Road Accident Fund (RAF) South Africa: Latest News, Crisis & Reform Updates – August 2026

South Africa’s Road Accident Fund (RAF) is at a critical crossroads in August 2026. From record-breaking payouts and a landmark Supreme Court ruling on the RAF 1 form, to a damning parliamentary inquiry, R21.7 billion in unpaid claims, and fierce debate over whether to scrap the fund entirely — here is everything you need to know about the latest RAF developments.

1. RAF Pays Out R8.9 Billion in Just Three Months — A 54% Increase

In a significant sign of improved operational performance, the Road Accident Fund revealed that it paid out R8.9 billion in claims during the first quarter of the 2026/27 financial year (April–June 2026), settling 80,665 claims at an average of R283,595 per claim.

RAF board secretary Mokete Daniel Penane presented the figures to Parliament, stating: “For the quarter to date, we’re sitting at R8.9bn being paid versus performance of the prior year being R5.8bn, which shows that we’re paying quite well. We are 54% above where we used to be at the same time last year.”

The breakdown of the R8.9 billion payout includes:

• R4.8 billion — Loss of income claims (the largest category)
• R2.2 billion — Plaintiff legal costs
• R1.1 billion — General damages

During the quarter, the RAF registered approximately 31,000 new claims, made around 16,000 settlement offers, and finalised about 17,000 claims.

2. The RAF 1 Form Crisis: Up to 159,000 New Claims Expected by September

One of the most pressing operational challenges facing the RAF in 2026 is the fallout from a landmark Supreme Court of Appeal ruling that declared the RAF’s strict RAF 1 form documentation requirements unlawful.

The RAF 1 form is the mandatory official application required to legally register a vehicle accident claim. The court found that the fund’s previous requirements — which demanded expensive medical reports before claims could even be considered — created unconstitutional barriers to access for thousands of South Africans.

As a result, the RAF was ordered to accept previously rejected forms, giving affected claimants until 30 September 2026 to resubmit their claims before they permanently expire.

The impact has been enormous:

• The RAF had already received 62,000 RAF 1 resubmissions by mid-August 2026
• Officials estimate the total could reach 159,000 claims by the September deadline
• The fund has introduced overtime and reorganised staff to manage the surge

Acting RAF CEO Radikwena Phora acknowledged that the “request-not-yet-paid” (RNYP) register — claims approved but not yet paid — had exceeded R20 billion, noting: “As much as we would want to pay all of that which is on the RNYP at the goal, in a single month we get as little as a billion.”

3. SCOPA Parliamentary Inquiry Exposes Governance Failures

Parliament’s Standing Committee on Public Accounts (SCOPA), chaired by Songezo Zibi, has been conducting a months-long inquiry into the RAF’s governance, financial management, and administration. The inquiry’s preliminary findings, shared in late July 2026, paint a damning picture of institutional dysfunction.

The Association for the Protection of Road Accident Victims (APRAV) held a National Press Club briefing to bring the findings to the wider public. APRAV chairperson Ngoako Mohlaloga stated:

“Public money is not lost only through corruption. It is also lost when an institution is badly managed or governed, when poor personnel decisions are allowed to stand, when claims are not processed on time, when avoidable matters are taken to court.”

Key failures highlighted by the SCOPA inquiry include:

• Chronic underfunding and a stagnant fuel levy that has not kept pace with liabilities
• RAF legal teams repeatedly failing to appear in court, resulting in postponed cases, escalating legal costs, and longer delays for victims
• Numerous senior management posts remaining vacant or filled by acting officials, including the CEO position
• Operational dysfunction that has left thousands of road accident victims waiting years for compensation
• The now-declared-unlawful RAF 1 form, which shut out hundreds of thousands of potential claimants

APRAV vice-chairperson Peter de Bruyn called for immediate action: “The evidence is now on the record. Nothing is hidden. The human and financial cost has been laid bare. The time for talk, minister and deputy minister, has come and gone. It’s time to act.”

SCOPA is expected to complete its report in the coming weeks, after which it will be tabled in the National Assembly for debate and adoption. APRAV has urged Transport Minister Barbara Creecy to expedite the appointment of a permanent CEO.

4. The Financial Crisis: R518 Billion in Liabilities and R21.7 Billion Unpaid

The RAF’s financial position remains deeply precarious. Key figures as of August 2026:

• Total liabilities exceed R518 billion — making the RAF technically insolvent
• R21.76 billion in unpaid claims — claims approved but awaiting payment
• The RAF receives approximately R45 billion per year from the fuel levy (R2.25 per litre of petrol and diesel)
• Between October 2024 and May 2026, the RAF paid out R79.33 billion in total claims
• The Special Investigating Unit (SIU) has flagged over R340 million in duplicate payments to law firms

The RAF’s audit position has, however, shown some improvement. Acting CEO Phora noted that the fund had moved “from an adverse opinion to an unqualified opinion” — a significant step forward in financial accountability.

5. Debate Intensifies: Should the RAF Be Scrapped?

The RAF’s ongoing crisis has reignited a fierce national debate about whether the fund should be reformed or replaced entirely.

The Proposed Vehicle Licence Levy

Transport Minister Barbara Creecy has proposed introducing a transitional levy on vehicle licence disc renewals to offset declining fuel levy revenue caused by the growing adoption of electric vehicles (EVs), which do not contribute to the RAF levy.

The proposal has been met with fierce opposition:

The AA’s Position

Automobile Association (AA) CEO Bobby Ramagwede called the idea “laughable,” arguing: “It’s no secret. The RAF is embattled and maladministered. In fact, it collects more money than it disburses. Surely, by fixing its efficiencies and its operations, there’d be no reason for us to be collecting a further fee.”

Ramagwede suggested that a compulsory third-party insurance system would be a more effective and efficient replacement for the RAF.

The DA’s Position

The Democratic Alliance (DA), through its transport spokesperson Dr Chris Hunsinger, has also opposed the new levy and called for the RAF to be replaced:

“The RAF is not in crisis because motorists are not paying enough. The RAF is in crisis because years of mismanagement, corruption, waste and poor governance have left it financially crippled. South Africans should not be forced to foot the bill for the government’s failures.”

The Transport Committee’s View

Despite the criticism, the Transport Committee chair has noted that the RAF is showing signs of recovery and that reform efforts must accelerate. The revived Road Accident Benefit Scheme (RABS) Bill — which would replace the fault-based RAF system with a no-fault benefit scheme — has also re-entered the policy conversation.

6. Court Rulings and Individual Cases

Courts continue to hold the RAF accountable for individual claimants. Recent notable rulings include:

• The RAF was ordered to pay R3.7 million to a brain-damaged street vendor
• The RAF was ordered to pay R4.8 million to a crash victim whose career hopes were permanently shuttered
• RAF assets were attached in a R5 million lawsuit

Deputy Transport Minister Mkhuleko Hlengwa raised concerns about whether claimants actually receive their money after attorneys are paid, calling on the RAF to follow through with claimants directly: “We must follow through with the claimant, having paid an attorney, that they have received a payout. Sometimes the claimants are not aware that we have made an offer.”

7. What This Means for RAF Claimants in August 2026

If you are a current or prospective RAF claimant, here is what you need to know right now:

• RAF 1 Form Deadline: If your claim was previously rejected due to the unlawful RAF 1 form requirements, you have until 30 September 2026 to resubmit. Do not miss this deadline — claims that are not resubmitted will permanently expire.
• Expect Delays: Despite improved payout performance, the influx of 159,000 expected RAF 1 resubmissions will place significant strain on the system. Processing times may be longer than usual.
• Legal Representation: Ensure that your attorney keeps you informed of any settlement offers made by the RAF on your behalf. The Deputy Minister has flagged cases where claimants were unaware that offers had been made.
• Backlog Eradication Project: The RAF has created a dedicated project to separate historic claims from new applications, which should help speed up older outstanding claims.
• Road Safety: South Africa remains one of the most dangerous countries for road users, with approximately 55 people dying on South African roads every single day. Defensive driving and road safety awareness remain critically important.

Looking Ahead: Key Milestones to Watch

• 30 September 2026: Deadline for RAF 1 form resubmissions
• Coming weeks: SCOPA to finalise and table its RAF inquiry report in the National Assembly
• Ongoing: Appointment of a permanent RAF CEO
• Policy debate: Future of the RABS Bill and potential replacement of the RAF with a compulsory third-party insurance system

This article is based on news reports published between July and August 2026. It is intended for informational purposes only and does not constitute legal advice. If you have a pending RAF claim, consult a qualified attorney.