The Road Accident Fund (RAF) provides an essential service to those left injured, and sometimes financially destitute, by vehicle accidents in South Africa.
But some claimants have been receiving significantly less than their granted payouts due to unscrupulous lawyers who have been breaking laws left right and centre to scoop the bulk of the awards.
The RAF said it has received numerous complaints about attorneys paying their victims significantly lower amounts than what the fund granted.
In one instance a Pretoria law firm, against which several complaints have been laid, paid their client compensation of just R10,400 from a R241,000 claim.
The attorney tried to justify this as necessary due to “high administrative costs” but the RAF makes it clear that attorneys’ total fees are limited to a maximum of 25% of the compensation, as per the Contingency Fees Act 66 of 1997.
In other instances attorneys have been lending money to victims to cover living expenses such as groceries and transport money, while the claim is being finalised, and then paying themselves back with “exorbitant” interest rates after the RAF has paid out.
Many road crash victims, who are often in a desperate financial situation, are coerced by attorneys into signing agreements that prevent them from questioning their RAF payout amounts.
“South Africa has exceptionally high levels of inequality. Desperate road crash survivors and their families are often lured into these illegal schemes, then often coerced by attorneys into signing agreements that prevent them from questioning their RAF pay-out amounts,” the RAF said.
Claimants who have been subjected to such unethical practices are urged to contact the Fund immediately.
They can gain information about the claim process, status of their claims and amounts paid to their attorneys by phoning: (087) 820 1111. Details on the RAF’s countrywide offices can be found on its website.
IOL