RAF Contingency Fee Agreement
The Road Accident Fund (RAF) is a South African public body set up to pay compensation to accident victims. Contingency fee agreements are a way of charging for legal fees only when a lawsuit is successful.
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Background
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The RAF was established through the 1996 Road Accident Fund Act providing appropriate road cover to all South African road users and their families. It awards compensation to injured victims, provides medical treatment and "promotes the safe use of roads".
Lawyers
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Contingency fee agreements are common legal practice when road accident victims claim damages. Lawyers agree to charge a percentage of the eventual award, often up to one-third of the settlement award. Although sometimes known as "no win, no fee," some legal expenses (such as photocopying or postage) may be charged even if the case is lost.
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Changes
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The original legislation was changed in the Amendment Act of 2005. It significantly restricts road accident claims and limits the amount of money people can claim. Controversy has surrounded the revisions as the RAF and Law Society of South Africa dispute the new restrictions. The RAF wants claimants to go directly to them for compensation. Lawyers see this as a way of disadvantaging accident victims because the contingency arrangement would be impossible to implement for everybody.
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References
- Photo Credit South Africa image by bluefern from Fotolia.com
