This cover is in the form of indemnity insurance to persons who cause the accident, as well as personal injury and death insurance to victims of motor vehicle accidents and their families. The Road Accident Fund Act (56 of 1996) came into operation on May 1 1997 and established the present Road Accident Fund (RAF) whose object it is to pay compensation in accordance with applicable statutes for personal loss or damage wrongfully caused by the driving of motor vehicles. The Road Accident Fund Act was subsequently amended by the Road Accident Fund Amendment Act (19 of 2005). The amended Road Accident Fund Act applies to all claims arising on or after August 1 2008.

Claims arising prior to this date are still subject to the pre-amended Road Accident Fund Act. The amendments removed certain discriminatory provisions and introduced caps of the RAF’s liability in certain areas. Below is an introductory summary of some differences between the old Act, and the Amendment Act. There is presently a legal challenge pending against the RAF Amendment Act and its Regulations.