Road Accident Fund South Africa: Major Changes and Updates for August 2025

Breaking: Minister Dissolves RAF Board Amid Governance Crisis

In a dramatic move that has sent shockwaves through South Africa’s legal and insurance sectors, Transport Minister Barbara Creecy dissolved the entire Road Accident Fund (RAF) Board of Directors on July 15, 2025. This unprecedented action follows persistent governance failures that have severely undermined the RAF’s ability to fulfill its statutory mandate.

Key Governance Issues That Led to Board Dissolution

The Minister cited several critical failures that necessitated this drastic intervention:

• Costly litigation: The RAF pursued protracted and expensive legal battles over accounting standards, further straining the entity’s already precarious financial position
• CEO suspension mishandling: Inconsistent and reckless handling of Chief Executive Officer Collins Letsoalo’s suspension created institutional uncertainty
• Default judgments: Frequent court defaults against the RAF have exacerbated contingent liabilities
• Board divisions: Deep internal conflicts resulted in most resolutions passing only through casting votes rather than consensus
• Critical vacancies: Failure to fill essential positions including Chief Claims Officer and Head of Legal

RAF Launches National Settlement Drive to Clear Backlog

Despite the governance turmoil, the RAF has initiated a promising development for claimants. Starting with the Pretoria Region from August 6-8, 2025, the Fund launched a national block settlement drive aimed at reducing the massive backlog of claims ready for settlement.

How the Settlement Drive Works

The initiative operates under specific parameters:

• Law firms can submit a maximum of 10 qualifying claims per firm
• Submissions require Link Number, Claim Number, Claimant’s Full Name, Attorney details, and Vendor Reference Number
• Claims are processed on a first-come, first-served basis
• Only fully prepared claims lodged with regional offices are considered
• Individual attorney submissions are not accepted – only law firms qualify

Acting CEO Phathutshedzo Lukhwareni emphasized the Fund’s commitment to reducing settlement processing times while maintaining compassionate and efficient service.

New RAF Claim Rules for 2025: What You Need to Know

Significant changes to RAF claim procedures have been implemented in 2025, designed to combat fraud while ensuring genuine victims receive fair compensation. These reforms represent the most substantial overhaul of the system in years.

Major Changes Include:

1. Stricter Time Limits

Claims must now be filed within 24 months of the accident, reduced from the previous 36-month window. This change aims to ensure fresher evidence and reduce administrative burden.

2. Payout Caps Introduced

• Loss of Income: Monthly compensation capped at R25,000
• Funeral Costs: Standardized payout of R20,000
• Medical Expenses: Coverage up to maximum thresholds, with excess requiring private insurance

3. Enhanced Medical Evidence Requirements

Only verified medical reports from accredited healthcare professionals will be accepted. This measure targets fraudulent medical claims that have plagued the system.

4. Exclusion of Minor Injuries

Minor injuries without lasting impact may no longer qualify for compensation, focusing resources on serious cases requiring substantial support.

Parliamentary Inquiry Launched into RAF Financial Matters

The Standing Committee on Public Accounts (SCOPA) resolved on June 24, 2025, to launch a comprehensive inquiry into allegations of maladministration and financial irregularities at the RAF. This parliamentary investigation will examine:

• Financial mismanagement allegations
• Procurement irregularities
• Executive misconduct
• Systemic governance failures

The Democratic Alliance has called for the investigation to cover all wrongdoing to be meaningful and worthwhile, particularly focusing on the conduct of suspended CEO Collins Letsoalo.

Road Accident Benefit Scheme Bill: The Future of RAF

Minister Creecy has reiterated her department’s commitment to finalizing the Road Accident Benefit Scheme Bill, which promises to introduce a revolutionary no-fault system. This proposed legislation would:

• Eliminate the need for lengthy court battles
• Reduce legal costs for claimants
• Provide faster access to benefits
• Create a more equitable compensation system

However, some critics argue that reintroducing this bill is “ill-advised” and suggest that proper execution of the existing Road Accident Fund Act would be more effective.

What This Means for Road Accident Victims

For South Africans who may need to claim from the RAF, these developments present both challenges and opportunities:

Immediate Actions Required:

1. File claims promptly: With the reduced 24-month deadline, accident victims must act quickly
2. Gather comprehensive documentation: Police reports, medical records, and income proof are essential
3. Use accredited medical professionals: Ensure all medical evaluations meet new standards
4. Understand payout limitations: Be aware of new caps when planning financial recovery

Expert Advisory Committee to Guide RAF Reform

Minister Creecy has initiated the appointment of an independent expert advisory committee to review RAF’s business processes and propose actionable recommendations. This panel will develop a sustainable operational and governance model for the troubled entity.

Additionally, the Special Investigating Unit (SIU) has been requested to expand its current investigation under Proclamation 44 of 2024 to cover recent events, ensuring comprehensive scrutiny of all irregularities.

Financial Sustainability Concerns

The RAF has long faced severe financial challenges, with billions owed in unpaid claims. The 2025 reforms aim to address these issues by:

• Reducing fraudulent and inflated claims
• Streamlining administrative processes
• Implementing stricter oversight mechanisms
• Capping legal fees to prevent excessive billing

Officials argue that without these reforms, the RAF would face complete collapse within a few years, leaving accident victims without any recourse.

Looking Ahead: What to Expect

The coming months will be crucial for the RAF’s future. Key developments to watch include:

• Appointment of new board members through transparent recruitment
• Implementation of expert committee recommendations
• Progress on the Road Accident Benefit Scheme Bill
• Results of the SCOPA parliamentary inquiry
• Expansion of settlement drives to other regions

Conclusion

The Road Accident Fund stands at a critical crossroads in 2025. While governance failures and financial challenges have created significant turmoil, the combination of new leadership, stricter claim rules, and parliamentary oversight offers hope for meaningful reform.

For South African motorists and potential claimants, staying informed about these changes is essential. The new system demands greater preparation and faster action but promises more efficient processing for genuine claims.

As Minister Creecy works to restore institutional stability and enhance the RAF’s capacity to fulfill its obligations, the success of these reforms will ultimately determine whether South Africa’s road accident victims continue to have access to the compensation they deserve.

Stay updated with the latest RAF developments by following official government communications and consulting with qualified legal professionals for specific claim guidance.