The Road Accident Fund (RAF) could be exposed to at least R390 million in additional liabilities following a landmark Supreme Court of Appeal ruling that enables undocumented foreign nationals to claim compensation.
Minister of Transport Barbara Creecy confirmed that claims previously regarded as non-payable may now qualify for compensation after the judgment.
As previously reported, the Supreme Court of Appeal (SCA) ruled that the RAF must compensate all road accident victims, including undocumented foreign nationals, finding that the phrase “any person” in the RAF Act applies to them as well.
Supreme Court Of Appeal Ruling Expands RAF Compensation Claims
The judgment followed a challenge to a RAF directive that required foreign nationals to provide proof of legal residence in South Africa at the time of an accident before compensation claims could be processed.
The Gauteng High Court in Pretoria struck down the directive. A full bench of three judges, led by Judge Norman Davis, ruled that the requirement unfairly excluded foreign claimants.
The court set aside the directive insofar as it demanded that proof of identity from foreign nationals be accompanied by documentation confirming they were legally present in South Africa when the accident occurred.
Barbara Creecy Says R390 Million In Claims Could Become Payable
Creecy said the latest version of the Requested Not Yet Paid (RNYP) register indicates that approximately R390 million relates to claims involving undocumented foreign nationals.
“According to the latest version of the Requested Not Yet Paid (RNYP) register, a total of R390 million relates to illegal foreigners. These have been deemed non-payable matters, but the Supreme Court of Appeal ruling makes them payable,” the minister said.
She added that the RAF Board is still considering its legal options following the ruling.
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“The Board is still taking advice on whether to appeal this ruling,” she said.
According to Creecy, the government is currently assessing whether the matter should be taken to the Constitutional Court.
The Times Post learned that the outcome of any further legal challenge could have significant implications for how future RAF claims involving undocumented foreign nationals are handled.
