A disabled child could cost you your job

While many South African adults have some sort of personal accident cover, either through their employers or individually, few children are covered - despite a disabled child being a big risk to a family’s financial security.

In addition to it being a tragic event, a child who is disabled in an accident, “sets in motion a chain of events that most South Africans, despite the best intentions of the Road Accident Fund (RAF) and other legislation, are ill equipped to manage” says Shanaaz Cajee, Accident and Health Product Owner, Guardrisk Allied Products and Services (Pty) Ltd.

The initial medical costs associated with a disabling accident can be a financial drain on any family. Yet, the real costs only kick in later when, often, one of the parents has to give up their job to care for the child.

While most parents live in fear of school sports injuries, children actually face their biggest risk travelling to and from school - in municipal busses or poorly maintained taxis, often with unqualified drivers, on South Africa’s dangerous roads.

The financial consequences of one, or even both, parents having to stop work to care for a disabled child are serious. Since many South African children are raised by a single parent the implications are even more severe. “Even relatively affluent families with both parents earning are often financially crippled by the 24/7 costs and on-going out of hospital expenses that caring for a disabled child requires” adds Cajee.

Despite this, many people still think that, if they are injured or disabled in a road accident, the RAF will come to the rescue.

“While the RAF remains a brilliant concept and saves hundreds of thousands of South Africans from genuine hardship and suffering, it does, however, have a number of shortfalls and inefficiencies that people should protect themselves against” says Cajee.

Firstly, regardless of the severity of an injury, or the urgency of obtaining payment to meet immediate expenses following an incident, the RAF cannot pay out if a valid claim was not lodged. This can extend the processing period with many settlements taking up to three years. Secondly, due to the many layers of administration and oversight involved, “between the settlement amount agreed and the amount actually received by victims a lot of third parties take their cut,” says Cajee.

Recent amendments to the RAF prevent road accident victims claiming from third parties and also cap certain claims. The RAF also limits loss of earnings compensation to approximately R194 000.00 per annum, amended every quarter. Furthermore, the RAF also does not pay out for pain, suffering, disablement and disfigurement – unless there is a serious injury or severe impairment of functionality.

Given the risk of child disability “we have focussed on developing affordable cover for South African families” says Cajee. Individual/Family 24 Hour Personal Accident Cover includes: death, permanent disability, hospitalisation and the provision of an accident expert. An accident expert assists with RAF claims handling, recovery of burial costs and subsistence allowance for minors at no additional fee.

As such, as little as R32 a month provides a R50000 death benefit and a R250 000 disability benefit. While all options also include a daily hospitalisation allowance, at the higher end, a R1 million permanent disability benefit can be bought for as little as R77 a month.

Cover of this nature “holds the potential to save thousands of South African families from financial ruin, while ensuring that disabled children receive the care and development necessary to reach their full potential” concludes Cajee.