Road Accident Fund in Crisis: Key Updates, Reforms and What It Means for South Africans (October 2026)

The Road Accident Fund (RAF) is once again dominating South African headlines in October 2026, as Parliament raises alarm bells over the fund’s deepening financial crisis, government pushes forward with sweeping legislative reforms, and accident victims continue to wait months — sometimes years — for compensation. Here is a comprehensive roundup of the most important RAF developments you need to know right now.

1. RAF Liquidity Crisis: Paying Out R25 Billion Monthly, Receiving Only R4 Billion

Perhaps the most alarming statistic to emerge from Parliament’s Portfolio Committee on Transport briefing on 7 October 2026 is the sheer scale of the RAF’s financial imbalance. The RAF disclosed that it pays out approximately R25 billion per month in claims while only receiving around R4 billion into its coffers — a monthly shortfall of R21 billion.

Committee Chairperson Mr Donald Selamolela acknowledged the gravity of the situation, stating: We appreciate the progress, and we strongly believe that the appointment of a new permanent CEO will assist the RAF. We hope the entity will transition and become financially stable.

The committee was told in no uncertain terms that the RAF would not recover from this financial situation under the current model, and that as a direct consequence, claims are taking an extremely long time to be paid out to accident victims.

2. R21.7 Billion in Approved But Unpaid Claims

Transport Minister Barbara Creecy revealed in a parliamentary reply that as of 28 June 2026, the RAF was sitting with a staggering R21.76 billion in finalised claims that had not yet been paid. This figure covers 37,622 claims across 47,949 payment transactions.

The main reasons cited for delayed payments include:

• Outstanding compliance requirements
• Verification delays — affecting claims worth more than R9.1 billion
• Missing documents — affecting claims worth approximately R1.7 billion
• Payments that have not yet reached their due dates

The RAF maintains a register called the Requested Not Yet Paid (RNYP) Claims Register to track these approved but unsettled claims. For thousands of South African accident victims and their families, this backlog represents real financial hardship.

3. Major Legislative Amendments in the Pipeline

On 6 October 2026, Acting Transport Director-General Mokonyama Mathabatha briefed Parliament’s Portfolio Committee on Transport, confirming that amendments to the Road Accident Fund Act are being finalised. The proposed changes cover four key areas:

1. Capped Claims — Revising the limits on compensation payable to claimants
2. Rehabilitation — Introducing structured rehabilitation provisions for injured road users
3. Mediation and Conciliation — Creating alternative dispute resolution mechanisms to reduce costly litigation
4. Foreign National Claims — Addressing the legal complexities around claims by non-South African residents

Mathabatha was direct in his assessment: All these issues are in the amendment Act that we are finalising. The Act in its current form makes the scheme not sustainable.

It is important to note that these amendments have not yet become law. They must still be tabled before Parliament and go through the full legislative process. Until then, the existing RAF Act 56 of 1996 remains in force.

4. Foreign National Claims: A Legal Minefield

One of the most legally complex issues facing the RAF involves claims by foreign nationals. Since 2022, the RAF and the Transport Minister introduced requirements compelling foreign claimants to provide documentary proof of legal presence in South Africa at the time of an accident — including passport entry and exit stamps.

However, the courts have consistently found that the existing RAF Act does not support such restrictions. The Gauteng High Court, in the Mudawo matter, set aside these provisions, noting that the RAF Act refers to compensation for any person — without an immigration-status limitation. Subsequent Western Cape and Gauteng High Court judgments in 2025 reinforced this position.

Government’s decision to include foreign-national claims in the upcoming amendment package is therefore a direct legislative response to these court rulings.

5. RAF Funding Overhaul: What Could Change at the Fuel Pump and Licence Renewal

South African motorists may soon face significant changes to how the RAF is funded. Currently, the RAF is primarily funded through a fuel levy of R2.25 per litre. Two competing proposals are now on the table:

Option A: Increase the Fuel Levy

The RAF’s own annual report proposes increasing the fuel levy to as much as R3 per litre, alongside capital support from the National Treasury. This would directly increase the cost of petrol and diesel for all motorists — at a time when South Africans are already paying record fuel prices following a significant price hike on 7 October 2026.

Option B: Hybrid Funding Model

Deputy Transport Minister Mkhuleko Hlengwa appears to favour a hybrid model that would reduce the fuel levy and introduce alternative revenue streams, including a vehicle licence renewal contribution and compulsory third-party insurance linked to the vehicle licensing process.

The Organisation Undoing Tax Abuse (OUTA) has warned that shifting the RAF contribution to an annual vehicle payment could create an unrealistic financial burden. OUTA CEO Wayne Duvenage estimated such a payment could be in the region of R1,000 to R2,000 per year per vehicle — though no official figures have been confirmed.

Minister Creecy has also highlighted the need to reduce the RAF’s dependence on the fuel levy given the rise of electric vehicles, which do not contribute to the fuel levy at all. A cost-benefit analysis of the various options has been commissioned and will accompany the planned Road Accident Benefit Scheme (RABS) Bill when it is tabled.

6. RAF Faces Surge of 160,000 Revived Claims After SCA Ruling

A Supreme Court of Appeal (SCA) judgment handed down on 30 April 2026 directed the RAF to revert to the 2008 RAF 1 Form for claims processing. This ruling has triggered a massive surge of approximately 160,000 previously affected claims being revived and resubmitted.

The RAF is simultaneously moving to curb default judgments as legal reforms gather pace. The fund reportedly paid out R8.9 billion in a recent reporting period, even as it struggles with its liquidity crisis.

7. New CEO Appointed: Waseem Carrim Takes the Helm

In a significant leadership development, Cabinet approved the appointment of Mr Waseem Carrim as the new Chief Executive Officer of the Road Accident Fund. The appointment has been welcomed by Parliament’s Portfolio Committee on Transport, which expressed hope that permanent leadership would help stabilise the entity and drive the reforms needed to address its financial and operational challenges.

8. Court Orders RAF to Pay: Recent Judgments

The RAF continues to face significant court-ordered payments. In a recent Western Cape High Court judgment, Acting Judge M Louw ordered the RAF to pay R2,231,081.34 to a claimant for past hospital and medical expenses — and slapped the RAF with a punitive cost order for its conduct in the matter.

The court reaffirmed settled law in the Western Cape Division that the RAF cannot refuse claims for past medical expenses on the basis that they were already paid by a road accident victim’s medical scheme. In a separate matter, the RAF was ordered to pay 209 road accident victims R47 million within 30 days.

9. RAF Hikes Claim Limits in Line with Inflation

On a more positive note for claimants, the RAF has increased the cap on its claims in line with inflation. The new maximum claim cap is set at R347,730. This adjustment ensures that compensation limits keep pace with the rising cost of living and medical expenses.

10. Move Towards a No-Fault System

Minister Creecy has reiterated the government’s focus on transitioning the RAF towards a no-fault compensation system — one that would not require determining who was responsible for an accident. The current fault-based system results in extensive and costly litigation, which is a major driver of the RAF’s financial woes. A no-fault system would potentially speed up claims processing, reduce legal costs, and make the fund more sustainable in the long run.

What This Means for South African Road Accident Victims

If you have been injured in a road accident or are waiting for an RAF claim to be paid, here is what you need to know:

• The current RAF Act still applies. No amendments have been passed into law yet.
• Delays are systemic. The R21.7 billion backlog of unpaid claims reflects a structural funding crisis.
• Legal representation matters. Given the complexity of RAF claims, having an experienced attorney is critical.
• Stay informed about the RABS Bill. The proposed Road Accident Benefit Scheme could fundamentally change how claims are processed.
• Prescription deadlines are real. RAF claims are subject to strict prescription periods. Missing a deadline can result in losing your right to claim entirely.

Conclusion

The Road Accident Fund is at a critical crossroads in October 2026. With a monthly shortfall of R21 billion, over R21.7 billion in unpaid approved claims, a surge of 160,000 revived claims, sweeping legislative reforms in the pipeline, and a fundamental rethink of its funding model underway, the RAF faces its most significant period of change in decades.

For South African motorists, accident victims, and legal practitioners, staying informed about these developments is not just important — it is essential. The decisions made in Parliament and the courts over the coming months will shape the future of road accident compensation in South Africa for years to come.

Stay tuned to this blog for daily updates on the Road Accident Fund and other key South African legal and transport developments.

Sources: Parliament of South Africa Portfolio Committee on Transport (October 2026), IOL Business, Newcastillian News, Moneyweb, BusinessTech, Road Accident Fund official communications.