It appears unlikely that a controversial new Road Accident Fund (RAF) strategy to use in-house lawyers will mean faster settlements for RAF claims.

RAF fires panel of attorneys

In February 2020, the cash-strapped RAF fired its own panel of attorneys in an apparent cost-cutting exercise. (The RAF’s current liabilities of R272 billion exceed its current assets by R31 billion.)

RAF acting CEO Collins Letsoalo asked the attorneys to hand over the files of all incomplete cases.

Some panel attorneys, led by Pritzman Mabunda, made an application to the Pretoria High Court to compel the RAF to withdraw this notice and continue with a tender to appoint private law firms.

Mabunda said the RAF’s decision to cancel the tender process was irrational and could cause substantial harm to the administration of justice and the public purse.

Judge Norman Davis rejected the application.

Possible problems with the RAF’s new litigation model

The RAF’s new litigation model has been widely criticised – particularly the statement that it will settle 98% of claims within 120 days.

While an early settlement of a claim is very much in the interests of claimants, the strategy and 120-day timeframe raise numerous concerns.

These include:

• claims not being properly investigated
• insufficient time to get expert medico-legal testimony
• claims being insufficiently quantified
• claims that go to court costing the public purse more than they do now.

How long does it currently take to get a RAF settlement paid?

Typically, it takes several years for the RAF to process and pay personal injury claims.

Three to five years is average, but some claims take longer.

Once an attorney has settled a claim against the RAF or the courts have ordered the RAF to pay a specific sum as compensation, it can take months before a claimant receives the award.

In some cases, it takes as long as 180 days or more.

In this case, the claimant is entitled to interest on late payments.

An attorney will assist a claimant in holding the RAF liable for this interest.

Bridging finance against a RAF settlement is an immediate solution

During the years that a claim is being processed and paid out, a claimant can incur many unforeseen expenses.

This is when bridging finance from Lamna is an immediate solution.

This can be a useful way to access needed funds in the months it takes before the compensation is paid out.

If you have a settlement agreement or a court order requiring the RAF to pay you compensation for your personal injury, you can secure a bridging finance against the value of your claim until it’s paid to you.

Once you receive the payment, you can use it to repay the bridging finance.

How Lamna can help

For more information about getting bridging finance while waiting for the Road Accident Fund to pay your claim, contact us on 086 111 2866 or simply complete and submit our online application form.

Lamna is fully compliant with the National Credit Act (NCA), doesn’t charge hidden fees or penalties and has multiple physical branches across South Africa.