Road Accident Fund in Crisis: Landmark Court Rulings, R180bn Liability Shock & What It Means for Claimants (May 2026)

Published: 9 May 2026 | Category: Road Accident Fund News South Africa

The Road Accident Fund (RAF) is facing its most turbulent period in years. A landmark Supreme Court of Appeal (SCA) ruling has declared the 2022 RAF1 claim form unlawful, potentially reopening up to 600,000 rejected claims worth an estimated R180 billion. Coupled with a separate ruling forcing the RAF to compensate undocumented foreign nationals, and a scathing parliamentary inquiry, South Africa’s national fiscus is under enormous pressure. Here is everything you need to know about the latest RAF developments.

1. SCA Declares 2022 RAF1 Claim Form Unlawful — A Landmark Ruling

In a unanimous judgment handed down on 30 April 2026, the Supreme Court of Appeal dismissed the RAF’s appeal and declared the 2022 RAF1 claim form unlawful. The court found that both the RAF and the Minister of Transport acted outside their legal powers when introducing stricter requirements to the RAF1 form — the mandatory gateway for all compensation claims.

The revised form, introduced via Board Notice 302 in July 2022, required claimants to submit extensive documentation upfront, including specialised medical and legal reports. If any compulsory information was missing, claims were simply not registered or allocated a claim number. The result? Weekly claim registrations plummeted from nearly 2,000 per week to just over 300.

The SCA found that:

• The RAF had no authority to prescribe binding claim requirements — that power rests solely with the Minister of Transport.
• The Minister’s approval of the revised form was also unlawful, as it lacked proper public participation and independent judgement.
• The revised form created barriers to access, departing from the established principle that substantial compliance is sufficient at lodgement.

The court has ordered a reversion to the 2008 RAF1 form as the applicable standard, until a lawfully revised version is introduced. The Minister of Transport has been given six months to develop and publish a compliant revised form.

“The intention of tightening requirements may have been administrative efficiency, but the court has made it clear that this cannot come at the expense of access to justice.” — Kirstie Haslam, Partner at DSC Attorneys

2. What This Means for Rejected Claimants: A Second Chance Before 30 September 2026

One of the most significant outcomes of the ruling is the opportunity it creates for claimants who were previously turned away. The court has ordered that claimants whose submissions were rejected or not acknowledged under the 2022 regime may resubmit their claims using the 2008 RAF1 form by 30 September 2026.

Crucially, if those claims are successfully lodged, they will be deemed to have been submitted on the original date — protecting them from prescription and effectively backdating the liability for the RAF.

Key facts about the scale of the problem:

• Between July 2022 and March 2025, of 105,039 RAF1 claims pre-assessed, only 29,049 (28%) were compliant. A staggering 75,990 (72%) were rejected.
• ActionSA MP Alan Beesley estimates that as many as 600,000 claims may have been excluded under the unlawful form.
• At an average claim value of R300,000, this translates to roughly R180 billion in previously unrecorded liabilities.
• New claims dropped from 328,173 in 2018/19 to just 65,732 in 2024/25.

If you had a RAF claim rejected between 2022 and 2026, you may now have the right to resubmit it. Act before 30 September 2026.

3. RAF Must Also Compensate Foreign Nationals — SCA’s Second Blow

In a separate but equally significant ruling in April 2026, the SCA dismissed two appeals by the RAF and confirmed that the fund cannot refuse to pay compensation to people based on their immigration status — including undocumented foreign nationals.

The RAF had argued that the phrase “any person” in section 17(1) of the RAF Act should exclude illegal foreigners, citing the Immigration Act. The SCA rejected this argument, finding that unlike other legislation (such as the Social Assistance Act), the RAF Act contains no limitation based on nationality or immigration status.

Judge of Appeal Ashton Schippers wrote in a unanimous judgment: “Thus, on its plain language, section 17(1) cannot be construed as excluding illegal foreigners.”

Parliament’s Portfolio Committee on Transport has welcomed the ruling and called for the expedited reform of the RAF Act to manage the implications going forward.

4. SCOPA Sounds the Alarm: Financial Crisis Looms for the RAF

Parliament’s Standing Committee on Public Accounts (SCOPA) has been conducting a wide-ranging inquiry into the RAF since late 2025. Its draft oversight report paints a deeply concerning picture.

Key findings from SCOPA’s inquiry include:

• The 2022 RAF1 form made the claims process largely inaccessible, particularly for claimants without legal representation.
• The form was only available in English, further excluding vulnerable claimants.
• Legal costs in some cases reached approximately R100,000 just to have claims recognised.
• The former board “rubber-stamped” decisions by executive management without proper scrutiny.
• The RAF pursued litigation in “hopeless situations”, resulting in fruitless and wasteful expenditure.
• National Treasury has estimated the RAF’s total liabilities at more than R400 billion.

SCOPA Chairperson Songezo Zibi warned that the fund’s financial position could have severe knock-on effects for claimants and society as a whole. DA MP Patrick Atkinson called for accountability from the former board and former CEO Collins Letsoalo, under whose leadership the unlawful form changes were made.

5. ActionSA Demands Finance Minister Explain R180bn Shortfall

ActionSA MP Alan Beesley has formally called on the Finance Minister to explain to Parliament how the national fiscus plans to absorb the RAF’s liabilities in the wake of the SCA ruling.

Beesley warned that the combined impact of the two SCA rulings — on the unlawful claim form and on foreign nationals — could push the RAF’s total liabilities to more than R500 billion, exceeding the financial burden posed by struggling state-owned enterprises like Eskom and Transnet.

“The lack of rationality has had huge consequences not only to the RAF and road crash victims but also to the national fiscus,” said Beesley.

ActionSA has also indicated it will explore all available legal avenues, including the potential for criminal charges against those responsible for the unlawful decisions.

6. The Road Ahead: What Happens Next?

The RAF and the Department of Transport now face a complex set of challenges:

1. Revert to the 2008 RAF1 form immediately for all new and resubmitted claims.
2. Process the wave of resubmitted claims from claimants who were previously rejected — with a deadline of 30 September 2026.
3. The Minister of Transport must develop a new, lawfully compliant RAF1 form within six months, including proper public participation.
4. The RAF must recognise and account for the massive wave of new liabilities on its books.
5. Parliament and National Treasury must determine how to fund the shortfall, with a potential government bailout increasingly likely.

Legal experts warn that the situation will create significant uncertainty for claimants, attorneys, insurers, and the courts in the months ahead.

7. What Should RAF Claimants Do Right Now?

If you or someone you know was involved in a road accident and had a RAF claim rejected between 2022 and 2026, here is what you should do:

• ✅ Contact a qualified attorney who specialises in RAF claims as soon as possible.
• ✅ Gather your original documentation from when you first attempted to lodge your claim.
• ✅ Resubmit your claim using the 2008 RAF1 form before the 30 September 2026 deadline.
• ✅ Do not delay — prescription periods and deadlines are critical in RAF matters.
• ✅ If you were turned away before your claim was even registered, you may still have rights — seek legal advice immediately.

Summary: Key RAF Developments at a Glance (May 2026)

Frequently Asked Questions About the RAF (May 2026)

Can I still claim from the RAF if my claim was rejected?

Yes. Following the SCA ruling of 30 April 2026, claimants whose submissions were rejected under the 2022 RAF1 form may resubmit their claims using the 2008 RAF1 form. The deadline to do so is 30 September 2026.

Does the RAF cover foreign nationals?

Yes. The SCA has confirmed that the RAF Act’s reference to “any person” includes foreign nationals, regardless of their immigration status in South Africa at the time of the accident.

Is the RAF going bankrupt?

The RAF is not technically bankrupt, but it faces a severe financial crisis. National Treasury estimates total liabilities at over R400 billion, with the new SCA rulings potentially adding a further R180 billion or more. A government bailout is increasingly being discussed.

What is the RAF1 form?

The RAF1 form is the mandatory claim form that road accident victims must complete to access compensation from the Road Accident Fund. The 2022 version has been declared unlawful, and the 2008 version is now reinstated as the valid standard.

Sources: Road Safety Blog, Moonstone Information Refinery, Eyewitness News (EWN), IOL News, Business Day, Sunday World, Currency News — May 2026.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. If you have a RAF claim, please consult a qualified attorney.