Road Accident Fund South Africa: Major Changes and Updates for August 2025

Breaking: Minister Dissolves RAF Board Amid Governance Crisis

In a decisive move to address persistent governance challenges, Transport Minister Barbara Creecy dissolved the entire Board of Directors of the Road Accident Fund (RAF) on July 15, 2025. This unprecedented action follows mounting concerns about the Fund’s ability to fulfill its statutory obligations to South African road accident victims.

Key Governance Issues That Led to Board Dissolution

The Minister cited several critical governance failures that undermined the RAF’s effectiveness:

• Costly litigation: Protracted legal battles over accounting standards that drained financial resources
• Leadership instability: Inconsistent handling of the CEO suspension, creating institutional uncertainty
• Default judgments: Frequent court defaults that increased contingent liabilities
• Board divisions: Deep internal conflicts requiring casting votes instead of consensus
• Critical vacancies: Failure to fill essential positions including Chief Claims Officer and Head of Legal

RAF Launches National Block Settlement Drive to Clear Backlog

Despite governance challenges, the Road Accident Fund has initiated a promising new approach to address the massive backlog of pending claims. The block settlement drive began in Pretoria from August 6-8, 2025, with plans to roll out nationally across all regions.

How the Block Settlement Initiative Works

The streamlined process allows participating law firms to:

• Submit up to 10 qualifying claims per firm
• Process claims on a first-come, first-served basis
• Focus on claims fully prepared for settlement
• Reduce processing times significantly

Acting CEO Phathutshedzo Lukhwareni emphasized the Fund’s commitment to providing “compassionate, efficient, and accessible service to all claimants” while reducing settlement delays.

New RAF Claim Rules for 2025: What You Need to Know

The Road Accident Fund has implemented significant changes to claim procedures and compensation limits for 2025, aimed at ensuring long-term sustainability while combating fraud.

Major Changes to RAF Claims in 2025

1. Stricter Time Limits

Claims must now be filed within 24 months of the accident, reduced from the previous 36-month period. This change requires accident victims to act more quickly to secure their compensation.

2. Compensation Caps Introduced

New payout limits have been established:

• Loss of Income: Monthly compensation capped at R25,000
• Funeral Costs: Standardized payout of R20,000
• Medical Expenses: Coverage up to specified thresholds

3. Enhanced Medical Evidence Requirements

Only verified medical reports from accredited healthcare professionals will be accepted, reducing the potential for fraudulent medical claims.

4. Exclusion of Minor Injuries

Minor injuries without lasting impact may no longer qualify for compensation, focusing resources on serious cases.

Government’s Reform Strategy: The Road Ahead

Minister Creecy has outlined a comprehensive reform strategy to restore institutional stability:

Immediate Interventions

• Interim Leadership: Request to National Treasury for temporary Accounting Authority appointment
• New Board Recruitment: Transparent, merit-based selection process for new directors
• Expert Advisory Committee: Independent panel to review business processes and recommend improvements
• SIU Investigation: Expanded scope to cover recent governance failures

Long-term Vision: Road Accident Benefit Scheme Bill

The Department of Transport continues working toward finalizing the Road Accident Benefit Scheme Bill, which will introduce a no-fault system. This revolutionary change will make it easier for road accident victims to access benefits without expensive legal proceedings.

Impact on South African Motorists and Accident Victims

For Current Claimants

Existing claimants may benefit from:

• Faster processing through block settlement drives
• Reduced legal delays due to streamlined procedures
• More predictable outcomes with standardized caps

For Future Claims

New claimants must ensure they:

• File claims within the 24-month deadline
• Gather comprehensive documentation early
• Use accredited medical professionals for evaluations
• Understand the new compensation limits

Financial Sustainability and Fraud Prevention

The RAF reforms address critical financial challenges that have plagued the Fund for years. With billions owed in unpaid claims and widespread fraud concerns, these changes aim to:

• Reduce fraudulent and exaggerated claims
• Ensure funds reach genuine victims
• Prevent system collapse within the next few years
• Maintain the fuel levy funding model without increases

What This Means for Legal Practitioners

The legal profession continues to play a vital role in RAF claims, but with important changes:

• Fee caps: Legal fees are now limited to prevent excessive billing
• Streamlined processes: Less dependence on lengthy court procedures
• Tighter oversight: Enhanced monitoring of legal practitioner involvement
• Accessibility: System becomes more accessible to ordinary citizens

Looking Forward: Key Takeaways for 2025

The Road Accident Fund’s transformation represents a critical juncture for South African road accident compensation. Key developments to watch include:

1. Board Reconstitution: Selection and appointment of new RAF directors
2. National Rollout: Expansion of block settlement drives to all regions
3. Legislative Progress: Advancement of the Road Accident Benefit Scheme Bill
4. System Stabilization: Implementation of expert committee recommendations

Conclusion

The Road Accident Fund’s 2025 reforms mark a new era of accountability and sustainability. While the changes introduce stricter requirements and compensation limits, they aim to ensure the Fund’s long-term viability and continued service to genuine accident victims.

For South Africans, the message is clear: road accident compensation remains available, but claims must be legitimate, well-documented, and filed promptly. The success of these reforms will determine whether the RAF can fulfill its crucial role in supporting road accident victims for years to come.

Stay informed about RAF developments and ensure you understand your rights and obligations under the new system. For the latest updates on Road Accident Fund news and claim procedures, continue following our coverage of this evolving story.