Road Accident Fund Crisis: Major Changes Ahead as New Board Tackles R19 Billion Claims Backlog

RAF Faces Critical Turning Point in September 2025

The South African Road Accident Fund (RAF) is experiencing unprecedented upheaval as September 2025 brings dramatic changes to the financially distressed organization. With a new interim board, mounting legal pressures, and billions in outstanding claims, the RAF stands at a critical crossroads that could determine its survival.

New Interim Board Promises Aggressive Action on R19 Billion Claims

In a significant development, RAF’s new interim board chair Kenneth Brown announced plans to aggressively begin paying nearly R19 billion in outstanding claims older than 180 days, starting from October 2025. This represents a major shift in approach following months of governance turmoil.

“Our intention, once we have dotted all the ‘i’s’ and crossed all the ‘t’s’, is to start repayments aggressively from October onwards,” Brown stated during a crucial meeting with attorney associations and sheriffs.

Key Financial Challenges Facing the RAF

• R10.4 billion in unpaid claims as of March 2025
• R40.4 billion total claims liability
• R27.8 billion accumulated deficit
• Fund remains technically insolvent despite maintaining liquidity

High Court Ruling Intensifies Pressure

The RAF received a significant blow when Judge Jabulani Nyathi struck down their application for extending the 180-day payment moratorium. This High Court ruling means the fund must now settle claims within 14 calendar days instead of the previous six-month period.

The ruling places enormous pressure on the already financially strained organization, with legal representatives describing the RAF’s conduct as “heartless and inhumane” toward seriously injured accident victims awaiting compensation.

Governance Overhaul Under Minister Barbara Creecy

Transport Minister Barbara Creecy dissolved the entire RAF board in July 2025 due to persistent governance failures. This dramatic action followed several key events:

• Suspension of RAF CEO Collins Letsoalo in June 2025
• Ongoing legal battles over reinstatement
• Appointment of new interim board in August 2025
• Kenneth Brown named as interim board chair

Parliamentary Inquiry Launched

The Standing Committee on Public Accounts (SCOPA) has adopted terms of reference for a comprehensive inquiry into RAF financial matters, scheduled to begin in mid-September 2025 with completion targeted for October 2025.

Road Accident Benefit Scheme (RABS) Bill on the Horizon

Minister Creecy intends to finalize the Road Accident Benefit Scheme (RABS) Bill, which would introduce a no-fault system to replace the current fault-based approach. This change aims to:

• Make it easier for road accident victims to access benefits
• Reduce costly legal proceedings
• Standardize benefit payments
• Eliminate the need for lengthy court battles

However, the legal fraternity and RAF stakeholders generally oppose the RABS Bill, preferring the current system despite its challenges.

Settlement Drives and Modernization Efforts

The RAF Pretoria Regional Office announced a block settlement drive in August 2025, aimed at fast-tracking claims ready for settlement. This initiative represents part of broader modernization efforts to:

• Implement “cradle to grave” claims processing
• Utilize technology with first responders
• Streamline the entire claims system
• Reduce processing delays

Impact on Road Accident Victims

The RAF crisis directly affects thousands of South African road accident victims who depend on the fund for:

• Medical treatment and rehabilitation
• Loss of income compensation
• Long-term care support
• Disability-related expenses

With over 300,000 claims in the system, delays in payments create significant hardship for vulnerable individuals and families already dealing with the aftermath of serious accidents.

Legal Community Response

Attorney associations have expressed cautious optimism about the new interim board’s approach. Conrad van der Vyver from the Pretoria Attorneys Association noted “a clear meeting of the minds” during recent discussions, describing the new leadership as “a genuine breath of fresh air.”

However, concerns remain about the RAF’s ability to deliver on its promises, given the organization’s history of failed commitments and ongoing financial constraints.

Looking Ahead: Critical Months for the RAF

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

• Implementation of the October payment plan
• Progress on the RABS Bill
• Results of the parliamentary inquiry
• Success of modernization initiatives
• Resolution of ongoing legal challenges

Conclusion

The Road Accident Fund stands at a pivotal moment in its history. With new leadership, mounting pressure from the courts, and billions in outstanding claims, the organization must demonstrate real change to avoid collapse. The success or failure of current reform efforts will determine whether the RAF can fulfill its constitutional mandate to provide social security and healthcare access to road accident victims across South Africa.

As the situation continues to evolve, stakeholders across the legal, medical, and insurance sectors are watching closely to see if the RAF can finally address its systemic challenges and restore confidence in this critical social safety net.