of the Rules of the National Assembly.
Interested persons and institutions are invites to submit written representation on the Bill to the Secretary to Parliament by no later that 21 January 2005.
GENERAL EXPLANATORY NOTE: 1 existing enactments.
To amendthe Road Accident Fund Act, 1996, so as to extend the powers of the Fund regarding the conclusionof agreements; to alter the financial year of the Fund; to make new provision regardingthe Board of the Fund; to further regulate the Fund's obligation to compensate a third party for general damages, for certain hospital or expenses, for futureloss of income or support and for funeral medical expenses; to require the Fundto compensate a provider of emergency medical treatment directly, in accordance with a certain tariff;to repeal certain provisions limiting the liability of the Fund to R25 000 in respect of claims; to make further provision regarding the instances where the liability of the Fund shall be excluded; to extend the application of the provisioninterms of which a claim for compensation lies against the Fund or an agent only; to authorise the Minister to adjust certain amounts in order to counter the effect of inflation; and to provide for matters connected therewith.
co-ordinationoffunctions; (Iv) co-operative aovernance contemplated in Chapter 3 of the Constitution.
@J TheMinistershall.bvnotice in the Gazette, publish a summary of the terms of any agreement concluded under paraaraph (a).
1 [May] April of any year to PO April] 31 March of the following year[: Provided that thefirst financial year of the Fund shall be deemed to have commenced on the I* of May immediately preceding the commencement of this Act].
Amendment of section 10ofAct 56 of 1996, as amended by section1ofAct 43of 2002 3.
"(6) at least 8, but not more than 12, members appointed by the Minister, [taking into accountthe recommendations referred to in subsection (9), if applicable,] who maynotbe in thefull-time employmentofanygovernment, andwho shall eachcommand extensive experience in oneor more of the fields of insurance, finance, medical service provision, law, accounting and actuarial science, or in consumers' interests."
establish an executive committee of the Board, which shall consist of three membersof the Board, the Chairperson and Vice-Chairperson of the Boardand the Chief ExecutiveOfficer.
TheChairperson, or inhisorherabsence, the Vice-Chairperson, shall at all times preside at meet'ings of the Board [and the executivecommittee].
Amendment of sectionI1of Act 56 of 1996 4. Section 11of the principalAct is hereby amended by the deletioninsubsedion (l)(a)of subparagraph (iv).
Amendment of section 12 of Act 56 of 1996 5.
Minister [upon the the Board], with the concurrence of the Board, appoint the Chief Executive Officer of the Fund on such terms and conditions of employmenthe[asorshe maydetermine: Provided that the Chief Executive Officer of the Multilateral Motor Vehicle Accident Fund holding that oRce immediately prior to the commencement of this Act, shall be deemedto have been appointed as such in respect of the fundinterms of this subsection] the Board may determine.
(ii)hold office at the Minister's pleasure.
Substitution of section 17 of Act 56 of 1996 6.
26, inthe case of a claimfor compensation under this section arising from the driving of a motor vehicle where the identity of neither the owner nor the driver thereof has been established, be obliged to compensate any person (the third party) for any loss or damage which the third party has sufferedaasresult of any bodilyinjuryto himself or herself or the death of or any bodily injury to any other person, caused by or arising from the driving of a motor vehicle by any person at any place within the Republic, if the injury or deathis due to the negligence or other wrongful act of the driverof or the owner of the motor vehicle or of his or her employee in the performance of the employee's duties as employee: Provided that the obliaation of the Fund compensate a third partv for qeneral damages. for pain and suffering.
"serious iniurv" means a permanentiniurv which leads to total disablement or loss of sight. or loss of a limb or the use thereof or such other serious iniuries as the Minister may prescribe.
& Assessment of serious iniuries shall be based on a prescribed method adopted after consultation with medical service providers and shall be reasonable in ensuring injuries are considered in relation to the circumstances of the third paw.
[(2) Upon acceptance of the amount offered as compensation in terms of subsection (I)the third party shall beentitled to the agreed party and party costs or taxed party and party costs in respect of the claim concerned.
compensation which a court awards to any third party by virtue of the provisionsof subsection (1) shall be payable unless14 days have elapsed fromthe date of the court's relevant order.
In issuing any order as to costs on making such award, the court may take into consideration any written offer, including a written offer without prejudice in the course of settlement negotiations, in settlement of the claim concerned, made by the Fund or an agent before the relevant summons was served.
Minister of Health; and private health care, be based on the National Health Reference Price List published bv the Council for Medical Schemes, and shall be prescribed by the Minister after consultation with that Council.
The tariff contemplated in paragraphs (i)and (ii)shall be prescribed after consultation with medical service providers andbeshall reasonable compensation, taking into account factors such as the cost of such treatment and the abilitv of the Fund to provide the compensation.
@J The liabilitvof the Fund shall.in the case of future loss of income. cease uponthe death of the third Dam or the attainmentof the aaeof 65 vears. whichever occurs first.
@ Anv compensation paid in respect of loss of support shall be divided eauallv amongst dependents. The liabilitv of the Fund for loss of in respect of a claim support shall cease upon the date the deceased would have reachedagetheof65 years or, if earlier-& in the case of such a claim bv a spouse, upon remarriane: and & in the case of such a claim bv a dependent child, upon attainment of the age of 21 vears.
Where a third party is entitled to compensation in terms of this section and has incurred costs in respect of accommodation of himself or herself or any other person in a hospital or nursing home or the treatment of or any service rendered or goods suppliedto himself or herself or any other person, the person who provided the accommodation or treatment or rendered the service or supplied the goods (the supplier) may claim the amount direct from the Fund or an agent on a prescribed form, and such claim shall be subject, mutatis mutandis, to the provisions applicable to the claim of the third party concerned, and may not exceed the amount which the third party could, but for this subsection, have recovered.
The Fund, or an agent with the approval of the Fund, may make an interim payment to the third party in outof the amount to be awarded terms of subsection(I)to the third party in respect of medical costs, loss of income and loss of support: Provided that the Fund or such agent shall, notwithstanding anything to the contrary in any law contained, only be liable to make an interim payment in so far as suchcosts have already been incurred and any such losses have already been suffered.
b) Forthepurposes of paragraph (a)'emergencvmedical treatment means the provision of reasonable and appropriate emergency treatment bv a prescribed providerof such service in order to stabilize the emergencv medical condition, and includes triaaina. resuscitation, stabilizationor monitoring of the patient.
or part, or death of the person concerned.
Amendment of section 18 of Act 56 of 1996 7.
"(4) The liabilityofthe Fundor an agent to compensate a third party for anyloss or damage contemplatedinsection 17 which is the result of the death of any person shall [limited to the in respect of funeral expenses be necessary actual coststo cremate the deceasedor to inter him or her ina grave] fixed atR5 000.".
"msuffered as a result of an emotional shock sustained bv that person when that person witnessed or observed or was informed of the bodilv iniurv or the death of another person as a result of the drivinq of a motor vehicle.".
Substitution of section 21 of Act 56 of 1996 9.
266. The Minister may, in relation to (4A) and (7).make section 17(4)(a).
&l the resolution of disputes between the Fund and health care providers.
@J the resolution of disputes between the Fund and Droviders of emeraencv medical treatment.
26D. (IJThe Minister mav. after consultation with the Board, bv notice in the Gazette amend any amount referred to in order to counter the effect in section 17 or 18(4) of inflation.
TheMinistershall, al least 120 davs before anv amendment contemplated in paragraph (a).
setting out the proposed content of the amendment: and inviting comment or obiections for submission to the Director-General: Transport within the period specified in that notice.
Any claim for compensation under section 17 of the principal Actin respect of which the causeof action arose prior on be dealt to the date which this Act took effect must with as if this Act had not taken effect.
No.56 of 1996) ("the Act"), in various respects. These amendments are aimed at improving the governance of the Fund and addressing some issues, which would affect the liquidity of the Fund.
Chairperson and Vice-Chairperson of the Board of the Fund. It also seeks to abolish the executive committee of the Board.
Minister will be appoint the Chief Executive Officer of the Fund, with the concurrence of the Board.
It is also proposed in the Bill to put amonetary limit on claims for general damages, for pain and suffering, loss of amenities of life and disability, for future loss of income or support and for funeral expenses.A method for determining tariffs for payment of medical expenses is provided for. Those tariffs will be based on the tariffs used for public and private service providers. It is also proposed to repeal the provision in terms of which the Fund is liable for the legal costs of claimants.
These limitationswillresult in savings for the Fund.
Aprovision is proposed in terms of whichtheFundwill be required to compensate a provider of emergency medical treatment directly, irrespective of any wrongfulness or negligence on the part of any person.
It is believed that this provision will persuade providers of emergency medical treatment to provide such treatment to any person involved in a motor vehicle accident.
(e.g. claims in respect of persons who were conveyedfor reward) is limited to the amount of R25 000. It is believed to be unfair to have a specific limitation on such claims and that such claims should treated the sameas any other claim.
if apersonfails to attend ameeting in order tobequestioned in respect of a claim or to answer truthfully to questions put.
The Department took the oral and written comments and inputs given during the consultation process in the Portfolio Committee Hearings in 2003, regarding 664-03, intoaccount;theDepartmentpresentedtheDraft Bill to theRoadAccident Fund Board and their comments were incorporated; National Treasury was consulted on both the Bill and the financial implicationsof the Bill.
lo. TheStateLawAdvisersandtheDepartmentofTransportare of the view that this Bill must be dealt within the same manner asinthe case of 864 -03, i.e. in accordance with the procedure established by section75 of the Constitution, since it contains no provision to which the procedure set out in section 74 or 76 of the Constitution applies.