Road Accident Fund (RAF) in Crisis: Unpaid Claims, Court Action & Funding Reform — August 2026 Update

Road Accident Fund (RAF) in Crisis: Unpaid Claims, Court Action & Funding Reform — August 2026 Update

South Africa’s Road Accident Fund (RAF) continues to dominate headlines in 2026, with mounting unpaid claims, legal battles, governance concerns, and a looming overhaul of its funding model. Here is a comprehensive roundup of the latest developments affecting millions of South Africans who depend on the RAF for compensation after road accidents.

1. R21.7 Billion in Unpaid Claims — Accident Victims Left Waiting

In a stark parliamentary revelation, Transport Minister Barbara Creecy confirmed that the RAF is sitting on more than R21.76 billion in finalised but unpaid claims as of 28 June 2026. According to the RAF’s internal Requested Not Yet Paid (RNYP) Claims Register, a total of 37,622 claims involving 47,949 payment transactions remain outstanding.

The disclosure came in response to a parliamentary question from ActionSA MP Alan Beesley, who asked whether the RAF maintained an accurate record of all finalised but unpaid claims.

Why Are Claims Not Being Paid?

• Outstanding compliance checks — affecting claims worth nearly R11 billion
• Verification delays — affecting claims worth more than R9.1 billion
• Missing documents — affecting claims worth approximately R1.7 billion

Alarmingly, 36,442 of these claims date back to the period between 2007 and 2026, highlighting a systemic backlog that has persisted for nearly two decades.

2. Court Action Launched Over 430+ Unpaid Finalised Claims

De Broglio Attorneys has launched a formal court application against the RAF following the continued non-payment of more than 430 finalised claims — cases where settlement agreements have been concluded or court orders have already been granted.

The firm’s director, Michael de Broglio, described the situation in stark terms: “These are not numbers on a spreadsheet. They are individuals whose lives have already been fundamentally changed by serious road accidents.”

In many of these cases, claimants have waited more than two years beyond the RAF’s stated 180-day payment period. Some claimants have reportedly passed away before receiving compensation that had already been legally finalised.

One such case is that of Rory Meintjies, a 29-year-old who was left permanently paralysed from the waist down after a road accident four years ago. Despite a court award in his favour, he continues to wait for payment — dependent on family members for daily care.

The court application seeks an order compelling the RAF to provide full explanations for each instance of non-payment, raising serious concerns about transparency, administrative accountability, and the enforceability of finalised claims.

3. New Vehicle Licence Fee Proposed to Fund the RAF

As the RAF’s financial crisis deepens, the government is exploring a new vehicle-linked fee to supplement the fund’s income. Transport Minister Creecy has indicated that her department is reviewing the RAF’s funding model, with a mandatory fee attached to annual vehicle licence renewals or initial vehicle registrations among the options being considered.

Currently, the RAF is funded primarily through a fuel levy on petrol and diesel. However, the rise of electric vehicles (EVs) on South African roads is eroding this revenue base, as EV charging does not contribute to the fuel levy in the same way.

The Public Servants Association (PSA) has already rejected the proposed new vehicle tax, while motoring groups and consumers have expressed concern about the additional financial burden on South African motorists.

“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.” — Minister Barbara Creecy

4. Expert Warning: The Problem Is Deeper Than Funding

Emeritus Professor Hennie Klopper, a practising attorney and professor of private law at the University of Pretoria, has warned that the RAF’s challenges go far beyond how it is financed.

“The problem is not as much getting money to pay for it, but stopping the bleeding,” Klopper said, pointing to South Africa’s exceptionally high road casualty rate, which significantly exceeds international norms.

Key facts highlighted by Klopper:

• The RAF receives approximately 100,000 claims per year
• The average claim amounts to roughly R328,000
• The RAF has had 10 different CEOs since 2002
• Parliament’s Standing Committee on Public Accounts (SCOPA) has cited outstanding liabilities of up to R500 billion
• Between 300,000 and 400,000 claims are currently outstanding

Klopper also warned that introducing a completely new compensation model would require funding both the old and new systems simultaneously — a potentially catastrophic financial burden. He estimated that a return to compulsory motor insurance could cost individual motorists between R5,000 and R10,000 per year.

5. Signs of Recovery? Parliament’s Transport Committee Weighs In

Despite the grim headlines, the Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, stated earlier in 2026 that the RAF is showing signs of recovery.

“We are satisfied that indeed there is work happening to improve governance and stabilise the operation of the RAF,” Selamolela said, while acknowledging that the entity remains “challenged” by historical factors.

Deputy Minister of Transport Mkhuleko Hlengwa likened the reform process to “fixing an aeroplane while airborne,” emphasising that reforming the RAF — particularly around direct claims — remains a government priority.

The committee has called on the Department of Transport to review RAF legislation urgently to close existing loopholes.

6. Claims Limit Adjustment and Recent Payouts

From 31 January 2026, the RAF’s statutory limit for loss of support or income claims was adjusted to R378,581. This annual adjustment is intended to keep pace with inflation and the rising cost of living.

Despite the payment backlog, the RAF has continued to process claims. Between October 2024 and May 2026, the fund paid out a total of R79.33 billion across thousands of claims. The average RAF claim increased by 21.4% year-on-year, reaching R348,100 per settlement during the 2024/2025 financial year.

7. Governance Concerns and Criminal Charges Against Former CEO

The RAF’s governance challenges have also come under the spotlight. Parliament’s Standing Committee on Public Accounts (SCOPA) laid criminal charges against former RAF CEO Collins Letsoalo for failing to comply with a parliamentary summons — a development that has intensified scrutiny of the fund’s leadership and accountability structures.

An interim board was appointed to oversee the RAF’s operations while a permanent board is being established, and an overnight visit was carried out at the RAF’s Parktown offices in January 2026 to assess how claims and claimants are being handled.

What Does This Mean for RAF Claimants?

If you have a pending or finalised RAF claim, here is what you need to know:

• Payment delays are widespread — even finalised claims may take well beyond 180 days to be paid.
• Keep all documentation — missing documents are one of the top reasons for payment delays.
• Seek legal assistance — attorneys specialising in RAF claims can help compel payment through court action if necessary.
• Plan your finances carefully — the RAF itself has urged claimants to plan their finances carefully given the delays.
• Stay informed — the funding model and legislative framework governing the RAF are under active review and may change.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical juncture in 2026. With R21.7 billion in unpaid finalised claims, court action from attorneys, a potential new vehicle licence fee, and deep structural challenges, the pressure on the RAF — and on the government to act — has never been greater.

While there are cautious signs of governance improvement and reform momentum, experts warn that without addressing the root causes — poor road safety, administrative inefficiency, and an unsustainable claims volume — no funding solution will be sufficient in the long run.

South Africans, particularly road accident victims and their families, deserve a functional, transparent, and financially sound compensation system. The coming months will be critical in determining whether the RAF can deliver on that promise.

Stay updated on the latest Road Accident Fund news by bookmarking this page. If you or a loved one has been involved in a road accident in South Africa, consult a qualified RAF attorney to understand your rights and ensure your claim is processed timeously.