Business Report

RAF faces R390 million liability after court opens door for undocumented foreigner claims

Mthobisi Nozulela|Published
Minister of Transport Barbara Creecy has revealed that the Road Accident Fund (RAF) could face at least R390 million in additional liability.

Minister of Transport Barbara Creecy has revealed that the Road Accident Fund (RAF) could face at least R390 million in additional liability.

Image: File

Minister of Transport Barbara Creecy has revealed that the Road Accident Fund (RAF) could face at least R390 million in additional liability following a Supreme Court of Appeal ruling that allows undocumented foreign nationals to claim compensation.

Last month, IOL reported that the Supreme Court of Appeal (SCA) ruled that the Road Accident Fund (RAF) must compensate all road accident victims, including undocumented foreign nationals, finding that “any person” in the RAF Act includes them.

This was after the Gauteng High Court in Pretoria struck down a RAF directive requiring foreign nationals to prove legal presence in South Africa at the time of injury to claim compensation.

A full bench of three judges, led by Judge Norman Davis, set aside the directive to the extent that, in respect of foreign claimants, it requires that proof of identity must be accompanied by documentary proof that the claimant was legally in South Africa at the time of the accident.

Creecy said a total of about R390 million in claims previously classified as non-payable could now become payable following the judgment.

"According to the latest version of the Requested Not Yet Paid (RNYP) register, a total of R390 million relates to illegal foreigners. These have been deemed non-payable matters, but the Supreme Court of Appeal ruling makes them payable," the Minister said.

She added that the RAF Board is still taking legal advice on whether to seek leave to appeal the ruling at the Constitutional Court, as the government assesses its options in response to the judgment.

"The Board is still taking advice on whether to appeal this ruling," she said.

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