Tourism Update’s article on the South African Road Accident Fund’s (RAF) new controversial draft bill which proposes to exclude foreign nationals from claiming compensation from the fund, has delivered interesting and informative comments.
One reader used this example: If a foreign self-drive tourist drives about 5 000km during his stay – at 8km/litre (camper type vehicle) – he would contribute approximately R1 400 (€68.6) to the RAF during his stay.
“This is really not a lot for a huge potential benefit. I do not see how it is unfair to claim that the contribution to the fund is not in relation to the premium paid. This should not deter foreign travellers from visiting South Africa.
“When I travel abroad, I have to make sure that I am sufficiently insured. When travelling to some countries you even pay additional insurance at the border. The law should maybe limit the maximum claim for foreigners,” the reader advised.
The reader concluded that, as South Africans, citizens contributed a substantial amount annually to the fund and thus the premium was on a par with the claims.
Onne Vegter, Chairman of SATSA’s Transport Committee, responded to the reader saying that R1 400 (€68.6) is in fact a very reasonable premium, and exactly on a par with the risk and premium paid by locals.
“The premium is built into the fuel price, so the more you drive, the more you pay (and the bigger the risk). A South African who uses the roads all year pays a lot more, but also faces much higher risk of being in an accident and having to claim. We locals pay more because the risk is more. A tourist who only drives 2 000km is statistically at very low risk, and also pays a very low premium. This is 100% just and fair. But letting someone pay the levy while not being able to claim is completely unjust,” Vegter said.
Another reader suggested that foreign self-drive tourists must have their own travel insurance, or the car-rental companies should offer some kind of cover for an additional fee.
“Taxes collected by governments are largely for the local population. You don't get access to the UK National Health Service when visiting, even though you are paying taxes,” the reader highlighted.
