Road Accident Fund in Crisis: New CEO, Legislative Reforms & Unpaid Claims — November 2026 Update

Road Accident Fund South Africa: Key Developments You Need to Know

South Africa’s Road Accident Fund (RAF) continues to dominate headlines as the country grapples with one of its most embattled state entities. From a brand-new CEO taking office on 1 November 2026, to sweeping legislative reforms and a staggering R22 billion in unpaid claims, here is a comprehensive overview of the latest RAF news and what it means for South African motorists and accident victims.

1. New RAF CEO Takes the Helm: Waseem Carrim Vows to Restore Trust

On 1 November 2026, Waseem Carrim officially became the new CEO of the Road Accident Fund — the fifth person to hold the position in just over a year. Carrim, a chartered accountant and former CEO of both the National Youth Development Agency (NYDA) and the National Student Financial Aid Scheme (NSFAS), inherits an institution described as 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: a strong and supportive transport minister, an interim board led by very capable individuals, and a five-year mandate to turn things around.”

Carrim’s Immediate Priorities Include:

• Reforming the RAF’s financial model to reduce dependence on the fuel levy
• Clearing the claims backlog — currently described as “quite severe”
• Tackling fraud and corruption head-on, with zero tolerance
• Rebuilding trust with claimants, lawyers, and medical professionals
• Introducing annuity payments instead of once-off lump-sum payouts to ease cash flow pressure
• Adopting the Road Accident Benefit Scheme (RABS) Bill, which would introduce a no-fault compensation system

Carrim was blunt about the culture of wrongdoing at the RAF: “People need to know that there are consequences for wrongdoing. You have to make very public examples of those involved in corruption so that there is a zero-tolerance approach.”

2. The RAF’s Financial Crisis: By the Numbers

The scale of the RAF’s financial crisis is alarming. According to the latest parliamentary briefings and financial disclosures:

• The RAF pays out approximately R25 billion per month in claims but receives only R4 billion into its coffers monthly.
• Total liabilities exceed R400 billion, while the fund receives over R50 billion per year from the fuel levy.
• As of 28 June 2026, the RAF had 37,622 finalised claims awaiting payment, totalling R21.76 billion in unpaid obligations.
• By the end of June 2026, the fund owed claimants R22.18 billion on already-settled claims — an amount that grew by R3.62 billion in just three months.

The Portfolio Committee on Transport, chaired by Mr Donald Selamolela, raised serious concerns about these liquidity challenges during a parliamentary briefing on 7 October 2026:

“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.”

3. No Additional Government Funding for the RAF

Transport Minister Barbara Creecy has firmly ruled out additional government funding for the Road Accident Fund. Speaking in October 2026, the minister confirmed that motorists are already under significant financial pressure and that the priority must be addressing the fund’s management and financial challenges — not simply injecting more money.

Minister Creecy also indicated that the RAF needs to reduce its dependence on the fuel levy, particularly given the growing adoption of electric vehicles, which do not contribute to the levy. She added that the focus should shift to a no-fault compensation system that eliminates the need to determine who was responsible for an accident — a process that currently results in costly and time-consuming litigation.

4. RAF Fuel Levy Under Fire: DA Calls for Reform, Not Re-Financing

The Democratic Alliance (DA) has come out strongly against the RAF’s request to raise the fuel levy by 75 cents per litre — from R2.25 to R3.00 per litre — at a time when fuel prices have already hit a record R30 per litre.

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.”

The DA highlighted that the RAF has 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 sitting at home on full pay for almost two years. Meanwhile, thousands of legitimate accident claims remain unpaid.

The party called for immediate structural reform of the RAF model, arguing that the fund is “completely broken” and must be reformed before any additional funding is considered.

5. Major Legislative Reforms on the Way

The Department of Transport confirmed during a parliamentary briefing on 6 October 2026 that amendments to the Road Accident Fund Act are being finalised. Acting Transport Director-General Mokonyama Mathabatha told the Portfolio Committee on Transport that the proposed amendments cover four key areas:

1. Capped claims — introducing limits on the value of compensation payable
2. Rehabilitation — improving how injured claimants receive ongoing care and support
3. Mediation and conciliation — creating alternative dispute resolution mechanisms to reduce costly litigation
4. Claims involving foreign nationals — addressing the legal uncertainty following court rulings

“All these issues are in the amendment Act that we are finalising. The Act in its current form makes the scheme not sustainable,” Mathabatha told the committee.

Important note for claimants: These amendments have not yet been enacted into law. The proposed legislation must still be tabled before Parliament and go through the full legislative process before any changes take effect. Motorists and accident victims should continue to work within the existing RAF framework.

6. Foreign Nationals and RAF Claims: The Legal Battle Continues

One of the most legally complex issues facing the RAF involves claims submitted by foreign nationals. The Constitutional Court (ConCourt) ruled in September 2026 that the RAF cannot exclude undocumented foreign nationals from receiving benefits purely on the basis of their immigration status.

The RAF Act refers to compensation for “any person”, and courts have consistently found that Parliament did not write an immigration-status limitation into the legislation. The government’s decision to include foreign-national claims in the upcoming amendment package is therefore a direct response to this established legal position.

According to reports, the RAF has paid out approximately R7.3 billion to foreign nationals involved in road accidents in South Africa — a figure that has drawn significant public debate.

7. RAF Claims Backlog: The 120-Day Commitment

The RAF has publicly committed to finalising claims within 120 days. However, with tens of thousands of claims in the backlog and the fund’s severe liquidity constraints, this target remains aspirational for many claimants.

New CEO Waseem Carrim has acknowledged the severity of the backlog and pledged to present a clear plan for bringing claims under control:

“I don’t want to go in and say I’m going to resolve the claims backlog. But I’d like to at least present a plan on how claims will be brought under control and made more effective and efficient for the public.”

What Does This Mean for South African Road Users?

If you have been involved in a road accident in South Africa, or are considering lodging a RAF claim, here are the key takeaways from the latest developments:

• Delays are likely to continue in the short term as the new CEO settles in and implements a turnaround strategy.
• Legislative changes are coming, but have not yet been enacted — the current RAF Act still applies.
• The fuel levy remains at R2.25 per litre for now, though a proposed increase to R3.00 per litre is being debated.
• Fraud and corruption crackdowns are expected under the new leadership, which may improve the fund’s long-term sustainability.
• A no-fault system (via the RABS Bill) is being actively promoted as the long-term solution to the RAF’s structural problems.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical juncture. With a new CEO in place, legislative reforms in the pipeline, and mounting pressure from Parliament, civil society, and the courts, the next 12 months will be pivotal for the future of road accident compensation in South Africa.

Whether Waseem Carrim can deliver on his promises — and whether the government has the political will to push through meaningful reform — remains to be seen. What is clear is that the status quo is unsustainable, and South African motorists and accident victims deserve a fund that is properly run, accountable, and focused on delivering justice to those who need it most.

Stay informed about the latest Road Accident Fund news and updates by bookmarking this page. We publish daily RAF news summaries to keep you up to date.

Sources: Parliament of South Africa, Moneyweb, Newcastillian News, Democratic Alliance, AllAfrica, Facebook (RAF official page)