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

RAF Interim Board Promises Aggressive Payment Plan for Outstanding Claims

The Road Accident Fund (RAF) is undergoing dramatic changes as its new interim board, led by Kenneth Brown, has announced plans to aggressively tackle the nearly R19 billion in outstanding claims older than 180 days starting from October 2025.

This development comes after Minister of Transport Barbara Creecy dissolved the previous RAF board in July 2025 and appointed an interim board in August to address the fund’s ongoing financial crisis.

Key Developments in September 2025

1. New Payment Strategy

RAF interim chair Kenneth Brown confirmed that the fund owes approximately R19 billion in claims outstanding for more than 180 days. Despite not having the immediate funds available, the board is committed to implementing a structured payment plan through detailed cash flow management and financing arrangements.

“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 following urgent meetings with attorney associations and sheriffs.

2. High Court Ruling Impact

The RAF’s financial pressure intensified after the High Court dismissed their urgent application for an extension of the 180-day payment moratorium. This means the RAF must now pay claims within 14 calendar days instead of the previous six-month extension period.

3. Modernization Plans

Beyond immediate payment issues, the interim board is considering comprehensive modernization of the RAF’s claims system. Brown emphasized the need for a “cradle to grave” approach, utilizing technology with first responders to initiate claims processes more efficiently.

Recent Legal Case Highlights RAF Claim Challenges

A recent High Court judgment in Kimberley demonstrates the complexities facing RAF claimants. In Wortmann v Road Accident Fund, a R9.2 million claim was dismissed after the court found the claimant responsible for a rear-end collision on the N12.

The case involved Denzil Egon Wortmann, an OUTsurance employee, who rear-ended a Toyota Land Cruiser driven by an Eskom official. Despite hiring an accident reconstruction expert, Wortmann’s claim failed due to:

• Failure to maintain a safe following distance
• Lack of supporting witness testimony from his three passengers
• Evidence suggesting he was speeding and overtaking improperly

Judge Mpho Mamosebo emphasized that “had the plaintiff maintained a proper following distance, the collision would not have occurred.”

Financial Crisis and Service Provider Debts

The RAF’s financial challenges extend beyond claimant payments. The fund owes approximately R2 billion to various service providers, including:

• Healthcare providers
• Hospices
• Physiotherapists
• Other medical service providers

Brown acknowledged that resolving these outstanding debts is a matter of urgency for the organization’s sustainability.

Parliamentary Oversight and RABS Bill

The Standing Committee on Public Accounts (SCOPA) has adopted terms of reference for an inquiry into RAF financial matters, with proceedings expected to begin in mid-September 2025 and conclude by the end of October 2025.

Meanwhile, the controversial Road Accident Benefit Scheme (RABS) Bill remains a contentious issue. The bill proposes introducing a no-fault system to make it easier for road accident victims to access benefits without costly legal processes. However, the legal fraternity and other RAF stakeholders generally oppose this legislation.

Industry Response and Stakeholder Meetings

Attorney associations have responded positively to the interim board’s approach. Conrad van der Vyver from the Pretoria Attorneys Association described the meeting with Brown as showing “a clear meeting of the minds,” particularly regarding the urgency to ensure RAF becomes financially sustainable.

Personal Injury Plaintiff Lawyers Association (Pipla) chair Advocate Justin Erasmus noted that the new interim board appears to be “trying to clear some of the mess created in the past by fund executives.”

What This Means for Road Accident Victims

For individuals with pending RAF claims, these developments signal both hope and continued challenges:

Positive Developments:

• New leadership committed to addressing payment backlogs
• Structured approach to claim processing
• Improved communication with legal representatives
• Plans for system modernization

Ongoing Challenges:

• Limited immediate funding for R19 billion in outstanding claims
• Reduced payment timeframes (14 days vs. 180 days)
• Continued uncertainty around RABS implementation
• Need for strong evidence and witness support in claims

Key Takeaways for Claimants

The recent Wortmann case provides important lessons for RAF claimants:

1. Evidence is crucial: Photographs, accident reports, and contemporaneous notes are essential
2. Witness testimony matters: Independent witnesses can be more valuable than expert reconstructions
3. Traffic law compliance: Following proper driving practices (safe distances, speed limits) is vital for successful claims
4. Burden of proof: Claimants must prove their version is more likely true on a balance of probabilities

Looking Ahead

The RAF’s transformation under its interim board represents a critical juncture for South Africa’s road accident compensation system. While the R19 billion claims backlog presents significant challenges, the new leadership’s commitment to transparency and structured problem-solving offers hope for improvement.

The success of these initiatives will largely depend on the board’s ability to secure adequate funding, implement efficient systems, and maintain positive relationships with legal practitioners and service providers.

As the situation continues to evolve, road accident victims and their legal representatives should stay informed about payment schedules and any changes to claims processing procedures. The October 2025 implementation of the new payment strategy will be a crucial test of the interim board’s ability to deliver on its promises.

Stay Updated

Given the rapidly changing nature of RAF developments, it’s essential to monitor official announcements from the fund and the Department of Transport. The upcoming SCOPA inquiry results and any progress on the RABS Bill will also significantly impact the future of road accident compensation in South Africa.