Road Accident Fund (RAF) in Crisis: Funding Overhaul, Court Battles & Reform Efforts – July 2026 Update

The Road Accident Fund (RAF) continues to dominate South African headlines in 2026, with a perfect storm of legal battles, governance scrutiny, a looming funding overhaul, and hundreds of thousands of claimants caught in the crossfire. Here is a comprehensive roundup of the latest developments shaping the future of one of South Africa’s most embattled state entities.

1. Minister Creecy Hints at the End of the Fuel Levy Funding Model

In one of the most significant policy announcements of the year, Transport Minister Barbara Creecy confirmed in early July 2026 that the Department of Transport and the RAF have initiated a formal, structured review of the RAF’s funding framework. The review is guided by a formal business case and is exploring alternative and supplementary funding options to replace or supplement the current fuel levy model.

Currently, the RAF is funded through a dedicated levy on every litre of petrol and diesel sold in South Africa — a model that has come under increasing pressure as electric vehicles (EVs) grow in popularity. Since EV charging does not attract the fuel levy, the fund’s revenue base is gradually eroding.

Creecy stated: “The Department of Transport, in collaboration with the Road Accident Fund, has initiated a structured review of the RAF funding framework, guided by a formal business case. Once this process is completed, it will be communicated publicly.”

She added that the evaluation of proposed funding options is expected to be concluded during the 2026/27 financial year, after which the preferred model will be presented for further policy, legislative, and stakeholder processes. Any new model must be equitable, sustainable, and appropriate for the South African context.

The Democratic Alliance (DA) has pushed back strongly, arguing that the RAF’s crisis is not caused by insufficient contributions from motorists, but by years of mismanagement, corruption, and poor governance. The DA warned: “South Africans should not be forced to foot the bill for government’s failures.”

2. New Vehicle Licence Fees on the Cards?

Alongside the fuel levy review, reports emerged in June 2026 that South African motorists could face new vehicle licence fees as an additional mechanism to fund the RAF. The proposal has sparked widespread concern among consumers already under financial pressure from rising fuel prices and inflation.

Emeritus Professor Hennie Klopper, a practising attorney and professor of private law at the University of Pretoria, warned that the RAF’s challenges go far deeper than its funding model. “The problem is not as much getting money to pay for it, but stopping the bleeding,” he said.

Klopper highlighted South Africa’s alarmingly high road casualty rate, which significantly exceeds international norms. The RAF receives approximately 100,000 claims per year, with the average claim amounting to roughly R328,000 — a combination he described as “unsustainable.”

He also pointed to the fund’s troubled leadership history: the RAF has had 10 chief executive officers since 2002, each promising a turnaround that never materialised. Klopper was blunt: “The way that the Road Accident Fund has been run and the way that the government has neglected the Road Accident Fund is actually scandalous.”

On the question of replacing the RAF entirely, Klopper cautioned that any new system would need to run alongside the existing one for a transition period — effectively requiring the government to fund both simultaneously. He estimated that a return to compulsory motor insurance could cost individual motorists between R5,000 and R10,000 per year in premiums.

3. The R500 Billion Liability Bomb: SCA Ruling Revives Hundreds of Thousands of Claims

Perhaps the most explosive development of 2026 came on 30 April 2026, when the Supreme Court of Appeal (SCA) handed down a landmark judgment that effectively revived hundreds of thousands of previously rejected RAF claims.

The ruling centred on the 2022 RAF 1 claim form, which the RAF had introduced with significantly stricter documentation requirements. The SCA found that neither the RAF nor the Minister of Transport had the legal authority to impose these requirements in the manner they did. The revised form was declared unlawful, and the 2008 RAF 1 form was reinstated.

The financial implications are staggering. Between July 2022 and March 2025, of 105,039 RAF 1 claims pre-assessed under the stricter regime, only 29,049 (28%) were compliant — while 75,990 (72%) were rejected. Weekly claim registrations had plummeted from nearly 2,000 to just over 300 under the new form.

The SCA’s order gives affected claimants until 30 September 2026 to refile using the 2008 form, with their claims treated as if lodged on the original date — preserving them from prescription.

ActionSA MP Alan Beesley warned that the ruling could expose the RAF to an additional R180 billion in previously unrecorded liabilities, based on preliminary estimates of up to 600,000 excluded claims at an average value of R300,000 each. Combined with existing concerns, total RAF exposure could exceed R500 billion.

Parliament’s Standing Committee on Public Accounts (SCOPA) had previously warned that setting aside the RAF 1 form could trigger a “massive influx of claims” — a warning that has now become reality.

4. Court Action Over Non-Payment of 430+ Finalised Claims

In June 2026, prominent law firm de Broglio Attorneys launched a court application against the RAF following the continued non-payment of more than 430 finalised claims — cases where settlement agreements had already been concluded or court orders granted.

Despite these claims being legally finalised, many clients remain unpaid long after the RAF’s stated 180-day payment period. In some instances, claimants have waited more than two years for compensation already agreed to or ordered by a court. Tragically, some claimants have died before receiving their compensation.

The court application seeks an order compelling the RAF to provide full reasons and detailed explanations for its failure to effect payment. Michael de Broglio, director of de Broglio Attorneys, stated: “Once a matter is settled or a court order is granted, there is a legitimate expectation that payment will follow within a reasonable and defined period. Continued delays undermine that expectation and prolong hardship for people who should already have received their compensation.”

One of the affected claimants is Rory Meintjies, a 29-year-old left permanently paralysed from the waist down after a devastating road accident four years ago. Despite a court award having been granted in his case, he and his family are still waiting for payment.

5. Parliament: Signs of Recovery, But Governance Concerns Remain

In February 2026, the Portfolio Committee on Transport Chairperson, Mr Donald Selamolela, offered a cautiously optimistic assessment of the RAF’s trajectory. He stated that, contrary to public perception, the RAF is “on the road to recovery,” with work underway to improve governance and stabilise operations.

Deputy Minister of Transport Mkhuleko Hlengwa accompanied the RAF board before the committee, describing the reform process as akin to “fixing an aeroplane while airborne.” He confirmed that reforming the RAF remains a government priority, with direct claims processing identified as an immediate area of attention.

However, Selamolela acknowledged that concerns about the RAF’s organisational structure remain unresolved and called on the department to move swiftly to review RAF legislation and close all loopholes.

SCOPA has been conducting an ongoing investigation into the RAF since late 2025, focusing on governance failures, financial reporting irregularities, and operational decisions — including the now-overturned RAF 1 form. Criminal charges were also laid against former RAF CEO Collins Letsoalo for failing to comply with a parliamentary summons.

6. AfriForum: Fix Management Before Seeking New Funding

Civil rights organisation AfriForum has weighed in on the funding debate, warning that it is unreasonable to propose new funding mechanisms for the RAF before ensuring the fund is being properly managed. AfriForum’s position aligns with broader concerns that additional revenue without structural reform will simply delay — rather than resolve — the RAF’s deep-seated problems.

Key Takeaways for RAF Claimants in 2026

• If your RAF claim was rejected between July 2022 and now under the stricter RAF 1 form requirements, you may be eligible to refile. The deadline to resubmit using the 2008 RAF 1 form is 30 September 2026.
• If you have a finalised claim that remains unpaid, legal recourse is available. Consult a qualified RAF attorney to explore your options.
• The RAF’s funding model is under review — changes to how the fund is financed could affect future levies, vehicle licence fees, or insurance requirements for all South African motorists.
• Road safety remains critical — experts emphasise that reducing road accidents is the most sustainable long-term solution to the RAF’s financial crisis.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical juncture in 2026. With potential liabilities exceeding R500 billion, a funding model under formal review, hundreds of thousands of revived claims, and ongoing governance scrutiny, the pressure on the RAF — and on South African motorists and taxpayers — has never been greater.

The coming months will be decisive: the SCA’s September 2026 deadline for refiling claims, the conclusion of the funding review in the 2026/27 financial year, and Parliament’s continued oversight will all shape the future of road accident compensation in South Africa.

For road accident victims, the message is clear: know your rights, act before deadlines, and seek qualified legal advice to ensure you receive the compensation you are legally entitled to.

Sources: IOL Business, Eyewitness News (EWN), Moonstone Information Refinery, Moneyweb, Africa24 TV, AfriForum. Published: 10 July 2026.