Road Accident Fund Update: Major Developments in October 2025

The Road Accident Fund (RAF) continues to make headlines in October 2025 as South Africa’s largest compensation scheme undergoes significant transformation. With new leadership, substantial claim payments, and ongoing controversies, here’s your comprehensive update on the latest RAF developments.

R3.3 Billion Breakthrough: RAF Accelerates Outstanding Claim Payments

In a major development, the Road Accident Fund has paid R3.3 billion in outstanding claims over just two weeks in September 2025, marking a significant step toward addressing the estimated R20+ billion backlog of claims outstanding for more than 180 days.

Key Payment Statistics:

• R3.3 billion paid in two weeks (September 2025)
• Expected monthly payments of R4+ billion going forward
• Total outstanding claims estimated at over R20 billion
• Priority given to claims older than 180 days

The new interim RAF board, led by Kenneth Brown, has committed to making these substantial monthly payments the “new norm” as part of the fund’s revised business model.

Foreign Claims Controversy: R546 Million Paid to Non-Citizens

A significant controversy has emerged regarding payments to foreign nationals. Acting Transport Minister Kgosientsho Ramokgopa revealed that R546 million was paid to foreign claimants during the 2024/25 financial year, sparking debate about the use of South African taxpayer funds.

Foreign Claims Breakdown:

• Total paid to foreigners: R546 million (2024/25)
• Number of foreign personal claims registered: 222
• Claims successfully settled: Only 17 out of 222
• Claims repudiated or flagged: 78
• Claims still in progress: 115

ActionSA MP Alan Beesley has raised concerns about this expenditure, questioning the legitimacy of foreign claims and calling for legislative changes to require tourists to have their own medical coverage.

New Leadership Under Kenneth Brown

Following the dissolution of the previous RAF board in July 2025 by Transport Minister Barbara Creecy, a new interim board was appointed in August 2025. Kenneth Brown, a former National Treasury executive and current Development Bank of Southern Africa board member, now chairs the interim board.

Leadership Changes Timeline:

• July 15, 2025: Previous RAF board dissolved
• August 8, 2025: Interim board appointed
• September 2025: New payment strategy implemented
• October 2025: Ongoing reforms and transparency measures

Legal Challenges and Court Decisions

The RAF faced a significant legal setback when the High Court in Pretoria dismissed their application for an extension of the 180-day payment moratorium. This ruling means the RAF must now pay claims within 14 calendar days instead of having up to six months.

Judge Jabulani Nyathi struck the application from the court roll on September 2, 2025, citing a lack of urgency, which has accelerated the pressure on the fund to clear outstanding payments.

Financial Position and Future Outlook

Despite the challenges, the RAF maintains it can meet its obligations over the next 12 months. The fund’s financial position as of March 31, 2025:

• Unpaid claims: R10.4 billion
• Total claims liability: R40.4 billion
• Annual income from fuel levy: Approximately R48 billion
• Total paid across all claims (2024/25): R42.94 billion

Upcoming Reforms: Road Accident Benefit Scheme Bill

The Department of Transport is finalizing the Road Accident Benefit Scheme Bill, which will introduce a no-fault system to make it easier for road accident victims to access benefits without costly legal processes.

Proposed Bill Features:

• No-fault compensation system
• Reduced legal costs for claimants
• Requirements for tourist insurance
• Long-term financial sustainability measures
• Elimination of systemic backlogs

Deputy Minister Mkhuleko Hlengwa indicated the bill is awaiting Cabinet consultation and is expected to move forward as part of comprehensive RAF reforms.

Transparency and Accountability Measures

The new interim board has implemented several measures to improve transparency and accountability:

• Bi-monthly reports to plaintiff attorneys and suppliers
• Public availability of payment progress reports
• Strengthened monitoring systems for paid and outstanding claims
• Direct engagement protocols for dispute resolution
• Regional manager contact details provided to attorneys

Impact on Claimants and Legal Practitioners

The interim board has acknowledged the “financial and emotional strain” that delayed payments have caused claimants and their families. The new approach aims to restore confidence in the fund’s claims environment through:

• Faster processing of documentation
• Elimination of administrative delays
• Collaborative approach with legal practitioners
• Priority settlement of older claims

Looking Ahead: What to Expect

As the Road Accident Fund continues its transformation under new leadership, several key developments are expected:

1. Continued High-Volume Payments: Monthly payments of R4+ billion to clear the backlog
2. Legislative Reform: Passage of the Road Accident Benefit Scheme Bill
3. System Modernization: Implementation of updated claims management systems
4. Enhanced Oversight: Ongoing SCOPA inquiry into RAF affairs
5. Foreign Claims Policy: Potential legislative changes regarding tourist coverage requirements

Conclusion

The Road Accident Fund’s developments in October 2025 represent a critical turning point for South Africa’s road accident compensation system. With new leadership, accelerated payments, and comprehensive reforms on the horizon, the RAF appears to be moving toward greater efficiency and transparency.

However, challenges remain, including the foreign claims controversy, the massive outstanding backlog, and the need for sustainable long-term solutions. The success of these reforms will ultimately be measured by the fund’s ability to provide timely, fair compensation to road accident victims while maintaining financial sustainability.

Stay updated with the latest Road Accident Fund news and developments as this important story continues to unfold throughout 2025.

Key Takeaways:

• RAF paid R3.3 billion in two weeks, targeting R4+ billion monthly payments
• R546 million controversy over foreign national claims
• New interim board leadership under Kenneth Brown
• Court ruling forces 14-day payment timeline
• Comprehensive reforms planned through new legislation
• Enhanced transparency and accountability measures implemented