Road Accident Fund (RAF) South Africa: Key News and Updates – July 2026

The Road Accident Fund (RAF) is under intense scrutiny in July 2026, facing a perfect storm of financial crisis, landmark court rulings, governance failures, and a fundamental rethink of how South Africa compensates road accident victims. Here is a comprehensive roundup of the most important RAF news and developments as of 21 July 2026.

1. R21.7 Billion in Unpaid Claims: The Scale of the Crisis

Transport Minister Barbara Creecy has confirmed to Parliament that the RAF is sitting with a staggering R21.76 billion in finalised claims that have not yet been paid to accident victims. According to the fund’s own Requested Not Yet Paid (RNYP) Claims Register, as at 28 June 2026:

• 37,622 claims remain unpaid, involving 47,949 payment transactions.
• The biggest reason for non-payment is outstanding compliance checks, affecting claims worth nearly R11 billion.
• Verification delays account for more than R9.1 billion in stalled payments.
• Missing documents are holding up approximately R1.7 billion in claims.
• Many claims date back as far as 2007, with 36,442 claims spanning the period 2007-2026.

The revelation has sparked outrage among claimants, legal practitioners, and opposition politicians, who argue that the RAF’s administrative failures are causing real suffering to vulnerable South Africans.

2. RAF Pays R120 Million Per Day – But Disputes Persist

In response to mounting criticism, the RAF has pushed back, stating that it is paying out an average of R120 million per day in claims. The fund pointed out that it paid R1.48 billion across 1,608 claims associated with De Broglio Attorneys alone over the 20-month period between October 2024 and May 2026 – making the firm the single largest recipient of RAF payments during that period.

Despite this, De Broglio Attorneys launched a court application against the RAF in June 2026 over the non-payment of more than 430 finalised claims, despite settlement agreements or court orders being in place. Some claimants have waited over two years. Tragically, some have died before receiving their compensation.

Among those still waiting:

• Rory Meintjies (29 years old, paralysed from the waist down) – still awaiting payment.
• Sanet du Toit – whose business is surviving on a R500,000 overdraft while waiting for RAF compensation.

3. Funding Model Under Review: New Vehicle Licence Fees on the Cards?

The RAF’s long-term financial sustainability is under serious review. The fund is currently funded primarily through a fuel levy of approximately R2.25 per litre of petrol and diesel. However, the rise of electric vehicles (EVs) is eroding this revenue base, threatening the fund’s ability to meet its obligations.

Minister Creecy has confirmed that the Department of Transport, in collaboration with the RAF, has initiated a formal review of the RAF funding framework. Options under consideration include:

• A mandatory fee linked to annual vehicle licence renewals or initial vehicle registrations.
• A return to compulsory motor vehicle insurance, which experts estimate could cost motorists between R5,000 and R10,000 per year.

The review is expected to conclude during the 2026/27 financial year. The Democratic Alliance (DA) has criticised any move that could result in additional costs for motorists, while the Automobile Association (AA) CEO has called the idea of a new RAF tax laughable and suggested the fund be scrapped entirely. However, experts warn that abolishing the RAF without a replacement would leave motorists personally liable for accident damages.

The scale of the challenge is enormous: the RAF faces an estimated R500 billion in outstanding liabilities, receives approximately 100,000 claims per year averaging R328,000 each, and has had 10 CEOs since 2002.

4. Landmark SCA Ruling: RAF Must Compensate All Victims, Including Undocumented Foreigners

In a landmark ruling in April 2026, the Supreme Court of Appeal (SCA) confirmed that the RAF must compensate all road accident victims in South Africa – including undocumented foreign nationals.

The SCA dismissed the RAF’s appeal with costs, finding that the RAF Act makes no exclusion based on immigration status and that the phrase any person in the Act includes all road accident victims on South African roads.

Judge Norman Davis stated: These accidents do not discriminate in respect of the victims thereof between race, gender, age or between illegal foreigners and citizens of this country.

The ruling has significant financial implications for the already-strained fund and has reignited political debate, with the ATM party calling for RAF payouts to be limited to South African citizens only.

5. SCOPA Lays Criminal Charges Against Former RAF CEO Collins Letsoalo

Parliament’s Standing Committee on Public Accounts (SCOPA) has laid criminal charges against former RAF CEO Collins Letsoalo for failing to comply with a parliamentary summons. The move intensifies governance scrutiny of the fund, which has been the subject of a parliamentary inquiry over governance lapses.

The Special Investigating Unit (SIU) has previously identified multiple failures within the RAF, including:

• Procurement and tender irregularities and fruitless expenditure.
• Duplicate claim payments to attorneys, claimants, and sheriffs, amounting to over R340 million (93.4% recovered).
• Possible collusion between RAF employees and service providers.
• RAF employees making fraudulent bank account changes to redirect payments into personal accounts.

6. Statutory Cap on Loss of Income Claims Increased

Effective 31 January 2026, the RAF increased the statutory cap for loss of income and loss of support claims. Claimants and their legal representatives should ensure they are aware of the updated limits when lodging or settling claims.

7. Signs of Recovery? Transport Committee Cautiously Optimistic

Despite the crisis, there are cautious signs of progress. Portfolio Committee on Transport Chairperson Donald Selamolela has expressed cautious optimism that the RAF is on the road to recovery. Deputy Minister of Transport Mkhuleko Hlengwa confirmed that reform remains a priority, likening the challenge to fixing an aeroplane while airborne.

The RAF has also launched youth empowerment and road safety initiatives, including driver training programmes, as part of its broader mandate to reduce road accidents in South Africa.

What This Means for RAF Claimants

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

• You have a legal right to compensation if you were injured in a road accident in South Africa.
• Seek qualified legal assistance – an experienced RAF attorney can help navigate delays and enforce payment.
• Be aware of prescription time limits – claims must be lodged within the prescribed period or they may lapse.
• Updated statutory caps apply from January 2026 – ensure your claim reflects the latest limits.
• Court orders are enforceable – if the RAF fails to pay within 180 days of a court order, further legal steps can be taken.

Conclusion: A Fund at a Crossroads

The Road Accident Fund is at a critical juncture in 2026. With R21.7 billion in unpaid claims, a R500 billion liability bomb, a funding model under review, governance challenges, and hundreds of thousands of claimants waiting for justice, the pressure on the RAF and on government has never been greater.

The decisions made in the coming months on funding, reform, and governance will determine whether the RAF can fulfil its mandate to compensate South Africa’s road accident victims, or whether a more fundamental overhaul of the system is required.

Stay updated with the latest RAF news and consult a qualified RAF attorney if you need assistance with a claim.

Sources: IOL Business, News24, BusinessTech, RAF Loans, Moneyweb, Sowetan, Business Day – July 2026.