Road Accident Fund South Africa: Key News, Court Rulings & Financial Crisis – May 2026 Update

The Road Accident Fund (RAF) in South Africa continues to make headlines in 2026, facing a perfect storm of landmark court rulings, mounting financial liabilities, and urgent calls for reform. From a Supreme Court of Appeal (SCA) ruling that opens the door to claims by undocumented foreign nationals, to hundreds of thousands of previously rejected claims being revived, the RAF is under unprecedented pressure. Here is a comprehensive roundup of the most important RAF news as of May 30, 2026.

1. RAF Faces R390 Million Liability After Court Opens Door for Undocumented Foreign Nationals

In one of the most significant recent developments, Minister of Transport Barbara Creecy revealed that the RAF could face at least R390 million in additional liability following a Supreme Court of Appeal (SCA) ruling that allows undocumented foreign nationals to claim compensation from the fund.

The SCA ruled that the RAF cannot refuse to pay compensation to road accident victims simply because they are undocumented foreign nationals. The court found that the phrase “any person” in the RAF Act includes undocumented individuals. This overturned a RAF directive that required foreign nationals to prove legal presence in South Africa at the time of the accident.

According to Minister Creecy, approximately R390 million in claims previously classified as non-payable on the RAF’s Requested Not Yet Paid (RNYP) register could now become payable. The RAF Board is still seeking legal advice on whether to appeal the ruling to the Constitutional Court.

“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.” – Minister Barbara Creecy

2. Court Orders RAF to Revive Hundreds of Thousands of Rejected Claims

In another major ruling, the SCA found that the RAF’s new claim form requirements — introduced via a board notice published in the Government Gazette in July 2022 — were unlawful and unfair. The new RAF1 form had raised the bar for submitting valid claims, resulting in an estimated 600,000 claims being rejected.

The court ordered the RAF to allow claimants whose submissions were rejected under the unlawful stricter requirements to re-lodge their claims by the end of September 2026. The RAF’s Acting CEO, Radikwena Phora, welcomed the judgment and confirmed the fund is studying it in detail. The RAF will also engage with the Minister of Transport to adopt and publish a revised RAF1 Form within six months.

RAF law expert and attorney Gert Nel warned that the bigger issue is “phantom” claims — claims lodged fully in compliance with the Act but not acknowledged by the RAF — which have secured default judgments now immediately payable, estimated at R4.8 billion.

“The RAF needs to start paying — some of these victims had already died in the process of waiting.” – Gert Nel, RAF Law Expert

3. ActionSA Raises Alarm Over R180 Billion RAF Shortfall

Opposition party ActionSA has called on the Finance Minister to explain to Parliament how the national fiscus plans to absorb the RAF’s growing liabilities. With budget documents indicating the RAF’s total liabilities at more than R400 billion, ActionSA MP Alan Beesley estimates that the SCA ruling on the unlawful claim form could add a further R180 billion in unprocessed claims.

Beesley warned that this could push the RAF’s total liabilities to more than half a trillion rand, potentially exceeding the financial burden posed by state-owned enterprises like Eskom and Transnet on the public purse.

Parliament’s Standing Committee on Public Accounts (SCOPA) is currently finalising its inquiry report into the RAF, during which MPs criticised the fund for appealing the High Court ruling on the illegality of the claim form. ActionSA has also indicated it will explore all available legal avenues, including potential criminal charges, against those responsible for the unlawful directives.

“The RAF certainly does not have the money to fund these claims, and they will place the national fiscus under huge, huge pressure.” – Alan Beesley, ActionSA MP

4. RAF Ordered to Pay R2.2 Million to Pedestrian — and Slapped With Punitive Cost Order

In a damning judgment from the Western Cape High Court, the RAF was ordered to pay road accident victim Catherine Yiannakis R2.23 million for past hospital and medical expenses — and was issued a punitive cost order for its conduct in the matter.

Yiannakis has been living in a long-term care facility for nearly eight years after being injured in a motor vehicle collision in February 2018. The RAF refused to pay a portion of her medical costs (R552,248.76) because her medical aid, Discovery Health, had already covered those expenses — despite binding full court judgments and SCA confirmation of the RAF’s liability.

Acting Judge M Louw criticised the RAF’s conduct as “frivolous” and said it had become a “recurring practice” for the RAF to attempt to circumvent court orders through the issuing of directives. The judge found the RAF’s opposition to be in bad faith and said its conduct “warrants a punitive costs order.”

“It is wholly unacceptable that the RAF persists in defending these hopeless matters, thereby wasting public resources, driving up legal costs for both the RAF and claimants, and compelling claimants to incur unnecessary expenses to enforce rights already established.” – Acting Judge M Louw

5. Transport Committee: RAF Shows Signs of Recovery, But Reform Must Accelerate

Despite the wave of negative news, the Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, struck a cautiously optimistic note earlier in 2026, stating that the RAF is “on the road to recovery.”

The Deputy Minister of Transport, Mr Mkhuleko Hlengwa, told the committee that reforming the RAF remains a priority, likening the process to “fixing an aeroplane while airborne.” Key areas of focus include direct claims processing and a review of RAF legislation to close loopholes.

The committee acknowledged that the RAF remains a “challenged entity” beset by historical factors, but expressed confidence that governance improvements and operational stabilisation are underway.

Key Trends and Takeaways: What This Means for RAF Claimants

• If your RAF claim was rejected due to the new RAF1 form requirements introduced in 2022, you may be eligible to re-lodge your claim before the end of September 2026. Consult a qualified RAF attorney for guidance.
• Foreign nationals — including undocumented individuals — who were injured in road accidents in South Africa may now be entitled to claim from the RAF following the SCA ruling.
• Medical aid claimants should be aware that the RAF’s attempts to avoid paying past medical expenses already covered by medical schemes have been repeatedly rejected by the courts.
• The RAF’s financial position remains precarious, with total liabilities potentially exceeding R500 billion. Claimants should be prepared for delays in payment and should seek legal advice to enforce their rights.
• Punitive cost orders are increasingly being issued against the RAF for frivolous opposition to valid claims, signalling that courts are losing patience with the fund’s conduct.

Frequently Asked Questions About the Road Accident Fund (RAF)

What is the Road Accident Fund (RAF)?

The Road Accident Fund is a South African state entity that provides compulsory cover to all users of South African roads — both citizens and foreigners — against injuries or death resulting from accidents involving motor vehicles. It is funded through a fuel levy.

How do I claim from the RAF?

You can submit a claim directly to the RAF or through an attorney. Claims must generally be lodged within three years of the accident. Following recent court rulings, the RAF must accept re-lodged claims from claimants whose submissions were previously rejected under the unlawful RAF1 form requirements.

Can foreigners claim from the RAF?

Yes. Following the April 2026 SCA ruling, the RAF must compensate all road accident victims, including undocumented foreign nationals. The RAF Act’s reference to “any person” has been confirmed to include undocumented individuals.

What happens if the RAF refuses to pay my claim?

You have the right to take legal action against the RAF. Courts have repeatedly ruled against the RAF for refusing to pay valid claims, and punitive cost orders are increasingly being issued against the fund for frivolous opposition.

Conclusion

The Road Accident Fund is at a critical crossroads in 2026. A series of landmark court rulings have expanded the rights of claimants, revived hundreds of thousands of rejected claims, and exposed the RAF’s financial vulnerabilities. With total liabilities potentially exceeding half a trillion rand, the pressure on the national fiscus is immense. For road accident victims, the message is clear: know your rights, seek legal advice, and do not be deterred by the RAF’s attempts to avoid its obligations.

Stay updated on the latest RAF news by bookmarking this page. If you or a loved one has been affected by a road accident in South Africa, consult a qualified RAF attorney to understand your rights and options.