The Road Accident Fund has really reached a low point in terms of its finances. There have certainly been problems over the years, even payments that had to be made in instalments a number of years ago, but things have really touched new lows in recent times.
Going into the Covid-19 situation the Road Accident Fund had a deficit of R17 billion relative to courts orders and amounts they have agreed to pay out. Covid-19 has obviously made the situation far worse and the Road Accident Fund, at the current time, is only paying a fraction of what they owe to attorneys’ firms for all their clients. It is a situation that requires calm. If attorneys all start issuing writs, then the Road Accident Fund who only received approximately R1,9 billion in the last month of the R17 billion that is owed to clients and service providers, then obviously there will not be enough money to pay everybody. It is a situation where I have, in my legal newsletter which you can find at www.legalnewsletter.co.za, urged attorneys to try and remain calm and not jump the queue so that the payment situation can be resolved.