Road Accident Fund South Africa: Key Updates, Crisis & Reform News – August 2026

Last updated: 14 August 2026

The Road Accident Fund (RAF) in South Africa continues to dominate headlines as the embattled state entity grapples with a mounting claims backlog, funding shortfalls, political pressure, and calls for sweeping reform. Here is a comprehensive roundup of the most important RAF news and developments as of August 2026.

1. R21.7 Billion in Unpaid Claims: The Scale of the Crisis

Transport Minister Barbara Creecy has confirmed that the RAF is sitting with a staggering R21.76 billion in finalised but unpaid claims as at 28 June 2026. According to a parliamentary reply to ActionSA MP Alan Beesley, the RAF’s internal Requested Not Yet Paid (RNYP) Claims Register shows 37,622 claims involving 47,949 payment transactions that remain outstanding.

The main reasons cited for delayed payments include:

• Outstanding compliance checks – affecting claims worth nearly R11 billion
• Verification delays – affecting claims worth more than R9.1 billion
• Missing documents – affecting claims worth approximately R1.7 billion

Many of these claims date back to as far as 2007, with 36,442 claims spanning the period between 2007 and 2026.

2. New Funding Model Under Review: Will Motorists Pay More?

As the RAF’s financial crisis deepens, the Department of Transport is reviewing the fund’s funding model. One option under consideration is a new mandatory fee linked to annual vehicle licence renewals or initial vehicle registrations. This would be in addition to the existing fuel levy, which currently contributes approximately R4.2 billion per month to the RAF.

Minister Creecy confirmed: The Department of Transport, in collaboration with the Road Accident Fund, has initiated a structured review of the RAF funding framework, guided by a formal business case.

The RAF currently carries an estimated R500 billion in total debt, with an unfunded claims liability of around R40 billion. The fund recorded a deficit of R2.32 billion for the year ending 31 March 2025 – a 45.9% increase from the previous year.

3. DA Fights Back: Calls to Scrap the RAF

The Democratic Alliance (DA) has ramped up its campaign to scrap the RAF entirely, opposing any new taxes or levies on motorists. The DA argues that the RAF’s crisis stems from years of mismanagement, corruption, waste, and poor governance – not insufficient funding.

The DA is engaging Minister Creecy on legislative amendments to replace the RAF with a more sustainable, efficient, and affordable system. The party stated: South Africans should not be punished for government’s inability to manage the RAF.

4. APRAV Proposes a National Settlement Hub to Clear the Backlog

The Association for the Protection of Road Accident Victims (APRAV) has proposed the creation of a National Settlement Hub to address the RAF’s backlog of approximately 100,000 claims.

APRAV vice chair Pieter de Bruyn noted that less than 5% of RAF claims are genuinely disputed, yet 90% end up in court – resulting in an accumulated legal bill of R6 billion. The Settlement Hub would sort claims, consolidate evidence, place decision-makers in the room, pay out undisputed portions immediately, and track every case until the claimant is paid.

The proposal would require approximately R16 billion from National Treasury to clear the backlog. APRAV stresses this is not a bailout – it is paying claimants what they should have received years ago.

APRAV also highlighted that the RAF’s unlawful introduction of the RAF1 form – declared unlawful by the Supreme Court of Appeal – may have excluded up to 100,000 claimants with valid claims.

5. Statutory Cap Increase for Loss of Income Claims

In a positive development, the RAF officially increased the statutory cap for loss of income and loss of support claims as of 31 January 2026. This provides greater compensation for victims who have suffered significant income losses as a result of road accidents.

6. RAF Shows Signs of Recovery – But Reform Must Accelerate

The Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, stated that the RAF is on the road to recovery, with governance improvements and operational stabilisation underway. Deputy Minister Mkhuleko Hlengwa likened the reform process to fixing an aeroplane while airborne.

Parliament’s Standing Committee on Public Accounts (SCOPA), chaired by Songezo Zibi, is conducting a detailed inquiry into the RAF. Zibi noted the RAF is chronically underfunded and that even after governance problems are resolved, there may not be enough money to meet all claim obligations.

7. RAF Claims Are Still Worth Pursuing – Recent Payouts Reach R9.6 Million

Despite the financial turmoil, legal experts urge accident victims not to abandon their claims. Attorney Kirstie Haslam of DSC Attorneys highlights recent notable payouts:

• A child with permanent cognitive impairment: R9.6 million plus future medical costs
• Another child injured in a road accident: R7.5 million
• A six-week-old baby with cognitive difficulties: R6.99 million
• A Gauteng woman with severe head injuries: over R5.4 million

The average RAF claim settlement increased by 21.4% year-on-year, reaching R348,100 per settlement in 2024/2025. Average values by claim type: general damages R583,682; loss of earnings R1,224,523; loss of support R666,280; medical claims R30,078; funeral costs R14,963.

8. Future Funding: A Hybrid Model on the Horizon

APRAV’s Pieter de Bruyn suggests the future RAF funding model will likely be a hybrid model comprising the existing fuel levy, an optional insurance top-up, and private sector involvement. He dismissed fears that electric vehicles will erode the fuel levy, noting that EV uptake in South Africa will remain minimal for the foreseeable future.

Key Takeaways for South Africans

• The RAF owes R21.76 billion in finalised but unpaid claims to over 37,000 claimants.
• A new vehicle licence fee is being considered to supplement RAF funding – but faces strong political opposition.
• The DA is pushing to replace the RAF entirely with a more efficient system.
• APRAV’s National Settlement Hub proposal offers a practical path to clearing the backlog.
• Despite the crisis, RAF claims remain valuable – recent payouts have reached up to R9.6 million.
• The statutory cap for loss of income claims was increased in January 2026.
• Parliamentary oversight through SCOPA is intensifying, offering hope for accountability and reform.

Stay informed about the latest Road Accident Fund news and updates. If you or a loved one has been injured in a road accident in South Africa, consult a qualified attorney to understand your rights and the compensation you may be entitled to.

Sources: IOL Business, Moneyweb, Democratic Alliance, APRAV, Arrive Alive, Africa24 TV, Road Accident Fund official website.