Road Accident Fund in Crisis: Court Rulings, R400bn Debt, and the Push for Reform (May 2026)

South Africa’s Road Accident Fund (RAF) is making headlines for all the wrong reasons in 2026. From landmark court rulings reinstating hundreds of thousands of rejected claims, to a looming R400 billion fiscal time bomb, and urgent calls for a hybrid compensation model — the RAF is at a critical crossroads. Here is a comprehensive overview of the latest developments surrounding the Road Accident Fund as of May 2026.

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

In one of the most significant legal developments of the year, the Supreme Court of Appeal (SCA) ruled that the RAF’s stricter claim requirements — introduced via a new RAF1 form published by the Minister of Transport in July 2022 — were unlawful and unfairly raised the bar for road accident victims seeking compensation.

The ruling, reported on 14 May 2026, found that the new requirements made it near-impossible for many claimants to lodge valid claims. As a result, the RAF has been ordered to:

• Allow claimants whose submissions were rejected under the unlawful requirements to re-lodge their claims by the end of September 2026.
• Engage with the Minister of Transport to adopt and publish a revised RAF1 Form within six months.
• Implement a comprehensive communication campaign to inform affected claimants.

RAF law expert and attorney Gert Nel estimates that approximately 600,000 claims were rejected under the new form and will now need to be re-lodged. He also warned of a separate class of “phantom” claims — claims lodged in full compliance with the Act but rejected due to the now-overturned RAF1 form — that have since secured default judgments estimated at R4.8 billion that are immediately payable.

Acting CEO of the RAF, Radikwena Phora, said the fund welcomes the judgment as it provides clarity, and that the RAF is committed to its full implementation.

2. Foreign Nationals Win the Right to Claim from the RAF

In April 2026, the Supreme Court of Appeal upheld a High Court ruling confirming that foreign nationals are entitled to claim and receive benefits from the Road Accident Fund. The court found that the interpretation of “any person” in the RAF legislation does not exclude foreign nationals.

The Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, 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.”

He called for the long-overdue review and update of RAF legislation, noting that options such as requiring foreign nationals to take out short-term insurance cover — similar to models used in Botswana and Namibia — could be explored through proper legislative processes.

3. The R400 Billion Fiscal Time Bomb: RAF’s Financial Crisis Deepens

Perhaps the most alarming story surrounding the RAF in 2026 is its catastrophic financial position. According to analysis published by Daily Maverick in March 2026, the RAF’s contingent liabilities could exceed R400 billion, with current liabilities sitting at approximately R100 billion.

Key financial facts include:

• The RAF’s long-term provisions are expected to rise from R387 billion in the current financial year to R426 billion by 2028/29, according to the National Treasury’s 2026 Budget Review.
• The fund receives approximately R50 billion per year from fuel levies, with overheads of R7 billion and payouts of R43 billion — leaving virtually no buffer.
• The RAF has more than 430,000 outstanding claims, some dating back over a decade.
• The fund previously processed 250,000 claims per year but now handles only 70,000 annually.
• Legal fees per claim have quadrupled, and the value per claim has increased by 70%.

SCOPA Chairperson Songezo Zibi described the RAF as “technically insolvent” and warned: “You have layer on layer of problems. The fiscus can’t deal with that.”

The crisis has been compounded by years of alleged corruption and maladministration under former CEO Collins Letsoalo, who earned R6 million per year plus a 40% performance bonus during a period when the Auditor-General issued disclaimed or adverse audit opinions for five consecutive years. The Special Investigation Unit (SIU) is currently probing Letsoalo’s tenure from 2020 to 2025.

4. RAF Ordered to Pay 209 Victims R47 Million in 30 Days

In a further sign of the mounting pressure on the fund, a court ordered the RAF to pay 209 road accident victims a combined R47 million within 30 days. Each applicant had already obtained a valid court order against the RAF, highlighting the fund’s persistent failure to honour its legal obligations timeously.

This case is emblematic of a broader pattern: the RAF has accumulated more than R15 billion in default judgments and has been repeatedly criticised by courts for delaying proceedings.

5. Calls for a Hybrid Compensation Model: What the Actuaries Say

A landmark actuarial study commissioned by the Actuarial Society of South Africa (ASSA) and published in April 2026 found that no single compensation model — including the proposed Road Accident Benefit Scheme (RABS) — can resolve all of the RAF’s structural weaknesses on its own.

The study, authored by actuaries Gregory Whittaker, David Rodda, and George Schwalb, evaluated three models:

1. The current RAF system — fault-based, comprehensive rights, but financially and administratively strained.
2. The proposed RABS model — no-fault, faster access to compensation, but raises constitutional concerns about limiting common law rights.
3. Compulsory Third-Party Insurance (CTPI) — private insurer-driven, efficient, but faces compliance risks in South Africa’s economic context.

The researchers concluded that a hybrid approach is the most viable path forward — one that combines basic no-fault benefits for medical care and rehabilitation with fault-based liability insurance for additional damages, delivered through a public-private partnership under strong regulatory oversight.

As Schwalb stated: “The RAF offers comprehensive rights but struggles financially and administratively. RABS promises efficiency but raises legal and reasonableness concerns. Compulsory third-party insurance harnesses market mechanisms but faces compliance risks.”

6. Government Moves Toward the Road Accident Benefit Scheme (RABS) Bill

Transport Minister Barbara Creecy, tabling a R102 billion budget for 2026/27 in the National Assembly, confirmed that the Department of Transport is finalising a review of the RAF’s legislative and compensation framework.

Key announcements include:

• The Road Accident Benefit Scheme (RABS) Bill will be introduced to Parliament later in 2026.
• The government is researching a hybrid funding model that includes both private and public contributions to reduce pressure on the fiscus.
• The aim is to move to a no-fault system with a standardised injury compensation framework to reduce contingent state liability.

Deputy Transport Minister Mkhuleko Hlengwa confirmed that the current RAF model is financially unsustainable and that reform is urgently needed.

7. Access to Justice Under Threat: Court Backlogs and Mediation Failures

Beyond the financial crisis, road accident victims are facing severe access to justice challenges. In Gauteng, a directive making mediation mandatory for all civil trials — intended to reduce court backlogs — has been blamed for worsening delays.

Advocate Justin Erasmus, chair of the Personal Injury Plaintiff Lawyers Association, has lodged a High Court application to set aside the directive, noting that Gauteng courts deal with approximately 300 RAF matters per week, with only 25 state attorneys available to handle them. Trial dates in some cases are being set as far out as November 2033.

Erasmus warned: “The courts will face a tsunami soon if this is not resolved.”

What This Means for Road Accident Victims in South Africa

If you or a loved one has been injured in a road accident in South Africa, here is what you need to know:

• If your claim was previously rejected due to the new RAF1 form requirements, you may be eligible to re-lodge your claim before the end of September 2026. Consult a qualified RAF attorney immediately.
• Foreign nationals injured on South African roads are legally entitled to claim from the RAF.
• Delays are expected to continue as the RAF processes a massive backlog of claims, but legal pressure and court orders are forcing the fund to pay.
• Legislative reform is coming — the RABS Bill and potential hybrid funding model could significantly change how compensation is calculated and paid in the future.

Conclusion: A Fund at a Crossroads

The Road Accident Fund is facing its most severe crisis in decades. With over R400 billion in contingent liabilities, hundreds of thousands of rejected claims being reinstated, ongoing governance failures, and urgent calls for structural reform, the RAF’s future hangs in the balance.

The coming months will be critical: the RABS Bill is expected to be tabled in Parliament, the SIU investigation into former CEO Collins Letsoalo is ongoing, and the courts continue to hold the RAF accountable for its obligations to road accident victims.

For South Africans navigating the RAF claims process, staying informed and seeking expert legal advice has never been more important.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. If you have a Road Accident Fund claim, please consult a qualified attorney.