Road Accident Fund in Crisis: Court Rulings, R500bn Liability & Reform Calls – May 2026 Update

Road Accident Fund Faces Mounting Crisis: What You Need to Know in May 2026

South Africa’s Road Accident Fund (RAF) is at the centre of a perfect storm — landmark court rulings, a potential government bailout, soaring liabilities, and urgent calls for systemic reform. Here is a comprehensive roundup of the latest developments shaping the future of the RAF and what they mean for road accident victims, taxpayers, and the national fiscus.

1. Landmark SCA Ruling Declares RAF Claim Form Unlawful

In a unanimous judgment handed down on 30 April 2026, the Supreme Court of Appeal (SCA) dismissed the RAF’s appeal against a High Court ruling that declared the RAF’s Board Notice and its RAF1 claim form unconstitutional, unlawful, and invalid.

The court found that both the RAF and the Minister of Transport acted outside their legal powers when they introduced more onerous requirements through Board Notices 271 and 302 of 2022. These stricter requirements had led to the rejection of hundreds of thousands of legitimate claims.

Key outcomes of the ruling include:

• The RAF must revert to its older 2008 claim form, which has been reaffirmed as the valid standard.
• Claimants whose submissions were previously rejected must be allowed to relodge their claims by 30 September 2026.
• Transport Minister Barbara Creecy has been given six months to introduce a revised claims process that complies with legal and procedural requirements.

According to Kirstie Haslam, Partner at DSC Attorneys: “This is a significant legal victory for claimants, but it creates a complex and potentially chaotic situation on the ground. Many claims that were rejected under the unlawful requirements may now need to be re-lodged, effectively restarting the process.”

The court stated that the RAF’s strict requirements had a direct impact on claimants’ rights, including their ability to lodge valid claims and avoid prescription. The ruling raised urgent questions for claims already in the legal system, with potential procedural complications for matters that have progressed through litigation.

2. RAF Faces Potential Government Bailout as Liabilities Soar

The SCA ruling has dramatically worsened the RAF’s already precarious financial position. The fund is estimated to have approximately R500 billion in unqualified contingencies, a significant portion of which is attributable to claims that were rejected under the now-unlawful RAF1 Form.

Attorney Gert Nel of Gert Nel Inc Attorneys, one of the major firms assisting road accident victims, warned that the financial implications are enormous:

“Treasury will definitely have to get involved with a bailout to cover these additional expenses.”

Nel noted that his firm alone is running a book in excess of R100 million that the RAF has not yet paid, with default court orders in place for all these matters. Multiply this across hundreds of law firms nationally, and the scale of the crisis becomes clear.

According to the 2026 Budget Review, the total liabilities of social security funds at the end of 2024/25 were reported at R433.1 billion, of which the RAF accounted for 85.5% — equivalent to R370.3 billion. The RAF’s liabilities are projected to increase from R369.7 billion in 2024/25 to R422.6 billion in 2027/28.

The 2025 Medium-Term Budget Policy Statement released in November 2025 stated that the RAF remains a significant fiscal risk and its financial position is expected to deteriorate over the medium term.

3. ActionSA Demands Answers on R180bn Shortfall

Political party ActionSA has called on the Finance Minister to explain to Parliament how the national fiscus plans to absorb the RAF’s liabilities following the SCA ruling. ActionSA MP Alan Beesley estimates that approximately 600,000 claims were rejected as a result of the unlawful RAF1 form introduced in 2022.

ActionSA estimates the court ruling could have financial implications of close to R180 billion, potentially pushing the RAF’s total liabilities to more than half a trillion rand.

“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 implementation of the RAF1 form.

Parliament’s Standing Committee on Public Accounts (SCOPA) is currently finalising its inquiry report into the RAF, during which MPs lambasted the fund for appealing the High Court ruling on the illegality of the form.

4. Foreign Nationals Ruling Adds Further Financial Pressure

In a separate but related ruling, the SCA also upheld a High Court judgment that the RAF cannot exclude foreign nationals — including undocumented immigrants — from claiming compensation for road accident injuries.

The Transport Committee Chairperson welcomed the appeal court ruling, stating: “The RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

However, ActionSA’s Beesley warned that the additional influx of applications will result in not only an additional financial burden but also an operational strain on the RAF to process a higher volume of claims. The ruling has prompted calls for urgent RAF Act reform from Parliament’s Transport Committee.

5. RAF Ordered to Pay Millions in Court-Ordered Payments

The RAF has faced a series of court-ordered payments in recent months, highlighting the severity of its payment backlog:

• The RAF was ordered to pay 209 road accident victims R47 million within 30 days.
• In March 2026, the SCA ordered the RAF to pay Sunshine Hospital more than R92 million within seven days.
• In February 2026, the SCA dismissed with costs an application by the RAF to appeal a judgment criticising the fund for refusing to abide by 181 court orders in favour of Sunshine Hospital.

These rulings underscore the RAF’s systemic failure to honour its legal obligations and the growing backlog of unpaid claims.

6. Actuarial Society Calls for Hybrid Reform Model

The Actuarial Society of South Africa (ASSA) has released a landmark research paper calling for a fundamental overhaul of South Africa’s road accident compensation system. The study, released in April 2026, concludes that none of the existing systems — the current RAF, the proposed no-fault Road Accident Benefit Scheme (RABS), or compulsory third-party insurance — are viable on their own.

ASSA actuary George Schwalb explained: “We conclude that none of these general systems are viable on their own, but that we do need a hybrid solution. We recommend it should have components of the current RAF, the proposed RABS and compulsory third-party insurance that is quite common in most developed countries.”

One viable option proposed is a system that provides:

• Basic no-fault benefits for medical care and rehabilitation
• Fault-based liability insurance for additional damages
• Delivery through a public-private partnership including the current RAF and private insurers, under strong regulatory oversight

The ASSA study comes against the backdrop of more than 11,000 lives lost on South African roads in 2025 alone, with many more people suffering serious injuries — and many of those victims or their families still waiting for compensation.

7. Transport Committee: Signs of Recovery, But Reform Must Accelerate

Despite the crisis, the Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, expressed cautious optimism in February 2026, stating that the RAF is “on the road to recovery.”

“We are satisfied that indeed there is work happening to improve governance and stabilise the operation of RAF. The committee accepts that RAF is a challenged entity of government, besieged by historical factors that unnecessarily frustrated the work of the entity,” he said.

Deputy Minister of Transport Mr Mkhuleko Hlengwa likened the work of reforming the RAF to “fixing an aeroplane while airborne,” acknowledging the complexity of the task while affirming that reform remains a government priority.

The committee has called on the Department of Transport to move with speed to review RAF legislation to close all loopholes.

What Does This Mean for RAF Claimants?

If you are a road accident victim or have a pending RAF claim, here is what you need to know:

1. Previously rejected claims can be relodged — If your claim was rejected due to the unlawful RAF1 form requirements, you have until 30 September 2026 to resubmit your claim.
2. Act quickly — The deadline is firm, and delays could result in your claim prescribing.
3. Seek legal advice — Given the complexity of the current situation, it is advisable to consult with an attorney specialising in RAF claims.
4. The 2008 claim form is now valid — The older, simpler claim form has been reinstated as the legal standard while new regulations are developed.
5. Expect delays — The influx of relodged claims will put additional strain on an already overburdened system.

Key Takeaways: The Road Ahead for the RAF

The Road Accident Fund is at a critical crossroads. The convergence of landmark court rulings, mounting liabilities, political pressure, and calls for systemic reform paint a picture of an institution in urgent need of transformation. Key issues to watch include:

• Whether National Treasury will intervene with a government bailout
• How the Transport Minister will implement a revised, legally compliant claims process within six months
• The outcome of SCOPA’s inquiry report into the RAF
• Whether Parliament will fast-track RAF Act reform
• The long-term viability of a hybrid compensation model as proposed by ASSA

For the hundreds of thousands of South Africans who depend on the RAF for compensation after life-altering road accidents, the stakes could not be higher. The coming months will be decisive in determining whether the RAF can be reformed into a sustainable, fair, and functional institution — or whether it will require a massive taxpayer-funded bailout to survive.

Stay updated on the latest Road Accident Fund news and developments by bookmarking this page. If you have been involved in a road accident and need guidance on your RAF claim, consult a qualified legal professional.