A high court in Mpumalanga ruled that the Road Accident Fund (RAF) must pay the hairdresser over R2.67 million for past and future loss of earnings after she lost two fingers in an accident.
Judge T.S. Ngwenya found that the woman's injuries significantly affected her ability to work. Prudence Dibakoan was a passenger in a vehicle involved in a collision with another car in March 2022 in White River, Mpumalanga.
The RAF accepted full liability for the accident, so the dispute before the court was limited to the amount of Prudence's past and future loss of earnings.
Amputation of two fingers
Dibakoan informed the court that after the accident, she was taken to Kiaat Hospital, where her middle and ring fingers on her right hand were amputated. At the time of the incident, she was working as a hairdresser at the Split-ends salon, and after this incident, she could not work for about a year.
Before the accident, she earned about R6200 per month. After returning to the salon, her income dropped to approximately R3200 per month. Later, she started working independently in a salon in White River, renting a chair. Initially, her income was around R9800, although it later decreased to approximately R8000.
Dibakoan told the court that the injuries slowed down her work, and she can no longer perform certain types of hairstyles. When the RAF disputed parts of Dibakoan's evidence, including the lack of standard employment records such as payslips, tax documents, or UIF registration, she explained that part of her income was deposited into a bank account, while the rest was received in cash.
Judge Ngwenya felt that the absence of documentary proof of all her income should not lead to the rejection of the claim. The Judge noted that Dibakoan worked in the informal hairdressing sector, and there were no serious disputes about her receiving part of her income in cash. The Judge concluded: 'I have no reason to doubt this, as cash payments are common in the informal sector.'
The court concluded that Dibakoan provided sufficient evidence to establish both past and future loss of earnings.
Experts found she was disadvantaged in the labour market
An occupational therapist determined that Dibakoan's speed had decreased due to the amputation and pain affecting her hand. Although she retained the ability to perform moderate work, and her profession fell within the parameters of light work, testing showed below-average grip strength in her right hand. The therapist concluded that her limitations would reduce her ability to work at the same level as uninjured workers, making her a vulnerable competitor in the open labour market. The report also highlighted that hairdressing requires the use of both hands and all fingers, especially when braiding hair.
An industrial psychologist similarly found that Dibakoan's work speed had suffered, and she might be losing clients due to the extra time required to perform hairstyles. The expert concluded that her earnings would likely remain lower than what she could have earned without the accident.
RAF arguments dismissed
The RAF contested the industrial psychologist's forecast that Dibakoan could achieve higher earnings through self-employment. However, the court found that objective evidence supported this forecast. Judge Ngwenya noted that Dibakoan did indeed transition to self-employment after the accident and managed to increase her income despite the limitations caused by the injuries. Thus, the court rejected the RAF's assertion that she would not have reached the upper quartile of earnings for non-corporate semi-skilled workers.
R2.67 million paid out
Actuarial calculations determined the total amount of loss of earnings in various amounts depending on the assumptions used for retirement. After analyzing the evidence and applying an additional deduction of 5%, the court calculated Dibakoan's past loss of earnings at R192,119, and the adjusted future loss of earnings at R2,477,215.25. This resulted in a total awarded sum of R2,669,334.25. The RAF was obliged to pay this amount with interest at a rate of 10.25% per annum from the date of the judgment until payment. It was also ordered that a guarantee covering 100% of Prudence's future medical, hospital, and related treatment expenses due to the accident be provided, subject to proof. The RAF was also obliged to pay her legal costs. Meanwhile, her claim for moral damages remains undecided and will be determined after the completion of the assessment process of severe injuries by the South African Medical Professions Council.
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