Road Accident Fund (RAF) in Crisis: Landmark Court Rulings, R500 Billion Debt & What It Means for South Africans – June 2026 Update

Road Accident Fund (RAF) Under the Spotlight: Everything You Need to Know in June 2026

The Road Accident Fund (RAF) in South Africa is facing one of the most turbulent periods in its history. From landmark Supreme Court of Appeal (SCA) rulings that have overturned years of claims policy, to mounting financial liabilities that could exceed R500 billion, and growing calls for a government bailout — the RAF is at a critical crossroads. Here is a comprehensive overview of the latest developments as of 22 June 2026.

1. Supreme Court of Appeal Declares RAF1 Form Unlawful: Hundreds of Thousands of Claims Revived

In one of the most significant legal developments in the RAF’s history, the Supreme Court of Appeal (SCA) handed down a landmark judgment on 30 April 2026, declaring the revised RAF1 claim form — introduced in July 2022 — unlawful and invalid.

The SCA dismissed the RAF’s appeal with costs, confirming a 2023 High Court ruling that found both the RAF and the Minister of Transport had exceeded their legal powers when introducing stricter documentation requirements through the revised RAF1 form.

What Did the Court Find?

• The RAF had no authority to prescribe binding claim requirements — that power rests solely with the Minister of Transport.
• The Minister’s approval of the revised form was procedurally flawed, lacking public participation and independent decision-making.
• The revised form created barriers to access for road accident victims, contradicting the very purpose of the RAF Act — to compensate victims.
• The court found the Minister’s decision appeared to resolve an internal dispute between the Department of Transport and the RAF, rather than serve the public interest.

What Happens Now?

• The 2008 RAF1 form is reinstated as the valid standard for lodging claims.
• Claimants whose submissions were rejected or not acknowledged under the 2022 regime may resubmit their claims by 30 September 2026.
• Successfully re-lodged claims will be treated as if submitted on the original date, protecting them from prescription.
• The Minister of Transport has been given six months to develop and publish a revised RAF1 form following proper legal procedures.

The scale of the impact is staggering. Between July 2022 and March 2025, of 105,039 RAF1 claims pre-assessed, only 29,049 (28%) were compliant — while 75,990 (72%) were rejected. Preliminary estimates suggest as many as 600,000 claims may have been excluded under the unlawful form, with a potential liability of approximately R180 billion at an average claim value of R300,000.

“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.” — Kirstie Haslam, Partner at DSC Attorneys

2. Is a Government Bailout Inevitable? The RAF’s R500 Billion Debt Crisis

The SCA ruling has intensified concerns about the RAF’s financial sustainability. The fund is estimated to carry approximately R500 billion in unqualified contingencies — a figure that could grow significantly following the court’s decision.

Key Financial Facts:

• The 2026 Budget Review reported total liabilities of social security funds at R433.1 billion at end of 2024/25, with the RAF accounting for 85.5% (R370.3 billion).
• The RAF’s liabilities are projected to increase from R369.7 billion in 2024/25 to R422.6 billion by 2027/28.
• The RAF Board chair previously warned liabilities could increase by between R300 billion and R400 billion due to accounting standard changes.
• Default court judgments alone represent approximately R500 million in immediate financial burden.

Legal experts and attorneys have been vocal: “Treasury will definitely have to get involved with a bailout to cover these additional expenses,” said Gert Nel of Gert Nel Inc Attorneys, one of South Africa’s leading RAF claims firms.

The 2025 Medium-Term Budget Policy Statement had already flagged the RAF as a significant fiscal risk, warning that its financial position is expected to deteriorate over the medium term. The SCA ruling has only deepened those concerns.

Parliament’s Standing Committee on Public Accounts (SCOPA) has been conducting an oversight inquiry into the RAF since late 2025, investigating governance failures, financial reporting irregularities, and operational decisions — including the unlawful RAF1 form.

3. Foreign Nationals Win the Right to Claim: R390 Million Additional Liability

In a separate but equally significant ruling, the SCA found that the RAF must compensate all road accident victims — including undocumented foreign nationals. The court ruled that the phrase “any person” in the RAF Act includes undocumented foreigners.

This followed the Gauteng High Court in Pretoria striking down a RAF directive that required foreign nationals to prove legal presence in South Africa at the time of injury in order to claim compensation.

Transport Minister Barbara Creecy revealed that approximately R390 million in claims previously classified as non-payable could now become payable following the judgment.

“According to the latest version of the Requested Not Yet Paid (RNYP) register, a total of R390 million relates to illegal foreigners. These have been deemed non-payable matters, but the Supreme Court of Appeal ruling makes them payable,” the Minister stated.

The RAF Board is still taking legal advice on whether to seek leave to appeal the ruling at the Constitutional Court.

4. RAF Shows Signs of Recovery: Transport Committee Weighs In

Despite the financial and legal challenges, the Transport Committee Chairperson has noted that the RAF is showing signs of recovery, while stressing that reform efforts must accelerate.

The RAF has also been proactive on the ground. In February 2026, the fund hosted its second Settlement Drive at Ngwelezane Hospital, aimed at fast-tracking claims ripe for settlement and bringing relief to claimants who have been waiting for compensation.

Regional offices have also been fast-tracking settlements. The RAF’s East London office, which relocated to a new office space in March 2026, has been actively processing claims, while the Pretoria Regional Office has been running settlement drives to reduce backlogs.

5. RAF Invests in Youth Road Safety: Driver Training Initiatives

On a more positive note, the RAF released a media statement on 17 June 2026 highlighting its commitment to road safety through youth empowerment. The fund has been running driver training and road safety initiatives targeting young South Africans — a proactive approach to reducing the number of road accidents and, by extension, future claims.

The RAF has also previously handed over a Junior Traffic Training Centre to a primary school, embedding road safety education at a grassroots level.

These initiatives align with the RAF’s broader mandate: not just to compensate victims, but to prevent road accidents in the first place.

6. Key Legal Battles: A Pattern of Court Defeats

The RAF has faced a series of significant legal setbacks in recent months:

• April 2026: SCA ruled that undocumented foreign nationals are entitled to claim RAF compensation.
• April 2026: SCA ordered the RAF to pay Sunshine Hospital more than R92 million within seven days.
• February 2026: SCA dismissed the RAF’s application to appeal a judgment criticising the fund for refusing to abide by 181 court orders in favour of Sunshine Hospital.
• January 2026: In Cele v Road Accident Fund, a court dismissed the RAF’s special plea, ruling that the RAF cannot benefit from its own delays.
• April 2026 (SCA): The RAF1 Form declared unlawful, potentially reviving hundreds of thousands of claims.

This pattern of court defeats has placed enormous pressure on the fund’s finances and governance structures.

7. What Should Claimants Do Right Now?

If you or someone you know has been affected by a road accident in South Africa, here is what you need to know:

1. If your claim was rejected under the 2022 RAF1 form: You have until 30 September 2026 to resubmit your claim using the 2008 RAF1 form. Act quickly — this deadline is firm.
2. If you gave up after a rejection: The SCA ruling gives you a second chance. Contact a qualified attorney who specialises in RAF claims immediately.
3. If you are an undocumented foreign national: The SCA has confirmed your right to claim. Seek legal advice to understand your options.
4. If you have a default judgment: Consult your attorney about registering the court order with the RAF to ensure payment.
5. Beware of fraudulent claims agents: Always use registered attorneys and be wary of individuals who promise quick settlements in exchange for upfront fees.

8. The Road Ahead: Reform or Collapse?

The RAF stands at a crossroads. The combination of mounting legal liabilities, governance challenges, and a potential R500 billion debt burden raises serious questions about the fund’s long-term sustainability.

Calls for fundamental reform are growing louder. Some experts advocate for a return to a mandatory third-party insurance (MTPI) model, while others propose a hybrid system combining elements of the current RAF, the proposed Road Accident Benefit Scheme (RABS), and private insurance.

What is clear is that the status quo is unsustainable. The SCA’s rulings have exposed deep structural flaws in how the RAF has been managed, and the financial implications will be felt by South African taxpayers for years to come.

The Minister of Transport, the RAF Board, and National Treasury must now work together urgently to chart a path forward — one that protects road accident victims while ensuring the fund’s long-term viability.

Conclusion

The Road Accident Fund is navigating an unprecedented storm of legal, financial, and governance challenges in 2026. The landmark SCA rulings have fundamentally changed the claims landscape, potentially reviving hundreds of thousands of previously rejected claims and adding billions to the fund’s already strained balance sheet.

For South Africans — whether claimants, taxpayers, or road users — staying informed about these developments is crucial. The RAF’s ability to fulfil its constitutional mandate of providing social security to road accident victims depends on swift, decisive, and transparent reform.

Stay tuned to this blog for daily updates on the Road Accident Fund and other important South African legal and financial news.

Sources: IOL Business, Moneyweb, Moonstone Information Refinery, Road Safety Blog (Arrive Alive), RAF Official Media Centre, Parliament of South Africa.