Fuel strike hits Road Accident Fund

[schumi]

Pretoria - The strike that has left many petrol stations in Gauteng dry, may have a negative impact on the already cash-strapped Road Accident Fund, which gets a substantial portion of its income from the fuel levy.

The levy received during July was the lowest the fund had received in about eight months, leaving the funds cash flow in financial difficulties.

This impacted on all service providers, as well as beneficiaries, who in certain cases will have to wait even longer before receiving payment for their claims. At the end of July the RAF send a letter to all service providers in which it warned of an even

bigger shortfall in its budget.RAF spokeswoman Linda Rulashe said on that August 4 that 5262 service providers and claimants were owed R9.04 billion.

More at: http://www.iol.co.za/motoring/industry-news/fuel-strike-hits-road-accident-fund-2055227

 

[falcon786]

Corrupsheen is the problem.The fund should have billions in surplus if it was properly managed.

 

[ch@rge]

Mike de Broglio must be quite bleak ATM...

 

[RichardG]

Corrupsheen is the problem.The fund should have billions in surplus if it was properly managed.

Agreed. Insurance should be compulsory for every motorist then we can scrap the road accident fund completely. If not mistaken we the only country..

The RAF receives R1.54 per litre of petrol sold and its funding model is based on the volume of petrol sold.

 

[NarrowBandFtw]

What a crock of 5#!T ... when people don't buy fuel they're obviously travelling less, resulting in less risk of an accident, which is what the fund is for in the first place.

The only legit way the fund can ever run out of money is if it faced greater, legitimate, claims than it can handle, which seems unlikely if people are hypothetically traveling less than usual.

+1 to corruption being the problem, pigs at the trough suddenly squeeling louder when the gravy flows slower

 

[The_Librarian]

+1 to corruption being the problem, pigs at the trough suddenly squealing louder when the gravy flows slower

^ this

 

[f2wohf]

Agreed. Insurance should be compulsory for every motorist then we can scrap the road accident fund completely. If not mistaken we the only country..

Wrong, most European countries have a road accident insurance fund where in case of dispute or in case the one at fault did not have insurance (even though compulsory) or does not have the money to pay, the fund pays the money to the victim and tries to recover it from the other party.

It will still be needed, the amounts in play will be much lower though.

I think the French is funded by the insurers themselves who give a percentage of the car premiums.