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

The Road Accident Fund (RAF) in South Africa is at a critical crossroads in 2026. A series of landmark Supreme Court of Appeal (SCA) rulings, mounting financial liabilities, and ongoing parliamentary scrutiny have placed the state-owned entity under intense pressure. Here is a comprehensive roundup of the most important RAF news and developments as of May 2026.

1. Landmark SCA Ruling: RAF’s Claims Process Declared Unlawful

In one of the most significant legal developments of the year, the Supreme Court of Appeal (SCA) handed down a unanimous judgment on 30 April 2026, dismissing the RAF’s appeal against a High Court ruling that declared the Fund’s revised RAF 1 claim form unconstitutional, unlawful, and invalid.

The court found that both the RAF and the Minister of Transport acted outside their legal powers when they introduced stricter documentation requirements through Board Notices 271 and 302 of 2022. These requirements had effectively turned the RAF 1 form from a simple claims gateway into a barrier that blocked hundreds of thousands of legitimate claimants from accessing compensation.

Key findings of the SCA ruling include:

• The RAF had no statutory authority to prescribe binding claim requirements — that power rests solely with the Minister of Transport.
• The Minister’s approval of the revised form was procedurally flawed, lacking public participation and independent decision-making.
• The revised form created administrative barriers that undermined the RAF Act’s core purpose: to compensate road accident victims.
• The 2008 RAF 1 form is reinstated as the valid standard until a lawful replacement is introduced.

The SCA ordered that claimants whose submissions were previously rejected must be allowed to re-lodge their claims by 30 September 2026. Crucially, successfully re-lodged claims will be treated as if they were submitted on the original date — protecting them from prescription.

Transport Minister Barbara Creecy has been given six months to introduce a revised claims process that complies with legal and procedural requirements.

2. Financial Crisis Looms: RAF May Need a Government Bailout

The SCA ruling has dramatically worsened the RAF’s already precarious financial position, with experts warning that a major government bailout may now be inevitable.

The scale of the financial exposure is staggering:

• The RAF is estimated to have approximately R500 billion in unqualified contingencies, partly due to claims rejected under the unlawful RAF 1 form.
• ActionSA MP Alan Beesley warned the ruling could expose the fiscus to nearly R180 billion in previously unrecorded liabilities, based on preliminary estimates of up to 600,000 excluded claims at an average value of R300,000 each.
• The 2026 Budget Review confirmed that the RAF accounts for 85.5% of total social security fund liabilities — equivalent to R370.3 billion at the end of 2024/25.
• The RAF’s liabilities are projected to increase from R369.7 billion in 2024/25 to R422.6 billion by 2027/28.

Attorney Gert Nel of Gert Nel Inc Attorneys, one of South Africa’s leading RAF claims firms, confirmed that his firm alone is running a book in excess of R100 million in unpaid RAF claims with default court orders in place. He stated that National Treasury will “definitely have to get involved with a bailout.”

Between July 2022 and March 2025, of 105,039 RAF 1 claims pre-assessed, only 28% were compliant while 72% were rejected — and this figure excludes claims turned away before registration or never recorded at all. Weekly claim registrations dropped from nearly 2,000 to just over 300 under the stricter regime.

3. Foreign Nationals Win the Right to Claim from the RAF

In a separate but equally significant ruling, the SCA confirmed in April 2026 that undocumented foreign nationals are entitled to claim compensation from the Road Accident Fund.

The court upheld a High Court ruling that the interpretation of “any person” in the RAF Act does not exclude foreign nationals — including undocumented immigrants — from claiming under the scheme.

Transport Committee Chairperson Mr Donald Selamolela welcomed the ruling, stating: “The RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

He called for a review of RAF legislation to formally accommodate foreign nationals, citing examples from Botswana and Namibia where visitors are required to take out short-term insurance cover upon entry.

4. Parliamentary Oversight: SCOPA Inquiry and Governance Concerns

The Standing Committee on Public Accounts (SCOPA) has been conducting an ongoing oversight inquiry into the RAF since late 2025, focusing on governance failures, financial reporting irregularities, and operational decisions.

Key concerns raised by SCOPA include:

• The RAF’s use of the unlawful RAF 1 form as a central issue in the Fund’s claims process.
• Warnings that setting aside the RAF 1 form could trigger a “massive influx of claims” and expose the Fund to liabilities it has not yet recognised.
• Investigations into alleged corruption between judges and lawyers in the RAF claims ecosystem.
• Scrutiny of a R1 billion media contracts tender, with the RAF having dropped its audit fight as the investigation heats up.
• Reports of almost R23 billion in excess payments over two years.

SCOPA chair Songezo Zibi has been central to the inquiry, which is working through a draft oversight report section by section before finalisation.

5. Signs of Recovery? Transport Committee Remains Cautiously Optimistic

Despite the financial and legal turbulence, the Portfolio Committee on Transport expressed cautious optimism in February 2026. Chairperson Donald Selamolela stated that the RAF is “on the road to recovery,” citing improvements in governance and payment systems.

Deputy Minister of Transport Mkhuleko Hlengwa, who accompanied the RAF board before the committee, likened the reform process to “fixing an aeroplane while airborne” — acknowledging the complexity of the task while affirming that reform remains a government priority.

The RAF has also been conducting Settlement Drives at hospitals — including at Ngwelezane Hospital in February 2026 — to fast-track the payment of outstanding claims directly to claimants.

6. What This Means for RAF Claimants: What You Need to Know

If you have been affected by the RAF’s claims process, here are the key action points:

• Previously rejected claims: If your RAF claim was rejected under the 2022 RAF 1 form requirements, you may now re-lodge your claim using the 2008 RAF 1 form. The deadline to do so is 30 September 2026.
• Prescription protection: Re-lodged claims will be treated as if submitted on the original date, protecting them from prescription.
• Seek legal advice urgently: Attorneys specialising in RAF claims urge claimants to act quickly, as the window period is limited and the process can be complex.
• Default judgments: Claims on which default judgment has already been granted cannot be re-lodged — these need to be registered with the RAF for payment.
• Foreign nationals: Undocumented foreign nationals injured in road accidents in South Africa are now legally entitled to claim from the RAF.

Looking Ahead: The Road to Reform

The RAF faces a defining period in its history. The convergence of landmark court rulings, a potential multi-hundred-billion-rand financial crisis, and intense parliamentary scrutiny means that fundamental reform of the RAF is no longer optional — it is urgent.

Transport Minister Barbara Creecy has six months to introduce a lawful, revised claims process. National Treasury faces the prospect of a significant bailout. And hundreds of thousands of South Africans who were unfairly denied access to compensation now have a second chance to claim what they are owed.

The RAF’s mandate — to provide appropriate cover to all road users in South Africa and compensate persons injured as a result of motor vehicle accidents — remains as important as ever. Whether the institution can be reformed quickly enough to fulfil that mandate sustainably is the central question of 2026.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. If you have a pending or rejected RAF claim, please consult a qualified attorney specialising in RAF matters.

Sources: TopAuto, Moneyweb, Moonstone Information Refinery, Parliament of South Africa, Africa24 TV — May 2026.