Road Accident Fund RAF in Crisis July 2026

The Road Accident Fund (RAF) continues to dominate South African headlines in 2026, with landmark court rulings, a formal funding review, mounting claims backlogs, and a declaration of technical insolvency.

RAF Declared Technically Bankrupt

In February 2026, the Acting Director-General of the Department of Transport confirmed before Parliament that the Road Accident Fund is technically bankrupt. The RAF spends approximately R20 billion per year in claims but earns only around R4.55 billion from the fuel levy. There were 445,782 outstanding claims in the 2024/25 financial year. Only 9.8% of all claims were closed within the statutory 120-day investigation period. Court trial dates are being scheduled as far out as November 2033 due to backlogs. Despite this, Deputy Transport Minister Mkhuleko Hlengwa confirmed that shutting down the RAF is not an option.

Landmark SCA Ruling: The 2022 RAF 1 Form Declared Unlawful

On 30 April 2026, the Supreme Court of Appeal declared the 2022 RAF 1 claim form unlawful. Claimants whose submissions were declined may resubmit using the original 2008 RAF 1 form. The deadline to refile is 30 September 2026. Approximately 600,000 claims were affected, creating a potential new liability of at least R180 billion for the RAF.

Minister Creecy Hints at End of the RAF Fuel Levy

On 2 July 2026, Transport Minister Barbara Creecy revealed that the Department of Transport and the RAF have begun a formal review of the RAF funding framework. The review is exploring alternative and supplementary funding options to be concluded during the 2026/27 financial year. The Democratic Alliance criticised any move that could increase costs for motorists.

SCA Rules: Foreign Nationals Entitled to RAF Claims

On 22 April 2026, the Supreme Court of Appeal confirmed that foreign nationals are entitled to claim and receive benefits from the Road Accident Fund. The ATM party called for RAF payouts to be limited to South African citizens only.

Court Action Over Non-Payment of 430+ Finalised Claims

A court application was launched against the RAF following continued non-payment of more than 430 finalised claims. A High Court ruling in Cele v Road Accident Fund in January 2026 confirmed that the RAF cannot benefit from its own delays.

RAF Shows Signs of Recovery

The Portfolio Committee on Transport expressed cautious optimism in February 2026. Deputy Minister Hlengwa likened the reform process to fixing an aeroplane while airborne. The RAF launched youth driver training and road safety initiatives in June 2026.

The Road Accident Benefit Scheme RABS Bill

The government continues to pursue the RABS Bill as a long-term replacement for the current RAF system. Existing RAF Act claims would not be extinguished by new legislation.

What Should RAF Claimants Do Right Now?

Act immediately if your claim was rejected after July 2022 as the 30 September 2026 deadline to resubmit is non-negotiable. Lodge your claim as soon as possible. Obtain qualified legal representation. Keep all documentation. Issue summons within 5 years of the accident date. Do not rely on the RAF to manage your claim.