Road Accident Fund South Africa: Key News, Court Rulings & Funding Crisis – June 2026

The Road Accident Fund (RAF) in South Africa continues to make headlines in 2026, with a series of landmark court rulings, mounting financial pressures, and growing calls for systemic reform. From a Supreme Court of Appeal judgment that opens the door to claims by undocumented foreign nationals, to a punitive high court cost order against the fund, and warnings of a looming R500 billion liability — here is a comprehensive roundup of the latest RAF news as of June 2026.

1. RAF Faces R390 Million Liability After Landmark Court Ruling on Foreign Nationals

One of the most significant legal developments of 2026 is the Supreme Court of Appeal (SCA) ruling that the Road Accident Fund must compensate all road accident victims — including undocumented foreign nationals. The ruling found that the phrase “any person” in the RAF Act includes undocumented foreigners, overturning a previous RAF directive that required foreign claimants to prove legal presence in South Africa at the time of the accident.

Transport Minister Barbara Creecy has confirmed that approximately R390 million in claims previously classified as non-payable could now become payable following the judgment. According to the Minister, these claims appear on the Requested Not Yet Paid (RNYP) register and were previously deemed non-payable.

“According to the latest version of the Requested Not Yet Paid (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,” Minister Creecy stated.

The RAF Board is still taking legal advice on whether to seek leave to appeal the ruling at the Constitutional Court. Parliament’s Portfolio Committee on Transport has welcomed the ruling, emphasising that RAF funding is intended for all victims of road accidents, regardless of nationality.

What This Means for Claimants

• Undocumented foreign nationals injured in road accidents in South Africa may now be eligible to claim from the RAF.
• Hundreds of previously rejected claims may be reviewed and reopened.
• The RAF’s financial liability is set to increase significantly as a result.

2. RAF Ordered to Pay R2.23 Million to Pedestrian — and Slapped With Punitive Cost Order

In a strongly worded judgment, the Western Cape High Court ordered the RAF to pay road accident victim Catherine Yiannakis R2 231 081.34 for past hospital and medical expenses — and issued a rare punitive cost order against the fund.

Yiannakis was injured as a pedestrian in a motor vehicle collision on 12 February 2018 and has been living in a long-term care facility ever since. Despite binding full court judgments and SCA confirmation of the RAF’s liability, the fund refused to pay a portion of the claim (R552 248.76) because it had already been covered by the claimant’s medical aid, Discovery Health.

Acting Judge M Louw found the RAF’s conduct “wholly unacceptable,” stating:

“It is wholly unacceptable that the RAF persists in defending these hopeless matters, thereby wasting public resources, driving up legal costs for both the RAF and claimants, and compelling claimants to incur unnecessary expenses to enforce rights already established.”

The judge criticised the RAF’s pattern of issuing directives to circumvent court orders and statutory provisions, noting that this had become a “recurring practice.” The RAF was given 180 days to pay the full amount.

Key Takeaways From This Ruling

• The RAF cannot refuse to pay past medical expenses simply because a claimant’s medical aid has already covered those costs.
• Courts are increasingly issuing punitive cost orders against the RAF for frivolous opposition to valid claims.
• A pending SCA appeal on the medical aid expenses issue could have far-reaching implications for thousands of similar claims.

3. RAF Funding Crisis: Could South Africans Face New Vehicle Licence Fees?

The RAF’s financial sustainability is under the spotlight as the government explores new funding mechanisms. Currently, the RAF is funded through a levy on petrol and diesel — but this model is under strain for several reasons:

• The rise of electric vehicles (EVs) means fewer fuel sales, reducing the levy income.
• The fund carries an estimated R500 billion in outstanding liabilities, according to figures discussed by Parliament’s Standing Committee on Public Accounts (SCOPA).
• The RAF receives approximately 100,000 claims per year, with an average claim value of around R328,000.

Transport Minister Barbara Creecy has indicated that her department is considering an overhaul of how the RAF is financed, with new vehicle licence fees being one option under review.

Emeritus Professor Hennie Klopper, a practising attorney and professor of private law at the University of Pretoria, warned that the fund’s challenges go beyond funding:

“The problem is not as much getting money to pay for it, but stopping the bleeding. The way that the Road Accident Fund has been run and the way that the government has neglected the Road Accident Fund is actually scandalous.”

The Governance Problem

Prof. Klopper highlighted that the RAF has had 10 chief executive officers since 2002, with each promising to turn the organisation around. A controversial 2002 decision to generally not settle claims unless they proceeded to trial forced many claimants into lengthy legal battles, dramatically increasing costs.

Could South Africa Return to Compulsory Motor Insurance?

South Africa previously operated a compulsory motor insurance system before switching to the fuel levy model in 1986. However, Prof. Klopper warned that returning to compulsory insurance could be extremely costly for motorists, estimating premiums of between R5,000 and R10,000 per year.

Road Safety as the Long-Term Solution

Experts agree that improving road safety must form a central part of any strategy to rescue the RAF. South Africa’s road traffic law enforcement is rated at just 30% by the World Health Organisation, and many of those injured or killed on South African roads are pedestrians — a group not well-served by roadblock-focused enforcement strategies.

4. RAF Shows Signs of Recovery — But Reform Must Accelerate

Despite the challenges, there are some positive signals. Parliament’s Transport Committee Chairperson has noted that the RAF is showing signs of recovery, with reform efforts gaining momentum. The RAF’s new operating model aims to fast-track the payment of claims, with a target of settling all new claims within 120 days.

The RAF also hosted a Settlement Drive at Ngwelezane Hospital in February 2026, the second instalment of an initiative aimed at resolving outstanding claims more efficiently.

However, the committee has called for the expedited reform of the RAF Act, particularly in light of the foreign nationals’ court ruling and the ongoing disputes over medical aid expenses.

5. RAF Empowers Youth Through Driver Training and Road Safety Initiatives

On a more positive note, the RAF released a media statement on 17 June 2026 highlighting its commitment to youth empowerment through driver training and road safety initiatives. The fund has also handed over its first Junior Traffic Training Centre to a primary school, as part of its broader road safety education mandate.

These initiatives reflect the RAF’s dual role: not only compensating road accident victims, but also working to prevent accidents in the first place.

6. RAF 1 Form Ruling: Hundreds of Rejected Claims to Be Reviewed

In another significant legal development, the RAF is set to review hundreds of claims that were rejected over the past four years, following a Supreme Court of Appeal ruling against the RAF 1 Form. The ruling found that information required on the form was unlawfully applied, meaning many previously rejected claims may now be eligible for reconsideration.

The RAF issued a media statement on 12 May 2026 outlining its position on the SCA judgment against the RAF 1 Form, signalling that the fund is taking steps to address the backlog of affected claims.

Summary: Key RAF Trends to Watch in 2026

What Should RAF Claimants Do?

If you have been injured in a road accident in South Africa, here is what you need to know:

1. You have the right to claim from the RAF regardless of who was at fault, as long as another vehicle was involved.
2. Undocumented foreign nationals may now also be eligible to claim, following the SCA ruling.
3. Medical aid beneficiaries should be aware that the RAF’s liability for past medical expenses covered by medical aids is still being contested — but courts have consistently ruled in favour of claimants.
4. Previously rejected claims related to the RAF 1 Form may be eligible for review — consult an attorney.
5. The RAF’s new 120-day settlement target means claims should be resolved faster than before.
6. Always consult a qualified RAF attorney to ensure your claim is properly lodged and pursued.

Conclusion

The Road Accident Fund remains one of South Africa’s most complex and contested institutions. In 2026, it faces a perfect storm of legal challenges, financial pressures, and governance questions — while simultaneously attempting to reform and modernise its operations. The coming months will be critical, as the Constitutional Court may yet weigh in on the foreign nationals ruling, the SCA considers the medical aid expenses appeal, and the government decides on a new funding model.

For road accident victims, the message is clear: know your rights, seek legal advice, and do not be deterred by the RAF’s history of contesting valid claims. The courts have consistently upheld the rights of claimants — and that trend shows no sign of reversing.

Stay updated with the latest Road Accident Fund news by bookmarking this page. We publish daily updates on RAF developments, court rulings, and claims guidance.