Road Accident Fund in Crisis: Court Rulings, R500 Billion Debt & What It Means for South Africans (June 2026)

Introduction

South Africa’s Road Accident Fund (RAF) is facing one of the most turbulent periods in its history. A series of landmark court rulings, mounting financial liabilities estimated at over R500 billion, and sweeping proposed reforms are reshaping the landscape for road accident victims, motorists, and taxpayers alike. Here is a comprehensive roundup of the latest RAF news as of June 2026.

1. Supreme Court of Appeal Strikes Down the RAF1 Claim Form

In one of the most consequential legal decisions affecting the RAF in years, the Supreme Court of Appeal (SCA) on 30 April 2026 dismissed the RAF’s appeal and declared the controversial RAF1 claim form — introduced in 2022 — unconstitutional, unlawful, and invalid.

The court found that neither the RAF nor the Minister of Transport had the legal authority to impose the stricter documentation requirements contained in the 2022 form. The ruling reinstated the original 2008 RAF1 form as the applicable standard.

What This Means for Claimants

• An estimated 600,000 claims that were rejected under the unlawful 2022 form can now be resubmitted.
• Claimants have until 30 September 2026 to refile using the 2008 RAF1 form.
• Resubmitted claims will be treated as if they were lodged on the original date, protecting them from prescription.
• The RAF is required to launch a communication campaign to assist affected claimants.
• The Minister of Transport must develop and publish a revised RAF1 form within six months, following proper legal processes.

Between July 2022 and March 2025, of 105,039 RAF1 claims pre-assessed, only 28% were compliant — meaning 72% were rejected for failing to meet the stricter documentation requirements. Weekly claim registrations had dropped from nearly 2,000 to just over 300 under the unlawful regime.

2. The Financial Fallout: R500 Billion in Liabilities

The financial implications of the SCA ruling are staggering. Legal experts and political parties are warning that the RAF’s total liabilities could now exceed R500 billion.

• The 2026 Budget Review reported total RAF liabilities at R370.3 billion at the end of 2024/25.
• The 2025 Medium-Term Budget Policy Statement projected RAF liabilities to increase to R422.6 billion by 2027/28.
• ActionSA MP Alan Beesley estimates the SCA ruling could add a further R180 billion in previously unrecorded liabilities — based on 600,000 rejected claims at an average value of R300,000 each.
• Attorney Gert Nel of Gert Nel Inc Attorneys warned that default court judgments alone amount to approximately R500 million in immediate financial burden, with his firm alone holding over R100 million in unpaid court orders.

Financial experts and legal professionals are now openly stating that National Treasury will need to intervene with a government bailout to cover these additional liabilities.

3. RAF Must Compensate Undocumented Foreign Nationals — R390 Million Additional Liability

In a separate but equally significant ruling, the SCA confirmed that the RAF must compensate all road accident victims, including undocumented foreign nationals. The court found that the term “any person” in the RAF Act includes undocumented foreigners.

Transport Minister Barbara Creecy revealed that this ruling could expose the RAF to at least R390 million in additional liability from claims previously classified as non-payable. The RAF Board is still seeking legal advice on whether to appeal the ruling to the Constitutional Court.

4. Government Considers New Vehicle Licence Fees to Fund the RAF

With the RAF’s current funding model under severe strain, the government is exploring alternative financing mechanisms. Transport Minister Barbara Creecy confirmed that the Department of Transport is researching a vehicle owner contributory scheme — meaning South African motorists could face 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): The RAF is currently funded through a levy on petrol and diesel. As more EVs enter the South African market, fuel sales decline, reducing RAF revenue.
2. The fund’s deepening financial crisis: With hundreds of billions in outstanding claims, the current fuel levy model is no longer sufficient to sustain the fund.

The proposal forms part of a broader overhaul that also includes introducing a no-fault compensation system and a standard schedule of benefits — key elements of the long-delayed Road Accident Benefit Scheme (RABS).

5. SCOPA Inquiry: Governance Failures and Calls for Accountability

Parliament’s Standing Committee on Public Accounts (SCOPA) has been conducting an oversight inquiry into the RAF since late 2025, following concerns about governance failures, misleading information provided to Parliament, and the fund’s long-standing financial instability.

Key findings and developments from the SCOPA inquiry include:

• The RAF was criticised for appealing the High Court ruling on the illegality of the RAF1 form — a decision that cost taxpayers significantly.
• ActionSA has called for criminal charges against those responsible for the unlawful implementation of the RAF1 form.
• The RAF has had four CEOs in seven months, highlighting severe leadership instability.
• An investigation into R1 billion in media contracts is ongoing.
• The RAF was found to have made nearly R23 billion in excess payments over two years.
• The Transport Committee Chair noted that the RAF is showing signs of recovery, but called for reform efforts to accelerate.

6. RAF Act Reform: Parliament Calls for Urgent Action

The Portfolio Committee on Transport is calling for the expedited reform of the RAF Act to better manage and process claims. The committee welcomed the SCA ruling on foreign nationals’ claims, emphasising that “RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

The proposed reforms include:

• Transitioning to a no-fault compensation system
• Introducing a standard schedule of benefits
• Implementing a vehicle owner contributory funding scheme
• Addressing the backlog of over 430,000 outstanding claims

Key Dates and Deadlines to Know

What Should You Do If Your RAF Claim Was Rejected?

If your RAF claim was rejected between 2022 and 2026 due to non-compliance with the 2022 RAF1 form requirements, you may be entitled to resubmit your claim. Here is what you should do:

1. Contact a qualified RAF attorney as soon as possible to assess your case.
2. Gather your original documentation from when the accident occurred.
3. Resubmit your claim using the 2008 RAF1 form before the 30 September 2026 deadline.
4. Your resubmitted claim will be treated as if it was lodged on the original date, protecting it from prescription.

Note: The RAF is expected to launch a communication campaign to assist affected claimants. Watch the official RAF website at www.raf.co.za for updates.

Conclusion: A Fund at a Crossroads

The Road Accident Fund is at a critical crossroads. A series of court defeats, a potential R500 billion liability, leadership instability, and the need for fundamental structural reform paint a picture of an institution under enormous pressure. For South African road users, the coming months will be pivotal — both in terms of whether the fund can meet its obligations to accident victims and whether government can implement meaningful, sustainable reforms before the financial situation becomes irreversible.

Stay informed and consult a qualified legal professional if you believe you have an outstanding or previously rejected RAF claim.

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