Q&A – FICS Mobile App Launch
Q&A – FICS Mobile app launch
Q: How long does it currently take on average to process a third party claim in SA? What is the impact of these delays?
A: Claims are processed via the Road Accident Fund (RAF). Currently 3rd party claims can be registered and submitted to the RAF within three years after the accident has taken place on identified drivers and two years for unidentified drivers (hit-and-run accidents). The RAF then has 120 days to administer, resolve and manage each claim after which an attorney is entitled to issue summons to suspend prescription. This summons must be issued any time after the expiring of the 120 days but within a five-year cycle since the date of the accident. Because most claims are not resolved within the 120-day time period, due to delays, lack of evidence etc. this results in legal disputes. Red tape and postponement of court dates prolong the claims process, which results in a typical five to seven-year cycle in claims settlement, and huge increases in costs, which impacts all stakeholders.
Q: How will use of the app improve this figure?
A: The FICS Mobile App will fast-track all processes because the detail, specifics and visuals (photos, video and 3D aspects such as accident scene drawings) offer potential for an immediate starting and processing phase. The FICS Mobile App makes a standard merit report available once the accident details have been captured. This results in a shorter lead-time in the legal process resulting in money and time savings.
Q: How many motor accidents a month occur on average in South Africa? How many involving the RAF?
A: The Transport Ministry estimates that between 5000 and 6000 individuals die in vehicle accidents annually in South Africa. An average of 14 000 accident claims are submitted to the RAF each month.
Q: Any other key statistics?
A: RAF claims and costs amount to an average of R3 billion a month. This amount appears to be insufficient.
Q: How has the potential for fraudulent claims been addressed by the FICS App?
A: All App accident scene reports, which mark the start of the data process, are sent to a safe Cloud from where FICS HQ facilitates and monitors each individual report and claim. (The reports cannot be adjusted or tampered with in any way)
Q: How will you authenticate the information or determine which version takes priority over others?
A: Eye witness reports confirm information surrounding each accident, as do the photos and videos which confirm the vehicle positions and surrounding items. The FICS report with its visuals and witness statements combined with the reports of the medical teams, SAPS and other parties will provide the total picture of an accident.
Q: What is the incentive for tow truck operators and FICS Mobile App report controllers etc. to use the app?
A: Government officials may have a problem in terms of their contracts to generate payments from the App report. Tow truck operators, private individuals and private medical staff may benefit from the R500 compensation for a successful report that leads to a successful file.
Q: Is there a conflict of interest for state employees i.e. the police to use the app and get paid?
A: Of course employees have to perform attend to the injured first. Once this primary function is performed, the App can be used as it also complements the primary function and focuses the employee on detail and sequence of data generating.
Q: What incentives are in place for insurance companies and the legal professions to use this information?
A: Insurance companies receive accurate, precise and detailed accident reports in a much shorter period of time. This saves costs and ensures sufficient detail to manage and pay claims.
Q: How many users of the app are you aiming for in the first year? Second? Do you need an economy of scale?
A: The App is free and a tool to assist all stakeholders to streamline and fast-track claims flowing from accidents. The more the App is used, the more stakeholders will benefit from it. FICS has begun negotiations with the Road Freight Association (RFA), which has 450 members. One member is implementing the App to all of his 1500 drivers.
Q: Who will promote the app – insurance/motor dealers/motor manufacturers?
A: Tow-in companies are our first priority. In the medium term, Insurance companies that see the potential in the App and could encourage their clients to use it.
Q: How will each of your 145 FICS franchisees support the FICS App?
A: Franchisees will be assisted in uploading the App to identified target groups, i.e. towing operators, ambulance staff, students, etc.
Q: Is this app a world first?
A: As far as we know, yes. Yes, the App can be used in other countries and markets, especially in Africa. There is currently great interest from other African countries to use the App and also the FICS’s business model.
Q: How long did it take to build the app?
A: Eight to 12 months to go live. Upgrading is on-going.
Q: Is it compatible with all phones?
A: The App is compatible with Smartphones such as Android and IOS.
Additional information
As of March 31, 2017 the number of registered vehicles in SA was over 12 million. Registered Minibus taxis are 300 000 while heavy load trucks account for more than 300 000 vehicles. Fatal accidents amount to R147 billion in direct and indirect cost to Government, which is 3.4% of the SA GDP, while R306-billion is lost to the SA economy because of all road accidents. The RAF annually spends over R33 billion on costs involving accident claims.
