Road Accident Fund in Crisis: Key Updates, Court Rulings & Funding Reforms – June 2026

The Road Accident Fund (RAF) finds itself at the centre of a perfect storm in mid-2026 — battered by landmark Supreme Court of Appeal (SCA) rulings, a ballooning liability that may exceed R500 billion, hundreds of thousands of revived claims, and a government scrambling to find a sustainable funding model. Here is a comprehensive roundup of the most important RAF news and developments as of 1 June 2026.

1. SCA Strikes Down the Controversial RAF 1 Claim Form — 600,000 Claims Revived

In one of the most consequential rulings of the year, the Supreme Court of Appeal confirmed that the RAF’s revised claim form — introduced via a Board Notice in 2022 — was unlawful. The new RAF 1 form had significantly raised the bar for submitting a valid claim, requiring claimants to submit extensive documentation upfront. Legal bodies argued this made it near-impossible for many road accident victims to lodge claims.

The SCA agreed, finding that the stricter requirements unfairly obstructed victims’ access to compensation. As a result:

• The RAF must revert to the original 2008 RAF 1 form.
• Claimants whose submissions were rejected under the unlawful form have until 30 September 2026 to re-lodge their claims.
• An estimated 600,000 claims that were previously rejected can now be resubmitted.
• The RAF and the Minister of Transport must develop and publish a revised RAF 1 Form within six months.

Acting CEO of the RAF, Radikwena Phora, said the fund welcomes the judgment as it provides clarity, and confirmed the RAF is studying the ruling in detail to understand its full operational and financial impact.

RAF law expert and attorney Gert Nel warned that the bigger immediate issue is “phantom” claims — claims lodged fully in compliance with the Act but not acknowledged by the fund — that have already secured default judgments now immediately payable, estimated at R4.8 billion.

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

2. RAF Faces R390 Million Liability After SCA Rules on Undocumented Foreign Nationals

In a separate but equally significant ruling, the SCA held that the RAF cannot refuse to compensate road accident victims simply because they are undocumented foreign nationals. The court found that the phrase “any person” in the RAF Act includes undocumented foreigners, striking down a RAF directive that required foreign claimants to prove legal presence in South Africa at the time of the accident.

Minister of Transport Barbara Creecy revealed that approximately R390 million in claims previously classified as non-payable could now become payable following this judgment.

“According to the latest version of the Requested Not Yet Paid (RNYP) register, a total of R390 million relates to illegal foreigners. These have been deemed non-payable matters, but the Supreme Court of Appeal ruling makes them payable,” the Minister said.

The RAF Board is still taking legal advice on whether to seek leave to appeal the ruling at the Constitutional Court. Notably, Moneyweb reported that the RAF has already successfully applied to the Constitutional Court to appeal this specific SCA judgment, with the Constitutional Court setting aside the SCA order and granting the RAF leave to appeal.

3. ActionSA Raises Alarm Over R180 Billion Shortfall — Liabilities Could Exceed R500 Billion

ActionSA MP Alan Beesley has called on the Finance Minister to explain to Parliament how the national fiscus plans to absorb the RAF’s mounting liabilities. With budget documents indicating the RAF’s liabilities at over R400 billion, ActionSA estimates the impact of the revived 600,000 claims could add a further R180 billion to the fund’s obligations.

“ActionSA has estimated that this court ruling could have implications close to R180bn. The RAF certainly does not have the money to fund these claims, and they will place the national fiscus under huge, huge pressure,” said Beesley.

Parliament’s Standing Committee on Public Accounts (SCOPA) is currently finalising its inquiry report into the RAF, during which MPs lambasted the fund for appealing the High Court ruling on the illegality of the claim form. SCOPA has also confronted the interim board over the awarding of two media contracts worth R1 billion — including one to a company that hosted a staff awards ceremony costing nearly R4 million — while the fund had over 445,000 outstanding claims and more than 50 employees on paid suspension.

ActionSA said it will be exploring all available legal avenues, including the potential for criminal charges against those responsible for the unlawful claim form.

4. SCA Deals RAF Twin Blows on Post-Judgment Interest and Hospital Debt

The SCA handed the RAF two further defeats in a single day earlier in 2026, compounding the fund’s institutional crisis:

Post-Judgment Interest Is Automatic

In RAF vs Sheriff of the High Court, Pretoria East and Others, the SCA ruled unanimously that every RAF judgment debt automatically bears interest from the day it becomes payable — even if the original court order is silent on the matter. The RAF had argued that claimants who did not obtain express interest orders at trial had forfeited any interest claim. The court rejected this, confirming that silence in a judgment is not a determination — it is simply silence. Interest begins running 14 days after the court order, per the RAF Act’s grace period.

Sunshine Hospital: R92 Million Enforcement Order

In Newnet Property (Pty) Ltd t/a Sunshine Hospital vs The Road Accident Fund, the SCA reversed a Pretoria High Court ruling and ordered the RAF to pay the remaining R92 million owed to Sunshine Hospital — a private facility that treated motor-vehicle accident patients. The RAF had stopped paying the hospital in March 2020, accumulating over R403 million in unpaid invoices. The court notably directed acting CEO Radikwena Phora by name to ensure compliance — a reflection of the court’s dwindling patience with institutional non-compliance.

5. RAF Ordered to Pay R2.2 Million to Pedestrian — With Punitive Cost Order

In yet another court setback, the RAF was ordered to pay R2.23 million to a road accident victim (a pedestrian) and was simultaneously slapped with a punitive cost order by the High Court. Punitive cost orders are reserved for cases where a party’s conduct in litigation is found to be unreasonable or vexatious — a signal that courts are losing patience with the RAF’s litigation tactics.

6. New Funding Model on the Table: Vehicle Licence Disc Levy Proposed

With the RAF’s current funding model — a R2.18 per litre fuel levy — under severe strain, the Department of Transport is researching a new vehicle owner contributory scheme that would require motorists to pay a separate RAF contribution when buying or annually renewing their vehicle licence disc.

Minister Creecy confirmed the DoT has two key concerns about the current model:

1. The rise of electric vehicles (EVs), which do not pay the fuel levy, threatens the long-term sustainability of the current funding mechanism.
2. The RAF’s contingent liability and fiscal risk are unacceptably high.

The DoT also plans to reintroduce the Road Accident Benefit Scheme (RABS) Bill, which would shift the RAF to a no-fault, fixed-schedule-of-benefits model — similar to systems used in other countries. However, critics, including DA SCOPA member Patrick Atkinson, warn that running two parallel schemes during the transition could cost between R70 billion and R80 billion per month, far exceeding the RAF’s current monthly levy income of approximately R48 billion.

The RAF levy has risen from 41.5 cents per litre in 2008 to R2.25 per litre from April 2026 — an annualised increase of approximately 9.8% — yet it remains woefully inadequate to cover the fund’s obligations.

7. Parliamentary Inquiry and Governance Failures

SCOPA’s ongoing inquiry into the RAF has exposed deep governance failures. Key findings include:

• The entire RAF board was dissolved by Minister Creecy in July 2025 following persistent governance challenges.
• Two media contracts worth R1 billion were awarded under questionable circumstances.
• More than 50 employees have been on paid suspension for over three and a half years without finalised disciplinary cases.
• The backlog of outstanding claims stood at more than 440,000 at the end of March 2025.
• National Treasury has described the RAF as a “significant fiscal risk”, forecasting provisions rising from R353 billion in 2023/24 to R423 billion in 2027/28.

What This Means for RAF Claimants

If you have a pending or previously rejected RAF claim, here is what you need to know:

• Rejected claims: If your claim was rejected because it did not comply with the 2022 RAF 1 form requirements, you have until 30 September 2026 to re-lodge your claim using the original 2008 RAF 1 form.
• Proof of original submission: When re-submitting, include proof that your original claim was submitted within three years of the accident.
• Default judgments: If you already have a court order against the RAF, the fund is legally obligated to pay — including automatic post-judgment interest.
• Foreign nationals: Undocumented foreign nationals who were involved in road accidents in South Africa may now be entitled to claim, pending the outcome of the Constitutional Court appeal.
• Seek legal advice: Given the complexity of the current legal landscape, it is strongly advisable to consult a qualified RAF attorney.

Key Takeaways and Outlook

The Road Accident Fund is facing an existential financial and governance crisis. The series of SCA rulings in 2026 have significantly expanded the fund’s legal obligations at a time when it is already unable to meet existing ones. With total liabilities potentially exceeding R500 billion — and possibly approaching R600 billion when the full impact of revived claims is factored in — the RAF represents one of the most significant fiscal risks to the South African government.

Three paths forward have been identified by analysts:

1. Better administration: Reduce default judgments, cut waste, and pay valid creditors faster.
2. Legislative reform: Implement the RABS Bill to move to a no-fault, capped-benefits model.
3. Increased funding: Raise the fuel levy and/or introduce a vehicle licence disc contribution — though both options place additional burdens on already-strained South African motorists and taxpayers.

The law, after the 2026 SCA rulings, is becoming clearer. The funding plan, however, remains deeply uncertain.

Sources: IOL, Eyewitness News (EWN), Moneyweb, Currency News, News24, Sowetan, Parliament of South Africa. This article is for informational purposes only and does not constitute legal advice. If you have a RAF claim, please consult a qualified attorney.