Road Accident Fund in Crisis: Landmark Court Rulings, R500bn Liability Threat & Major Reforms – May 2026 Update

The Road Accident Fund (RAF) is facing one of the most turbulent periods in its history. A series of landmark Supreme Court of Appeal (SCA) rulings, a mounting financial crisis threatening a R500 billion liability, a wave of previously rejected claims being revived, and a proposed overhaul of the entire compensation system have placed South Africa’s road accident compensation fund firmly in the spotlight in 2026. Here is everything you need to know about the latest RAF news and what it means for claimants, taxpayers, and the future of road accident compensation in South Africa.

1. SCA Landmark Ruling: RAF Must Compensate ALL Accident Victims – Including Undocumented Foreigners

In a landmark judgment handed down in April 2026, the Supreme Court of Appeal (SCA) ruled that the Road Accident Fund must compensate all road accident victims in South Africa – including undocumented foreign nationals. The ruling dismissed the RAF’s appeal against a Gauteng High Court decision that had already struck down a RAF directive requiring foreign nationals to prove legal presence in South Africa at the time of injury.

A full bench of three judges, led by Judge Norman Davis, found that the RAF Act makes no exclusion based on immigration status, and that the phrase “any person” in the Act includes all road accident victims regardless of nationality or documentation status.

“These accidents don’t discriminate in respect of the victims thereof between race, gender, age or between illegal foreigners and citizens of this country.” – Judge Norman Davis

The RAF had argued that undocumented foreigners should be excluded to prevent fraud and avoid conflict with the Immigration Act. The SCA dismissed this appeal with costs, finding that neither the Transport Minister nor the RAF has the legal authority to limit the scope of the Act.

The ruling has significant financial implications. In the 2024/25 financial year alone, foreign nationals lodged claims totalling R546 million with the RAF. Parliament’s Portfolio Committee on Transport has called for the expedited reform of the RAF Act in response to the ruling.

2. SCA Declares RAF1 Form Unlawful – Up to 600,000 Rejected Claims Revived

In a second major blow to the RAF, the SCA on 30 April 2026 declared the revised RAF 1 claim form – introduced in 2022 – unlawful and invalid. The court ordered the RAF to revert to the older 2008 RAF 1 form and gave previously rejected claimants until 30 September 2026 to resubmit their claims.

The ruling has potentially catastrophic financial consequences for the already cash-strapped fund:

• An estimated 600,000 claims were rejected under the unlawful 2022 form.
• At an average claim value of R300,000, this translates to approximately R180 billion in previously unrecorded liabilities.
• Between July 2022 and March 2025, of 105,039 RAF 1 claims pre-assessed, only 28% were compliant – 72% were rejected for failing documentation requirements.
• Weekly claim registrations dropped from nearly 2,000 to just over 300 under the stricter regime.

The SCA found that the RAF had no authority to prescribe binding claim requirements – that power rests with the Minister of Transport. Furthermore, the Minister’s approval of the revised form was also found to be unlawful, as it lacked proper public participation and independent decision-making.

Claimants whose submissions were previously rejected may now resubmit using the 2008 RAF 1 form by 30 September 2026. Crucially, prescription is waived for all claims previously rejected due to the unlawful board notice, and accepted claims will be treated as if lodged on the original submission date.

What Documents Are Required to Submit a RAF Claim?

• Completed RAF 1 form (2008 version)
• Certified copies of identity documents (claimant/injured party/deceased)
• Affidavit or statement
• Officer’s accident report or case docket
• Unabridged birth certificate (for minor claimants)

3. RAF Faces Imminent Government Bailout as Liabilities Approach R500 Billion

The twin SCA rulings have dramatically worsened the RAF’s already dire financial position, making a major government bailout increasingly likely.

Key financial facts about the RAF’s crisis:

• The RAF is estimated to have approximately R500 billion in unqualified contingencies.
• The 2026 Budget Review reported total RAF liabilities at R370.3 billion at the end of 2024/25 – representing 85.5% of all social security fund liabilities.
• The RAF’s liabilities are projected to increase from R369.7 billion in 2024/25 to R422.6 billion by 2027/28.
• The RAF board chair previously warned that liabilities could increase by between R300 billion and R400 billion due to accounting standard changes.
• The RAF currently has a backlog of more than 430,000 unprocessed claims.
• The RAF owes Gauteng Health R1.6 billion for treatment provided to crash victims.

Attorney Gert Nel of Gert Nel Inc Attorneys, one of South Africa’s leading RAF claims firms, warned that his firm alone holds court orders in excess of R100 million that the RAF has not yet paid. He stated that National Treasury will “definitely have to get involved with a bailout.”

ActionSA MP Alan Beesley has requested an urgent meeting with Finance Minister Enoch Godongwana to explain where the estimated R180 billion for the 600,000 revived claims would come from, warning that the RAF lacks the administrative capacity to handle the anticipated influx.

Parliament’s Standing Committee on Public Accounts (SCOPA) is currently conducting an oversight inquiry into the RAF’s affairs, with its draft report highlighting governance failures, financial reporting issues, and the unlawful RAF 1 form as central concerns.

4. RAF Ordered to Pay R2.2 Million to Pedestrian – With Punitive Cost Order

In the latest in a string of court defeats, the RAF was ordered on 11 May 2026 to pay R2.2 million to a pedestrian and was slapped with a punitive cost order. This follows a pattern of the RAF losing cases in court and being ordered to pay not only compensation but also legal costs – further draining its already depleted resources.

5. The Road Accident Benefit Scheme (RABS) Bill: A Proposed Overhaul

Amid the financial turmoil, the Department of Transport is pushing for a fundamental overhaul of how road accident victims are compensated through the proposed Road Accident Benefit Scheme (RABS) Bill.

Key features of the proposed RABS Bill include:

• No-fault system: Victims will no longer need to prove who caused the accident to receive compensation.
• Monthly payments instead of lump sums: The current system of once-off lump sum payments would be replaced with smaller monthly annuity payments.
• Restricted eligibility: Benefits would be limited to South African citizens and legal foreigners with travel insurance. Foreign nationals would be required to have travel insurance as a visa requirement.
• Income loss cap: Claims for loss of income would be limited to people under 60.
• Defined benefits schedule: A schedule of defined benefits within the Act to regularise the system.

Deputy Transport Minister Mkhuleko Hlengwa said the bill is intended to ease the growing financial strain on the RAF, which relies heavily on the fuel levy for income. Road accidents cost South Africa between R205 billion and R260 billion per year.

However, the RABS Bill has faced criticism. The recent SCA ruling that the RAF cannot exclude undocumented foreigners directly contradicts the bill’s proposed restriction of benefits to legal residents – creating a potential constitutional conflict that will need to be resolved.

6. Claims Deadline Alert: 2023 Accident Victims Must Act Now

South African law gives most road accident victims three years from the date of the accident to lodge a claim with the RAF. This means that if your accident occurred in 2023, 2026 is the year the door can quietly close on your claim.

Additionally, claimants whose claims were previously rejected under the unlawful 2022 RAF 1 form have until 30 September 2026 to resubmit their claims. Legal experts are urging affected claimants to act urgently, as many may not be aware of the SCA ruling and could miss this critical window.

What Does This Mean for RAF Claimants?

If you or a loved one has been involved in a road accident in South Africa, here is what the latest developments mean for you:

1. If your claim was rejected under the 2022 RAF 1 form: You have until 30 September 2026 to resubmit using the 2008 form. Contact a qualified attorney immediately.
2. If you are a foreign national: The SCA has confirmed you are entitled to claim from the RAF regardless of your immigration status.
3. If your accident occurred in 2023: Your three-year prescription period may be expiring. Consult a legal professional without delay.
4. If you have a pending claim: Expect significant delays due to the 430,000+ claim backlog and the anticipated influx of resubmitted claims.
5. If you are awaiting payment: The RAF’s financial crisis means payment delays are likely to continue. Legal action may be necessary to enforce court orders.

Key Takeaways: Road Accident Fund News – May 2026

• ✅ The SCA ruled the RAF must compensate ALL accident victims, including undocumented foreigners.
• ✅ The 2022 RAF 1 form was declared unlawful – up to 600,000 rejected claims can be resubmitted by 30 September 2026.
• ✅ The RAF faces potential liabilities of up to R500 billion, making a government bailout increasingly likely.
• ✅ The RABS Bill proposes a no-fault, monthly payment system to replace the current lump-sum model.
• ✅ SCOPA is conducting an oversight inquiry into RAF governance and financial management.
• ✅ Claimants with 2023 accidents face prescription deadlines – act now.

Stay informed about the latest Road Accident Fund news and updates by bookmarking this page. If you need assistance with a RAF claim, consult a qualified South African attorney who specialises in road accident compensation.

Sources: IOL Business, Moneyweb, Sowetan, Daily Maverick, Moonstone Information Refinery, Parliament of South Africa (May 2026)