Road Accident Fund (RAF) in Crisis: Landmark Court Rulings, R500bn Liability Threat & What Claimants Must Know in 2026

Published: 25 May 2026 | Updated daily with the latest RAF news from South Africa

South Africa’s Road Accident Fund (RAF) is at the centre of a perfect storm in 2026 — facing landmark Supreme Court of Appeal (SCA) rulings, a potential government bailout of historic proportions, and a wave of previously rejected claims that could push the fund’s total liabilities beyond R500 billion. If you’ve ever been involved in a road accident, lodged a RAF claim, or had a claim rejected, this is essential reading.

Here is a comprehensive overview of the most important RAF news and developments as of May 2026.

1. Landmark SCA Ruling: RAF’s Claims Process Declared Unlawful

In what legal experts are calling one of the most significant rulings in the RAF’s history, the Supreme Court of Appeal (SCA) handed down a unanimous judgment on 30 April 2026, dismissing the RAF’s appeal against a High Court order that had declared the fund’s revised RAF 1 claim form unconstitutional, unlawful, and invalid.

The case centred on Board Notices 271 and 302 of 2022, which introduced a stricter RAF 1 form that imposed extensive documentation requirements on claimants before their claims could even be registered. The SCA found that:

• The RAF had no legal authority to prescribe binding claim requirements — that power rests solely with the Minister of Transport.
• The Minister’s decision to approve and gazette the revised form was also unlawful, as it lacked proper public participation and independent decision-making.
• The revised form created barriers to access, departing from the established principle that substantial compliance is sufficient at the lodgement stage.
• The form’s real effect was to reduce the number of claims rather than improve administrative efficiency — directly undermining the RAF Act’s core purpose of compensating road accident victims.

SCA Judge Caroline Nicholls, with four concurring judges, ruled that the Minister’s decision was “fatally flawed” and that there was no rational connection between the decision taken and the purpose for which the power was given.

What this means practically: The RAF must revert to the 2008 RAF 1 form as the valid standard for all claims. Transport Minister Barbara Creecy has been given six months to introduce a revised, legally compliant claims process.

2. Hundreds of Thousands of Rejected Claims Revived — Deadline: 30 September 2026

Perhaps the most impactful consequence of the SCA ruling is the revival of claims that were previously rejected under the unlawful 2022 RAF 1 form.

According to data presented before Parliament, between July 2022 and March 2025, of 105,039 RAF 1 claims that were pre-assessed, only 29,049 (28%) were compliant, while a staggering 75,990 (72%) were rejected for failing to meet the stricter documentation requirements. This figure excludes claims that were turned away before registration or never recorded at all.

The SCA has ordered that claimants whose submissions were rejected or not acknowledged under the 2022 regime may resubmit their claims using the 2008 RAF 1 form by 30 September 2026. Crucially, if accepted, those claims will be treated as if they were lodged on the original date — protecting them from prescription.

ActionSA MP Alan Beesley warned that preliminary estimates suggest 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 — on top of the RAF’s already staggering existing debt.

Kirstie Haslam, Partner at DSC Attorneys, noted: “There are likely many people who simply gave up after their claims were rejected. This judgment effectively gives them a second chance to claim compensation they may have been unfairly denied.”

⚠️ If your RAF claim was rejected between 2022 and 2026, you may have until 30 September 2026 to resubmit. Consult a qualified attorney immediately.

3. The RAF’s Financial Crisis: Is a Government Bailout Inevitable?

The SCA ruling has dramatically worsened an already dire financial picture for the RAF. According to Moneyweb, it now appears increasingly likely that the RAF will require a significant government bailout.

Key financial facts:

• The RAF is estimated to have approximately R500 billion in unqualified contingencies, a portion of which is attributable to claims rejected under the now-unlawful 2022 form.
• The 2026 Budget Review reported total liabilities of social security funds at R433.1 billion at the end of 2024/25, with the RAF accounting for 85.5% (R370.3 billion).
• The 2025 Medium-Term Budget Policy Statement warned that the RAF’s financial position is expected to deteriorate over the medium term, with liabilities projected to increase from R369.7 billion in 2024/25 to R422.6 billion by 2027/28.
• RAF board chair Kenneth Brown previously warned that liabilities could increase by between R300 billion and R400 billion due to accounting standard changes.
• Attorney Gert Nel of Gert Nel Inc Attorneys noted that his firm alone is running a book in excess of R100 million in unpaid RAF claims with default court orders in place — and that is just one law firm among many.

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

The Standing Committee on Public Accounts (SCOPA) is currently conducting an oversight inquiry into the RAF’s affairs, with concerns over governance failures, financial reporting irregularities, and the R1 billion media contracts scandal.

4. SCA Rules: Foreign Nationals Can Claim from the RAF

In a separate but equally significant ruling in April 2026, the SCA upheld a High Court decision that foreign nationals — including undocumented immigrants — are entitled to claim and receive benefits from the Road Accident Fund.

The court found that the interpretation of “any person” in the RAF Act does not exclude foreign nationals from claiming under the scheme. The RAF had appealed against this interpretation, but the SCA dismissed the appeal.

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

He called for a review of RAF legislation to formally accommodate foreign nationals, citing models from Botswana and Namibia where visitors are required to take out short-term insurance cover upon entry.

5. Signs of Recovery? Parliament Cautiously Optimistic

Despite the financial turmoil, Parliament’s Portfolio Committee on Transport has expressed cautious optimism about the RAF’s trajectory. In February 2026, Committee Chairperson Donald Selamolela stated that the RAF is “on the road to recovery”, noting improvements in governance and operational stabilisation.

Deputy Minister of Transport Mkhuleko Hlengwa confirmed that reforming the RAF remains a priority, with direct claims processing identified as an immediate area of attention. He likened the reform process to “fixing an aeroplane while airborne.”

The RAF’s new operating model aims to:

• Fast-track the payment of claims, with all new claims to be settled within 120 days.
• Significantly reduce legal costs.
• Improve direct claims processing to reduce dependence on attorneys.

The committee called on the Department of Transport to accelerate legislative reform to close loopholes and modernise the RAF Act.

6. RAF Settlement Drives: Bringing Payments to Communities

On the operational front, the RAF hosted its Settlement Drive at Ngwelezane Hospital on 20 February 2026 — the second instalment of its community-based settlement initiative. These drives are designed to bring the claims settlement process directly to claimants, particularly those in underserved communities, reducing the need for costly legal intermediaries.

Key Trends and Takeaways for RAF Claimants in 2026

Based on the latest news and court rulings, here are the most important trends shaping the RAF landscape in 2026:

1. The courts are consistently ruling against the RAF — multiple SCA judgments in 2026 alone have gone against the fund, signalling that the judiciary is firmly protecting claimants’ rights.
2. The financial crisis is deepening — with liabilities potentially exceeding R500 billion, a government bailout appears increasingly likely, raising serious questions about the fund’s long-term sustainability.
3. Rejected claimants have a second chance — the 30 September 2026 deadline to resubmit previously rejected claims is critical. Do not miss it.
4. Legislative reform is urgent — the RAF Act is widely acknowledged to be outdated, and Parliament is pushing for comprehensive reform.
5. Foreign nationals are now protected — the SCA’s ruling expands the pool of eligible claimants, adding further pressure to the fund’s finances.

What Should You Do If You Have a RAF Claim?

If you or a loved one has been injured in a road accident in South Africa, here is what you need to know:

• Act quickly — RAF claims are subject to prescription periods. Delays can result in your claim being time-barred.
• Check if your claim was rejected — if your claim was rejected between 2022 and 2026 under the stricter RAF 1 form requirements, you may be eligible to resubmit before 30 September 2026.
• Consult a qualified attorney — given the complexity of the current legal landscape, professional legal advice is strongly recommended.
• Use the 2008 RAF 1 form — this is now the legally valid form for lodging claims, following the SCA ruling.
• Monitor the RAF’s direct claims process — the RAF is actively working to improve its direct settlement process, which may allow you to claim without an attorney in some cases.

Conclusion

The Road Accident Fund is navigating one of the most turbulent periods in its history. Landmark SCA rulings have dismantled years of restrictive claims practices, potentially opening the floodgates to hundreds of thousands of previously rejected claims. The financial implications are staggering, with total liabilities potentially exceeding R500 billion and a government bailout looking increasingly inevitable.

For South African road users and accident victims, the message is clear: know your rights, act before the 30 September 2026 deadline, and seek professional legal advice. The courts have spoken — the RAF exists to serve you, not to turn you away.

Stay informed. Bookmark this page for daily updates on the Road Accident Fund in South Africa.

Sources: TopAuto, Moneyweb, Moonstone Information Refinery, Parliament of South Africa, Africa24 TV, Politicsweb, Supreme Court of Appeal of South Africa.