Speaker,

* We are all affected by the RAF's administrative failures, every one of us sitting here today, because we all pay the fuel levy of 32,5 cents per every litre petrol or diesel we buy,

* and we are all insured to get compensation in the event of personal injuries caused by motor accidents.

* This compensation assurance, unfortunately, is being removed by the Bill before the House, as I will indicate a little later.

Madame Speaker

By introducing this Bill, the Hon Minister is missing the target.

The real target is the massive administrative incompetence which reigns in the RAF especially at the highest levels.

That is what the hon Minister should target.

Not trying to change a system that ensures fair compensation for victims.

Madame Speaker,

The IFP will certainly vote against this Bill, because it is a legal disaster.

* The removal of the Common Law right will leave the majority of victims without any way of supporting themselves or their families

* The limitation of medical treatment benefits to State hospital cost, will condemn most seriously injured victims to death or to the horrors of the widespread incompetence, shortage of equipment and drugs and wide spread lack of basic hygiene practices in State hospitals.

* Unless we lose a limb, are quadriplegic or brain damaged, we will receive no compensation for pain and suffering

* That means if any of us here today are injured in a car accident and you are not permanently and totally disabled, you are excluded from compensation for pain and suffering and loss of amenities of life.

* Therefore if any of us are involved in a motor accident and suffer injuries such as disfigurement, fractures to your pelvis, arms, legs, as well as a skull fracture, it will not be regarded as a serious injury.

* Compensation for loss of income is limited to gross of R160 000-00 before tax per year irrespective of what your earnings were before the accident.

* If anyone in this House is injured, or cannot work at all after the accident, he will not be able to earn the same salary as before, he will only recover R13 000 per month before tax from the fund to support himself and his family. How many of those here could survive on that amount?

* It will be impossible for motorists to insure effectively against personal damages because of the high costs thereof

Madame Speaker, in summary

The solution lies not in changing a system that works.

The solution is to address the gigantic incompetence of RAF officials by privatising the RAF. Government is not in the business of an insurance company - look at the success stories of our toll roads and our airports.

Why not follow that free market principle, which is successful, and privatise the RAF.