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RAFPay: More Than Funds, It’s About Dignity and Support

In South Africa, most personal injury claims stem from traumatic road accidents causing serious injuries, disabilities, or fatalities. Fortunately, the Road Accident Fund (RAF) is there to provide compensation to those injured or to the dependents of deceased individuals.

But even though financial relief is on the way for these victims, their immediate reality often includes mounting medical bills, daily living expenses, and ongoing financial commitments. A lump sum cash advance can offer temporary relief, but what if those funds run dry due to poor financial management?

At Taurus Capital, we’ve recognised the pressing need for a more sustainable solution in bridging the financial gap, one that goes beyond a “quick fix” to genuinely improve the lives of RAF claimants and makes the work of personal injury attorneys easier. We created the Living Wage Benefit.

But before we dive into the details of the Living Wage Benefit, let’s first take a closer look at the financial realities most victims find themselves in when waiting for their RAF payouts.

Most South Africans are living paycheck to paycheck

According to Floatpays, 76% of South Africans often run out of money before the month ends. When it comes to hospital stays, research from BMC Health Services found that a one-day stay in a public hospital in South Africa costs about R3,700, while private hospitals charge around R5,300. For intensive care units, it can be as much as R22,870 per day.

What does this mean for victims who are already teetering on the edge of financial precarity?

For those who become casualties of road accidents and suffer severe injuries, especially those living paycheck to paycheck and without medical aid, these costs can very quickly push them into an unimaginable financial crisis while they await their compensation from the RAF.

For attorneys like you representing these claimants, the pressure intensifies exponentially. Not only must you deal with the legal intricacies of securing RAF settlements, but now you must also empathise with your clients’ dire financial circumstances, which adds a sense of urgency and extra responsibility to your legal duties.

Putting your clients first

We get it. It’s natural to want your clients to choose the fastest and easiest funding option to relieve their financial stress and reduce your anxiety while waiting for the RAF settlement. But as you know, this may not always be in the client’s best interest.

A lump sum cash advance (like Taurus Capital’s RAFPay bridging solution) can provide much-needed relief during the six-month waiting period, but it might not always be the best option for every case, especially if you’re expecting a large settlement.

What are the drawbacks of lump sum payments?

Receiving a large lump sum of money might sound like a dream come true for claimants because suddenly they have a significant amount of cash at their disposal. But whether this windfall is a blessing or a curse ultimately depends on how well they can manage their finances. Even people who are typically good with money can be tempted to overspend when faced with an unusually large sum.

We’ve seen this all too many times. Someone wins a lottery jackpot, only to spend it all recklessly and end up with nothing soon after. It happens more often than most people might think. Even athletes and celebrities who earn massive paychecks sometimes end up bankrupt because they mismanage their finances. They indulge in extravagant parties, travel the world, and buy lavish cars left and right simply because they can, and without considering the long-term consequences.

The same thing can happen to anyone who receives a cash advance in the form of a large lump sum payment during those six months when they wait for their RAF settlement. They can easily get carried away with that large sum, which is supposed to cover medical bills, living costs, and future needs, leaving them in a tough spot when the money eventually runs out. So, what now? What other options are on the table?

It’s important to be aware of an alternative like the Living Wage Benefit and to have it at your disposal to ensure financial stability during uncertain circumstances.


What is the Living Wage Benefit and how does it work?

The Living Wage Benefit from Taurus Capital offers a more responsible and sustainable approach to supporting RAF claimants by ensuring they have a reliable income stream, financial stability, and peace of mind during the RAF payment waiting period. Instead of a one-time cash advance, claimants receive their funding in a series of scheduled monthly payments, akin to a fixed monthly salary.

When claimants receive a regular income rather than a lump sum, they are less likely to deplete their savings or other resources while waiting for their RAF claims to be resolved. This means they can confidently cover their ongoing monthly expenses, such as rent, groceries, utilities, and transportation costs.

Here are some of the main benefits of the Living Wage Benefit:

  • Steady monthly income or “living wage” adjusted to your client’s financial needs.
  • Guaranteed payments on the 25th of every month.
  • Only one agreement needs to be signed – no readvance agreements or contracts are needed.
  • Peace of mind knowing fixed monthly expenses will be covered for the full duration of the 6-month waiting period.
  • Close customer support via WhatsApp, SMS, and monthly courtesy calls from our consultants.

The Key Takeaway

Many of your clients struggle with managing their finances effectively, so opting for the Living Wage Benefit can provide them with a comforting sense of security and can help them avoid the anticipated feelings of regret and desperation that can arise from spending lump sum payments recklessly.

Ultimately, having the Living Wage Benefit in place eases the burden on you as their attorney. You won’t need to worry about clients mismanaging substantial sums of money. This simplifies your attorney-client relationship and reduces the likelihood of disagreements.

Get in touch with our team at Taurus Capital if you’d like to know more about the Living Wage Benefit.

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