Road Accident Fund South Africa: Major Court Rulings, Funding Crisis & What It Means for You – May 2026 Update

The Road Accident Fund (RAF) is once again at the centre of South Africa’s legal and financial headlines in May 2026. From landmark Supreme Court of Appeal (SCA) rulings to a looming government bailout and proposed new fees for motorists, the RAF’s ongoing crisis is reshaping how road accident victims access compensation — and how South Africans will fund it. Here is a comprehensive roundup of the latest RAF news and what it means for claimants, motorists, and taxpayers.

1. SCA Declares RAF’s Claims Process Unlawful: A Big Win for Claimants

In a unanimous judgment handed down on 30 April 2026, the Supreme Court of Appeal dismissed the RAF’s appeal against a High Court ruling that declared the Fund’s amended RAF1 claim form and related Board Notices unconstitutional, unlawful, and invalid.

The central issue was whether the RAF and the Minister of Transport acted within their statutory and constitutional powers when they introduced more onerous requirements through Board Notices 271 and 302 of 2022. The SCA found they did not.

According to Kirstie Haslam, Partner at DSC Attorneys, the ruling is a significant legal victory for claimants — but it creates a complex situation on the ground:

“Many claims that were rejected under the unlawful requirements may now need to be re-lodged, effectively restarting the process. This creates uncertainty not just for claimants, but for attorneys, insurers, and the courts.”

Key Outcomes of the SCA Ruling:

• The RAF must revert to the 2008 RAF1 claim form as the valid standard.
• Claimants whose submissions were previously rejected must be allowed to re-lodge their claims by 30 September 2026.
• Transport Minister Barbara Creecy has been given six months to introduce a revised claims process that complies with legal requirements.
• The RAF is estimated to have approximately R500 billion in unqualified contingencies, partly due to rejected claims that complied with the RAF Act but not the unlawful Board Notice.

Attorney Gert Nel of Gert Nel Inc Attorneys warned that the financial implications are enormous: “Treasury will definitely have to get involved with a bailout to cover these additional expenses.”

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

In a separate but equally significant ruling, the SCA found in April 2026 that the RAF must compensate all road accident victims, including undocumented foreign nationals. The court ruled that “any person” in the RAF Act includes undocumented immigrants, striking down a RAF directive that required foreign nationals to prove legal presence in South Africa at the time of injury.

Minister of Transport Barbara Creecy revealed that the RAF could face at least R390 million in additional liability from claims previously classified as non-payable.

“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,” the Minister said.

However, in a significant development reported on 26 May 2026, the RAF has been granted leave by the Constitutional Court to appeal the SCA’s ruling on undocumented foreigners. The Constitutional Court set aside the SCA order and granted the RAF leave to appeal the whole of the SCA order — meaning this legal battle is far from over.

3. RAF Ordered to Pay Victims: Courts Enforce Compliance

Courts across South Africa have been compelling the RAF to honour its financial obligations to road accident victims:

• In April 2026, the Klerksdorp Regional Court ordered the RAF to pay 209 road accident victims a combined R47.3 million within 30 days. The court found that the RAF’s reliance on internal administrative processes cannot justify non-compliance with valid court orders.
• In March 2026, the SCA ordered the RAF to pay Sunshine Hospital more than R92 million within seven days.
• The RAF has repeatedly cited administrative issues — claiming claims are “not registered” on its system — as justification for non-payment. Courts have consistently rejected this defence.

Regional Court Magistrate MB Mamana stated clearly: “The RAF’s failure constitutes unlawful non-compliance, and the fund has not provided a lawful justification for its continued failure to comply with court orders.”

4. Is a Government Bailout Inevitable?

The RAF’s financial position is deteriorating rapidly. According to the 2026 Budget Review, the total liabilities of social security funds at the end of 2024/25 were reported at R433.1 billion, of which the RAF accounted for 85.5% (approximately R370.3 billion).

The 2025 Medium-Term Budget Policy Statement warned that the RAF remains a significant fiscal risk, with liabilities projected to increase from R369.7 billion in 2024/25 to R422.6 billion by 2027/28.

Following the SCA’s April 2026 ruling on the unlawful RAF1 form, experts now estimate the fund’s contingent liability could balloon by a further R300 billion to R400 billion. Legal experts and attorneys have called on National Treasury to intervene with a bailout.

Parliament’s Standing Committee on Public Accounts (Scopa) is currently conducting an oversight inquiry into the RAF’s affairs, and there are calls for criminal charges against former RAF executives.

5. New RAF Fee Proposed for Vehicle Licence Renewals

In a major policy development reported on 26 May 2026, Transport Minister Barbara Creecy confirmed that the Department of Transport (DoT) is researching a vehicle owner contributory scheme — meaning motorists could soon pay a separate RAF fee when they renew their vehicle licence disc.

The DoT has two key concerns driving this proposal:

1. The rise of electric vehicles (EVs): The current RAF funding model relies on a levy on petrol prices. As EV adoption grows, this revenue stream will decline, threatening the fund’s sustainability.
2. The RAF’s massive contingent liability: The risk to the fiscus is described as “very high,” and the DoT believes structural funding reform is necessary.

Creecy also confirmed plans to reintroduce the Road Accident Benefit Scheme (RABS) Bill, which would introduce a no-fault system and a standard schedule of benefits — a significant departure from the current fault-based compensation model.

The proposal has drawn strong public criticism, with many South Africans arguing that motorists already pay a RAF levy through the fuel price and should not face additional charges.

6. What Does This Mean for RAF Claimants?

If you have a pending or previously rejected RAF claim, here is what you need to know:

• Previously rejected claims: If your claim was rejected due to the unlawful RAF1 form requirements, you may be entitled to re-lodge your claim. The deadline for re-lodging is 30 September 2026.
• Act quickly: Legal experts urge claimants to consult an attorney as soon as possible to protect their rights and avoid prescription (the legal time limit on claims).
• Undocumented foreign nationals: While the SCA ruled in favour of undocumented foreigners claiming from the RAF, the RAF has been granted leave to appeal to the Constitutional Court. The outcome of this appeal will be critical.
• Payment delays: Despite court orders, the RAF continues to delay payments. Claimants should be aware that enforcement through the courts remains an option.

7. Key Trends and Outlook

Several overarching trends are shaping the RAF’s future:

• Systemic legal defeats: The RAF has suffered a series of significant court losses in 2026, undermining its operating model and exposing massive hidden liabilities.
• Funding reform on the horizon: The proposed vehicle licence levy and the RABS Bill signal a fundamental restructuring of how road accident compensation is funded and administered in South Africa.
• Governance concerns: Scopa’s ongoing inquiry, the departure of multiple CEOs, and calls for criminal charges against former executives highlight deep governance challenges within the RAF.
• Fiscal risk to the state: With liabilities potentially exceeding R500 billion, the RAF represents one of the most significant fiscal risks facing the South African government.

Conclusion

The Road Accident Fund is at a critical crossroads. Landmark court rulings in 2026 have opened the door for thousands of previously rejected claimants to seek compensation, while simultaneously exposing the fund to potentially catastrophic financial liabilities. The government is under pressure to reform the RAF’s funding model, introduce the RABS Bill, and potentially seek a Treasury bailout.

For road accident victims, the message is clear: know your rights, act quickly, and seek legal advice. For South African motorists and taxpayers, brace for further changes to how the RAF is funded — and what it will cost you.

Stay updated on the latest Road Accident Fund news by bookmarking this page. We publish daily RAF updates to keep you informed.

Sources: IOL Business, Moneyweb, TopAuto, Parliament of South Africa, Webber Wentzel, DSC Attorneys, Gert Nel Inc Attorneys.