Скачать презентацию General Damages q Common Law Recognition Chapter 36 Скачать презентацию General Damages q Common Law Recognition Chapter 36

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General Damages q Common Law Recognition Chapter 36 q No Medium of Exchange q General Damages q Common Law Recognition Chapter 36 q No Medium of Exchange q Uncertainty q Sense of Justice q Inconsistency q A Real Loss q Unequal Treatment q Reconciliation and Solace q q Financing Lifestyle Changes Incentives to Maximize Damage q Lifestyle Changes q Drain on Resources q Small Claims q Transaction Costs q Absence of Other Assistance & Support

Object of Road Accident Benefits Scheme The Road Accident Benefits Scheme should provide timeous, Object of Road Accident Benefits Scheme The Road Accident Benefits Scheme should provide timeous, appropriate and effective healtchare and rehabilitative intervention, protection against impoverishment, restoration of a life with dignity and solace for suffering to road accident victims who have sustained serious injuries with life changing consequences or for the families of deceased road accident victims

Benefits Healthcare: chapters 26– 30 pp. XXIV, 789 -994 Loss of earning capacity: chapters Benefits Healthcare: chapters 26– 30 pp. XXIV, 789 -994 Loss of earning capacity: chapters 31&32 pp. XXV, 995 -1058 Funeral benefits: chapter 33 pp. XXVII, 1059 -1064 Family support benefits: chapters 34 pp. XXVII, 1065 -1101 Non-economic loss benefits: chapters 35&36 pp. XXVIII, 1103 -1182

Cost Drivers pp. 1340 - 1362 Reduction in costs q Reviewable periodic payments q Cost Drivers pp. 1340 - 1362 Reduction in costs q Reviewable periodic payments q Abolition of foreign currency payments q Healthcare tariffs q Managed healthcare q Direct payment to suppliers

Cost Drivers Reduction in costs q Waiting periods q Benefits limited to declared income Cost Drivers Reduction in costs q Waiting periods q Benefits limited to declared income q Monetary ceilings q Limitation on dependants q Time limit q Impairment thresholds pp. LVII – LX, XXVI, 1308 - 1319

Cost Drivers Increase in costs q No-fault participation q Payment to public sector q Cost Drivers Increase in costs q No-fault participation q Payment to public sector q Flat rate funeral and family adjustment benefits q Benefits to non-earners q Removal of ceilings on passengers pp. LVII – LX, XXVI, 1308 - 1319

Systemic Approach vs Piecemeal Fiddling q Context (SA, data & research, international) q Policy Systemic Approach vs Piecemeal Fiddling q Context (SA, data & research, international) q Policy and strategy (National planning. Constitution) q Coordination of policy, benefits and delivery (Departments of Finance, Minerals & Energy, Transport, Health, Social Development; Parliament)

Ad hoc example (1) q Object: Save money q Proposal: Introduce periodic payments q Ad hoc example (1) q Object: Save money q Proposal: Introduce periodic payments q Result: Ø Ø Ø Insurance vs social security? Delay healthcare & rehabilitation because fault Delay pension because fault Retain legalistic approach Retain transaction costs Increase delivery costs & incapacity

Ad hoc example (2) q Object: Save money q Proposal: Remove or limit compensation Ad hoc example (2) q Object: Save money q Proposal: Remove or limit compensation q Result: Ø Ø Ø Insurance or social security? Common law right to sue for balance of damages? No exchange – limit compensation for automatic entitlement Retain delays & transaction costs Retain misallocation of compensation Duplication & inappropriate personnel

Recommendations re Benefits q Road Accident Benefits Scheme q Funded by 1317 q q Recommendations re Benefits q Road Accident Benefits Scheme q Funded by 1317 q q q pp. LVIII, 1308 – fuel levy; surcharges on road use fines; surcharges on registration of certain vehicles. Pay-as-you-go scheme pp. XXXVI-XL, 181 -276 Integration within system of comprehensive social protection pp. XXXVIII-XL, 373 -427

4. Safety-net only with limitations on benefits. q Thresholds – waiting periods for income 4. Safety-net only with limitations on benefits. q Thresholds – waiting periods for income support 5. benefits, severity assessment of impairment for life enhancement benefits. q Ceilings – caps on income and family support, maximum on life enhancement benefits. q Prescribed benefits – tariffs on healthcare, schedule for life enhancement benefits, flat rate funeral benefits. pp. XL, 428 -467 Victim retains common law right to sue for damages from wrongdoer if not satisfied with State provided road accident benefits pp. XLI, 468 -503

6. Fault plays no part – benefits available to all road accident victims pp. 6. Fault plays no part – benefits available to all road accident victims pp. XLII, 514 -564 7. Lump sum awards reduced. q Healthcare, rehabilitation and lifecare fees paid to supplier at time of provision of goods and services. q Income and family support made by periodic payment. q Funeral benefits and family adjustment benefits paid by flat rate lump sum. q Life enhancement benefits paid in lump sum according to schedule pp. XLII, 587 -664

8. Healthcare = hospitals, medical, pharmaceutical, therapeutic, prosthetic, appliances and lifecare. q To provincial 8. Healthcare = hospitals, medical, pharmaceutical, therapeutic, prosthetic, appliances and lifecare. q To provincial and private suppliers. q Tariff. q No waiting period. q Paid to suppliers pp. XLV-LI, 789 -994

9. Income support 1058 pp. LI-LIV, 995 - Paid to earners for temporary and 9. Income support 1058 pp. LI-LIV, 995 - Paid to earners for temporary and permanent loss of earning capacity. q Paid to non-earners only for permanent loss of earning capacity (12/18 months). q International Classification of Functioning (ICF) assessment of disablement q Waiting periods - basic conditions of Employment Act plus 7/20 working days. q Earners benefits = 80% of net pre-accident income to maximum amount (highest marginal tax rate on R 8000). q Non-earners benefits = 80% of tax threshold

10. Funeral benefits = flat rate lump sum (R 15 000) pp. LIV, 1059 10. Funeral benefits = flat rate lump sum (R 15 000) pp. LIV, 1059 -1064 11. Family adjustment benefits = flat rate lump sum (R 10 000/R 15 000) pp. LVI, 1065 -1101

12. Family support benefits available to children and spouses/partners. q Children until eighteen years 12. Family support benefits available to children and spouses/partners. q Children until eighteen years or twenty-three years. q Surviving spouses periods from three years to five years. q Benefits = one half for surviving spouses and children and to share in one half of deceased’s spouses income support benefits. q Payable as pension. pp. LIV-LVI, 1065 -1101

13. Life enhancement benefits q Calculated according to impairment determined by AMA Guides. q 13. Life enhancement benefits q Calculated according to impairment determined by AMA Guides. q Eligible if assessed 30% or more Whole Person Impairment. q Amounts of benefits = percentage of maximum amount payable = R 500, 000. q Paid in lump sum. pp. LVII, 1103 -1182

Delivery RAF: chapters 37 – 39 pp. XXIX, 1183 -1284 Implementation: chapters 40 – Delivery RAF: chapters 37 – 39 pp. XXIX, 1183 -1284 Implementation: chapters 40 – 42 pp. XXX, 1285 -1363

Recommendations re Delivery q Road Accident Benefits Scheme (RABS) to administer proposed scheme pp. Recommendations re Delivery q Road Accident Benefits Scheme (RABS) to administer proposed scheme pp. LVIII, 1308 -1317 q RAF to wind down with ringfencing of current obligations pp. LVIII - LIX, 1317 -1318 q RABS q Subject to oversight of Ministry (Social Development / Transport) and Board q Executive competency (managerial and financial experience in private sector) q Administrative competencies (healthcare and pension administration) pp. LVIII, 1304 -1308

Oversight of the RAF q Minister q Financial Services Board q Auditor-General q Board Oversight of the RAF q Minister q Financial Services Board q Auditor-General q Board

Minister (pp. 1304 - 1307) q Change of Ministry? q Provision of social security Minister (pp. 1304 - 1307) q Change of Ministry? q Provision of social security benefits q Core competency

Financial Services Board (pp. 1195 - 1196) q Advice and financial supervision of FSB Financial Services Board (pp. 1195 - 1196) q Advice and financial supervision of FSB should not apply

Auditor-General (pp. 1196 -1198) q Limitation of audit q 120/50 000 claims files checked Auditor-General (pp. 1196 -1198) q Limitation of audit q 120/50 000 claims files checked

Board (pp. 1183 -1195, 1198 -1206, 1206 -1209, 12091215) q Absence of managerial and Board (pp. 1183 -1195, 1198 -1206, 1206 -1209, 12091215) q Absence of managerial and financial expertise q Sectional interests and conflicts of interests q Lack of political independence q Failure to give proper accounting

Management of RAF q Context q Expertise q Employment costs q Capacity q Consultants Management of RAF q Context q Expertise q Employment costs q Capacity q Consultants q Severance packages

Context (pp. 1219 -1229) q Monopoly q No evaluation of service delivery q No Context (pp. 1219 -1229) q Monopoly q No evaluation of service delivery q No bottom line q Organisation in transition

Expertise (pp. 1229 -1239) q Absence management and financial experience q Absence healthcare skills Expertise (pp. 1229 -1239) q Absence management and financial experience q Absence healthcare skills q Absence administrative and clerical competencies q Oversupply legal qualifications (44% total employees / 86% claims staff)

Employment Costs (pp. 1239 -1247) q CEO package: R 990, 000 p. a. / Employment Costs (pp. 1239 -1247) q CEO package: R 990, 000 p. a. / R 82, 500 p. m. q Managers: R 350, 000 – R 544, 000 p. a. / R 44, 672 p. m. q Tea lady: R 4, 150 p. m. q Employee in private sector earning R 9, 000 enters RAF with R 44, 000

Capacity q Forensic audit report - pp. 1228 -1229, 1262 1263 q Consultants pp. Capacity q Forensic audit report - pp. 1228 -1229, 1262 1263 q Consultants pp. 1265 -1269 q Litigation management pp. 144 -148, 738 - q Absence of data pp. 16, 23, 175 -176, 1198 -1206 753

Consultants (pp. 1262 -1274) q Circa: R 20 m p. a. q R 218, Consultants (pp. 1262 -1274) q Circa: R 20 m p. a. q R 218, 400 for photocopying and collation of material q R 340, 000 including preparation of Power. Point templates

Severance Packages (pp. 1244 -1246, 12751279, 1283) q 24 months salary across the board Severance Packages (pp. 1244 -1246, 12751279, 1283) q 24 months salary across the board q Van Oudtshoorn package = R 2. 2 million for 5 years employment (166 years) q Mabunda package = R 1. 2 million for 23 months employment (118 years)

Recommendations re Delivery q Road Accident Benefits Scheme (RABS) to administer proposed scheme pp. Recommendations re Delivery q Road Accident Benefits Scheme (RABS) to administer proposed scheme pp. LVIII, 1308 -1317 q RAF to wind down with ringfencing of current obligations pp. LVIII - LIX, 1317 -1318 q RABS subject to oversight of Ministry (social development / transport) and Board. Executive competency (managerial and financial experience in private sector) and administrative competencies (healthcare and pension administration) pp. LVIII, 1304 -1308

Presentation to NCo. P Wednesday 27 August 2003 Presentation to NCo. P Wednesday 27 August 2003