RAF Loss of Support Calculation

RAF Loss of Support Calculation:

In the heart-wrenching event of losing a loved one in a road accident, the financial repercussions can add an overwhelming burden to the already devastated families. The Road Accident Fund (RAF) in South Africa steps in to alleviate this burden by compensating for the loss of support. But how exactly is this loss calculated, and who is entitled to claim?

Who Can Claim?

Individuals who depended on the deceased for financial support can file a claim with the RAF. This includes spouses, biological or adopted children, and indigent parents who relied on the deceased for maintenance. The claim hinges on the legal obligation the deceased had to support these dependents.

RAF Loss of Support Calculation

The RAF employs a formula to apportion the deceased’s income among the dependents, reflecting the nature and number of dependents. Specifically, two portions of the income are allocated to the spouse, while one portion is earmarked for each child and indigent parent.

Practical Example: If we consider a deceased individual earning R13,500 per month, leaving behind a spouse and three children, the distribution of loss support would be as follows:

• Father’s Share: R3,750 per month (which falls away upon death)
• Mother’s Share: R3,750 per month (as loss of support)
• Each Child’s Share: R1,875 per month (as loss of support)

The division of income changes as circumstances evolve, such as when a child reaches self-sufficiency or if the widow remarries, affecting the loss calculations. Additionally, if the deceased was at the start of their career, expected promotions and salary increases are factored into the loss calculation through expert analysis on potential earnings.

Formula

To devise a simple formula for calculating the RAF loss of support, we will consider the key factors mentioned: the deceased’s monthly income, the number of dependents, the specific allocations for a spouse and children, and the limitations imposed on the total annual loss of support. This formula will help in estimating the monthly loss of support for each dependent and the annual cap limitation.

Let’s break down the formula into steps for clarity:

1. Monthly Income of the Deceased (MID): The total monthly income earned by the deceased.
2. Number of Portions (NP): This is determined by allocating 2 portions for the spouse and 1 portion for each child and indigent parent. If there is no spouse, the calculation adjusts accordingly.
3. Portion Value (PV): This is the value of each portion, calculated by dividing the Monthly Income of the Deceased (MID) by the total Number of Portions (NP).
4. Spouse’s Loss of Support (SLS): This is calculated as 2 times the Portion Value (PV).
5. Child’s/Indigent Parent’s Loss of Support (CLS): This is equal to the Portion Value (PV).
6. Total Annual Loss of Support Cap (TALC): The maximum allowable total annual loss of support, which is adjusted quarterly for inflation. As of the example, this is set at R195,000.

Example Calculation:

For a deceased with a monthly income of R13,500, a spouse, and three children:

• MID: R13,500
• NP (Spouse + 3 Children): 2 (spouse) + 3 (children) = 5 Portions
• PV: R13,500 / 5 = R2,700
• SLS: 2 x R2,700 = R5,400
• CLS (per child): R2,700

This simplified formula provides a baseline for calculating loss of support. However, it’s crucial to note that the actual calculation might require adjustments based on specific circumstances, including the annual cap and potential future earnings of the deceased. For the most accurate and personalized assessment, consulting with a legal expert or financial advisor familiar with RAF claims is advisable.

Limitations and Adjustments

Notably, changes to the RAF compensation scheme post-31 July 2008 introduced a cap on the total loss of support claimable by all dependents from a single deceased breadwinner to R195,000 annually. This cap is subject to quarterly adjustments for inflation, ensuring fairness in compensation despite economic fluctuations.

Each dependent’s claim is adjusted proportionally within this cap to ensure that the total does not exceed the set limit. The calculation of loss incorporates considerations for inflation and other factors, aiming to provide a lump sum that, if wisely invested, would support the dependents until the deceased would have retired.

Funeral Expenses: The RAF also compensates for funeral expenses, albeit with limitations. Claimable items include the service, grave fee, and casket, but not ancillary costs like refreshments.

Understanding the RAF’s loss of support calculation offers a glimpse into the support system designed to aid families during their most challenging times. It underscores the fund’s role in providing financial stability, ensuring that dependents are not left destitute following the tragic loss of a loved one.

FAQS

How Much Does RAF Pay for Death of a Mother?

The Road Accident Fund (RAF) in South Africa compensates for the death of a mother by covering loss of support and funeral expenses. The amount paid varies based on several factors, including the deceased’s income, dependents, and the extent of financial dependency.

1. Loss of Support: The compensation for loss of support is calculated based on the deceased’s income and the financial needs of the dependents. This involves complex actuarial calculations.
2. Funeral Expenses: Reasonable funeral expenses are also covered, typically up to a capped amount.

While there is no fixed amount, compensation can range from a few hundred thousand to several million rand, depending on the specific circumstances.

• Loss of Support: Calculated based on income and dependency
• Funeral Expenses: Reasonable costs covered, usually up to a specific limit

How Much Does RAF Pay for Broken Arm in South Africa?

The compensation for a broken arm from the RAF depends on the severity of the injury, medical expenses, and the impact on the victim’s quality of life. The RAF uses a structured approach to calculate general damages.

1. Medical Expenses: All reasonable medical costs related to the injury are covered.
2. General Damages: For pain, suffering, and loss of amenities, compensation can range widely based on the injury’s impact. Typical amounts for a broken arm can range from R50,000 to R200,000.

• Medical Expenses: Full coverage of reasonable costs
• General Damages: Typically between R50,000 and R200,000

How Much Does the Road Accident Fund Pay for Hand Injury?

The RAF compensation for a hand injury depends on the extent of the injury, medical costs, and the resulting impairment or disability.

1. Medical Expenses: All necessary medical treatment costs are covered.
2. General Damages: Compensation for pain, suffering, and loss of function varies widely. Minor injuries might receive R30,000 to R100,000, while severe injuries requiring surgery or resulting in permanent disability can be compensated with higher amounts.

• Medical Expenses: Full coverage of reasonable costs
• General Damages: From R30,000 to R100,000 or more, depending on severity

How Much Does RAF Pay for Loss of Income?

The RAF compensates for loss of income by covering up to 100% of the claimant’s proven income loss, subject to certain limits.

1. Calculation: Compensation is based on the proven loss of income, which is typically calculated using the claimant’s pre-accident income and projected future earnings.
2. Cap: There is a cap on the amount of income that can be claimed, currently set at around R320,000 per year.

• Loss of Income: Based on proven income loss
• Cap: Approximately R320,000 per year

How Long Does It Take for RAF to Pay Loss of Income?

The time it takes for the RAF to pay for loss of income varies, but it generally takes several months to a few years.

1. Claims Process: The process involves submitting a detailed claim with supporting documents, which the RAF reviews and assesses.
2. Delays: Various factors, such as the complexity of the case, completeness of documentation, and RAF’s internal processes, can affect the duration.

• Typical Duration: Several months to a few years
• Factors Affecting Timeframe: Complexity of the case, completeness of documentation, RAF processing times

By understanding these aspects, claimants can better navigate the RAF compensation process and set realistic expectations for the outcomes and timelines.