Road Accident Fund in Crisis: Landmark Court Rulings, R500bn Liability & the Push for Reform – May 2026 Update

The Road Accident Fund (RAF) is facing one of the most turbulent periods in its history. A series of landmark Supreme Court of Appeal (SCA) rulings, a looming financial crisis flagged by Parliament’s Standing Committee on Public Accounts (SCOPA), and growing calls for systemic reform have placed South Africa’s state-run road accident compensation scheme firmly in the spotlight in May 2026. Here is a comprehensive overview of the latest developments.

1. Supreme Court Slams RAF Claim Rules as Unlawful

In a unanimous judgment handed down on 30 April 2026, the Supreme Court of Appeal declared key changes to the RAF’s claims process unlawful. The ruling confirmed that both the RAF and the Minister of Transport acted outside their legal powers when they introduced stricter requirements to the RAF1 claim form in 2022 — the mandatory gateway for all compensation claims.

The 2022 form required claimants to submit significantly more documentation, including specialised medical reports, at the point of lodgement. If a claimant failed to provide all “compulsory” information, their claim would not be registered or allocated a claim number. Critics argued this effectively shut out vulnerable road accident victims who could not afford legal assistance.

The court ordered that:

• The RAF must revert to the 2008 claim form, which the court reaffirmed as the valid legal standard.
• Claimants whose submissions were previously rejected must be allowed to re-lodge their claims by 30 September 2026.
• The Minister of Transport has six months to introduce a revised claims process that complies with legal and procedural requirements.

Kirstie Haslam, Partner at DSC Attorneys, described the ruling as “a significant legal victory for claimants, but one that creates a complex and potentially chaotic situation on the ground.” She warned that many claims already in the legal system may face procedural complications, including the possibility that matters must be resubmitted using the older, legally valid process.

“The intention of tightening requirements may have been administrative efficiency, but the court has made it clear that this cannot come at the expense of access to justice.” — Kirstie Haslam, DSC Attorneys

2. R180 Billion Claims Floodgates: A Fiscal Time Bomb

The financial implications of the SCA ruling are staggering. According to estimates cited by ActionSA MP Alan Beesley, approximately 600,000 claims were not accepted under the unlawful 2022 form, at an average value of R300,000 per claim. This creates a potential new liability of at least R180 billion that has not been accounted for in the RAF’s books.

This comes on top of the RAF’s already dire financial position. The fund is understood to have unrecorded liabilities of approximately R300 billion, linked to incorrect accounting policy changes. Combined, total obligations could exceed R500 billion — a figure that surpasses the financial burdens posed by Eskom and Transnet.

Beesley warned that the RAF lacks the administrative capacity to register, process, and investigate the anticipated influx of claims, which will likely overwhelm an institution already struggling to manage its existing caseload. He announced that ActionSA would write to Finance Minister Enoch Godongwana requesting an urgent briefing before Parliament.

ActionSA is also exploring legal options, including the possibility of criminal charges against those responsible for introducing and defending the unlawful form.

3. SCOPA Warns of Severe Financial Consequences

Parliament’s Standing Committee on Public Accounts (SCOPA) has issued a stark warning following its inquiry into the RAF’s affairs. In its draft report, SCOPA found that the introduction of the 2022 RAF1 Form made the claims process “largely inaccessible” and increased litigation costs significantly.

Key findings from the SCOPA draft report include:

• The 2022 form is complex, difficult to comply with, and costly due to onerous requirements.
• The form was available only in English, effectively preventing direct claims by many claimants without legal assistance.
• The number of registered claims dropped significantly after the new form was introduced.
• There is no evidence that the board properly interrogated executive management on the legality of the changes — former board members appear to have “rubber-stamped” decisions.
• National Treasury has estimated the RAF’s total liability at more than R400 billion.

SCOPA Chairperson Songezo Zibi stated that the courts had provided clear guidance on how the form should be interpreted, while DA MP Patrick Atkinson called for findings against the former board and former CEO Collins Letsoalo, under whom the changes were made.

“They created this liability to grow when it should not have. What they have done has the potential to break the organisation. They should be held to account.” — DA MP Patrick Atkinson

4. RAF Must Compensate All — Including Undocumented Foreigners

In a separate but equally significant ruling on 17 April 2026, the SCA dismissed two appeals by the RAF and ruled that the fund cannot refuse to pay compensation to people even if they are in South Africa illegally.

The court clarified that section 17(1) of the RAF Act uses the phrase “any person”, which does not exclude foreign nationals, regardless of their immigration status. Judge of Appeal Ashton Schippers noted in a unanimous judgment:

“Unlike other legislation which specifically excludes foreign nationals from its ambit, such as the Social Assistance Act which limits beneficiaries to South African citizens, permanent residents and refugees, the [RAF] Act contains no such limitation.”

The ruling overturned a 2022 management directive by the RAF’s COO and a new claim form published by the Transport Minister that required proof of legal status to process claims. Parliament’s Transport Committee Chairperson welcomed the ruling, stating that “RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

Critics, however, warn that this ruling — combined with the unlawful form judgment — could trigger a massive wave of new claims, further straining the fund’s already depleted resources.

5. Calls for a Hybrid Model to Replace the Failing RAF System

Against this backdrop of legal and financial turmoil, the Actuarial Society of South Africa (ASSA) has released a landmark research paper calling for a fundamental overhaul of the country’s road accident compensation system.

ASSA notes that the RAF is considered technically bankrupt, with more than 11,000 lives lost on South African roads in 2025 alone — and many accident victims or their families receiving no financial compensation. Some claims relating to accidents that occurred more than 20 years ago are only now proceeding to trial.

The ASSA study compared three systems:

1. The current RAF system
2. The proposed no-fault Road Accident Benefit Scheme (RABS)
3. Compulsory third-party insurance offered by private insurers

ASSA concluded that none of these systems are viable on their own and recommends a hybrid solution that combines elements of all three. One viable option proposed is a system that provides basic no-fault benefits for medical care and rehabilitation, supplemented by fault-based liability insurance for additional damages — delivered through a public-private partnership under strong regulatory oversight.

Actuary George Schwalb, part of the ASSA research team, emphasised that the goal is a system that is “sustainable long-term, affordable and equitable.”

Key Takeaways for RAF Claimants

If you were involved in a road accident in South Africa and your RAF claim was previously rejected, here is what you need to know:

• ✅ You may have a second chance to claim. The SCA has ordered that claimants whose submissions were rejected under the unlawful 2022 form must be allowed to re-lodge by 30 September 2026.
• ✅ The 2008 RAF1 form is now the valid standard until new regulations are lawfully introduced.
• ✅ Foreign nationals, including undocumented individuals, are entitled to claim compensation under the RAF Act.
• ⚠️ Act quickly. Legal experts warn that claimants need to move fast to protect their rights, given the administrative backlog and potential prescription issues.
• ⚠️ Seek legal advice. Given the complexity of the current situation, consulting a qualified attorney is strongly recommended.

What Happens Next?

The coming months will be critical for the RAF. The Minister of Transport has six months to introduce a lawfully compliant claims process. Parliament is expected to call Finance Minister Godongwana for an urgent briefing on the fiscal implications. SCOPA is finalising its report with recommendations, including potential accountability measures against former RAF leadership.

Meanwhile, the RAF faces the monumental task of processing a potential flood of re-lodged claims while managing an already overwhelmed system and a liability that could exceed half a trillion rand.

For South Africa’s road accident victims — many of whom have waited years for justice — the recent court rulings offer a glimmer of hope. But the road to reform remains long and fraught with uncertainty.

Sources: IOL, Road Safety Blog (roadsafety.co.za), Eyewitness News (EWN), Business Day, Sunday World — May 2026.

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