Motorbike insurance and the Road Accident Fund: two different jobs

The Road Accident Fund and motorbike insurance do different jobs. The Fund, under section 17 of the Road Accident Fund Act, deals with loss from bodily injury or death caused by the driving of a motor vehicle. Motorbike insurance is a contract with an insurer that covers your bike and damage you cause to others.

What does the Road Accident Fund do?

The Road Accident Fund Act, 1996 (Act 56 of 1996) sets up a statutory scheme for people hurt, and the dependants of people killed, in accidents involving motor vehicles. Section 17(1) says the Fund or its agent must compensate a "third party" for loss or damage that results from bodily injury or death caused by the driving of a motor vehicle, where the cause is the negligence or other wrongful act of the driver or the owner (or the owner's employee).

Three features of section 17 are worth knowing.

• It is about people. The duty is framed around bodily injury and death. It does not read as a scheme to repair or replace vehicles.
• Pain and suffering needs a serious injury. Section 17(1) limits compensation for non-pecuniary loss to cases of serious injury, paid as a lump sum. Section 17(1A) says serious injury is assessed by a registered medical practitioner, using a prescribed method.
• Future costs have rules. Section 17(4) deals with future medical and care costs, which may be paid after they are incurred or directly to the provider under a tariff, and with future loss of income or support, which are paid as a lump sum or in instalments subject to an annual cap that is adjusted by notice in the Gazette. Section 17(6) allows interim payments for costs already incurred.

The Act is detailed. This guide describes its shape, not how any individual claim would turn out, and it does not give legal advice.

What does the Fund not do?

Section 19 lists cases in which "the Fund or an agent shall not be obliged to compensate any person". Several of them are about how the claim is made:

• The claim has not been instituted and prosecuted by the third party, or on the third party's behalf by an attorney or by a state, provincial or local government representative (section 19(c)).
• The third party has agreed to pay someone other than those people a portion of the compensation, or any amount for investigation or handling of the claim (section 19(d)).
• The injured person unreasonably refuses a medical examination the Fund asks for, or fails to supply medical reports or records (section 19(e)).
• The third party fails to submit an affidavit setting out the accident, with the claim form or within a reasonable time afterwards, if in a position to do so, or fails to supply copies of statements and documents about the accident (section 19(f)).
• The loss was suffered as a result of an emotional shock sustained from witnessing, observing or being told of another person's injury or death (section 19(g)).

If you are hurt on a motorbike, the timing and manner of a claim matter. An attorney can say what applies. The point for this guide is that the Fund is a legal claim process, and it is not an insurance product that you choose and pay a premium for.

What does motorbike insurance cover instead?

Motorbike insurance is a contract with an insurer, and what it covers is written in the policy. In general terms, providers offer three levels. As our motorbike insurance page describes them:

• Comprehensive covers your bike and other people's property.
• Third party, fire and theft covers other people's property, plus your bike if it is stolen or burns.
• Third party only covers damage you cause to others.

Those are plain-language descriptions, not definitions from a statute. What a given policy covers, and what it excludes, are set out in its schedule and wording. Under the Policyholder Protection Rules (Short-term Insurance), 2017, the insurer must give you the nature and extent of the policy benefits, and concise details of any significant exclusions or limitations, before you take the policy (Rule 11.4.2).

So do I still need motorbike insurance?

That is a decision for you, taken with the licensed provider who calls you. Olvian does not advise on what or how much to buy. What the law tells you is only what each scheme is for.

• If your bike is damaged or stolen, the Fund's duty under section 17 does not describe a payment for that. Your own cover decides that.
• If you damage someone's property, such as a car or a wall, the Fund's duty under section 17 is again about bodily injury and death, so the question of who pays for the property depends on your policy and, if it is disputed, on legal advice.
• If you are injured, or someone is killed, the Fund is the statutory route described above, and your own policy wording may add other benefits. The schedule shows whether it does.

If the bike is financed, the credit agreement may require cover. The finance provider can tell you what it requires.

How does a claim on my own policy work?

A claim on your own policy runs under Rule 17 of the Policyholder Protection Rules, which sets out the insurer's duties to record, acknowledge, decide and explain the claim. For the steps, see how a car insurance claim is handled and decided; the same Rules apply to motorbike policies. Our guide on complaints and your rights covers what to do if you disagree with a decision.

How are medical providers paid?

Section 17(4) of the Act says future medical and care costs may be paid to the third party after they are incurred, or paid directly to the provider, according to a tariff. Section 17(5) lets service providers claim directly from the Fund under the tariff, but not for more than the third party could have recovered. Section 17(3) adds that interest on a court award is payable only after 14 days from the court's order. These details are why an attorney matters in a Fund claim, and why this guide stops at describing the shape of the scheme.

What should I ask the licensed provider?

Because the Fund does not replace a policy, it is fair to ask the provider who calls you:

1. What does this policy pay for if my bike is stolen, burnt or damaged?
2. What does it pay for if I damage someone else's property?
3. Does it include any cover for injury to me or my passenger, or does it leave that to other schemes?
4. What excess applies, and when? (Our guide on car insurance excess explains the disclosure the Rules require.)
5. What do I have to tell you, and what happens if I leave something out?

Write down the answers, or ask the provider to send them in writing.

What does Olvian do?

Olvian is a lead-referral service. You ask once, and your request goes to licensed providers who pay Olvian a fee and call you back. Olvian is not an insurer, broker, financial services provider or adviser. It does not take part in Road Accident Fund claims. If you have been injured, speak to an attorney, or to the Fund directly, about your claim.

Sources

Checked on 31 October 2026. Olvian is not a financial services provider and this guide is information, not advice.

• Road Accident Fund Act 56 of 1996, section 17: liability of Fund and agents
• Road Accident Fund Act 56 of 1996, section 19: liability excluded in certain cases
• Policyholder Protection Rules (Short-term Insurance), 2017, Government Notice 1433, Government Gazette 41329 of 15 December 2017: Rules 11.4.2 and 17.