RoadCover shares thoughts on the Road Accident Benefit Scheme (RABS)

The Road Accident Benefit Scheme (RABS) policy is governments way to pave the way for the transformation of the Road Accident Fund (RAF).

RABS is intended to reach more victims in a shorter time, with a policy shift from a fault-based compensation system to a no-fault basis. The new scheme will address disparities in access to treatment and benefits, ultimately equalising everyone.

The RAF currently faces a number of challenges. Because it operates on a fault-basis, the system is extremely complex, the administrative costs are exorbitant and there are numerous delays in getting reports, treatment and payments.

Once in force, the present legislation will be replaced by defined benefits to eligible claimants on a no-fault basis, with no penalties for the injured person’s own negligence which might have contributed or caused the accident. Injury or death caused as a result of a motor vehicle accident anywhere in South Africa will be covered.

OUR VIEW

On a high level, we believe that RABS will increase the value of the RoadCover offering 10 fold.

As usual, many of the limitations and benefits spoken about in the media have a lovely twist added, and have been taken completely out of context. The current media publications and radio advertisements portray RABS as total doom and gloom. One needs to be cognisant of whom is driving this campaign and what their ulterior motives can be.

When RABS is implemented properly(emphasis on properly) and works according to plan,  the benefits would still suite the broad population of claimants – And no, a claimant is not limited to only claim R44 000 in total from RABS.

Without RoadCover, when RABS is implemented, every single person out there without RoadCover has a huge problem on their hands.

How RoadCover becomes even more relevant in the new proposed RABS system.

• Claimants will have to lodge their own claims online; 90% of the lower income earners don’t have access to the internet – RoadCover handles all claims administration from beginning to end.

• Claimants will have to qualify for RABS benefits. If you have not had a response from RABS within 180 days after submitting your claim, then your claim is deemed to have been denied. RABS will deny your claim if the wrong processes and documents are submitted – RoadCover solves this problem.

• If the claimant’s claim is rejected, there is an appeal process that the claimant can follow that includes going to court. The victim will bear all costs associated with any legal action – The RoadCover Membership will cover all legal costs.

• The costs of obtaining medical and police reports will lie with the claimant – RoadCover Solves this problem.

• There will be no costs contributions from RABS to attorneys for any legal or administrative costs incurred while processing their claim. All these costs will have to be borne by the claimants – RoadCover solves this problem.

• RABS will only be liable for the treatment as per the agreed monthly treatment plan. Ensuring the best possible medical treatment will be a whole new administrative nightmare on its own – RoadCover solves this problem.

• All medico legal report costs will have to be paid and carried by the claimants themselves; reports can cost up to R40 000 per report – RoadCover solves this problem.

• To qualify for the temporary income support benefit (monthly payments), claimants will have to prove their temporary disability every 6 months, supported by professional medico legal and actuarial reports.

• Claimants will have to carry the costs and the burden of resubmitting their claim for this benefit every 6 months for up to 2 years. If this process and report management is not done correctly the benefit will STOP – RoadCover solves this massive problem.

• To qualify for the long term income support benefit (also a monthly payment), claimants will once again have to prove their disability every 6 months, up to the age of 60 years, supported by professional medico legal reports.

• Once again the claimant will have to carry the costs and the burden of resubmitting their claim for this benefit every six months up until the age of retirement – 60 years. If this process and report management is not done correctly the benefit will STOP – RoadCover solves this gigantic problem.

• A family support benefit will also be paid on a monthly basis. This claim needs to be managed on behalf of the spouse and or any minors – RoadCover solves this problem

These are the most important points where RoadCover will add exceptional value to the process. When RABS is implemented, our workload will definitely increase, leading to increased costs.

Are we geared for it, yes indeed! Are we all systems go, yes indeed!

Our feeling about RABS is really a double edge sword, yes we support the notion of change from RAF to RABS as it makes RoadCover even more relevant to everyone out there while marginalising other law firms even more.

The benefits of RABS are still great and their rehabilitation scheme will work fantastically by integrating claimants back into society and giving them the ability to live normal lives.

Having said that, where we don’t agree with RABS is the fact that they are making the process even more complicated to claim.  The claimant is really at the end of the road when his or her claim is rejected as the appeal process will be totally unaffordable to them. Who will they turn to if they don’t have a proper support system like RoadCover to back them.

RABS is putting far too much power into the hands of the public health care system (which we all know is problematic); Paying medical expenses at an agreed public tariff will leave poor claimants even more out of pocket; Making monthly payments instead of lump sum payments will further make the claiming process an ongoing nightmare for claimants, something they will have to deal with for the rest of their lives.

When RABS will be implemented? We don’t know.

Bottom line is that RoadCover is ready for RABS, but is RABS ready for us?