If you’re waiting for a settlement from the Road Accident Fund (RAF) to be paid out to you, you’re not alone.
The bad news is that it can take years for the RAF to settle a claim – and even once a claim has been settled against the RAF, it can take months before you’re paid the settlement amount.
If you need funds in the meantime, you can get a bridge loan against your RAF settlement from lamna.
How long does the RAF take to pay out claims?
Road Accident Fund claims pay-outs are notoriously slow. A massive backlog in cases, administrative red tape and financial pressure on the fund all contribute to delays.
First, the process of lodging and defending an RAF claim is time-consuming. Whether you pursue a claim independently or use the services of an attorney, it will take time to compile evidence and gather supporting documents from medical personnel, witnesses and the South African Police Service.
Once this process is complete and a claim is officially submitted, the RAF has 120 days in which to conduct its own investigation. The reality is that the fund seldom adheres to the allotted timeframe.
At this stage, your attorney is entitled to issue a summons and proceed with the matter in court. Waiting for a trial date, along with scheduling testimony from busy medical experts, can all add lengthy delays.
If no out of court settlement is offered, a judge will make a final ruling as to the validity of your claim and the amount of compensation you’re due. At this point, the RAF loads the ruling onto its system – a process that, again, can add a considerable delay. Thereafter, you’ll find it can still take months before the RAF settlement you’re owed is paid into your account.
Hardship while waiting for RAF pay-out
If you’re waiting for a settled Road Accident Fund claim to be paid, it means that either you were seriously injured in a road accident or you’ve suffered the tragedy of losing a close family member (and breadwinner) due to a road accident.
In either of these situations, you may be suffering financial hardship.
If you suffered an injury, medical bills can mount up fast, you may need to pay for extra care or assistance at home and you may be unable to work. If you’ve lost someone in your family, you may have lost the income this person provided.
This makes it hard to justify exceptionally long delays in RAF claim pay-outs. It’s unfair that even once your claim against the RAF has already been finalised, you may face a cash flow crisis.
RAF bridging loan: get a cash advance on your RAF claim
With lamna, you can get a cash advance on a Road Accident Fund claim settlement. That means that once your claim against the RAF has been settled, you can access funds you urgently need – rather than having to wait several months for the settlement to be paid out.
A Road Accident Fund bridging loan is simply a cash advance on your RAF settlement. Once you receive the settlement amount, you can pay back the loan and agreed interest.
How to get a loan against your RAF settlement
To qualify for a loan against your RAF settlement from lamna, all you need is a settlement agreement from the Road Accident Fund or a Court Order, directing the Road Accident Fund to pay you compensation.
At lamna, we offer fast, discrete loans. We’re a registered credit provider (registration number NCRCP7428), our interest rates comply with the National Credit Act and we have multiple branches across South Africa.
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