Road Accident Fund (RAF) South Africa: Key Updates, Court Rulings & Reform Challenges – July 2026

The Road Accident Fund (RAF) in South Africa continues to dominate headlines in 2026, with a wave of landmark court rulings, mounting financial pressures, and urgent calls for structural reform. From a Supreme Court ruling on undocumented foreigners to a R40 billion insolvency crisis and hundreds of unpaid claims, here is everything you need to know about the latest RAF developments.

1. RAF Declared Technically Insolvent – R40 Billion in Unpaid Claims

One of the most alarming developments surrounding the Road Accident Fund is its worsening financial position. According to recent reports, the RAF’s unpaid claims liability has ballooned to an estimated R40 billion, while the fund recorded a deficit of R2.32 billion during the 2024/25 financial year – a staggering 45.9% increase compared to the previous year.

The fund’s total liabilities now stand at almost triple its total assets, placing it in a state of technical insolvency. Despite this dire financial situation, the RAF continues to pay out substantial claims. DSC Attorneys partner Kirstie Haslam has urged claimants not to panic:

“This perception that the RAF has no money and therefore cannot compensate victims is simply not accurate, despite the system being under significant pressure. While claims can take time to finalise, valid claims continue to result in substantial compensation that can fundamentally change the lives of injured victims and their families.”

Recent examples of successful payouts include a child who received R7.5 million for medical expenses following a motor vehicle accident, and another child awarded R9.6 million for permanent cognitive damage.

2. Landmark Supreme Court Ruling: RAF Must Compensate Undocumented Foreigners

In a landmark ruling handed down in April 2026, the Supreme Court of Appeal (SCA) confirmed that the Road Accident Fund must compensate all road accident victims in South Africa – including undocumented foreign nationals.

The SCA dismissed the RAF’s appeal, finding 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 present in the country at the time of the accident.

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

The RAF had argued that undocumented foreign nationals should be excluded from the compensation scheme to prevent fraud and avoid conflict with the Immigration Act. The SCA rejected this argument, finding that neither the Transport Minister nor the RAF is permitted to amend or limit the scope of the Act through policy decisions.

The Transport Committee Chairperson welcomed the ruling, emphasising that RAF funding is intended for all victims of road accidents, regardless of nationality.

3. RAF Ordered to Pay R2.23 Million to Pedestrian – Punitive Cost Order Issued

In May 2026, the Western Cape High Court issued a punitive cost order against the Road Accident Fund and directed it to pay road accident victim Catherine Yiannakis R2.23 million for past hospital and medical expenses.

The RAF had refused to pay a portion of the claim (R552,248.76) because the costs had already been covered by the claimant’s medical aid, Discovery Health. This stance was taken despite binding full court judgments and SCA confirmation of the RAF’s liability to pay such costs.

Acting Judge M Louw was scathing in her criticism of the RAF’s conduct:

“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 found that the RAF’s opposition was “frivolous” and that its conduct – including a flimsy defence and total disregard for established obligations – warranted a punitive costs order. Yiannakis has been living in a long-term care facility for nearly eight years following a motor vehicle collision in February 2018.

4. Court Action Launched Over 430+ Unpaid Finalised Claims

In June 2026, de Broglio Attorneys launched a court application against the Road Accident Fund following the continued non-payment of more than 430 finalised claims, despite settlement agreements having been concluded or court orders already granted.

In some instances, claimants have waited more than two years for compensation that has already been agreed to or ordered by a court. The application seeks an order compelling the RAF to provide full reasons and detailed explanations for its failure to effect payment within the prescribed 180-day timeframe.

Michael de Broglio, director of de Broglio Attorneys, highlighted the human cost of these delays:

“These are not numbers on a spreadsheet. They are individuals whose lives have already been fundamentally changed by serious road accidents. Once a matter is settled or a court order is granted, there is a legitimate expectation that payment will follow within a reasonable and defined period.”

One of the affected claimants is Rory Meintjies, a 29-year-old who suffered a spinal cord injury and permanent paralysis from the waist down in a road accident four years ago. Despite a court award having already been granted in his case, he and his family are still waiting for payment.

The court action comes amid heightened scrutiny of the RAF’s governance, following parliament’s Standing Committee on Public Accounts (Scopa) laying criminal charges against former RAF CEO Collins Letsoalo for failing to comply with a parliamentary summons.

5. Transport Committee: RAF Shows Signs of Recovery, But Reform Must Accelerate

In February 2026, the Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, stated that – contrary to public opinion – 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,” he said, while acknowledging that concerns about organisational structure remain.

Deputy Minister of Transport Mkhuleko Hlengwa accompanied the RAF board before the committee and described the reform process as “fixing an aeroplane while airborne.” He stressed that direct claims remain an immediate area of attention and that reforming the RAF is a government priority.

6. Proposed Hybrid Funding Model – New Fees on the Horizon?

The Department of Transport is exploring a hybrid funding model to address the RAF’s financial sustainability. Currently, the RAF is funded through the RAF Levy charged on fuel, collecting between R45 and R48 billion per year.

However, this model is under threat as South Africa transitions toward electric vehicles and a “road-to-rail” transport strategy. Transport Minister Barbara Creecy has indicated that an additional fee on licence disc renewals is being considered to bolster the fund’s revenue.

Deputy Minister Hlengwa explained: “It is elementary that you are going to have a reduction in your revenue generation if your sole model of income is the levy at the pumps. We are proposing a hybrid model, where there are public funds which will come through the levy, and the introduction of third-party insurance, which will be a responsibility borne by drivers.”

The proposal has faced strong opposition from the Democratic Alliance (DA) and the Automobile Association of South Africa. DA Transport Spokesperson Chris Hunsinger called for the RAF to be scrapped entirely:

“The RAF is in crisis because years of mismanagement, corruption, waste and poor governance have left it financially crippled. South Africans should not be forced to foot the bill for the government’s failures.”

What Does This Mean for RAF Claimants?

If you have been injured in a road accident in South Africa, here are the key takeaways from the latest RAF news:

• Your claim is still valid – Despite the RAF’s financial difficulties, valid claims continue to be paid out, including multi-million rand awards.
• All victims qualify – The Supreme Court has confirmed that all road accident victims, including undocumented foreigners, are entitled to compensation.
• Don’t accept low settlements – Legal experts advise claimants not to accept unreasonably low out-of-court settlement offers from the RAF.
• Delays are common but challengeable – If your finalised claim has not been paid within 180 days, legal action can be taken to compel payment.
• Seek legal advice – Given the complexity of RAF claims and the fund’s history of contesting valid claims, it is advisable to work with an experienced RAF attorney.

Conclusion: A Fund at a Crossroads

The Road Accident Fund finds itself at a critical juncture in 2026. While courts continue to uphold the rights of accident victims and order the RAF to pay valid claims, the fund’s technical insolvency, governance failures, and payment delays paint a troubling picture for South Africa’s road accident compensation system.

Structural reforms – including a hybrid funding model and legislative amendments – are urgently needed to ensure the RAF can fulfil its mandate of compensating road accident victims for decades to come. Until then, claimants must remain vigilant, seek proper legal representation, and be prepared for a potentially lengthy claims process.

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