What is apportionment?
Apportionment applies when the claimant was partly at fault for the accident. Under the Apportionment of Damages Act 34 of 1956, if both parties contributed to the accident, the damages are reduced in proportion to the claimant's degree of fault.
For example, if the claimant is found to be 30% at fault, their total claim is reduced by 30%. A R2,000,000 loss becomes R1,400,000.
When does it apply?
Apportionment is common in RAF claims where the claimant was:
- A pedestrian who crossed without looking
- A driver who was speeding or ran a stop sign
- A passenger who knew the driver was intoxicated
- A cyclist without reflective gear at night
The percentage is negotiated between the parties or determined by the court. It's a legal question, not an actuarial one — the actuary simply applies whatever percentage is agreed or ordered.
How it's applied in the calculation
Apportionment is applied after all other adjustments (tax, contingencies, discounting). It's a straight percentage reduction of the total loss:
This means apportionment has a large absolute impact on bigger claims. A 20% apportionment on a R5,000,000 claim removes R1,000,000.
Negotiating apportionment
In practice, apportionment is one of the most negotiated aspects of a RAF claim. The RAF frequently alleges contributory negligence, sometimes aggressively. As an attorney or claims handler, it's worth understanding:
- The burden of proof is on the party alleging contributory negligence. The RAF must prove the claimant was at fault.
- Witness statements and police reports are key evidence. Secure these early.
- A small shift matters — the difference between 20% and 30% apportionment on a R3,000,000 claim is R300,000. Fight for every percentage point.
Try different scenarios
Use the WikiQuantum calculator to model how different apportionment percentages affect the final quantum. Enter the apportionment on the input form and the calculator applies it automatically to the total loss. It's a quick way to prepare for settlement negotiations.