Road Accident Fund in Crisis: Unpaid Claims, Funding Debates & Reform Calls – October 2026 Update

Road Accident Fund in Crisis: Unpaid Claims, Funding Debates & Reform Calls – October 2026 Update

South Africa’s Road Accident Fund (RAF) continues to make headlines in 2026, and not for the right reasons. From a staggering R21.7 billion in unpaid claims to fierce debates over new funding mechanisms, the RAF remains one of the country’s most embattled public institutions. Here is a comprehensive roundup of the latest news, key developments, and what they mean for South African motorists and accident victims.

1. R21.7 Billion in Unpaid Claims: Thousands of Victims Still Waiting

Transport Minister Barbara Creecy has confirmed that the RAF is sitting with more than R21.7 billion in finalised claims that have not yet been paid to claimants. This was revealed in a parliamentary reply following a question by ActionSA MP Alan Beesley.

According to the Minister, the RAF maintains a Requested Not Yet Paid (RNYP) Claims Register, which tracks claims approved for payment but not yet settled. As at 28 June 2026, the register showed:

• 37,622 unpaid claims totalling R21.76 billion
• 47,949 payment transactions still outstanding
• 36,442 of these claims date back to the period between 2007 and 2026

The main reasons cited for delayed payments include:

• Outstanding compliance checks (affecting nearly R11 billion in claims)
• Verification delays (affecting over R9.1 billion)
• Missing documentation (affecting approximately R1.7 billion)

These figures paint a grim picture for thousands of South Africans who have been waiting — in some cases for up to 10 years — for compensation they are legally entitled to.

2. Funding Model Under Review: Could Motorists Face New Vehicle Licence Fees?

The RAF is currently funded primarily through a fuel levy on petrol and diesel — currently set at R2.25 per litre as of April 2026. However, the rise of electric vehicles (EVs) and hybrid cars is gradually eroding this revenue stream, prompting the Department of Transport to explore alternative funding models.

One proposal under consideration is a mandatory fee linked to annual vehicle licence renewals or initial vehicle registrations. This would mean South African motorists could face an additional annual cost when renewing their licence discs.

Experts have warned that such a move could be costly. Emeritus Professor Hennie Klopper of the University of Pretoria estimated that a compulsory insurance premium could cost motorists between R5,000 and R10,000 per year, reflecting the enormous scale of road accident claims in South Africa.

The RAF receives approximately 100,000 claims per year, with the average claim amounting to roughly R328,000 — figures that Professor Klopper described as “unsustainable.”

3. Experts Say: Fix the RAF Before Asking for More Money

Civil activist and OUTA head Wayne Duvenage has been vocal in his criticism of the government’s approach, arguing in a widely-read Daily Maverick opinion piece that the RAF’s crisis is not a revenue problem — it is a governance and management problem.

Duvenage highlighted the following alarming statistics:

• RAF revenue grew from approximately R12.5 billion in 2010 to over R50 billion in 2024/25 — yet performance deteriorated.
• Employee costs ballooned from R590 million to R2.47 billion over the same period.
• General and administrative costs surged from R240 million to R1.5 billion.
• RAF liabilities have grown ten-fold, from approximately R46 billion in 2010 to around R450–R500 billion today.

Duvenage argued that the fuel levy remains the most efficient and equitable funding mechanism, as it approximates a user-pays system. He cautioned against reverting to a compulsory third-party insurance model, noting that South Africa tried this before 1986 and abandoned it due to widespread evasion, falsification, and gaps in coverage.

His key message: “South Africans have already given the RAF vastly more money than they did 15 years ago. Before asking for more or inventing a new collection method, the government must prove it can manage what it already receives.”

4. Fewer Claims Settled Despite Higher Spending

The Association for the Protection of Road Accident Victims (APRAV) has raised serious concerns about the RAF’s declining operational performance. According to APRAV, the fund once processed more than 400,000 claims per year. Today, that figure has dropped to approximately 70,000 claims per year — while the average cost per settled claim has increased by more than 70% within three to four years.

APRAV Chair Ngoako Mohlaloga summed it up starkly: “The system is spending more and more to help fewer people. Every one of those claims has been sitting in the drawer, and each of those numbers represents a person: someone who cannot work and a family who cannot afford medical treatment.”

Additional concerns raised by APRAV include:

• The closure of district and satellite offices, particularly harming rural communities
• Significant staff losses impairing the RAF’s operational capacity
• Repeated court postponements creating an “evil cycle” of growing backlogs and escalating litigation costs
• Unlawful claim form requirements that previously excluded thousands of legitimate claimants

5. SCOPA Inquiry and Parliamentary Oversight

The Standing Committee on Public Accounts (SCOPA), chaired by Songezo Zibi, has been conducting a formal inquiry into the RAF. A draft SCOPA report has flagged serious concerns, including questionable security spending and systemic governance failures.

Zibi reportedly observed court proceedings firsthand where the RAF failed to appear, witnessing the costly cycle of postponements that plague the system. SCOPA intended to complete its report by the end of August 2026 and present it to Parliament before the end of September 2026.

The RAF board was dissolved by Transport Minister Creecy in July 2025, citing persistent governance and operational failures, litigation over accounting standards, institutional instability, and frequent default judgments.

6. Supreme Court of Appeal Ruling: Revert to RAF 1 Form

In a significant legal development, a Supreme Court of Appeal judgment on 30 April 2026 directed the RAF to revert to the 2008 RAF 1 Form for claims submissions. This ruling was welcomed by victim advocacy groups, as the newer form had been criticised for requiring expensive medical reports upfront — a barrier that effectively excluded many lower-income claimants from accessing compensation.

7. Proposals for Reform: A National Settlement Centre

APRAV Vice Chairman Pieter de Bruyn has proposed the establishment of a National Settlement Centre as an immediate relief mechanism for victims while broader reforms are implemented. The proposed centre would:

• Identify claims that are ready for settlement
• Bring together experienced claims experts and RAF representatives with decision-making authority
• Settle agreed claims within a reasonable timeframe
• Refer disputed cases back to the ordinary court process

De Bruyn suggested the centre begin as a pilot project focusing on claims already on court rolls or close to settlement, without requiring legislative changes.

He emphasised: “For a victim, reform is not a report, a new committee or another promise. It is a claim that is judged fairly, a settlement reached, money being paid out, lasting treatment, and a family that can finally move on again.”

What This Means for You: Key Takeaways

Whether you are a road accident victim, a motorist, or simply a South African taxpayer, the RAF’s ongoing crisis has direct implications for you:

• 🚗 Motorists may face higher costs through new vehicle licence fees or revised fuel levies in the near future.
• 🏥 Accident victims face prolonged waits for compensation, with some waiting a decade or more.
• ⚖️ Legal claimants should be aware of the Supreme Court ruling reverting to the 2008 RAF 1 Form, which may simplify the claims process.
• 📋 Reform advocates are pushing for a National Settlement Centre and long-term institutional restructuring.

Conclusion: The RAF Needs More Than Money — It Needs Reform

The Road Accident Fund’s challenges in 2026 are deep-rooted and multifaceted. While the debate over funding mechanisms continues, experts and advocacy groups are united in one message: throwing more money at a broken system will not fix it. What is needed is credible leadership, transparent governance, efficient claims management, and a genuine commitment to serving the millions of South Africans who depend on the fund.

As Parliament considers the SCOPA report and the Department of Transport reviews the RAF’s funding model, South Africans will be watching closely to see whether meaningful reform finally arrives — or whether the cycle of promises and delays continues.

Stay updated on the latest Road Accident Fund news by bookmarking this page. If you or a loved one has been involved in a road accident, consult a qualified legal professional about your rights and how to submit a RAF claim.