Road Accident Fund in Crisis: Unpaid Claims, Reform Proposals and What South Africans Need to Know (September 2026)

The Road Accident Fund (RAF) continues to dominate South African headlines in 2026, with mounting unpaid claims, parliamentary scrutiny, controversial funding proposals, and growing calls for wholesale reform.

1. Unpaid RAF Claims Reach R21.76 Billion

Transport Minister Barbara Creecy confirmed that as of 28 June 2026, the RAF had 37,622 finalised claims worth R21.76 billion that had not yet been paid out. These claims involve 47,949 separate payment transactions. The main reasons for delays: outstanding compliance checks (R11 billion), verification delays (R9.1 billion), and missing documentation (R1.7 billion). Alarmingly, 36,442 of these claims date back to 2007, meaning many victims have waited nearly two decades.

2. APRAV Proposes a National Settlement Hub

The Association for the Protection of Road Accident Victims (APRAV) has proposed a National Settlement Hub to clear the backlog of about 100,000 claims. APRAV vice chair Pieter de Bruyn says the hub would sort claims ready to settle, centralise documentation, empower decision-makers, settle undisputed portions immediately, and track every case until payment. The initiative would require R16 billion from National Treasury. De Bruyn stressed this is not a bailout. He noted that less than 5% of RAF claims are genuinely in dispute, yet 90% end up in court, resulting in a R6 billion legal bill.

3. The RAF1 Form Declared Unlawful

The Supreme Court of Appeal has declared the RAF1 claim form unlawful. APRAV estimates the form excluded up to 100,000 claimants with valid claims. APRAV chair Ngoako Mohlaloga said the form turned the claims process into a barrier to justice.

4. SCOPA Inquiry: Corruption and Criminal Charges

Parliament’s Standing Committee on Public Accounts (SCOPA), chaired by Songezo Zibi, has uncovered: R50 million in an alternative RAF bank account (SIU), R340 million in duplicate payments to law firms (SIU), and resolved to lay criminal charges against the former RAF CEO. Zibi stated the RAF is chronically underfunded and even fixing governance will not be enough to meet all obligations.

5. Transport Committee Cautiously Optimistic

Portfolio Committee on Transport Chairperson Donald Selamolela said in February 2026 that the RAF is on the road to recovery. Deputy Minister Mkhuleko Hlengwa likened the reform process to fixing an aeroplane while airborne.

6. New Funding Model: Vehicle Licence Disc Fee Proposed

The RAF is funded by a fuel levy of R2.25 per litre, generating R4.2 billion per month. Minister Creecy has proposed a new levy linked to vehicle licence disc renewals. The AA CEO Bobby Ramagwede called the idea laughable. The DA vowed to challenge it. The PSA also rejected it. APRAV suggests a future hybrid model combining the fuel levy, optional insurance top-up, and private sector involvement.

7. Calls to Scrap the RAF

The AA and DA have called for the RAF to be replaced with a compulsory third-party insurance system. However, APRAV warns that actuarial estimates put the average cost at R2,400 per month per motorist and R4,000 per month for taxi owners.

Key Takeaways

• If you have been in an accident, check whether your claim is on the RNYP register.
• If you are a motorist, be aware of proposed new vehicle licence fees still under review.
• If you have a pending claim, the proposed National Settlement Hub could fast-track it.
• If your claim was rejected via the RAF1 form, seek legal advice as the form has been declared unlawful.

Conclusion

The Road Accident Fund stands at a critical juncture. With R21.76 billion in unpaid claims, a R500 billion long-term liability, ongoing corruption investigations, and a deeply contested funding model, South Africa’s accident victims cannot afford to wait any longer. Check back daily for the latest RAF updates.

Sources: IOL Business, Moneyweb, Africa24 TV, TopAuto, Parliament of South Africa (SCOPA), ActionSA. Published: 6 September 2026.