The Road Accident Fund (RAF) has welcomed a recent ruling by the Limpopo High Court, which significantly reduced an inflated claim from R11 million to R800,000. The claim, submitted on behalf of a young child injured in a road accident, was found to be grossly exaggerated and based on inaccurate and contradictory evidence.
The case stemmed from a 2015 incident in which a four-year-old girl was struck by a car while walking to a shop. The child was taken to a clinic, treated, and discharged the same day. Despite the minor nature of her injuries, the mother, advised by her legal representatives, submitted a claim for R11 million, citing potential future loss of earnings among other damages.
To support this claim, the legal team provided reports from various specialists, including psychologists, surgeons, and therapists. However, Judge E Mashamba, presiding over the case, found major disparities in these reports. He ruled that the child’s injuries were unlikely to have a significant impact on her future educational performance or earning capacity. The only credible evidence presented was from a clinical psychologist who diagnosed the child with post-traumatic stress disorder (PTSD) and psychosocial issues, which the court deemed would only slightly affect her future income.
In his judgment, Judge Mashamba criticized the actions of the legal team, suggesting they had guided the mother to seek unnecessary specialist reports to inflate the claim. The reduction of the claim by more than 90% serves as a stark reminder of what the RAF describes as a common and troubling issue within its operations.
RAF Chief Executive Officer, Collins Letsoalo, expressed concern over the frequent attempts by legal practitioners to maximize payouts from the Fund. He described these practices as unethical, and in some cases, criminal, noting that they not only strain the RAF’s resources but also disadvantage other legitimate claimants.
“This ruling vindicates our position that many claims submitted to the RAF are grossly inflated by legal representatives who exploit the system,” Letsoalo said. “From 2021 to 2023, we were able to stop R2.6 billion worth of dubious claims thanks to the diligent work of our forensic investigation department and law enforcement partners.”
The RAF has been actively working to curb such abuses, including submitting the Draft Road Accident Fund Amendment Bill, 2023, to Parliament. Among its proposals is the discontinuation of legal practitioners in the claims process, a move the Fund believes will reduce fraudulent and inflated claims.
In the meantime, the RAF continues to urge those involved in road accidents to contact them directly for assistance. Their contact center is available at 087 820 1 111 during business hours, and further information can be found on their website at www.raf.co.za.
This court decision is seen as a significant step towards restoring integrity within the RAF’s claims process, ensuring that funds are allocated fairly to those genuinely in need.
