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RAF Increases Claims Limit

April 29, 2019

Department of Transport

29 April 2019

The Road Accident Fund has announced a consumer price index (CPI)-related adjustment to the statutory limit in respect of claims for loss of income and support as a result of a motor vehicle accident.

The amount referred to under section 17(4)(c) of the Road Accident Fund Act 56 of 1996 has been adjusted to R281 271 with effect from 30 April 2019.

The announcement was published in Government Gazette 42417.

According to the notice, the purpose of the adjustment is to “counter the effects of CPI inflation”.

No claim for loss of income and support can exceed the latest limit.

Limits are adjusted on a quarterly basis in line with inflation.

Meanwhile, the transport minister, Blade Nzimande, has announced the Revised Taxi Recapitalization Programme (RTRP).

Government had earlier decided to revise the Taxi Recapitalization Programme to “meet the current and future needs of commuters and to stimulate the economic potential of the industry”.

A new service provider, Anthus Services 84 (Pty) Ltd, was appointed in March 2019 as the technical partner responsible for the administration and management of the RTRP.

The minister also announced that the taxi scrapping allowance had been increased from R91 100 to R124 000 per scrapped old taxi.

Taxi Recapitalisation SA (TRSA) has been set up as the trading entity to implement the RTRP. Sites have been established in all nine provinces to receive applications for scrapping.

The scope of the programme has been expanded to include commercialization focused on the affordable supply of new taxi vehicles, finance, short-term insurance, spare parts, repairs and electronic fare collection; illegal operations and verification process involving a nationwide survey to ascertain all taxi operators and change management and unity to revise the taxi industry operating model to ensure collaborative ownership and operating models.