Being the victim of a vehicle accident can be a life-changing event. Serious injuries sustained may mean months away from work – or even permanent disability or death. In addition to huge medical bills, one may lose income, or leave behind children who were dependent on a breadwinner now unable to support the family. 

According to Elad Smadja, CEO of specialist finance firm, Taurus Capital, “Someone who has been seriously injured is entitled to compensation from the Road Accident Fund (RAF), a social welfare mechanism set up by the State to provide for people whose lives may have been devastated as a result of an accident.”

The process for lodging a claim for compensation can be complex, especially if the accident and resulting injuries were serious. “This is why it is advisable to consult a specialist lawyer – a personal injury attorney – to assist with the claim,” Smadja advises. “Although an individual may make the claim directly with the Fund, without the assistance of an attorney, the amount paid out as compensation is likely to be much bigger if a knowledgeable, experienced lawyer is brought in.”

The average person probably does not know much about the various elements that a claim could cover: medical costs (past and future); damages (for instance, if the victim of the accident has been blinded or had to have an arm amputated); and past and future loss of income. In addition, how would most of us know how to calculate the Rand value of things like the loss of future earnings – if the injured person cannot ever work again – or future medical expenses? It is these sorts of issues that highlight why it is better to have a suitable attorney to represent one in the claims process. Through their experience and exposure to hundreds of cases, the attorneys have a far better understanding of what sort of amount would be needed to compensate the injured person with an income similar to what they had been earning prior to the accident. 

In addition, the person claiming on their own is one individual facing a huge State entity whose work is dedicated every day to accident claims. The size of the operation is clear from the fact that claims to the total of R43,2 billion were paid out in the RAF’s 2019/2020 financial year. As such, there is a distinct imbalance in power relations. Smadja highlights that it is difficult for the layperson to negotiate with the Fund on their own because the individual has neither the knowledge, nor the means, to challenge what the Fund offers. “On the other hand,” he says, “a specialist attorney knows how to take issue with the RAF, and what legal processes should be used to negotiate a better deal for the claimant.”

Many people avoid consulting an attorney because they believe they cannot afford the attorney’s fees. Smadja explains that our law provides protection for accident victims by allowing attorneys to work on a contingency fee basis. This means the legal practitioner will not demand the payment of any fees before the case is settled. The fee may be linked to the size of the claim and is usually a percentage of the amount claimed. 

“It’s quite possible that an injured person may accept an offer of R100 000, for instance, from the Fund, but actually they should have been compensated to the tune of around R5 million. If an attorney is brought in and the claim is then finalised at R5 million, the fee of around R1.2 million is well worth it. It’s surely way better to come out with R3.8 million than to walk away with only R100 000.”

Being seriously injured or killed in a motor vehicle accident is a huge event with often very serious ramifications. The amounts paid out are often the biggest sums that the claimants would ever be exposed to and, after having suffered the trauma of the accident and the many issues that result from it, the person should at least have the peace of mind knowing that their finances will be secure. “A person has one opportunity to get this right, and they shouldn’t leave it to chance,” Smadja concludes.