Road Accident Fund South Africa: Key News, Court Rulings & Reform Plans – June 2026

The Road Accident Fund (RAF) in South Africa continues to dominate headlines in 2026, with major court rulings, a looming financial crisis, sweeping legislative reform proposals, and ongoing governance challenges shaping the future of one of the country’s most embattled state entities. Here is a comprehensive roundup of the latest RAF news and what it means for claimants, taxpayers, and the broader South African public.

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 submission 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 found that the new requirements made it near impossible for many claimants to lodge valid claims, resulting in an estimated 600,000 claims being rejected. The SCA ordered the RAF to allow all affected claimants to re-lodge their submissions by the end of September 2026.

Acting CEO of the RAF, Radikwena Phora, welcomed the judgment, stating the fund is studying it in detail and is committed to full implementation. The RAF will also engage with the Minister of Transport to adopt and publish a revised RAF1 Form within six months.

However, RAF law expert and attorney Gert Nel warned of a deeper problem: thousands of “phantom” claims — those lodged in full compliance with the RAF Act but rejected under the now-overturned form — have already secured default judgments worth an estimated R4.8 billion that are immediately payable. Nel’s office alone holds court orders against the RAF exceeding R100 million.

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

2. RAF Ordered to Pay R2.2 Million to Pedestrian — and Slapped with Punitive Costs

In a scathing Western Cape High Court judgment, the RAF was ordered to pay R2.23 million to road accident victim Catherine Yiannakis, who has been living in a long-term care facility since 2018 following a motor vehicle collision. The RAF had refused to pay her past hospital and medical expenses on the grounds that her medical aid (Discovery Health) had already covered a portion of the costs.

Acting Judge M Louw issued a punitive cost order against the RAF, finding that its opposition was “frivolous” and that it had adopted a recurring practice of attempting to circumvent court orders through the issuing of internal directives.

The judge stated:

“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, and compelling claimants to incur unnecessary expenses to enforce rights already established.”

This case is part of a broader dispute between the RAF and medical aid schemes over who bears liability for past medical expenses — a matter still pending before the SCA.

3. RAF Faces Imminent Financial Crisis: R518 Billion in Liabilities

The RAF’s financial situation has reached critical levels. Liabilities have soared past R518 billion, with the fund widely described as technically insolvent. For years, the true depth of the crisis was masked by what analysts describe as “creative accounting” — management unlawfully transitioned away from established insurance accounting standards (IFRS 4), effectively erasing approximately R293 billion in liabilities from the balance sheet overnight.

The fund is primarily financed through a fuel levy of R2.25 per litre of petrol and diesel sold in South Africa. However, this funding model is under severe strain:

• The frequency and cost of accident claims have far outpaced fuel levy revenue growth.
• The rapid rise of electric and hybrid vehicles is structurally shrinking the RAF’s tax base.
• The abrupt cancellation of the RAF’s panel of attorneys led to R15.7 billion in default judgments.
• A claims backlog of over 321,000 unfinalized claims continues to grow.

Analysts and opposition parties have warned that the RAF may require a major government bailout to avoid collapse, which would blow a massive hole in the national fiscus.

4. Minister Creecy Unveils Reform Plan: Road Accident Benefit Scheme (RABS) Returns

Transport Minister Barbara Creecy has acknowledged the RAF’s unsustainable trajectory and outlined a reform plan during the 2026/27 Transport Budget Vote Debate. The centrepiece of the plan is the revival of the long-dormant Road Accident Benefit Scheme (RABS) — a no-fault compensation system first proposed in the early 2000s.

Deputy Transport Minister Mkhuleko Hlengwa confirmed that the RABS Bill will be introduced to Parliament in 2026. The proposed framework provides for:

• Defined, structured benefits on a no-fault basis
• A hybrid funding model incorporating both public and private contributions
• Reduced reliance on the fuel levy as the primary funding source
• A standardised injury compensation system to reduce contingent state liability

Minister Creecy noted: “The Road Accident Fund portion of the fuel levy has come under public scrutiny. The department is already reviewing the proposed Road Accident Bill to reduce contingent state liability by creating a no-fault system and a standardised injury compensation system.”

However, the RABS proposal is not without controversy. The Law Society of South Africa (LSSA) has historically opposed the scheme, arguing it violates the rights of innocent road accident victims by depriving them of their common law right to sue negligent drivers, and that it is inherently anti-poor due to capped monthly benefits replacing lump-sum compensation.

5. Parliament’s Transport Committee: Signs of Recovery, But Urgency Required

The Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, stated in February 2026 that — contrary to public perception — the RAF is “on the road to recovery.” He acknowledged that the entity remains “challenged” by historical factors but expressed satisfaction that governance improvements are underway.

Deputy Minister Hlengwa likened the reform process to “fixing an aeroplane while airborne” — a challenging but necessary undertaking. The committee called on the RAF to:

• Speed up the processing of direct claims
• Review RAF legislation to close loopholes
• Improve organisational structure and governance
• Accelerate communication with claimants

6. Foreign Nationals’ Right to Claim Upheld by Appeal Court

In another notable legal development, the Appeal Court ruled that foreign nationals are entitled to claim and receive benefits from the Road Accident Fund. The Transport Committee Chairperson welcomed the ruling, affirming that RAF funding is intended for all victims of road accidents on South African roads, regardless of nationality.

The ruling sparked political debate, with the African Transformation Movement (ATM) calling for RAF payouts to be limited to South African citizens only — a position debated in Parliament.

7. RAF Settlement Drive: Tackling the Claims Backlog

In February 2026, the RAF hosted the second instalment of its Settlement Drive at Ngwelezane Hospital, as part of an ongoing campaign to address its backlog of over 321,000 unfinalized claims. The initiative aims to bring the RAF directly to claimants, particularly those in underserved communities, to facilitate faster resolution of outstanding matters.

What This Means for RAF Claimants in 2026

If you have an existing or pending RAF claim, here is what you need to know:

• Rejected claims can be re-lodged: If your claim was rejected under the new RAF1 Form requirements, you have until the end of September 2026 to resubmit. Ensure you include proof that your original claim was submitted within three years of the accident.
• Medical aid claimants: The RAF cannot refuse to pay past medical expenses simply because your medical aid covered them — multiple court rulings have confirmed this.
• Delays remain a serious concern: Despite reform efforts, significant backlogs and payment delays persist. Legal experts advise claimants to seek professional legal assistance.
• Legislative changes are coming: The introduction of the RABS Bill could fundamentally change how road accident compensation works in South Africa. Stay informed about developments.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical crossroads in 2026. On one hand, landmark court victories are restoring the rights of hundreds of thousands of claimants who were unlawfully denied compensation. On the other, the fund’s financial position is dire, its governance history is troubled, and the structural shift to electric vehicles threatens its very funding model.

The proposed RABS legislation represents the most significant potential overhaul of road accident compensation in South Africa’s history. Whether it will deliver a fairer, more sustainable system — or create new injustices for vulnerable road accident victims — remains to be seen as the Bill makes its way through Parliament.

For claimants, attorneys, and South African motorists alike, staying informed about RAF developments 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, consult a qualified RAF attorney.

Sources: IOL, Daily Maverick, Moneyweb, Parliament of South Africa, Africa24 TV (June 2026)