Road accident benefit scheme: What is it?
The Road Accident Benefit Scheme (RABS) is intended to replace the current fault-based system administered by the Road Accident Fund (RAF). Under RABS, accidents will be treated on a NO FAULT basis. Inherently, a no-fault scheme means that all drivers that can prove they have been in a motor vehicle accident, will be able to submit a claim to RABS.
Although this may sound good on face value, what this means is that all road accident victims will be able to receive a structured benefit even if the accident was your fault.
Studies have shown that although a no fault system may reduce administration by up to 20% it drastically increases the volume of claims and the amount of compensation to be paid resulting in the value of the benefits having to be reduced in order to keep the scheme sustainable.
Currently, in the event that you caused the accident, you are excluded from claiming from the RAF, but victims that do qualify to claim, receive substantially higher payments as compensation.
The problem with RABS
RABS is based on the same model as that of The Workmen’s Compensation Commissioner (WCC) where for example an employee is injured or falls ill while on duty a claim could be lodged at the WCC, having the employer available to champion the employee’s cause. However, under RABS the victim will have no representation as he / she would have to lodge the claim themselves.
RABS DOES NOT allow you to recover your full loss suffered and drastically decreases amounts and benefits payable to you.
All Benefits fall within the Administrator’s discretion and may be reduced or withdraw by the Administrator at any time – no long term financial security is offered by RABS.