Road Accident Fund in Crisis: Key Developments, Reforms & What South Africans Need to Know (November 2026)

The Road Accident Fund (RAF) — South Africa’s state-run insurer for road accident victims — continues to dominate headlines as it battles a deepening financial crisis, leadership instability, parliamentary scrutiny, and calls for sweeping structural reform. Here is a comprehensive roundup of the most important RAF news and developments as of November 2026.

1. New CEO Takes the Helm: Waseem Carrim Vows to Rebuild Trust

On 1 November 2026, Waseem Carrim officially became the RAF’s new CEO — the fifth person to hold the position in just over a year. A chartered accountant and former CEO of both the National Youth Development Agency (NYDA) and the National Student Financial Aid Scheme (NSFAS), Carrim inherits an institution described as technically insolvent, with liabilities exceeding R400 billion and a claims backlog that has spiralled out of control.

In an interview with Moneyweb, Carrim acknowledged the scale of the challenge but expressed cautious optimism:

“I think there are three things that make me believe the situation can be turned around. One is a strong and supportive transport minister. Two is an interim board led by very capable individuals. And then also a five-year mandate to turn things around.”

His immediate priorities include:

• Reforming the RAF’s financial model — including exploring annuity-based payouts instead of once-off lump sums
• Clearing the claims backlog — presenting a credible plan to bring claims under control
• Tackling fraud and corruption — enforcing zero tolerance and making public examples of wrongdoers
• Rebuilding trust with claimants, attorneys, medical professionals, and the public
• Advancing the Road Accident Benefit Scheme (RABS) Bill — a no-fault system that would replace lump-sum payouts with structured, regular benefits

Carrim also stressed the importance of swift disciplinary action: “There’s nothing the South African public hates more than public servants who are on suspension but continue to earn full benefits, costing the taxpayer an arm and a leg.”

2. No Additional Government Funding for the RAF

Transport Minister Barbara Creecy has firmly ruled out any additional government funding for the RAF. The fund had lobbied for a fuel levy increase from the current R2.25 per litre to R3.00 per litre, but Creecy 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 said. “It not only requires better management… but it also requires a legislative change so that we have a defined schedule of benefits.”

Instead, the minister is exploring a hybrid funding model that would ensure both petrol/diesel vehicle owners and electric vehicle (EV) drivers contribute to the RAF — a forward-looking approach as South Africa’s EV market gradually grows and fuel levy revenues are expected to decline over the medium term.

3. Staggering Claims Backlog: R21.76 Billion in Unpaid Claims

The scale of the RAF’s financial obligations is alarming:

• As of 28 June 2026, the RAF had 37,622 finalised claims awaiting payment, totalling R21.76 billion.
• By the end of June, the fund owed claimants R22.18 billion on already-settled claims — an amount that grew by R3.62 billion in just three months.
• The RAF’s board chair has stated the fund is unlikely to overcome its R43-billion claims load.
• More than half of all open RAF claims are now older than five years, according to the fund’s annual report.

The RAF receives more than R50 billion per year from taxpayers through the fuel levy, yet its total liabilities exceed R400 billion — a structural mismatch that experts say cannot be resolved without fundamental legislative and operational reform.

4. SCOPA Inquiry: Accountability and Criminal Charges

Parliament’s Standing Committee on Public Accounts (SCOPA), led by Chairperson Songezo Zibi, has been relentless in its oversight of the RAF throughout 2026:

• June 2026: SCOPA voted to lay formal criminal charges against the former RAF CEO following non-appearance and legal pushback against oversight mandates.
• July 2026: SCOPA recommended that former executives and board members be held personally liable to repay unaccounted funds spent during their tenure.
• The SCOPA chairperson publicly lamented the mismanagement at the RAF, with concerns about incompetence described as “dwarfing” even the serious corruption fears.

Former CEO Collins Letsoalo — who was suspended over a controversial lease — faces SCOPA charges and has been accused of fostering a culture of fear and excessive personal security spending.

5. Landmark Court Rulings Protect Claimants

The courts have played a critical role in protecting road accident victims’ rights in 2026:

SCA Ruling on Restrictive Board Notices (May 2026)

The Supreme Court of Appeal (SCA) upheld rulings declaring that the RAF and the Minister of Transport had overstepped their legal authority by imposing overly restrictive documentation requirements under Board Notices 271 and 302 of 2022 (the “new RAF 1 form”). Following this ruling, the RAF was compelled to allow claimants whose submissions were previously rejected to re-lodge their claims by 30 September 2026.

Constitutional Court Rules on Foreign Nationals (September 2026)

The Constitutional Court (ConCourt) slammed the door on the RAF’s attempts to exclude undocumented foreign nationals from claiming benefits. Parliament has since been informed that amendments to the RAF Act are being prepared to resolve the legal uncertainty around payments to illegal residents — a development heard by the Portfolio Committee on Transport on 6 October 2026.

6. Fuel Levy Under the Microscope

The RAF fuel levy — which has increased by a staggering 2,400% from 9 cents per litre in 1997 to R2.25 per litre in 2026 — is under intense scrutiny. Key debates include:

• Civil society organisations have called for the levy to be cut or scrapped entirely, arguing it places an unfair burden on motorists.
• The government is considering whether vehicle licence disc fees could supplement RAF funding.
• New CEO Carrim has cautioned against scrapping the levy in the short term, but acknowledges the fund’s operating model needs a fundamental rethink.
• The Democratic Alliance (DA) has argued the RAF must be reformed, not re-financed, pointing to wasteful expenditure as the core problem.

7. Proposals for Structural Reform

Several reform proposals have gained traction in 2026:

The Road Accident Benefit Scheme (RABS) Bill

The RABS Bill would introduce a no-fault system, meaning injured road users would receive benefits regardless of who caused the accident. This would eliminate lengthy litigation and liability disputes — a key driver of the RAF’s ballooning legal costs. Structured, regular payments would replace once-off lump sums, improving the fund’s cash flow management.

National Settlement Hub

A proposal for a national Settlement Hub to fast-track thousands of trial-ready claims was heard by SCOPA in July 2026. The hub would reduce payout times and bring greater transparency to the settlement process.

Equal Benefits for All

Transport Minister Creecy has also signalled a desire for the RAF to pay the same benefits to all recipients, regardless of income — a move that would address long-standing inequalities in the current system where higher-income earners receive significantly larger payouts.

What This Means for RAF Claimants

If you have a pending or potential RAF claim, here is what the current landscape means for you:

• Delays are likely to continue in the short term as the new CEO establishes his strategy and the board is reconstituted.
• Previously rejected claims under the restrictive Board Notices may be eligible for re-lodging — consult a qualified RAF attorney if your claim was rejected on documentation grounds.
• Legal representation remains important — the RAF’s own CEO acknowledges that low trust in the institution means most claimants still need to go through the legal process.
• Legislative changes are coming — the RABS Bill and RAF Act amendments could significantly change how claims are processed and paid in the near future.

Looking Ahead: Reasons for Cautious Optimism

Despite the dire state of the RAF, there are genuine reasons to believe that 2027 could mark a turning point:

• A new, experienced CEO with a five-year mandate and political backing
• Strong parliamentary oversight through SCOPA holding former leadership accountable
• Court rulings that have reaffirmed claimants’ constitutional rights
• Active legislative reform processes underway
• Growing political will to address the fund’s structural problems rather than simply throwing more money at them

As Gert Nel Inc Attorneys noted in their October 2026 analysis: “We enter 2027 with a clearer path toward an equitable, well-governed, reliable and fully functional Road Accident Fund, settling and paying claims, all the while affording the ‘widest possible protection to all road users’ as prescribed in the RAF Act.”

Frequently Asked Questions About the RAF

What is the Road Accident Fund (RAF)?

The RAF is a South African state entity that provides compensation to victims of motor vehicle accidents on public roads. It is funded primarily through a fuel levy paid by motorists at the pump.

How do I claim from the RAF?

You can lodge a claim directly with the RAF or through an attorney. Claims must generally be lodged within three years of the accident. Given the complexity of the process and the current backlog, legal assistance is strongly recommended.

How much is the RAF fuel levy in 2026?

The RAF fuel levy is currently R2.25 per litre, adding approximately 7–8% to the pump price of petrol and diesel.

Is the RAF insolvent?

The RAF is technically insolvent, with liabilities exceeding R400 billion against annual revenue of approximately R50 billion. However, it continues to operate as a going concern due to its statutory mandate and government backing.

Stay informed about the latest Road Accident Fund news and updates by bookmarking this page. If you have been injured in a road accident and need guidance on your RAF claim, consult a qualified attorney who specialises in RAF matters.