Road Accident Fund in Crisis: Key Updates, Court Rulings & Financial Warnings – June 2026

South Africa’s Road Accident Fund (RAF) is facing one of the most turbulent periods in its history. From landmark Supreme Court of Appeal (SCA) rulings and hundreds of thousands of rejected claims being reinstated, to warnings of an imminent government bailout and a deepening financial crisis, the RAF is dominating headlines in 2026. Here is a comprehensive roundup of the most important RAF news and developments as of June 2026.

1. SCA Rules RAF1 Form Unlawful: 600,000 Claims to Be Reinstated

In one of the most significant legal developments of the year, the Supreme Court of Appeal (SCA) ruled that the RAF’s controversial RAF1 claim form — introduced in July 2022 — was unconstitutional, unlawful, and invalid. The court found that the stricter requirements introduced by the new form placed substantial and unfair impediments in the way of road accident victims seeking compensation.

The ruling has far-reaching consequences:

• An estimated 600,000 claims that were rejected under the unlawful RAF1 Form requirements must now be re-lodged by the end of September 2026.
• The RAF is required to launch a comprehensive communication campaign to inform affected claimants on how to resubmit their claims.
• The RAF’s Acting CEO, Radikwena Phora, confirmed the fund is studying the judgment and is committed to its full implementation.
• The RAF must engage with the Minister of Transport to adopt and publish a revised RAF1 Form within six months.

RAF law expert and attorney Gert Nel warned that the bigger immediate issue is “phantom” claims — claims that were lodged in full compliance with the RAF Act but were never acknowledged by the fund. These have resulted in thousands of default judgments now immediately payable, estimated at R4.8 billion. Nel’s firm alone holds court orders against the RAF in excess of R100 million.

“The RAF needs to start paying — some of these victims had already died in the process of waiting.” — Gert Nel, RAF Law Expert

2. RAF Faces Imminent Financial Crisis and Possible Government Bailout

The financial position of the RAF has deteriorated to alarming levels. According to the 2026 Budget Review tabled by Finance Minister Enoch Godongwana, the RAF accounts for 85.5% of the total liabilities of social security funds — equivalent to R370.3 billion at the end of 2024/25.

Key financial warning signs include:

• The RAF’s liabilities are projected to increase from R369.7 billion in 2024/25 to R422.6 billion by 2027/28.
• The fund is estimated to have approximately R500 billion in unqualified contingencies, partly due to the now-overturned RAF1 Form rejections.
• RAF board chair Kenneth Brown previously warned that liabilities could increase by between R300 billion and R400 billion due to a reversion to previous accounting standards.
• ActionSA has called on the Finance Minister to explain a R180 billion RAF shortfall.

Legal experts and financial analysts now say a major government bailout is increasingly likely. Attorney Gert Nel stated: “Treasury will definitely have to get involved with a bailout to cover these additional expenses.”

The 2025 Medium-Term Budget Policy Statement confirmed that the RAF remains a significant fiscal risk and its financial position is expected to deteriorate over the medium term. Unlike other state-owned entities such as Eskom and Transnet — which have shown signs of stabilisation — the RAF continues to be deep in deficit, standing out as the most financially troubled entity among South Africa’s social security funds.

3. High Court Issues Punitive Cost Order: RAF Ordered to Pay R2.23 Million

In a strongly worded judgment, the Western Cape High Court ordered the RAF to pay road accident victim Catherine Yiannakis R2.23 million for past hospital and medical expenses — and slapped the fund with a punitive cost order for its conduct.

The case centred on the RAF’s refusal to pay medical costs that had already been covered by the claimant’s medical aid (Discovery Health). Despite binding full court judgments and SCA confirmation of the RAF’s liability, the fund continued to oppose the claim.

Acting Judge M Louw was scathing in her assessment:

“It is wholly unacceptable that the RAF persists in defending these hopeless matters, thereby wasting public resources, driving up legal costs for both the RAF and claimants, and compelling claimants to incur unnecessary expenses to enforce rights already established.”

The judge found that the RAF’s conduct — including a “flimsy defence” and “total disregard for established obligations” — warranted a punitive costs order. The RAF has 180 days to pay the full amount.

This case is part of a broader pattern of the RAF issuing internal directives to avoid paying medical costs covered by medical aid schemes — directives that courts have repeatedly struck down as unlawful.

4. SCA Rules: Foreign Nationals Entitled to RAF Compensation

In another landmark ruling in April 2026, the SCA confirmed that foreign nationals — including undocumented immigrants — are entitled to claim compensation from the RAF. The court upheld a High Court ruling that the phrase “any person” in the RAF Act does not exclude foreign nationals.

The Chairperson of Parliament’s Portfolio Committee on Transport, Mr Donald Selamolela, welcomed the ruling, stating:

“The RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

Selamolela noted that the ruling highlights the need for a long-overdue review and update of RAF legislation, and suggested that South Africa could consider models used by Botswana and Namibia, where foreign nationals are required to take out short-term insurance cover before entering the country.

5. Parliamentary Oversight: SCOPA Inquiry and Governance Concerns

Parliament’s Standing Committee on Public Accounts (SCOPA) is conducting an ongoing oversight inquiry into the affairs of the RAF. Key concerns raised include:

• Financial mismanagement and governance lapses at the fund.
• Delays in registering and processing claims.
• Unpaid suppliers and service providers.
• The RAF’s current funding model being described as financially unsustainable.
• Allegations of excess payments totalling nearly R23 billion over two years.

SCOPA has warned that the RAF’s current funding model poses a serious threat to South Africa’s fiscal stability. The fund has also experienced significant leadership instability, having had four CEOs in seven months at one point during the crisis.

6. RAF Settlement Drive: Reaching Victims at Hospitals

On a more positive note, the RAF hosted its Settlement Drive at Ngwelezane Hospital in February 2026 — the second instalment of an initiative aimed at bringing the claims settlement process directly to road accident victims in hospitals and care facilities. The drive is part of the fund’s efforts to reduce backlogs and ensure that vulnerable claimants receive their compensation more efficiently.

What This Means for RAF Claimants in 2026

If you or a loved one has been involved in a road accident in South Africa, here is what you need to know right now:

• Rejected claims may be eligible for resubmission: If your RAF claim was rejected due to non-compliance with the now-overturned RAF1 Form requirements, you have until the end of September 2026 to re-lodge your claim. Ensure you have proof that your original claim was submitted within three years of the accident.
• Medical aid claimants: The RAF cannot lawfully refuse to pay your past medical expenses simply because your medical aid covered them. Courts have repeatedly confirmed this.
• Foreign nationals: You are legally entitled to claim from the RAF, regardless of your immigration status.
• Seek legal advice: Given the complexity of the current legal landscape, it is strongly advisable to consult a qualified RAF attorney to navigate your claim.

Looking Ahead: The Road to Reform

The RAF’s crisis has reignited debate about the long-term sustainability of South Africa’s road accident compensation model. Experts have called for a fundamental overhaul, with some advocating for a hybrid system that combines elements of the current RAF, the proposed Road Accident Benefit Scheme (RABS), and mandatory third-party insurance.

The Minister of Transport has committed to initiating a review and update of RAF legislation during this term of administration. Until such reforms are implemented, the courts will continue to play a central role in protecting the rights of road accident victims against an increasingly strained and legally embattled fund.

Stay tuned to this blog for daily updates on the Road Accident Fund and what it means for South Africans on the road.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. If you have a RAF claim, please consult a qualified attorney.