Road Accident Fund to be scrapped amid calls for third-party insurance

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Road Accident Fund to be scrapped amid calls for third-party insurance
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The national department of transport and the newly formed ZACP have at least one thing in common: both want the RAF to be scrapped.

Mnisi said under the new scheme, fault would not be considered on the part of the claimant or other persons involved in an accident. The focus would instead be on how the claimant was immediately assisted.

Unlike the RAF system, RABS payments will be made directly to claimants, medical and healthcare service providers, according to the department. The Capitalist Party recently advocated for the RAF to scrapped and replaced with compulsory third-party insurance. It argued that this would lead to a decrease in the petrol price of about R2 a litre, in addition to motorists not having to pay hefty insurance premiums for their vehicles.

Dembovsky said research showed that only 30% of vehicles on the roads were insured, so opting for third-party insurance would help the poor.

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