Pretoria - The Department of Transport has welcomed the Constitutional Court's judgement on the Road Accident Fund (RAF) Act.
The Constitutional Court has upheld the constitutionality of a provision in the RAF Amendment Act abolishing road accident victims' common law right to claim compensation for losses not compensable under the Act.
It has also ruled that the provision limiting the amount of compensation that the RAF is obliged to pay for claims of loss of support is constitutional.
The judgment was handed down on Thursday, in the matter of The Law Society of South Africa, the South African Association of Personal Injury Lawyers, and others.
Deputy Transport Minister Jeremy Cronin said: "The Constitutional Court ruling upheld government and parliament's intention to ensure that RAF's compensation is more equitable and sustainable.
"These rulings will also help to close loop-holes through which a disproportionate amount of the RAF's compensation ends up in legal professional fees and not with accident victims."
The court stated that the abolition of the common law right was a necessary and rational part of an interim legislative scheme whose main purpose is to achieve the delivery of a social security service that is financially viable.
It further held that the cap on compensation for the loss of income and loss of support was constitutionally sound. The tariff for emergency medical treatment remains unaffected by the judgment.
However, Cronin has acknowledged the finding of the court that the Minister of Transport Sibusiso Ndebele, will have to prescribe a new tariff for the reimbursement of non-emergency medical expenses incurred by victims of road accidents.
