Road Accident Fund South Africa: Crisis, Court Rulings & Reform – What You Need to Know in 2026

Road Accident Fund South Africa: Crisis, Court Rulings & Reform – What You Need to Know in 2026

The Road Accident Fund (RAF) in South Africa is once again at the centre of major legal, financial, and governance developments in 2026. From landmark Supreme Court of Appeal rulings to mounting liabilities that could exceed half a trillion rand, the RAF’s future is under intense scrutiny. Here is a comprehensive overview of the latest news and what it means for South African motorists, road accident victims, and taxpayers.

1. Supreme Court Declares RAF1 Claim Form Unlawful – A Watershed Moment

In one of the most significant legal developments of 2026, the Supreme Court of Appeal (SCA) dismissed the RAF’s appeal against a High Court ruling that declared its RAF1 claim form unconstitutional, unlawful, and invalid. The ruling, handed down on 30 April 2026, confirmed that the RAF exceeded its powers when it introduced the new Board Notice and RAF1 Form in 2022 without proper statutory authorisation.

SCA Judge Caroline Nicholls, with four concurring judges, found that the minister’s decision to approve and gazette the RAF1 form was “fatally flawed for want of procedural fairness” and lacked a rational connection to the purpose of the RAF Act – which is to compensate accident victims for damages suffered.

The court found that rather than facilitating efficient claims administration, the new form placed substantial impediments in the way of accident victims by introducing more stringent requirements. The RAF has now been ordered to revert to the older 2008 claim form.

What This Means for Claimants

• An estimated 600,000 claims were rejected due to the unlawful RAF1 form introduced in 2022.
• Claimants whose submissions were rejected have been given until 30 September 2026 to resubmit their claims.
• The RAF has committed to launching a communication campaign to assist affected claimants.

2. RAF Faces R390 Million Liability After Foreign Nationals Ruling

In a separate but equally impactful ruling, the SCA upheld a Gauteng High Court decision that the RAF must compensate all road accident victims – including undocumented foreign nationals. The court found that the phrase “any person” in the RAF Act includes undocumented foreigners, striking down a directive that required foreign nationals to prove legal presence in South Africa at the time of injury.

Transport Minister Barbara Creecy has revealed that this ruling could expose the RAF to at least R390 million in additional liability, as claims previously classified as non-payable on the Requested Not Yet Paid (RNYP) register now become payable.

The RAF Board is still taking legal advice on whether to seek leave to appeal the ruling at the Constitutional Court. Parliament’s Transport Committee has welcomed the ruling, emphasising that “RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

3. Is a Government Bailout Inevitable? The R500 Billion Liability Crisis

The RAF’s financial position has deteriorated to alarming levels. According to the 2026 Budget Review, the total liabilities of social security funds at the end of 2024/25 were R433.1 billion, with the RAF accounting for 85.5% – approximately R370.3 billion.

The 2025 Medium-Term Budget Policy Statement warned that the RAF remains a significant fiscal risk, with liabilities projected to increase from R369.7 billion in 2024/25 to R422.6 billion by 2027/28.

Legal experts and opposition parties warn the situation could be far worse. ActionSA MP Alan Beesley estimates that the SCA ruling on the unlawful RAF1 form alone could add approximately R180 billion in additional liabilities, potentially pushing the RAF’s total obligations beyond R500 billion – exceeding the financial burden posed by Eskom and Transnet on the public purse.

Attorney Gert Nel of Gert Nel Inc Attorneys, one of South Africa’s leading RAF claims firms, has stated that “Treasury will definitely have to get involved with a bailout to cover these additional expenses.” His firm alone holds a book in excess of R100 million in default court orders against the RAF that are now immediately payable.

4. New Vehicle Licence Fees on the Cards to Fund the RAF

With the RAF’s current funding model – a levy on petrol and diesel – under strain, the Department of Transport is exploring new ways to finance the fund. Transport Minister Barbara Creecy has confirmed that the department is researching a vehicle owner contributory scheme, which could see motorists paying an additional fee when buying or annually renewing their vehicle licence disc.

Two key concerns are driving this proposal:

1. The rise of electric vehicles (EVs) on South African roads, which do not contribute to the fuel levy that funds the RAF.
2. The severe financial strain on the fund, with hundreds of billions in outstanding claims.

This potential new fee has sparked public debate, with many South Africans already facing significant cost-of-living pressures.

5. Governance Crisis: Executive Suspensions and Leadership Instability

The RAF has experienced significant leadership turbulence. The fund has had four CEOs in seven months, and in late 2025, the interim board suspended four senior executives – including the acting CEO, CFO, and Chief Governance Officer – pending an independent investigation into governance and administrative matters.

Transport Minister Creecy dissolved the previous RAF board in July 2025, citing ongoing governance and operational failures. A new interim board was appointed in August 2025, with board chair Kenneth Brown defending the executive suspensions before Parliament’s Portfolio Committee on Transport.

Parliament’s Standing Committee on Public Accounts (SCOPA) is conducting an ongoing oversight inquiry into the RAF, probing governance failures, misleading information provided to Parliament, missed court appearances, default judgments, and rising liabilities.

6. The Road Accident Benefit Scheme (RABS) Bill: A Long-Term Solution?

Deputy Minister of Transport Mkhuleko Hlengwa has confirmed that the Road Accident Benefits Scheme (RABS) Bill is being finalised for submission to Cabinet. The proposed legislation aims to overhaul the current RAF system by introducing:

• A no-fault compensation scheme
• Defined benefits for accident victims
• Annuity-based payments rather than lump-sum settlements
• Clearer rules on eligibility, including for foreign nationals

The RABS Bill has been in development for years and is seen as a critical long-term reform to address the RAF’s structural financial challenges. However, its implementation timeline remains uncertain.

7. Backlog Crisis: 430,000 Claims Pending

Beyond the legal and financial challenges, the RAF is grappling with an operational backlog of approximately 430,000 unprocessed claims. The interim board has set an ambitious target of paying out more than R4 billion per month over eight months to reduce this backlog.

Community outreach initiatives have been launched to reach claimants in remote areas, with some claims dating back as far as eight years. The RAF has also been ordered by courts to pay hospitals significant sums, including a March 2026 SCA order requiring the fund to pay Sunshine Hospital more than R92 million within seven days.

Key Takeaways: What South Africans Need to Know

How to Lodge or Re-Lodge a RAF Claim

If you or a loved one was injured in a road accident and your claim was previously rejected due to the unlawful RAF1 form, you have until 30 September 2026 to resubmit. Here’s what you should do:

1. Contact a qualified RAF attorney to assess your claim.
2. Ensure your claim is lodged using the 2008 RAF claim form (not the invalidated RAF1 form).
3. Keep proof of postage or submission, as the RAF Act permits claims via registered post.
4. If the RAF does not make an offer within 120 days, your attorney can proceed with litigation.

Conclusion: A Fund at a Crossroads

The Road Accident Fund is at a critical juncture. A series of adverse court rulings, a deepening financial crisis, governance failures, and the urgent need for structural reform have placed the fund – and South Africa’s fiscus – under enormous pressure. While the RABS Bill offers a potential long-term solution, the immediate challenges of clearing the claims backlog, managing escalating liabilities, and restoring public trust remain daunting.

For South African road users, the message is clear: know your rights. Whether you are a road accident victim, a motorist contributing to the fuel levy, or a taxpayer concerned about fiscal sustainability, the RAF’s trajectory will affect you. Stay informed, and if you have a pending or rejected claim, act before the September 2026 deadline.

Sources: IOL Business, Moneyweb, Eyewitness News (EWN), Gert Nel Inc Attorneys, Moonstone Information Refinery, Parliament of South Africa. Published 15 June 2026.