Road Accident Fund in Crisis: Court Rulings, Rejected Claims & Reform Calls – May 2026 Update

The Road Accident Fund (RAF) continues to dominate South African headlines in May 2026, with a wave of landmark court rulings, mounting financial pressures, and growing calls for systemic reform. From the Supreme Court of Appeal overturning controversial claim form requirements to a Western Cape High Court slapping the RAF with a punitive cost order, here is everything you need to know about the latest developments surrounding South Africa’s beleaguered state-owned insurer.

1. Supreme Court Orders RAF to Revive Hundreds of Thousands of Rejected Claims

In one of the most significant rulings of 2026, the Supreme Court of Appeal (SCA) has ordered the Road Accident Fund to allow claimants whose submissions were rejected under the controversial new RAF1 claim form to re-lodge their claims by the end of September 2026.

The new claim requirements — introduced via a board notice published in the Government Gazette in July 2022 — replaced the old claim forms and required claimants to submit all required details at the time of lodging. This resulted in an estimated 600,000 claims being rejected because they did not adhere to the stricter requirements.

The SCA found that these new requirements unfairly raised the bar for making valid claims, effectively standing in road accident victims’ way of legally obtaining compensation.

Acting CEO of the RAF, Radikwena Phora, said the fund welcomes the judgment as it provides clarity on the RAF1 Form matter. The RAF has committed to engaging with the Minister of Transport to adopt and publish a revised RAF1 Form within six months.

RAF law expert and attorney Gert Nel warned that the fund’s bigger issue is “phantom” claims — claims lodged fully in compliance with the Act but not acknowledged by the fund — that have secured default judgments now immediately payable, estimated at R4.8 billion.

“The RAF needs to start paying — some of these victims had already died in the process of waiting.” — Gert Nel, RAF attorney

2. RAF Must Develop New Claim Form After SCA Rules Previous One Invalid

Closely linked to the above ruling, the Supreme Court of Appeal has also ruled that the RAF and the Minister of Transport must develop a new claim form after the previous one was declared invalid. The ruling, reported on 15 May 2026, means the RAF must work with Transport Minister Barbara Creecy to create a legally compliant replacement within six months.

This development follows years of legal battles between the RAF, personal injury attorneys, and claimants who argued that the new form made it near-impossible for road accident victims to lodge valid claims.

3. RAF Ordered to Pay R2.23 Million to Pedestrian — and Slapped with Punitive Cost Order

The Western Cape High Court has issued a punitive cost order against the RAF and directed it to pay road accident victim Catherine Yiannakis R2.23 million for past hospital and medical expenses — despite the RAF refusing to pay because her medical aid had already covered a portion of the costs.

Yiannakis has been living in a long-term care facility for nearly eight years after being injured as a pedestrian in a motor vehicle collision on 12 February 2018. The RAF had conceded liability, yet continued to dispute its obligation to pay the R552,248.76 portion already covered by Discovery Health Medical Scheme.

Acting Judge M Louw found the RAF’s opposition to be “frivolous” and criticised the fund’s recurring practice of attempting to circumvent court orders through internal directives.

“It is wholly unacceptable that the RAF persists in defending these hopeless matters, thereby wasting public resources, driving up legal costs for both the RAF and claimants.” — Acting Judge M Louw

This ruling is part of a broader pattern of courts finding against the RAF for its refusal to pay past medical expenses covered by medical aid schemes — a dispute that is still pending before the SCA.

4. RAF Faces R400 Billion Fiscal Crisis — Technically Insolvent

The RAF’s financial situation has been described as nothing short of catastrophic. According to analysis by Daily Maverick and confirmed by parliamentary oversight bodies, the RAF’s contingent liabilities could exceed R400 billion — nearly one-fifth of the national government’s entire annual budget.

Key financial facts:

• Current liabilities stand at approximately R100 billion
• Long-term provisions are expected to rise from R387 billion in the current financial year to R426 billion by 2028/29 (per the 2026 Budget Review)
• The RAF receives approximately R50 billion per year from fuel levies, with R7 billion in overheads and R43 billion in payouts
• The fund has more than 430,000 outstanding claims, some dating back over a decade
• The RAF previously handled 250,000 claims per year — it now handles only 70,000

Scopa chairperson Songezo Zibi described the RAF as “technically insolvent” and warned that the fiscus cannot absorb the growing liability. He noted that legal fees per claim have quadrupled and the value per claim has increased by 70%.

“You have layer on layer of problems. The fiscus can’t deal with that,” said Zibi.

5. Former RAF CEO and Board Face Possible Criminal Charges

The scandal surrounding former RAF CEO Collins Letsoalo continues to unfold. Letsoalo, who earned R6 million per year plus a 40% performance bonus during his tenure from 2020 to 2025, was placed on special leave in May 2025 pending a Special Investigation Unit (SIU) probe.

As of May 2026, the former CEO and board members face possible criminal charges, according to Moneyweb. The SIU investigation has uncovered RAF bank accounts with between R1 million and R100 million, and the fund’s payment processes were found to be vulnerable to fraud.

Among the allegations against Letsoalo’s regime:

• Implicated in a R79 million lease in Johannesburg
• A 200-bed Johannesburg hospital was closed after the RAF failed to pay more than R300 million in outstanding debt
• Senior executives accused of manipulating procurement processes and splitting invoices to bypass approval limits
• A lavish R4 million staff party, including R40,000 spent on executive drinks
• The Auditor-General issued disclaimed or adverse audit opinions for five consecutive years

ActionSA MP Alan Beesley has called for dereliction charges against the RAF board and described the impact on the fiscus as “astounding.”

6. Actuarial Society Calls for Hybrid Compensation Model

The Actuarial Society of South Africa (ASSA) has released a research paper proposing a fundamental overhaul of how South Africa compensates road accident victims. The study, released in April 2026, concludes that none of the three existing or proposed systems — the current RAF, the proposed no-fault Road Accident Benefit Scheme (RABS), or compulsory third-party insurance — are viable on their own.

Instead, ASSA recommends a hybrid solution that combines elements of all three systems. One viable option proposed is:

• A system providing basic no-fault benefits for medical care and rehabilitation
• Supplemented by fault-based liability insurance for additional damages
• Delivered through a public-private partnership involving the current RAF and private insurers, under strong regulatory oversight

Actuary George Schwalb noted that the key criteria for any viable system are long-term sustainability, affordability, and equity for all road accident victims.

7. SCA Rules Undocumented Immigrants Can Claim from the RAF

In a landmark ruling in April 2026, the Supreme Court of Appeal ruled that undocumented illegal immigrants can claim from the Road Accident Fund. The RAF subsequently dropped its long-running legal challenge against this ruling.

Parliament’s Transport Committee Chairperson welcomed the ruling, stating: “The RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

The ruling has, however, sparked political debate, with some calling for mandatory medical insurance for all foreign visitors entering South Africa.

Key Trends and Takeaways for RAF Claimants

Based on the latest news, here are the most important points for anyone dealing with a Road Accident Fund claim in 2026:

1. If your claim was rejected under the new RAF1 form, you have until the end of September 2026 to re-lodge it. Ensure you have proof that your original claim was submitted within three years of the accident.
2. The RAF is legally obligated to pay past medical expenses even if your medical aid covered them — courts have consistently ruled in favour of claimants on this issue.
3. Delays remain severe: In Gauteng, trial dates are reportedly being set as far out as November 2033 due to court backlogs and mandatory mediation failures.
4. Seek legal advice: Given the complexity of RAF claims and the fund’s history of non-compliance with court orders, working with an experienced personal injury attorney is strongly recommended.
5. Legislative reform is coming: Legal opinions are being sought to cap payouts for future loss of income and medical expenses, and to introduce staggered payments rather than lump sums. New laws are expected no earlier than 2027.

Conclusion: A Fund in Crisis, But Courts Protecting Victims

The Road Accident Fund remains one of South Africa’s most troubled state-owned entities, burdened by decades of mismanagement, corruption, and an unsustainable liability model. However, the courts have consistently stepped in to protect the rights of road accident victims — from overturning unlawful claim form requirements to issuing punitive cost orders against the fund for frivolous defences.

For the millions of South Africans who depend on the RAF for compensation after road accidents, the message is clear: know your rights, act within the prescribed time limits, and do not be deterred by the RAF’s administrative obstacles.

Stay tuned to this blog for daily updates on the Road Accident Fund and what it means for you.

Sources: IOL, News24, Daily Maverick, Moneyweb, Eyewitness News (EWN) — May 2026