The RAF has credited its issues to an increase in administrative costs, especially legal fees.
The fund stated that for every R1 collected from the fuel levy claimants receive a mere 45c.
The state insurer revealed details in a response to a highly unexpected order recently granted by theHigh Court.
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The order suspended all writs of attachments and execution against the fund’s essential assets.
All claims, older than 180 days, need to be paid out before 30 April.
The insurer is funded by a fuel levy that every motorist in SouthAfricapays.
Road Accident Fund is reportedly facing extreme financial trouble, according to a recent statement. Image: Patrick Pleul/picture alliance and Waldo SwiegersSource: Getty Images
Of this amount, only R26 billion ends up being dispersed to claimants.
This is just 60% of the insurer’s collected funds.
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Source: Briefly News
Reeshni ChettyReeshni Chetty is a senior current affairs reporter.
Reeshni has a passion for breaking the stigma surrounding mental health issues.
