Road Accident Fund South Africa: Major Court Rulings, Financial Crisis & What Claimants Need to Know (May 2026)

The Road Accident Fund (RAF) is at the centre of a perfect storm in May 2026 — landmark Supreme Court of Appeal rulings, a looming government bailout, mounting liabilities potentially exceeding R500 billion, and hundreds of thousands of previously rejected claimants now getting a second chance. Here is everything you need to know about the latest RAF news in South Africa.

1. Landmark SCA Ruling: RAF’s Claim Form Declared 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 Fund’s revised RAF 1 claim form — introduced via Board Notice 302 in July 2022 — unconstitutional, unlawful, and invalid.

The SCA found that both the RAF and the Minister of Transport acted outside their legal powers when they introduced stricter documentation requirements through the revised RAF 1 form. The court ruled 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 no proper public participation process was followed.
• The revised form created barriers to access rather than facilitating compensation for road accident victims, directly undermining the purpose of the RAF Act.
• The 2008 RAF 1 form is reinstated as the valid standard until a lawfully revised form is introduced.

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.”

What This Means for Claimants

The SCA ordered that claimants whose submissions were previously 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.

Transport Minister Barbara Creecy has been given six months to introduce a revised claims process that complies with legal and procedural requirements.

2. The Scale of the Problem: Up to 600,000 Rejected Claims Could Be Revived

The financial and operational implications of the SCA ruling are staggering. Evidence before Parliament’s Standing Committee on Public Accounts (SCOPA) reveals the true scale of the damage caused by the unlawful RAF 1 form:

• Between July 2022 and March 2025, of 105,039 RAF 1 claims pre-assessed, only 29,049 (28%) were compliant — while 75,990 (72%) were rejected for failing to meet documentation requirements.
• Weekly claim registrations dropped from nearly 2,000 to just over 300 after the stricter form was introduced.
• New claims fell from 328,173 in 2018/19 to just 65,732 in 2024/25.
• ActionSA MP Alan Beesley estimates that as many as 600,000 claims may have been excluded under the unlawful form, translating to roughly R180 billion in previously unrecorded liabilities.

Gert Nel of Gert Nel Inc Attorneys confirmed 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.

3. RAF Faces R390 Million Additional Liability After Foreign Nationals Ruling

In a separate but related development, the SCA also upheld a High Court ruling in April 2026 that the RAF cannot exclude undocumented foreign nationals from claiming compensation for road accident injuries.

A full bench of three judges, led by Judge Norman Davis, set aside a RAF directive that required foreign claimants to prove they were legally present in South Africa at the time of the accident.

Transport Minister Barbara Creecy has revealed that the RAF could face at least R390 million in additional liability as a result, as claims previously classified as non-payable on the Requested Not Yet Paid (RNYP) register now become payable.

“According to the latest version of the RNYP register, a total of R390 million relates to illegal foreigners. These have been deemed non-payable matters, but the Supreme Court of Appeal ruling makes them payable,” the Minister said.

The RAF Board is still taking legal advice on whether to seek leave to appeal the ruling at the Constitutional Court.

4. Is a Government Bailout Inevitable?

The RAF’s financial position was already dire before these court rulings. The 2026 Budget Review reported that the RAF accounts for 85.5% of total social security fund liabilities — equivalent to R370.3 billion at the end of 2024/25. The 2025 Medium-Term Budget Policy Statement warned that the RAF’s liabilities are projected to increase from R369.7 billion in 2024/25 to R422.6 billion by 2027/28.

With the SCA rulings now adding potentially hundreds of billions in previously unrecorded liabilities, financial experts and politicians are increasingly warning that a major government bailout is inevitable.

ActionSA has called on the Finance Minister to explain to Parliament how the national fiscus plans to carry the RAF’s liabilities, warning that the fund’s total exposure could exceed half a trillion rand — surpassing the financial burden posed by Eskom and Transnet on the public purse.

Moneyweb reports that the RAF has an estimated R500 billion in unqualified contingencies, a significant portion of which is attributable to the fund rejecting claims that complied with the RAF Act but not its own unlawful Board Notice requirements.

5. SCOPA Inquiry: Governance Failures Under the Microscope

Parliament’s Standing Committee on Public Accounts (SCOPA) is currently finalising its oversight inquiry report into the RAF. The inquiry has already highlighted:

• The RAF 1 form as a central issue in the Fund’s claims process.
• Governance failures and financial reporting concerns.
• Allegations of corruption, including a probe into alleged corruption between judges and lawyers.
• An investigation into R1 billion in media contracts.
• MPs lambasting the fund for appealing the High Court ruling on the illegality of the form.

ActionSA has said it will be exploring all available legal avenues, including the potential for criminal charges against those responsible for the unlawful implementation of the RAF 1 form.

6. Calls for a Hybrid Model to Replace the RAF

The Actuarial Society of South Africa (ASSA) has released a major research paper calling for the current RAF system to be replaced with a robust, financially stable hybrid solution.

The RAF is considered technically bankrupt, with the Department of Transport warning of a major fiscal risk. Last year, more than 11,000 lives were lost in road accidents in South Africa, while many more suffered serious injuries — yet many victims or their families have not received financial compensation. Some claims relating to accidents that occurred more than 20 years ago are only now proceeding to trial.

ASSA actuary George Schwalb said: “We conclude that none of these general systems are viable on their own, but that we do need a hybrid solution with 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, supplemented by fault-based liability insurance for additional damages, delivered through a public-private partnership under strong regulatory oversight.

7. New RAF Fee Proposed for Motorists at Licence Renewal

As the RAF scrambles for funding solutions, Moneyweb reports that motorists may soon pay a new RAF fee when renewing their vehicle licences. This proposal is being explored as an additional revenue stream to help address the Fund’s catastrophic financial shortfall, on top of the existing fuel levy that currently funds the RAF.

Key Dates and Deadlines for RAF Claimants

What Should You Do If Your RAF Claim Was Previously Rejected?

If your RAF claim was rejected between July 2022 and April 2026 due to non-compliance with the 2022 RAF 1 form requirements, you may now have the right to resubmit your claim. Here is what you should do:

1. Act quickly — the deadline to resubmit is 30 September 2026.
2. Contact a qualified RAF attorney to assess your claim and assist with resubmission using the 2008 RAF 1 form.
3. Gather your original documentation, including accident reports, medical records, and any previous correspondence with the RAF.
4. Do not assume your claim has prescribed — the SCA ruling backdates successfully resubmitted claims to the original lodgement date.

“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.” — Kirstie Haslam, DSC Attorneys

Conclusion: A Fund in Crisis, But Hope for Claimants

The Road Accident Fund is facing its most significant crisis in decades. A series of damning court rulings, a potential R500 billion liability, governance failures, and calls for a complete structural overhaul paint a picture of a fund that has failed in its core mandate to compensate South African road accident victims.

However, for the hundreds of thousands of claimants whose claims were unlawfully rejected, the SCA’s April 2026 ruling offers a genuine lifeline. If you or a loved one was affected, now is the time to act.

Stay tuned to this blog for daily updates on the Road Accident Fund, RAF claims news, and developments affecting South African road users.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney for advice specific to your situation.