Every time you fill up your tank, approximately R20 (6.5 percent) of the cash you dish out goes to the Road Accident Fund (RAF). The RAF is basically a compulsory insurance policy. Everyone who uses South African roads, whether you use private or public transport, contributes to the fund and therefore everyone is entitled to compensation in the event of an accident. Well, almost everyone.

Claiming compensation

You can claim compensation if you are injured in an accident caused by the negligence of another or if you are a dependant of the individual who is killed in the accident. But you may not make a claim if you were solely responsible for the accident. If you are partially responsible for the accident (say 25 percent) then you can make a claim and receive partial compensation (75 percent).

You can also claim compensation if you are a passenger in the car of the responsible driver or if you are the driver, but not the owner, of a car that has an accident as a result of negligent maintenance (eg faulty brakes).

You can only claim for damages resulting from injury or death, not for damage to property. Your claim can cover medical expenses, compensation for pain and suffering, disfigurement or disability, loss of income (dependants can claim on behalf of a dead breadwinner) and funeral expenses.

Making a claim

So, how do you go about making a claim? The easier option is to hire a lawyer to do it for you, but if the legal fees put you off, you can do it yourself. The claim needs to be made within three years after the accident if you know who caused the accident or within two years if you don?t (eg hit-and-run).

The exceptions to the rule are if you suffered some sort of brain damage as a result of the accident or if you were younger than 21 when the accident occurred. It can take a number of years before you are paid out, but the RAF has 120 days to investigate your claim after it has been lodged.

When lodging a claim, you will be required to submit a fair number of documents from medical reports and accounts to a detailed police report and a letter from your employer documenting the money you lost while you were unable to work.

The state of the RAF

In theory this all sounds great, but how likely are you actually to receive any compensation and if you do, what will it be? Faith in the system was rattled somewhat last year when it emerged that the fund was technically bankrupt as a result of mismanagement, fraud and corruption. The government pumped R2.7-billion into the fund in March 2006 to keep it afloat.

The RAF began 2006 with 443 399 outstanding claims and ended it with 445 682 outstanding claims. During the year 190 468 new claims were lodged and only 188 185 claims were finalised. The current fuel levy won?t cover the backlog of claims.

According to the RAF Annual Report for the financial year 2005-2006:

• 6500 claimants received R1-billion for loss-of earnings (average R155 000 per claim)
  
• 2700 claimants received R332-million for loss-of-support (average R125 000 per claim)
  
• 71 000 claimants received R355-million for medical expenses (average R5000 per claim)
  
• 128 000 claimants? lawyers and other experts received R800-million (average of R6250 each)
  
• The fund spent R520-million on their own lawyers and R478-million on administrative costs.

According to the report, 30 claimants (53 percent of whom are foreigners) sought an average of R13.3-million each from the fund. These claims remain outstanding.

A controversial RAF Amendment Act was passed in 2006 which limits the sum that victims can claim from the fund for loss of income and support to R160 000. For many R160 000 will hardly cover loss of a lifetime?s earnings. For instance, if you earn R2000 a month, this will only cover you for less than seven years.

Unfortunately the RAF will not replace other forms of insurance ? you will still need to insure your vehicle and body (disability, life, medical aid) ? but considering that you are forced to buy into this insurance scheme, it?s worth claiming compensation if you are injured on the road.