Road Accident Fund South Africa: Major Reforms and Challenges in February 2026

The Road Accident Fund (RAF) continues to dominate headlines in South Africa as February 2026 brings significant developments in reform efforts, parliamentary oversight, and legal challenges. This comprehensive update covers the latest news affecting millions of South Africans who depend on the RAF for compensation following road accidents.

Revolutionary RABS Bill Proposes No-Fault Compensation System

The most significant development this month is the renewed focus on the Road Accident Benefit Scheme (RABS) Bill, which proposes a complete overhaul of how road accident victims receive compensation in South Africa. Deputy Transport Minister Mkhuleko Hlengwa presented the bill’s key features to Parliament’s Standing Committee on Public Accounts (SCOPA).

Key Changes Under the RABS Bill:

• No-fault system: Victims will no longer need to prove who caused the accident to receive compensation
• Monthly payments instead of lump sums: The controversial shift from one-time payments to annuity-style monthly benefits
• Restrictions on foreign nationals: Travel insurance requirements for foreign visitors entering South Africa
• Age limitations: Claims for loss of income limited to people under 60 years old
• Capped benefits: Defined benefit schedules to control escalating costs

The bill, first introduced in 2013, aims to address the RAF’s unsustainable financial model. With road accidents costing South Africa between R205 billion and R260 billion annually, the current system faces immense pressure.

SCOPA’s Damning Oversight Enquiry Findings

Parliament’s Standing Committee on Public Accounts has concluded a comprehensive ten-week enquiry into the RAF’s financial matters, revealing shocking mismanagement and governance failures.

Critical Issues Identified:

Financial Deterioration

The Auditor-General’s briefings showed the RAF’s dramatic decline from a clean audit in 2019/20 to multiple disclaimers and adverse opinions through 2024/25.

Panel of Attorneys Cancellation Disaster

The RAF’s decision to cancel its Panel of Attorneys without proper planning resulted in thousands of undefended court cases, leading to R15.7 billion in default judgments.

Expensive Claim Process

The new RAF 1 claim form requires claimants to spend up to R100,000 to register claims – costs the RAF must later repay. This effectively denies access to poor South Africans.

Reduced Direct Claims

Despite management claims that people can apply directly, direct claims have plummeted from over 35,000 to just 2,000 in the last financial year.

Massive Financial Gap

The RAF faces estimated liabilities of nearly R100 billion against annual income of approximately R50 billion.

Supreme Court Battle Over Foreign Nationals’ Compensation

The RAF is currently challenging a Pretoria High Court ruling at the Supreme Court of Appeal in Bloemfontein regarding compensation for foreign nationals. This legal battle represents the fund’s attempt to limit its exposure to claims from non-South African citizens.

The case has significant implications for the proposed RABS Bill’s provisions requiring foreign visitors to have travel insurance before entering the country.

High-Profile Fraud and Corruption Cases

February 2026 has seen continued focus on fraud within the RAF system:

• Former CEO Collins Letsoalo received R9.839 million in the 2025 financial year, including a R2.8 million bonus, despite facing possible criminal charges
• A former attorney is challenging fraud charges related to allegedly defrauding RAF clients of millions
• The Special Investigation Unit continues multiple investigations into RAF operations

Medical Expense Directives Under Legal Challenge

The Western Cape High Court’s Full Bench dismissed an RAF appeal, rejecting the fund’s reliance on internal medical expense directives. This ruling adds weight to ongoing challenges against the RAF’s medical compensation policies.

Transport Committee Sees Signs of Recovery

Despite the challenges, the Transport Committee Chair has indicated that the RAF shows signs of recovery, though reform efforts must accelerate. The focus remains on building a comprehensive ecosystem that prevents accidents rather than merely reacting to them.

Impact on South African Motorists

The RAF’s challenges directly affect all South African motorists through:

• Fuel levy dependency: The R2 fuel levy remains crucial for RAF funding
• Extended settlement periods: Claims now take up to five years to settle
• Over 320,000 pending claims creating a massive backlog

Looking Ahead: What to Expect

As February 2026 progresses, several key developments are expected:

• SCOPA will finalize its oversight enquiry report by month-end
• The Supreme Court of Appeal will rule on foreign nationals’ compensation
• Parliament will continue debating the RABS Bill implementation
• Further SIU investigation findings may emerge

Conclusion

The Road Accident Fund remains at a critical juncture in February 2026. While the proposed RABS Bill offers potential solutions to the fund’s sustainability crisis, implementation challenges and legal battles continue. South Africans affected by road accidents must stay informed about these developments as they will significantly impact future compensation processes.

The coming months will be crucial in determining whether the RAF can successfully transform from a financially troubled entity into a sustainable system that adequately serves South African road accident victims.

Stay updated with the latest RAF developments by following our blog for regular updates on this evolving story.