Tag Archive | Claimant

What Is Happening With The RAF’s New Actuarial Panel?

6 Actuaries

For those who don’t know (I would imagine you would be claimants attorneys and disgruntled defendants attorneys) the RAF has announced that it is to implement a new panel of 6 actuaries, who will be appointed on a rotational basis at branch level, to calculate loss of income and support claims for the RAF and its panel attorneys.

It would seem that should a defendant’s attorney want to appoint an actuary on a matter he or she would have to send a request to the relevant branch and they will then issue him/her with a name from the new panel based on a rotational allocation system whereafter the attorney would then send the actuary the instruction.

The new panel and the rotational system was initially set to be implemented on 1 April 2013 which might have caused some confusion out there as to whether you, as a defendant attorney, have to appoint actuaries from the new panel.

The answer is NO, the implementation date of 1 April 2013 has been postponed sine die, hence you can still appoint IAC or any other actuary you used to appoint.

I will keep you updated of any progress or developments herein.

Sending us an Instruction

Our dedicated full time professional team receive instructions by any of the following means:

• Email : damagesclaims@iac.co.za, or
• Post : PO Box 1172, Cape Town, 8000
• Fax : 086 616 8308

Now for some fun –

A prominent young attorney was on his way to court to begin arguments on a complex lawsuit when he suddenly found himself at the Gates of Heaven. St. Peter started to escort him inside, when he began to protest that his untimely death had to be some sort of mistake. “I’m much too young to die! I’m only 35!” St. Peter agreed that 35 did seem to be a bit young to be entering the pearly gates, and agreed to check on his case. When St. Peter returned, he told the attorney, “I’m afraid that the mistake must be yours, my son. We verified your age on the basis of the number of hours you’ve billed to your clients, and you’re at least 108.”

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Understanding the RAF Amendment Act

What is limited? The income of the Claimant or the loss?

The important thing to remember is that the cap applies to the loss suffered in future years and
not to income.

The relevant cap is determined based on the date of accident. Example: if accident falls between 1/1/08 and 30/10/08 the cap is R160 000 per annum. The loss can still be assessed at the date of calculation, but the relevant cap as at the date of accident must be applied.

Take note that the annual loss in each future year is subject to the cap as at the date of the accident and no adjustment is made for increase in the cap amount.

For this purpose, loss in each future year is defined as:

– the value of the loss for each future year, in present money terms.
– the following factors need to be taken into account in calculating the loss for each year in present money terms:

1. Taxation
2. Mortality (i.e. the chance of the claimant(s) surviving each future year)
3. The real rate of interest (actuarial discount rate)
4. Contingency deductions (NOTE THAT THE CONTINGENCY DEDUCTION NOW FORMS PART OF THE CALCULATION)

At present it is not clear whether merit apportionments should be applied before application of the cap or after.

Next month I will continue with this new series on understanding the application of the RAF amendment Act.

Sending us an Instruction

Our dedicated full time professional team receive instructions by any of the following means:

• Email : damagesclaims@iac.co.za, or
• Post : PO Box 1172, Cape Town, 8000
• Fax : 086 616 8308