Road Accident Fund in Crisis: SCA Ruling, R180bn Liability & What Claimants Need to Know (May 2026)

Published: 7 May 2026

South Africa’s Road Accident Fund (RAF) is facing one of the most turbulent periods in its history. A landmark Supreme Court of Appeal (SCA) ruling, a potential R180-billion financial liability, parliamentary warnings of a looming fiscal crisis, and a landmark ruling on foreign nationals’ rights to claim — all within the past few weeks. Here is a comprehensive overview of the latest RAF news and what it means for claimants, taxpayers, and the South African government.

1. SCA Declares RAF’s 2022 Claim Form Unlawful — A Landmark Ruling

In a unanimous judgment handed down on 30 April 2026, the Supreme Court of Appeal (SCA) dismissed the RAF’s appeal and declared the RAF Form 1 (2022 version) unlawful. The court found that both the RAF and the Minister of Transport acted outside their legal powers when introducing stricter requirements to the claim form — the mandatory gateway for road accident compensation claims.

The 2022 form had significantly increased the documentation burden on claimants, requiring specialised reports and extensive information at the lodgement stage. If a claimant failed to provide all “compulsory” information, their claim would not even be registered or allocated a claim number. The court confirmed this was a direct violation of the RAF Act and undermined access to justice for road accident victims.

Key outcomes of the ruling:

• The RAF must revert to the 2008 version of the RAF Form 1 as the valid standard.
• Claimants whose submissions were previously rejected under the unlawful 2022 form must be allowed to re-lodge their claims by 30 September 2026.
• Prescription is waived for all claims previously rejected due to the unlawful board notice.
• The Minister of Transport has been given six months to introduce a revised, legally compliant claims process.

According to Kirstie Haslam, Partner at DSC Attorneys: “This is a significant legal victory for claimants, but it creates a complex and potentially chaotic situation on the ground. Many claims that were rejected under the unlawful requirements may now need to be re-lodged, effectively restarting the process.”

2. The R180 Billion Liability Threat to South Africa’s Fiscus

The financial implications of the SCA ruling are staggering. It is estimated that approximately 600,000 claims were rejected as a result of the unlawful 2022 RAF Form 1. At an average claim value of R300,000, this creates a potential liability of at least R180 billion — a figure that has sent shockwaves through Parliament and the National Treasury.

ActionSA MP Alan Beesley has called for an urgent briefing with Finance Minister Enoch Godongwana before Parliament to explain where the funds to cover these claims would come from. Beesley warned:

“These are effectively state liabilities and place the national fiscus in an extremely vulnerable position, exceeding the financial burdens posed by entities such as Eskom and Transnet.”

The situation is compounded by 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, potentially pushing total obligations beyond R500 billion. National Treasury has separately estimated the RAF’s total liability at more than R400 billion.

Adding further pressure, the RAF currently faces a backlog of more than 430,000 existing claims, and the recently reduced fuel levy — the RAF’s primary funding source — will further constrain its revenue.

3. SCOPA Warns of Severe Financial Consequences

The Standing Committee on Public Accounts (SCOPA) has issued a stark warning following its inquiry into the RAF’s affairs. In its draft report, SCOPA stated:

“The impact of the above is likely to have severe financial consequences for the business of the RAF, which in turn will have a negative knock-on effect on claimants and society as a whole.”

SCOPA Chairperson Songezo Zibi confirmed that the ruling means claims already in the system will be reopened, and those previously turned away must now be assessed. He acknowledged the RAF may not have sufficient funds to process the resuscitated claims and may require additional government funding running into tens of billions of rand.

DA MP Patrick Atkinson called for accountability from the former RAF board and former CEO Collins Letsoalo, under whose leadership the unlawful 2022 form was introduced:

“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.”

ActionSA is also exploring legal options, including the possibility of criminal charges against those responsible for the unlawful introduction and continued defence of the 2022 form.

4. RAF Must Compensate Foreign Nationals — SCA Rules

In a separate but equally significant ruling, the SCA confirmed that the RAF cannot refuse to pay compensation to people based on their immigration status — including undocumented foreign nationals. The court blocked the RAF’s attempt to deny claims based on whether claimants were in South Africa legally or illegally.

Parliament’s Transport Committee Chairperson welcomed the ruling, stating: “The RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

However, the ruling has sparked debate. Some politicians have proposed that South Africa introduce mandatory medical insurance for all visitors entering the country, arguing that South African taxpayers should not bear the cost of compensating foreign nationals injured in road accidents.

The Sunday World reported that this ruling alone could trigger a further wave of claims, with estimates suggesting a potential additional liability of up to R180 billion when combined with the unlawful form ruling.

5. Operational Chaos: What Happens to Rejected Claims Now?

The practical implications of the SCA ruling are complex. Legal practitioners and claimants are grappling with several urgent questions:

• Claims that were rejected and then litigated: Where court action has already progressed, there is uncertainty about whether those matters can continue or must be resubmitted from scratch.
• Claims with default judgments: Attorneys like Gert Nel (CEO of Gert Nel Incorporated) have raised concerns about claims where court orders and default judgments have already been secured — the SCA ruling did not provide clear guidance on how these should be handled.
• Claimants who gave up: Many individuals who submitted claims directly and were rejected may not be aware of the ruling and could miss the 30 September 2026 deadline to resubmit.
• Administrative capacity: The RAF simply does not have the administrative infrastructure to handle the anticipated influx of hundreds of thousands of resubmitted claims on top of its existing 430,000-claim backlog.

Haslam urges claimants to act quickly: “What happens next will depend on how quickly and effectively the RAF and the Department of Transport respond. In the meantime, claimants need to act quickly to protect their rights.”

6. Calls for a Hybrid Model to Reform the RAF

Against this backdrop of crisis, the Actuarial Society of South Africa (ASSA) has called for a hybrid model to reform the RAF. The proposal suggests a combination of the current fault-based compensation system and a no-fault insurance model, aimed at making the fund more financially sustainable while ensuring broader access to compensation for road accident victims.

The AA (Automobile Association) has also previously called for a stop to simply “throwing money” at RAF issues, arguing that structural reform is urgently needed rather than repeated bailouts.

What Should RAF Claimants Do Right Now?

If you or someone you know had a Road Accident Fund claim rejected between 2022 and 2026 due to non-compliance with the RAF Form 1, here is what you need to know:

1. You have until 30 September 2026 to resubmit your claim using the valid 2008 RAF Form 1.
2. Prescription has been waived for claims previously rejected due to the unlawful board notice — meaning the time bar should not prevent you from resubmitting.
3. Consult a qualified attorney as soon as possible, especially if your claim has already entered litigation.
4. Required documents for a valid claim submission include:
   • Completed RAF 1 form (2008 version)
   • Certified copies of identity documents
   • Affidavit or statement
   • Police accident report or case docket
   • Medical report
   • Unabridged birth certificate (for minor claimants)

Key Figures & Numbers at a Glance

Conclusion: A Fund at a Crossroads

The Road Accident Fund is at a critical crossroads. The SCA’s landmark ruling has opened the floodgates for hundreds of thousands of previously rejected claims, placing enormous financial and operational pressure on an institution already struggling under the weight of a massive backlog and dwindling resources. Parliamentary oversight bodies are sounding the alarm, politicians are calling for accountability, and legal experts are warning of systemic chaos.

For ordinary South Africans — road accident victims who were unfairly denied access to compensation — the ruling offers a second chance. But that window is narrow. If you believe your claim was wrongly rejected, act now and seek legal advice before the 30 September 2026 deadline.

Stay informed about the latest Road Accident Fund news and updates by bookmarking this page and checking back regularly.

Sources: IOL, Sowetan, Sunday World, Road Safety Blog (Arrive Alive), Parliament of South Africa, Moneyweb, EWN