Road Accident Fund's effect on petrol prices

[Daniel Puchert]

South African petrol tax problem

South Africa's Road Accident Fund (RAF) is in a dire financial situation, reporting a R1.5-billion deficit in the 2023/24 financial year.

It already contributes R2.18 per litre to the fuel price — over 10%. Proposals to scrap the fund to rein in petrol and diesel prices are also challenging, as they could be detrimental to motorists in the country, particularly those who don't travel long distances.

 

[PaulGherkin]

 

[SykomantiS]

I already have comprehensive insurance and have always had. And I'm of the opinion every motorist should have the bare minimum insurance anyways. Just scrap the RAF already.

 

[zll]

The RAF is also exploited by dodgy lawyers and doctors. It should be scrapped.

 

[Fuzzbox]

They must not let this guy do MATHS.
Scrap the RAF.
If you travel you pay 3rd party insurance.

 

[Danie_V]

This is the first I have ever heard about "where third-party vehicle insurance is mandatory for motorists". Why have I been paying for it for decades already? My motorcycle was downgraded to fire, theft and 3rd party but it is R89 pm. My car is around R400pm inc 3rd party insurance. Where does R500pm come from JUST for 3rd party cover.

If 3rd party is already included in the RAF, why are we are paying for it then? I could be saving money.

 

[Bad Ballie]

RAF has been used as a road to wealth by many cadre over the years, stop the corruption and the fund will flourish just like it did for the entire time the ANC couldn't get it's slimy little paws on it.

 

[Gazg]

The new "loadshedding" article......

 

[mypetcow]

Just make 3rd party car insurance mandatory to get a car licenced. With everyone then having one will mean low premiums for everyone.
The issue of the RAF will resolve itself, i.e. won’t be strictly necessary anymore.

 

[Dimpie (COMPUTEK)]

Put it in the same basket as SAPO and set the whole lot on fire

 

[Arthur]

This is the first I have ever heard about "where third-party vehicle insurance is mandatory for motorists". Why have I been paying for it for decades already? My motorcycle was downgraded to fire, theft and 3rd party but it is R89 pm. My car is around R400pm inc 3rd party insurance. Where does R500pm come from JUST for 3rd party cover.

If 3rd party is already included in the RAF, why are we are paying for it then? I could be saving money.

The RAF only covers injury to persons, not damage to property such as vehicles. You still have to arrange your own insurance for damage you cause to third party property.

 

[Johnatan56]

Just make 3rd party car insurance mandatory to get a car licenced. With everyone then having one will mean low premiums for everyone.
The issue of the RAF will resolve itself, i.e. won’t be strictly necessary anymore.

Good luck enforcing it.

 

[SilverCode]

According to Everycent, third-party-only motor insurance can cost upwards of R500 per month, depending on the car’s value and driver risk profile, with prices on the lower end of the scale being around R120 per month.

I pay R39/pm for the 3rd party insurance on my car.

I guess the big takeaway from this article is that we shouldn't trust Everycent and their numbers.

 

[Polymathic]

I don't mind paying for RAF but the thing is how much of those RAF funds are just looted by the cadres, at least 50% I think.

The thing with countries with mandatory insurance laws, the price of insurance is really high because people are required by law to have it so they can charge whatever they want.