Road Accident Fund (RAF) in Crisis: R21.7 Billion Unpaid, New Fees Proposed & Reform Debate Heats Up – August 2026

The Road Accident Fund (RAF) continues to dominate South African headlines in August 2026, with a growing payment backlog, proposed new vehicle licence fees, calls to scrap the fund entirely, and a Supreme Court ruling reshaping claims processes. Here is a comprehensive roundup of the latest developments affecting millions of South Africans.

1. RAF’s Unpaid Claims Backlog Hits R21.7 Billion

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

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 documentation – affecting claims worth approximately R1.7 billion

Many of these outstanding claims date back as far as 2007, highlighting the deep-rooted nature of the RAF’s administrative challenges.

2. RAF Pays R8.9 Billion in Q1 2026/27 – But the Queue Keeps Growing

Despite a significant increase in payouts, the RAF’s payment queue continues to expand. According to figures presented to Parliament’s Portfolio Committee on Transport on 11 August 2026 by acting CEO Radikwena Phora, the RAF paid out R8.9 billion across 80,665 claims between 1 April and 30 June 2026 – a 54% increase compared to the same quarter in the previous financial year.

However, the Requested Not Yet Paid (RNYP) balance grew from R18.56 billion to R22.18 billion during the same period, as R12.57 billion in new claims entered the pipeline while only R8.95 billion was paid out – a net increase of R3.62 billion.

Where Did the R8.9 Billion Go?

• Loss of earnings: R4.831 billion
• Plaintiff legal and costs: R2.018 billion
• General damages: R1.358 billion
• Loss of support: R291 million
• Past medical expenses: R276 million
• Future medical expenses: R160 million
• RAF legal and costs: R51 million
• Funeral costs: R4 million

The average payment per claim was approximately R283,595. Acting CEO Phora noted that the fund can receive as little as R4 billion per month, while its payment queue can exceed R20 billion – a structural imbalance that underscores the fund’s financial fragility.

The RAF currently has 301,203 open claims, with 88% still on the older Legacy system rather than the newer Bokamoso integrated claims management platform.

3. New Vehicle Licence Fee Proposed to Fund the RAF

In a move that has sparked widespread public backlash, Transport Minister Barbara Creecy has proposed introducing a new transitional levy attached to annual vehicle licence disc renewals to help fund the RAF. The proposal comes as the government grapples with the long-term sustainability of the fund’s current financing model.

The RAF is currently funded through a fuel levy of R2.25 per litre on petrol and diesel. However, the rise of electric vehicles (EVs) – which do not consume fuel – is expected to erode this revenue base over time.

The proposal has been met with fierce opposition:

• The Automobile Association (AA) CEO Bobby Ramagwede called the idea “laughable,” arguing that the RAF’s problems are operational, not revenue-related. “It collects more money than it disburses,” he said, pointing to mismanagement as the root cause.
• The Democratic Alliance (DA) has vowed to challenge the proposal, with Transport spokesperson Dr Chris Hunsinger stating: “The RAF is not in crisis because motorists are not paying enough – it is in crisis because of years of mismanagement, corruption, waste and poor governance.”
• The Public Servants Association (PSA) has also rejected the proposed vehicle tax.

4. Calls to Scrap the RAF Entirely

The debate around the RAF’s future has intensified, with growing calls to replace the fund with a compulsory third-party insurance system. The AA’s Bobby Ramagwede suggested that a private insurance model could achieve the same goals more efficiently.

However, legal experts caution that scrapping the RAF is not straightforward. Emeritus Professor Hennie Klopper of the University of Pretoria warned that introducing a new system would require funding both the old and new systems simultaneously – a potentially enormous financial burden.

Klopper also highlighted the scale of the RAF’s liabilities, noting that Parliament’s Standing Committee on Public Accounts (SCOPA) has discussed figures of around R500 billion in outstanding obligations. With between 300,000 and 400,000 outstanding claims, the fund’s true financial exposure may be far greater than publicly acknowledged.

He also pointed to South Africa’s poor road safety record as a key driver of the RAF’s unsustainability, noting that the country’s road casualty rate significantly exceeds international norms and that the WHO rates South Africa’s road traffic law enforcement at just 30%.

5. Supreme Court of Appeal Orders Revert to RAF 1 Form

In a significant legal development, a Supreme Court of Appeal judgment on 30 April 2026 directed the Road Accident Fund to revert to the 2008 RAF 1 Form for claims processing. The RAF subsequently published a public notice on 28 July 2026 confirming the implementation of this judgment.

This ruling has procedural implications for how claims are lodged and processed, and claimants and their attorneys should ensure compliance with the reinstated form requirements.

6. Statutory Claims Limit Increased from January 2026

Effective 31 January 2026, the RAF increased its statutory limit for loss of income and loss of support claims to R378,581 per year. This adjustment affects the maximum compensation claimants can receive for income-related losses and is an important consideration for anyone lodging or managing a RAF claim.

7. RAF Community Outreach and “Boots on the Ground” Approach

In an effort to bridge the gap between the fund and claimants, the RAF has launched a community outreach programme, with the latest event held in Kokstad on 14 August 2026. At these outreach events, residents can:

• Register new claims
• Submit outstanding documents
• Check the status of existing claims
• Report alleged unscrupulous attorneys and touts

Deputy Transport Minister Mkhuleko Hlengwa has also called on the RAF to follow up directly with claimants after paying their attorneys, describing the lack of direct communication as “a missing link in the ecosystem.” There have been cases where claimants were unaware that the RAF had already made settlement offers.

8. Transport Committee Signals Signs of Recovery

Despite the ongoing challenges, the Parliamentary Portfolio Committee on Transport has noted that the RAF is showing signs of recovery, with reform efforts gaining momentum. The committee has called for these efforts to accelerate, particularly around the transition from the Legacy claims system to the newer Bokamoso platform.

Between October 2024 and May 2026, the RAF paid out a total of R79.33 billion in claims – a figure that reflects the enormous scale of the fund’s operations and its critical role in compensating road accident victims.

Key Takeaways for RAF Claimants

If you have a pending or active RAF claim, here is what you need to know right now:

1. Check your claim status – Use the RAF’s online portal or attend a community outreach event to verify whether your claim is in the RNYP register and what documentation may be outstanding.
2. Ensure compliance requirements are met – The biggest cause of payment delays is outstanding compliance checks. Work with your attorney to ensure all requirements are fulfilled.
3. Be aware of the new RAF 1 Form – Following the Supreme Court ruling, claims must now be lodged using the reinstated 2008 RAF 1 Form.
4. Know the updated income cap – The statutory limit for loss of income/support claims is now R378,581 per year (effective January 2026).
5. Stay informed about funding changes – Proposed changes to how the RAF is funded could affect future claims and motorist costs.

Conclusion: The RAF at a Crossroads

The Road Accident Fund stands at a critical juncture in August 2026. While it is paying out more claims than ever before, the pipeline of new claims continues to outpace payments, leaving tens of thousands of accident victims waiting for compensation they are legally entitled to. The debate over the fund’s future – whether to reform it, replace it, or find new ways to fund it – is intensifying, with no easy answers in sight.

What is clear is that the RAF remains a vital lifeline for millions of South Africans injured in road accidents, and ensuring its long-term sustainability must remain a national priority. Road safety improvements, governance reforms, and a sustainable funding model are all essential components of any credible solution.

Stay tuned to this blog for daily updates on the Road Accident Fund and other important South African legal and transport news.