Torque Tips | Road Accident Fund vs Road Accident Benefit Scheme (RABS) Bill

Road Accident Fund vs Road Accident Benefit Scheme (RABS) Bill

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-know the difference-

I would like to believe that some of us are guilty of not keeping up to date with national economic matters such as the condition of statutory undertakings in South-Africa. This is not because we label these matters as unimportant it is just that our busy lives demand that our attention and time be spend on a more demanding matter instead. If you have been keeping up you would know that the RAF Scheme have been facing many problems for quite some time. The government has taken action of these pressing accusations from claimants and with it have decided to introduce a new Scheme known as the RABS (Road Accident Benefit Scheme). We want to assure our readers by debating the difference of these two Schemes so that they may know which root to go.

The government has decided that it would be easier to simply implement a new Scheme known as the RABS Scheme instead of fixing years of financial and administrative problems and negligence. This might seem as the solution to claimants’ problems but is it really what it claims to be- an improvement?


The RAF Scheme:
(1) They won’t pay out to claimants who are solely and completely responsible for the road accident.
(2)They use a calculated formula to determine the amount of financial compensation to the claimant based on their percentage of liability/ responsibility for the road accident.
(3)They will grant financial compensation for past medical costs for your serious injury obtained by the road accident as a lump sum payment to the claimant; future medical expenses are covered by the RAF and payed out by calculating the extent/ seriousness of the injury or grievance.
(4)They provide compensation for the loss of income payed out as a lump sum payment to the claimant due to physical or mental injury obtained from the road accident.
(5)Any individual using the South-African roads can claim-citizen or not.
(6)They provide financial compensation to students who need compensation for the loss of future earning potential.
(7)They provide financial compensation to underage pupils who have obtained or serious injury or grievance and now suffer the loss of potential future earnings.
(8)They cover the cost of the funeral for family breadwinners who have passed away in a road accident.

The RABS Scheme:
(1) They will pay out to all parties involved- ‘no-fault system’, which means that the guilty and innocent both qualify for the same amount of compensation.
(2)This Scheme doesn’t use any formula, instead they simply pay out the same amount to everyone with the same medical or funeral cover.
(3)They provide medical care to public health institutions and practitioners unless the individual has a private medical cover. They will cover the cost for treatment provided by these health institutions.
(4)-They pay out a limited amount of financial compensation for the loss of income via a monthly payment.
-They will pay out this financial amount for 15 years or until the individual turns 60.
-These payments will cease the moment the claimant returns to work, regardless of the impact of the injury of grievance obtained.
(5)The RABS Scheme strictly states that Non-South-African citizens can claim for financial compensation for emergency medical services only.
(6)The RABS Scheme automatically regards these students as unemployed and wont grant financial compensation due to the loss of potential future earnings.
(7)They provide financial assistance to underage pupils who have obtained a serious injury that prevents them from working.
-They can only claim when they have reached the age of 18 years.
-The RABS Scheme will also only pay the national average income that is currently R3500 monthly.




We hope that this side-to-side comparison had been informative and will be of great assistance if you ever find yourself in need of one of these services.


Written by: Ashley Roos