Road Accident Fund (RAF) South Africa: Key Updates, Court Rulings & Funding Crisis – July 2026

The Road Accident Fund (RAF) in South Africa continues to make headlines in 2026, with a series of landmark court rulings, mounting financial pressures, governance controversies, and proposed funding reforms reshaping the landscape for road accident victims and motorists alike. Here is a comprehensive roundup of the most important RAF developments you need to know about as of July 2026.

1. RAF Funding Crisis: Could Motorists Face New Vehicle Licence Fees?

One of the most significant stories dominating RAF news in mid-2026 is the prospect of new vehicle licence fees to help fund the embattled institution. Transport Minister Barbara Creecy has indicated that her department is actively considering an overhaul of how the RAF is financed, including the introduction of a vehicle owner contributory scheme.

Currently, the RAF is funded through a levy on petrol and diesel — a model that is increasingly under strain as more electric vehicles (EVs) hit South African roads. Since EV charging does not attract the fuel levy, the RAF’s revenue base is gradually eroding.

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 deeper than funding alone. “The problem is not as much getting money to pay for it, but stopping the bleeding,” Klopper said. He noted that the RAF receives approximately 100,000 claims per year, with the average claim amounting to roughly R328,000 — a combination he describes as “unsustainable.”

Klopper also estimated that a return to compulsory motor insurance — South Africa’s pre-1986 model — could cost motorists between R5,000 and R10,000 per year in premiums, reflecting the enormous scale of road accident liabilities in the country.

Key Takeaway for Motorists

South African motorists should prepare for potential additional costs when renewing vehicle licence discs, as the government explores new RAF funding mechanisms. The transition to EVs is accelerating the urgency of this reform.

2. R500 Billion in Outstanding Liabilities: The Scale of the RAF’s Financial Crisis

The RAF’s financial position is dire. While figures of around R30 billion have previously been cited in public discourse, Parliament’s Standing Committee on Public Accounts (SCOPA) has discussed estimates placing the fund’s total outstanding liabilities at approximately R500 billion.

Between 300,000 and 400,000 claims are currently outstanding, and the fund has been described as carrying unrecognised contingent liabilities that it may not be able to meet. SCOPA’s draft oversight inquiry report has warned that the financial consequences for the RAF — and for South African society as a whole — could be “severe.”

Professor Klopper has also highlighted that the RAF has had 10 chief executive officers since 2002, with each promising a turnaround that never materialised. He described the government’s neglect of the RAF as “scandalous.”

3. Supreme Court of Appeal Overturns RAF1 Claim Form: 600,000 Claims to Be Re-Lodged

In a landmark ruling handed down on 30 April 2026, the Supreme Court of Appeal (SCA) upheld a Gauteng High Court judgment declaring the RAF’s controversial RAF1 claim form — introduced via Board Notices 271 and 302 in 2022 — unconstitutional, unlawful, and invalid.

The new claim form had imposed significantly stricter documentation requirements on claimants, making it near-impossible for many road accident victims to lodge valid claims. Legal bodies had argued that the RAF and the Minister of Transport had overstepped their legal authority by unilaterally raising the bar for claimants.

The SCA’s ruling has far-reaching consequences:

• An estimated 600,000 claims that were rejected under the unlawful RAF1 form must now be allowed to be re-lodged by 30 September 2026.
• The RAF must revert to the 2008 claim form and engage with the Minister of Transport to publish a revised RAF1 form within six months.
• Thousands of “phantom” claims — claims lodged in compliance with the RAF Act but rejected due to the unlawful form — have already secured default judgments that are now immediately payable, with estimates suggesting these could amount to R4.8 billion.

RAF law expert and attorney Gert Nel has noted that his office alone holds court orders against the RAF for payment in excess of R100 million, with hundreds of other practitioners facing the same challenge. “The RAF needs to start paying — some of these victims had already died in the process of waiting,” Nel said.

Acting CEO of the RAF, Radikwena Phora, said the fund welcomes the judgment as it provides clarity, and confirmed the RAF is committed to full implementation of the ruling.

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

Adding to the RAF’s legal woes, de Broglio Attorneys launched a court application against the RAF following continued non-payment of more than 430 finalised claims. This highlights a systemic problem within the fund: even where claims have been fully adjudicated and finalised, the RAF has failed to make payment — forcing claimants and their attorneys to pursue further legal action simply to receive compensation they are already legally entitled to.

5. R390 Million Liability: Undocumented Foreign Nationals Now Eligible to Claim

In another significant legal development, the Supreme Court of Appeal ruled that the RAF must compensate all road accident victims, including undocumented foreign nationals. The court found that the word “any person” in the RAF Act includes undocumented foreigners, striking down a RAF directive that required foreign nationals to prove legal presence in South Africa at the time of injury.

Transport Minister Barbara Creecy has revealed that this ruling could expose the RAF to at least R390 million in additional liability, as claims previously classified as non-payable on the “Requested Not Yet Paid” (RNYP) register now become payable.

The RAF Board is currently taking legal advice on whether to seek leave to appeal the ruling at the Constitutional Court. The ruling has also sparked political debate, with the African Transformation Movement (ATM) calling for RAF payouts to be limited exclusively to South African citizens.

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

In a dramatic governance development, the Standing Committee on Public Accounts (SCOPA) voted in June 2026 to lay criminal charges against former RAF CEO Collins Letsoalo. Letsoalo had been summoned to appear before SCOPA in November 2025 to answer questions about his management decisions, but failed to appear on the first day. His legal team instead issued a formal demand for SCOPA to “cease and desist” from its oversight inquiry.

The decision to lay criminal charges marks a significant escalation in parliamentary accountability efforts and underscores the depth of governance concerns that have plagued the RAF under previous leadership.

7. Transport Committee: RAF “On the Road to Recovery”

Despite the grim financial picture, the Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, struck a more optimistic note in February 2026, stating that the RAF is “on the road to recovery.”

“We are satisfied that indeed there is work happening to improve governance and stabilise the operation of RAF,” Selamolela said. He acknowledged that the RAF remains a “challenged entity” beset by historical factors, but expressed confidence that significant strides are being made.

Deputy Minister of Transport Mkhuleko Hlengwa likened the work of reforming the RAF to “fixing an aeroplane while airborne,” emphasising that reform remains a government priority, with direct claims processing identified as an immediate area of attention.

8. Statutory Cap on Loss of Income Claims Increased

Effective 31 January 2026, the RAF officially increased the statutory cap for loss of income and loss of support claims. This adjustment, gazetted by the RAF, reflects the annual review of the maximum compensation limits applicable to claimants who have suffered income losses as a result of road accidents.

Claimants and their legal representatives should ensure they are aware of the updated limits when lodging or settling claims in 2026.

9. Road Safety: The Long-Term Solution

Experts consistently point out that no funding reform will be sufficient without a fundamental improvement in road safety. South Africa’s road casualty rate significantly exceeds international norms, and the World Health Organisation rates South Africa’s road traffic law enforcement at just 30%.

Professor Klopper argues that government road safety efforts rely too heavily on roadblocks, while many of those injured or killed are pedestrians. He highlights head-on collisions and poor compliance with traffic laws as major contributors to serious injuries and fatalities.

“The solution is two-pronged. First of all, genuinely look at road safety,” Klopper said.

What Does This Mean for RAF Claimants?

If you have been injured in a road accident in South Africa, here is what the latest developments mean for you:

• Rejected claims: If your claim was rejected due to the unlawful RAF1 form requirements, you have until 30 September 2026 to re-lodge your claim. Seek legal advice immediately.
• Undocumented foreign nationals: Following the SCA ruling, you may now be entitled to claim compensation from the RAF regardless of your documentation status at the time of the accident.
• Payment delays: The RAF continues to face severe cash flow challenges. If you have a finalised claim that has not been paid, consult your attorney about enforcement options.
• Loss of income claims: The statutory cap has been updated as of January 2026 — ensure your claim reflects the current limits.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical juncture in 2026. A wave of court rulings has expanded claimant rights and overturned unlawful administrative practices, but these victories come at an enormous financial cost to an institution already drowning in debt. Proposed funding reforms — including vehicle licence levies and a vehicle owner contributory scheme — signal that the government recognises the status quo is unsustainable.

For road accident victims, the message is clear: know your rights, act within the prescribed deadlines, and seek qualified legal assistance to navigate the complex RAF claims process.

Stay informed about the latest Road Accident Fund news and updates by bookmarking this page. If you have been involved in a road accident and need guidance on your RAF claim, consult a qualified RAF attorney.

Sources: EWN (Eyewitness News), IOL, Gert Nel Inc Attorneys, Africa24 TV / APO Group (Parliament of South Africa), Moonstone Information Refinery, Moneyweb.