1. ROAD ACCIDENT FUNDCOMPULSORY BRIEFING SESSION RFP /2013/00027 Date: 20 August 2013 Time: 11:00

2. AGENDA • Background of the RFP • Purpose of the RFP • Evaluation Criteria • Mandatory Documents • Disqualification of Bids • Submission of Bids • Contact details • Questions and Answers

3. Background • RFP/2013/00027: Request For Proposal: This bid invites proposals from bidders to describe in detail their ability to administer claims on behalf of the Road Accident Fund within a prescribed time frame to meet the service delivery standards of the RAF in the nine (9) provinces of the Republic of South Africa. • Advertised on 08 , 11 and 12 August 2013 • Closing on 10 September 2013 at 11h00 (AS PER THE CLOCK AT THE RAF RECEPTION AT MENLYN)

4. MANDATE OF THE RAF • Legal Mandate • Motor Vehicle Insurance Act 29 of 1942 was the first compulsory motor vehicle insurance • Road Accident Fund Act, 1996 (Act No. 56 of 1996) was amended by the RAF Amendment Act, 2005 (Act No. 19 of 2005) • “The object of the Fund shall be the payment of compensation in accordance with this Act for loss or damage wrongfully caused by the driving of a motor vehicle” • Responsible for providing appropriate cover to all road users within the borders of South Africa and to rehabilitate and compensate persons injured as a result of the driving of motor vehicles in a timely and caring manner • Shaped by Constitutional Rulings and legal precedents • National public entity (schedule 3A of the PFMA)

5. MANDATE OF THE RAF • The Road Accident Fund’s main functions: • The Road Accident Fund (RAF) provides a social security safety net to the country and economy by making available compulsory social insurance cover to all users of South African roads. • The RAF is responsible for: • Providing compulsory insurance cover to all users of South African roads, citizens and foreigners, • Rehabilitating and Compensating persons injured • Actively promoting the safe use of all South African roads • Citizens can claim from the RAF: Directly or alternatively they can use an attorney

6. Compensation covered by the RAF: MANDATE OF THE RAF • Past and future hospital, medical and related expenses • Funeral expenses • Past and future loss of support • Past and future loss of earning • Pain & suffering, disability, disfigurement and loss of amenities of life

7. RATIONALE BEHIND THE RFP • The RAF is experiencing a lack of capacity to effectively deal with the current claims backlog of approximately 250 000 claims. As part of the backlog elimination strategy of the RAF, the Board approved several initiatives which will assist in the backlog elimination. • One of the strategies approved by the Board of the RAF was to outsource a portion of the backlog. • A full outsource model for specific claims over a defined period was chosen as it will assist the Fund to identify efficient claim processing models which may be adopted by the Fund.

8. OPERATING MODEL

9. OPERATING STRUCTURE

10. PROJECT WAY FORWARD

11. DELIVERABLES • This bid invites proposals from bidders to describe in detail their ability to administer claims on behalf of the Road Accident Fund within a prescribed time frame to meet the service delivery standards of the RAF in the nine (9) provinces of the Republic of South Africa. • The RAF will award a contract to three (3) successful bidders for an initial period of one year, renewable annually, subject to performance, for up to three (3) years at the election of the RAF in respect of the following deliverables: • Validate and verify claim information; • Investigate and assess merits; • Investigate and assess medical records and reports relating to injuries sustained by the Claimant; • Investigate and assess quantum; • Negotiate settlement; • Deal with all litigation arising on a specific matter after instruction; • Accurate record keeping and timeous reporting; and • Communication with claimants, attorneys and the RAF.

12. LITIGATION • The Fund has a panel of attorneys who generally deals with litigated claims. • The main focus of this bid is not on litigation, but on finalising claims. The appointed service providers must be able to deal with the outsourced claims irrespective of whether the claim is litigated or not. • Provision is made in the SLA to deal with the eventuality of a claim becoming litigated. • The service provider is expected to negotiate settlement with claimant attorneys where claims are litigated and to represent the Fund in Court. • The

13. PRICING MODEL • Bidders must provide pricing in respect of two categories: • Direct Claims • Represented Claims • Pricing must cover all services and disbursements • NO ADDITIONAL AMOUNTS WILL BE PAYABLE IN EXCESS OF THE PRICING TENDERED • The

14. SERVICE STANDARDS AND QUALITY • The RAF reserves the right to vet the service standard and quality of representation by the bidders in terms of the contract terms and conditions contained in the bid documents. • The bidder will be required to sign a Service Level Agreement with the RAF. • The bidder shall not communicate with any third party on behalf of the Fund, other than for purposes of delivering the services. • The bidder must minimize all identified risks and costs. • The bidder must provide details of its organisational structure and capacity. • Should the RAF suffer any loss due to the actions of the bidder, the loss will be recovered from the bidder in terms of the PFMA and the RAF’s financial control policies. • The bidder must provide Bid Security, in a form acceptable to the Fund (Annexure H), in the amount of R500 000.00. • The bidder must provide public liability insurance in the amount of R5 000 000.00

15. Contract TERMS • Contract Duration • Conflict of Interest • Performance Guarantee • Insurance / Limitation of Liability • Penalties • Pricing Structure • Performance Measurement • Litigation • Skills Transfer

16. Mandatory Documents • Standard Bidding Document (SBD) • Valid Original Tax Clearance Certificate • Bid Conditions • BEE Certificate

17. EVALUATION CRITERIA • The bid will be evaluated based on the following requirements: • Mandatory (Comply or Not Comply) – Bidders who do not meet the mandatory requirements will be disqualified. • Technical Functional requirements (100 points). • Price and BEE (90/10 points). • Bidders who score 60 out of 70 points will be required to do a presentation. • Bidders who score 90 out of 100 points will be evaluated on Price and BEE. • The Three (3) bidders who score the highest points on Price and BEE will be listed on a panel.

18. MANDATORY EVALUATION CRITERIA

19. MANDATORY EVALUATION CRITERIA

20. MANDATORY EVALUATION CRITERIA

21. MANDATORY EVALUATION CRITERIA

22. Technical Evaluation Criteria

23. Disqualification of bids • Bidders shall be disqualified if they fail to: • Submit a valid and original tax clearance certificate • Complete questionnaires in full • Submit true and correct information • Comply with mandatory requirements • Comply with prescribed response format • Attend the compulsory briefing session

24. Original signed bid document and Proposal clearly marked and indexed with all pages numbered. • One (1) original and two (2) hard copies, submitted in a sealed, clearly marked (RFB/2013/00027) envelope , to the address provided below. • Submission Address : RAF Menlyn Reception 38 Ida street Menlo Park Pretoria • CLOSING TIME : 11:00 am (PER THE CLOCK AT THE RAF RECEPTION) Submission of RFP responses

25. Bid responses sent by courier must reach the reception at least 36 hours before the closing date (10 September 2013, at 11h00 – AS PER CLOCK AT RAF RECEPTION), to be deposited into the Bid box. • Submission Register must be signed at the reception by bidder when submitting bid documents. Important note: • Please ensure that the attendance register has been signed • Name of company • Contact details • Late response will not be considered Submission of RFP responses

26. Contact Details • All queries must be forwarded to mthobag@raf.co.za • Enquiries and clarification will close on the 25 August 2013 @ 12H00. • Q and A pack will be published on RAF website on 29 August 2013.

27. Thank you Questions and Answers