Road Accident Fund in Crisis: New CEO, Legislative Reforms & Liquidity Challenges – October 2026 Update

Road Accident Fund South Africa: Everything You Need to Know Right Now

The Road Accident Fund (RAF) in South Africa is once again dominating headlines in October 2026, as the embattled state entity grapples with a new CEO appointment, mounting liquidity pressures, a surge in claims, legislative reform proposals, and fierce political debate over its future. Here is a comprehensive roundup of the latest developments every South African motorist, claimant, and legal professional needs to know.

1. New CEO Waseem Carrim Takes the Helm on 1 November 2026

In one of the most significant leadership developments at the RAF in recent memory, Waseem Carrim has been appointed as the new CEO of the Road Accident Fund, effective 1 November 2026. Carrim, a chartered accountant and former CEO of both the National Youth Development Agency (NYDA) and the National Student Financial Aid Scheme (NSFAS), becomes the fifth RAF CEO in just over a year — a staggering rate of leadership turnover at an institution that is technically insolvent.

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 [Barbara Creecy]. Two is an interim board led by very capable individuals. And then also a five-year mandate to turn things around.”

Carrim’s Key Priorities

• Reforming the RAF’s financial model — including exploring annuity-based payments instead of once-off lump-sum payouts to reduce cash flow pressure.
• Tackling the claims backlog — presenting a credible plan to bring claims under control and improve efficiency for the public.
• Fighting fraud and corruption — ensuring zero tolerance and swift consequences for wrongdoing at all levels.
• Rebuilding trust — normalising relationships with lawyers, medical professionals, and claimants who currently feel compelled to litigate every claim.
• Advancing the Road Accident Benefit Scheme (RABS) Bill — which would introduce a no-fault system replacing lump-sum payouts with structured, regular benefits.

Carrim also addressed the controversial fuel levy, cautioning against scrapping it in the short term: “I don’t think in the short term you could scrap the fuel levy. But I do think the operating model of the fund needs some degree of rethink.”

2. RAF’s Financial Crisis: R400 Billion in Liabilities, R22 Billion Owed to Claimants

The scale of the RAF’s financial crisis cannot be overstated. The fund currently:

• Receives more than R50 billion per year from taxpayers, primarily through the fuel levy (currently R2.25 per litre).
• Has total liabilities exceeding R400 billion.
• Owed claimants R22.18 billion on already-settled but unpaid claims as of end-June 2026 — an amount that grew by R3.62 billion in just three months.
• Paid R8.9 billion on 80,665 claims during the first quarter of 2026/27 (April–June).

The Portfolio Committee on Transport raised formal concerns about the RAF’s liquidity challenges in Parliament on 7 October 2026, highlighting the fund’s inability to meet its claims obligations timeously.

3. Surge in Claims: Nearly 160,000 New Claims After SCA Ruling

A Supreme Court of Appeal (SCA) ruling earlier in 2026 reinstated the older RAF 1 Form (the 2008 version), triggering a massive wave of new claims. By 1 July 2026, the RAF had already received 62,643 claims in this post-judgment stream. Based on the intake rate at the time, the RAF projected a further 96,948 claims by the 30 September 2026 deadline — bringing the total to approximately 159,591 claims.

To manage the surge, the RAF:

• Brought in additional contractors and interns.
• Introduced overtime and reorganised staff.
• Made IT and process changes, including reconfiguring its Integrated Claims Management System (Bokamoso).
• Launched community radio and newspaper campaigns to inform the public.

The RAF’s total RAF 1 liability from this ruling is estimated at approximately R40.9 billion.

4. No Additional Government Funding — Fuel Levy Increase Rejected

Transport Minister Barbara Creecy confirmed on 13 October 2026 that the RAF will not receive additional government funding. She also rejected the RAF’s proposal to increase the fuel levy by 75 cents per litre to R3 per litre — a request that came in the same week that fuel prices hit a record R30 per litre.

The Democratic Alliance (DA) was vocal in its opposition to the proposed levy increase. DA spokesperson Dr Chris Hunsinger MP stated:

“More money will not fix the RAF. Its problem is not that motorists pay too little. It is how the money is managed. Before motorists are asked for another cent, the RAF must show it can manage what it already has.”

The DA highlighted that the RAF had spent R12.8 million on legal costs for just seven disciplinary hearings and close to R30 million on salaries for at least 16 suspended executives — some of whom have been on full pay for almost two years.

5. RAF Act Amendments on the Table: Foreign Nationals, Capped Claims & More

Parliament’s Portfolio Committee on Transport heard on 6 October 2026 that amendments to the RAF Act are being finalised and will soon be tabled before the committee. The Department of Transport’s acting Director-General, Mokonyama Mathabatha, confirmed that four key areas are under review:

1. Capped claims — reviewing the statutory limits on compensation payouts.
2. Rehabilitation — improving support for injured claimants.
3. Mediation and conciliation — reducing reliance on costly litigation.
4. Claims by foreign nationals — addressing the controversial issue of undocumented foreigners claiming from the RAF.

Mathabatha noted: “The Act in its current form makes the scheme not sustainable.”

Foreign Nationals and the RAF: A R23 Billion Controversy

Data tabled in Parliament revealed that foreign nationals have claimed a staggering R23.3 billion from the RAF over the past five financial years (2021/22 to 2025/26). The Constitutional Court (ConCourt) ruled in September 2026 that the RAF cannot exclude undocumented foreigners from claiming compensation, shutting down the RAF’s attempts to limit such payouts. The Department of Transport is appealing the ruling.

6. Courts Order RAF to Pay: R2.2 Million Pedestrian Award & Punitive Costs

The RAF continues to face adverse court rulings. In a recent Western Cape High Court judgment, Acting Judge M Louw ordered the RAF to pay R2,231,081.34 to a claimant (Catherine Yiannakis) for past hospital and medical expenses — and slapped the RAF with a punitive cost order after it issued unlawful directives attempting to avoid paying claims already covered by a medical scheme.

The court reaffirmed settled law in the Western Cape: the RAF cannot refuse claims for past medical expenses on the basis that they were 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.

7. Statutory Cap Increase: Loss of Income and Loss of Support Claims

Effective 31 January 2026, the RAF officially increased the statutory cap for loss of income and loss of support claims. This adjustment, which is periodically reviewed, affects the maximum compensation claimants can receive for income-related losses following a road accident. Claimants and their legal representatives should ensure they are aware of the updated limits when lodging or settling claims.

8. Crash Victims Left Destitute as RAF Delays Payments

Behind the statistics are real people. Reports highlight that numerous road accident victims and their families are struggling financially while waiting for compensation from the RAF. Delays in payment — even on already-settled claims — are leaving vulnerable South Africans without the financial support they are legally entitled to.

This human cost underscores the urgency of the reforms being discussed at both parliamentary and executive level.

Key Trends and Takeaways for October 2026

What Should RAF Claimants Do Right Now?

If you have been injured in a road accident in South Africa, here is what you need to know:

• Lodge your claim promptly. The RAF has strict prescription periods — generally three years from the date of the accident or the date you became aware of your claim.
• Use the correct claim form. Following the SCA ruling, the reinstated RAF 1 Form (2008 version) is now applicable for certain claims. Consult a legal professional to ensure you use the correct documentation.
• Seek legal advice. Given the complexity of RAF claims and the fund’s history of issuing unlawful directives, working with an experienced RAF attorney can significantly improve your chances of a successful and timely payout.
• Be aware of the statutory caps. The updated caps for loss of income and loss of support (effective January 2026) affect the maximum compensation available.
• Track your claim. With the RAF’s Bokamoso system now reconfigured, claimants can follow up on the status of their claims through the RAF’s official channels.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical juncture. With a new CEO taking office in November, legislative amendments in the pipeline, a massive claims surge to manage, and no additional government funding on the horizon, the pressure on the RAF to reform — and fast — has never been greater.

The incoming leadership under Waseem Carrim has signalled a willingness to tackle the structural issues head-on, from advancing the RABS Bill to cracking down on fraud and rebuilding public trust. Whether these intentions translate into meaningful change for the millions of South Africans who depend on the RAF for compensation after road accidents remains to be seen.

We will continue to monitor developments and bring you the latest updates on the Road Accident Fund. Bookmark this page and check back regularly for the most current RAF news in South Africa.

Sources: Parliament of South Africa, Moneyweb, Democratic Alliance, AllAfrica, TopAuto, Moonstone, The Citizen — October 2026.