Road Accident Fund in Crisis: Key Updates, Legislative Changes & What It Means for South Africans (October 2026)

The Road Accident Fund (RAF) continues to dominate South African headlines in October 2026, with sweeping legislative amendments on the horizon, a new CEO at the helm, a government funding freeze, and a massive surge in claims following a landmark Supreme Court of Appeal (SCA) ruling. Here is a comprehensive roundup of the latest developments affecting millions of South Africans who depend on the RAF for road accident compensation.

1. Government Confirms: No Additional Funding for the RAF

In one of the most significant announcements of the month, Transport Minister Barbara Creecy confirmed on 13 October 2026 that the Road Accident Fund will not receive any additional government funding. The RAF had lobbied for a fuel levy increase to R3.00 per litre, but Minister Creecy firmly rejected the proposal, citing the financial pressure already faced by South African motorists.

“Obviously, it’s very easy to break an institution, it takes a very long time to fix it and this is a complicated one because there’s a lot of contingent liability,” Creecy stated. She emphasised that the priority is to fix the institution’s management challenges before seeking new revenue streams.

The minister also confirmed that a new CEO has been appointed — Mr Waseem Carrim — and that the process of appointing a permanent board is currently underway.

A Hybrid Funding Model on the Cards

With the rise of electric vehicles (EVs) gradually eroding fuel-levy revenue, Minister Creecy acknowledged that South Africa needs to consider a hybrid funding model for the RAF. Such a model would ensure that both petrol/diesel motorists and EV drivers contribute to the fund. The government is still working out the details of how this transition will be managed.

2. RAF Faces R43-Billion Claims Backlog — Board Chair Warns of Insurmountable Debt

The RAF’s interim board chair has warned that the fund is unlikely to overcome its R43-billion claims load. As of the latest annual report, more than half of all open RAF claims are older than five years — a damning indictment of the fund’s operational capacity and a source of immense suffering for road accident victims awaiting compensation.

Unpaid RAF claims reportedly reached R21.76 billion as of 28 June 2026, with the broader contingent liability estimated at over R500 billion. The fund paid R8.9 billion on 80,665 claims during the first quarter of the 2026/27 financial year (April–June 2026), highlighting the enormous scale of ongoing payouts.

3. SCA Ruling Triggers Surge of Nearly 160,000 New Claims

A landmark Supreme Court of Appeal judgment handed down on 30 April 2026 has had far-reaching consequences for the RAF. The SCA ruled that the RAF’s 2022 revised RAF 1 Form was unlawful, directing the fund to revert to the original 2008 RAF 1 Form. The court found that:

• The RAF did not have the authority to impose additional binding documentation requirements.
• The required public participation process had not taken place.
• The revised form created barriers to lodging claims by requiring extensive documentation upfront.

As a result, claimants whose claims were previously rejected under the 2022 regime were given the opportunity to resubmit their claims using the 2008 form by 30 September 2026. The RAF projected a total of 159,591 resubmitted claims, with a potential financial exposure estimated at approximately R40.9 billion to R45.3 billion — based on an average payment of R283,595 per claim.

The RAF has responded by bringing in additional contractors and interns, introducing overtime, reorganising staff, and making IT and process changes to manage the surge in claims intake.

4. Major Legislative Amendments Being Finalised

On 6 October 2026, Parliament’s Portfolio Committee on Transport was briefed on sweeping amendments being prepared to the RAF Act. Acting Transport Director-General Mokonyama Mathabatha confirmed that amendments are being considered in four key areas:

1. Capped claims — introducing defined schedules of benefits to limit open-ended liability.
2. Rehabilitation — improving support for injured claimants.
3. Mediation and conciliation — creating alternative dispute resolution mechanisms to reduce court backlogs.
4. Claims by foreign nationals — addressing a court-ordered requirement to resolve how the RAF handles claims from illegal residents.

“All these issues are in the amendment Act that we are finalising. The Act in its current form makes the scheme not sustainable,” Mathabatha told the committee. The proposed amendments must still move through the full legislative process before becoming law.

Foreign Nationals and the RAF: A R23-Billion Issue

The question of foreign national claims has become a flashpoint in the RAF debate. Over the past five financial years, the RAF received claims of more than R23 billion from foreign nationals and paid out more than R6 billion. The ATM party has called for RAF payouts to be limited to South African citizens, while courts have instructed the RAF to address the legal framework governing such claims.

5. Governance Failures: SCOPA Lays Criminal Charges Against Former CEO

Parliament’s Standing Committee on Public Accounts (SCOPA) has been at the forefront of holding the RAF accountable. In a historic move, SCOPA laid criminal charges against former RAF CEO Collins Letsoalo after he failed to appear before the committee’s oversight inquiry. Letsoalo’s legal team had attempted to block the inquiry, arguing it fell outside SCOPA’s mandate.

SCOPA chairperson Songezo Zibi has also recommended that previous RAF executives and board members personally repay unaccounted funds spent during their tenure, as part of the committee’s forthcoming report on governance failures, procurement irregularities, and deteriorating financial management at the fund.

6. RAF Extends Claimant-Centred Services Across South Africa

On a more positive note, the RAF announced the extension of its claimant-centred services to Mthatha on 24 October 2026, following similar rollouts in Bloemfontein and other regions. These outreach initiatives aim to bring RAF services closer to communities, particularly in underserved areas where claimants struggle to access legal and administrative support.

7. Calls to Fix the RAF Before Seeking New Revenue

Critics, including the Organisation Undoing Tax Abuse (OUTA) and road safety advocates, have been vocal: the RAF’s crisis is not primarily a revenue problem — it is a governance and management failure. Wayne Duvenage of OUTA argued in a Daily Maverick op-ed that redesigning how the public pays will achieve little unless the government first fixes how the fund operates.

The Association for the Protection of Road Accident Victims (APRAV) has proposed the creation of a national Settlement Hub — a mechanism to fast-track claims that are ready for payment without waiting for the RAF’s broader structural problems to be resolved. This would require National Treasury funding to clear the backlog of approximately 100,000 ready-to-settle claims.

What Does This Mean for RAF Claimants?

If you have a pending RAF claim or are considering lodging one, here is what you need to know:

• Delays are expected to continue — with over half of open claims older than five years, patience and legal representation remain essential.
• The 30 September 2026 resubmission deadline has passed — if you had a claim rejected under the 2022 RAF 1 Form regime and did not resubmit, consult an attorney urgently.
• Legislative changes are coming — proposed amendments to the RAF Act may affect how claims are assessed, capped, and paid out. Stay informed.
• New leadership is in place — with a new CEO and board being appointed, there is cautious optimism about improved governance and operational efficiency.
• Seek legal advice — given the complexity of the RAF system, working with a qualified attorney remains the most effective way to navigate your claim.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical juncture in October 2026. With a new CEO, pending legislative reforms, a government funding freeze, a massive claims surge, and ongoing accountability proceedings, the coming months will be decisive for the future of road accident compensation in South Africa.

For the millions of South Africans who rely on the RAF — whether as accident victims, dependants, or legal practitioners — staying informed and seeking professional guidance has never been more important.

Stay tuned to this blog for daily updates on the Road Accident Fund and other key developments affecting South Africans.