The RAF provides compensation in four main categories, for loss of income or support, medical costs, funeral costs and general damages.
The value of a RAF payout will depend on a number of factors, such as:
- The extent to which you were responsible for causing a road accident, if you contributed in some way;
- The nature and severity of your injuries, and their likely consequences over the short and long term, as determined by medical experts;
- Current and likely future medical costs associated with your injuries; and
- The extent of loss of income or support as a direct result of injuries sustained in a road accident.
If you are unable to work as a result of the injuries you sustained in the accident, you may claim your proven past and future loss of income from the RAF. There is a limit, also referred to as a “cap”, on the amount that you can claim.
Excerpt from the original Road Accident Fund Act which has been amended:
The annual loss irrespective of the actual loss for loss of earnings and loss of support claims is limited to R160 000.00 per annum. This amount is increased quarterly by inflation.
To read the Act: https://www.raf.co.za/Legislation/Pages/Amendment-Act.aspx
The original R160,000.00 per year cap was introduced in 2008 with the amendment of the Road Accident Fund law. There was no cap on a loss of income before 2008. The RAF have recently adjusted this limit to a cap of R289,957.00 in line with inflationary increases since 2008.
https://www.businessinsider.co.za/road-accident-funds-double-amount-claimants-can-claim-2020-2
The RAF Act had been amended to place a limit on the amount which an injured party could claim for each year. This was due to financial constraints of the fund to pay out claimants and the goal was to ensure that all claimants are able to at least get some compensation rather than have one or two big claims bankrupt the fund.
The annual cap mostly affects claimants who earn around R24 000.00 a month upwards (based on the latest 2020 figures). Therefore in practice, a claimant will be compensated up to R24 000.00 and if their monthly income loss is more than that, they would unfortunately not be covered for the rest by the RAF. Claimants who earned less than R24 000.00 are not affected, thus ensuring that such claimants are compensated to the maximum.