Major Update: South Africa Abandons RAF Amendment Bill, Revives RABS Bill – What It Means for Road Accident Victims

Major Update: South Africa Abandons RAF Amendment Bill, Revives RABS Bill – What It Means for Road Accident Victims

Date: June 23, 2025

The South African government has made a significant shift in its approach to road accident compensation. After months of uncertainty and public debate, the controversial Road Accident Fund (RAF) Amendment Bill has been officially abandoned. In its place, the government is reviving the previously rejected Road Accident Benefit Scheme (RABS) Bill, signaling major changes ahead for accident victims, legal professionals, and the insurance industry.

RAF Amendment Bill Abandoned

The RAF Amendment Bill, which was released for public comment in September 2023, proposed a dramatic overhaul of the RAF by moving from a compensation-based model to a social benefits scheme. One of its most contentious features was the removal of lawyers from the claims process, with the aim of allowing victims to lodge claims directly. However, legal experts and civil society groups warned that this would undermine the rights of road accident victims, leaving them to navigate a complex system without legal support.

Public opposition was overwhelming, with more than 19,000 submissions against the Bill. Critics argued that the changes would severely curtail the rights of accident victims and could result in higher medical scheme contributions. Despite earlier indications that the Bill was advancing, Deputy Transport Minister Mkhuleko Hlengwa announced in June 2025 that the Amendment Bill is no longer being pursued.

RABS Bill Back on the Table

Instead, the government is reviving the RABS Bill, first introduced in 2017. The RABS Bill proposes a no-fault social insurance scheme that would replace common law claims with structured, defined benefits. While the intention is to streamline claims and remove the need to prove fault, the Bill is controversial for several reasons:

• It removes the right of victims to sue negligent drivers, treating all parties equally regardless of fault.
• It excludes compensation for pain, suffering, and disfigurement, focusing only on economic losses.
• Benefits are capped, with annual loss-of-income limited to R280,000, and those without formal income (such as taxi drivers and informal traders) may receive little or no compensation.
• It excludes certain groups, such as people under 18, over 60, and non-citizens or those without permanent residency, raising constitutional concerns.
• Financial projections suggest the scheme could be more expensive than the current RAF, potentially requiring higher fuel levies.

The RABS Bill was previously rejected by Parliament in 2020 after widespread public and expert criticism, but is now being reconsidered as a solution to the RAF’s ongoing challenges.

Governance and Future Outlook

The RAF has faced ongoing governance issues, including the suspension of its chief executive and calls for ministerial intervention. Deputy Minister Hlengwa has indicated that the government is exploring legal and ministerial options to address these challenges and ensure accountability.

With the future of road accident compensation in South Africa at a crossroads, stakeholders are watching closely. The outcome of these legislative reforms will have far-reaching implications for accident victims, legal practitioners, and the broader public.

For more information, see:

• Government revives rejected Bill to fix Road Accident Fund – Moonstone
• Road Accident Benefit Scheme Bill (PDF)

Keywords: Road Accident Fund South Africa, RAF Amendment Bill, RABS Bill, road accident compensation, legal news, insurance