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

The Road Accident Fund (RAF) in South Africa continues to make headlines in 2026, with a series of landmark court rulings, a deepening financial crisis, and growing calls for systemic reform. From the Supreme Court of Appeal (SCA) ordering the reinstatement of hundreds of thousands of rejected claims to expert proposals for a hybrid compensation model, here is a comprehensive roundup of the latest RAF news as of May 16, 2026.

1. Court Orders RAF to Revive Up to 600,000 Rejected Claims

In one of the most significant RAF developments of 2026, the Supreme Court of Appeal (SCA) has declared the RAF1 claim form — introduced by the Minister of Transport in July 2022 — unlawful. The court found that the stricter documentation requirements unfairly raised the bar for road accident victims trying to lodge compensation claims.

As a result, the RAF has been ordered to allow claimants whose submissions were rejected under the unlawful requirements to re-lodge their claims by 30 September 2026. The RAF’s Acting CEO, Radikwena Phora, confirmed that the fund is studying the judgment and will engage with the Minister of Transport to adopt a revised RAF1 Form within six months.

According to RAF law expert and attorney Gert Nel, an estimated 600,000 claims were rejected under the new form and will now need to be re-lodged. He also warned of “phantom” claims — those that were lodged in compliance with the RAF Act but rejected due to the unlawful form — which have since secured default judgments estimated at R4.8 billion that are now immediately payable.

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

The RAF is currently grappling with an existing backlog of over 430,000 claims, and the reinstatement of rejected claims is expected to add enormous financial and administrative pressure to the already-strained fund.

2. SCA Rules RAF Must Compensate All — Including Undocumented Foreign Nationals

In another landmark ruling in April 2026, the Supreme Court of Appeal dismissed two RAF appeals and confirmed that the fund cannot refuse to pay compensation to people based on their immigration status — including those in South Africa illegally.

The SCA clarified that Section 17(1) of the RAF Act uses the phrase “any person,” which does not exclude foreign nationals, regardless of their documentation status. The ruling has sparked political debate, with the Portfolio Committee on Transport calling for the expedited reform of the RAF Act, and the RAF’s Interim Board Chair, Kenneth Mthombeni, suggesting that mandatory medical insurance for visitors entering South Africa should be explored.

ActionSA MP Alan Beesley has requested an urgent meeting with Finance Minister Enoch Godongwana to address the fiscal implications of the ruling, noting that the operational and financial consequences for the RAF are “equally severe.”

3. RAF’s Financial Crisis: A R400 Billion Hole in the Fiscus

The RAF’s financial situation has been described as nothing short of catastrophic. According to analysis by Daily Maverick and parliamentary oversight bodies, the fund’s contingent liabilities could exceed R400 billion, with current liabilities sitting at approximately R100 billion.

Key financial facts include:

• The RAF receives approximately R50 billion per year from fuel levies.
• Overheads consume around R7 billion, leaving roughly R43 billion for claims payouts.
• The fund previously processed 250,000 claims per year but now handles only 70,000.
• The Treasury’s 2026 Budget Review projects the RAF’s long-term provisions to rise from R387 billion this financial year to R426 billion by 2028/29.
• The RAF is considered technically insolvent.

Scopa Chairperson Songezo Zibi described the situation starkly: “The fiscus can’t deal with that. You have layer on layer of problems.” He noted that legal opinions are being sought on how to cap payouts for future loss of income and medical expenses, and to move from lump-sum payments to staggered disbursements.

Adding to the pressure, the recently reduced fuel levy will further diminish the RAF’s primary revenue stream.

4. Governance Failures and the Letsoalo Legacy

Much of the RAF’s current crisis has been attributed to the tenure of former CEO Collins Letsoalo (2020–2025), who was placed on special leave in May 2025 pending a Special Investigation Unit (SIU) probe. Key allegations include:

• Implication in a R79 million lease in Johannesburg.
• A 200-bed Johannesburg hospital was closed after the RAF failed to pay over R300 million in outstanding debt.
• Whistleblower complaints of procurement manipulation and invoice splitting to bypass approval limits.
• A lavish R4 million staff party, including R40,000 spent on executive drinks.
• The Auditor-General issued disclaimed or adverse audit opinions for five consecutive years.
• The RAF accumulated more than R15 billion in default judgments.

Scopa has called on former RAF board members to repay R11 million in legal costs. Transport Minister Barbara Creecy appointed an interim RAF board in August 2025 and has written to President Ramaphosa to expand the SIU’s investigation scope.

5. Experts Propose Hybrid Compensation Model

The Actuarial Society of South Africa (ASSA) released a major research paper in April 2026 proposing a hybrid compensation model to replace or reform the current RAF system. The study, which compared the current RAF, the proposed no-fault Road Accident Benefit Scheme (RABS), and compulsory third-party insurance, concluded that none of these systems are viable on their own.

Actuary George Schwalb, part of the ASSA research team, explained: “We conclude that none of these general systems are viable on their own, but that we do need a hybrid solution.”

The proposed hybrid model could include:

• Basic no-fault benefits for medical care and rehabilitation.
• Fault-based liability insurance for additional damages.
• A public-private partnership involving the current RAF and private insurers under strong regulatory oversight.

This proposal aligns with Scopa’s own recommendations to appoint independent arbitrators and medical panels to reduce litigation costs and delays.

6. Courts Overwhelmed: Access to Justice at Risk

The RAF’s administrative failures are cascading into South Africa’s court system. In Gauteng alone, courts deal with approximately 300 RAF matters per week, with only 25 state attorneys available to handle them. A directive making mediation mandatory for all civil trials — intended to reduce backlogs — has been blamed for worsening delays, with trial dates reportedly being set as far out as November 2033.

Advocate Justin Erasmus, chair of the Personal Injury Plaintiff Lawyers Association, has lodged a high court application to set aside the mediation directive, which comes to court in June 2026.

Attorney Kirstie Haslam of DSC Attorneys warned: “I am concerned about those claimants who submitted claims directly, and whose claims have been rejected for noncompliance and then given up on those claims and may not be aware of this ruling now.”

What Should RAF Claimants Do Now?

If your RAF claim was previously rejected due to non-compliance with the RAF1 form, here is what you need to know:

• You have until 30 September 2026 to resubmit your claim.
• Provide proof that your original claim was submitted within three years of the accident.
• Submit as many relevant documents as possible, including the completed RAF1 form, certified ID copies, an affidavit or statement, the police accident report, and an unabridged birth certificate (for minor claimants).
• Consult a qualified RAF attorney to ensure your claim is correctly submitted and to protect your rights.

Conclusion: A Fund at a Crossroads

The Road Accident Fund stands at a critical juncture in 2026. Landmark court rulings have expanded claimant rights and reinstated hundreds of thousands of previously rejected claims, but the financial and operational implications are staggering. With contingent liabilities potentially exceeding R400 billion, a technically insolvent fund, and courts buckling under the weight of RAF litigation, the need for urgent, systemic reform has never been clearer.

Whether through a hybrid compensation model, legislative reform, or improved governance, the clock is ticking for South Africa to find a sustainable solution — one that ensures road accident victims receive the compensation they are legally and morally entitled to, without bankrupting the state.

Stay updated on the latest Road Accident Fund news by bookmarking this page. If you need assistance with a RAF claim, consult a registered personal injury attorney.