Road accident fund news: SCA ruling on undocumented foreign nationals, backlog relief efforts and reform talks

The South African Road Accident Fund (RAF) has been making headlines recently, with significant developments impacting claimants and the broader legal landscape. From landmark court rulings on who qualifies for compensation to ongoing efforts to tackle a massive backlog of unpaid claims, the latest road accident fund news highlights both challenges and attempts at reform. The Supreme Court of Appeal has delivered a crucial judgment affirming the rights of undocumented foreign nationals to claim, while the RAF itself grapples with financial instability and the complexities of its claims process.

Key developments in recent road accident fund news

• Supreme Court of Appeal (SCA) Ruling: On 17 April 2026, the SCA dismissed an appeal by the RAF, confirming that “any person” entitled to claim compensation under the RAF Act includes undocumented foreign nationals who are victims of road accidents in South Africa. This decision upheld a previous High Court ruling that had set aside a RAF directive from June 2022 and a July 2022 amendment to the RAF1 claim form that sought to exclude foreign nationals without legal presence.
• Backlog Reduction Efforts: In January and February 2026, the RAF informed Parliament’s Standing Committee on Public Accounts (SCOPA) about its efforts to reduce a substantial backlog of unpaid claims. The fund revealed it had made over 72,000 calls to unrepresented claimants and 921 calls to attorneys’ offices. Alarmingly, approximately half of the unrepresented claimants could not be reached using the contact details on record.
• Interim Board Appointment and Turnaround Plan: Following governance failures, Transport Minister Barbara Creecy appointed an interim board for the RAF in August 2025. This interim board, chaired by Kenneth Brown, committed in September 2025 to a turnaround programme focused on speeding up the payment of outstanding claims, particularly those older than 180 days, which amounted to over R20 billion. They reported disbursing R3.3 billion within two weeks and aimed for monthly payments exceeding R4 billion.
• Moratorium Extension Denied: In early September 2025, the High Court in Pretoria dismissed an urgent application by the RAF to extend a 180-day moratorium on writs of execution for overdue claims. The court deemed the application non-urgent and ordered the RAF to pay costs, highlighting the fund’s fears of insolvency if forced to settle claims immediately due to numerous default judgments.
• Financial Challenges and Liabilities: The RAF continues to face chronic underfunding and mismanagement. By March 2025, its liabilities exceeded assets by R27.7 billion. The 2024/25 annual report further indicated a deficit of R2.3 billion for the year, with total current claims liabilities at R40.4 billion. The Auditor-General has consistently raised concerns about the RAF’s financial reporting.
• Proposed Legislative Reforms: In June 2025, the controversial Road Accident Fund Amendment Bill was abandoned, with Deputy Transport Minister Mkhuleko Hlengwa announcing the revival of the long-rejected Road Accident Benefit Scheme (RABS) Bill. This proposed shift aims to move from a fault-based compensation model to a no-fault, social benefits scheme, a move that has drawn objections from legal firms concerned about potentially lower, standardised payouts that might not fully address victims’ individual needs.
• Direct Claims Controversy: There’s an ongoing debate about claimants lodging claims directly with the RAF versus using legal representation. While the RAF has encouraged direct claims to cut legal costs, its own communications head, McIntosh Polela, revealed in October 2025 that only 3% of claims are direct, and advised against encouraging claimants to proceed without a lawyer, despite prior contradictory information.

A comprehensive look at road accident fund news and its ongoing challenges

The Road Accident Fund (RAF) in South Africa, an entity responsible for compensating victims of motor vehicle accidents, has been in the spotlight due to a series of significant developments and ongoing challenges. Latest road accident fund news paints a picture of an organisation striving for reform amidst financial woes, a mounting backlog of claims, and critical legal judgments.

One of the most impactful recent decisions came from the Supreme Court of Appeal (SCA) on 17 April 2026. The court unequivocally ruled that the RAF cannot exclude undocumented foreign nationals from claiming compensation for road accident injuries. This ruling, which dismissed the RAF’s appeal, clarified that the term “any person” in Section 17(1) of the RAF Act applies to all road accident victims in the country, regardless of their immigration status. This overturns a management directive issued by the RAF’s chief operations officer in June 2022 and a subsequent amendment to the RAF1 claim form in July 2022, which had previously required foreign claimants to provide proof of legal presence in South Africa. The SCA’s judgment also prevented the RAF from halting the enforcement of court orders in already-settled cases.

The RAF continues to battle a substantial backlog of claims, a persistent issue that affects thousands of individuals seeking vital compensation for medical care, rehabilitation, and loss of income. In early 2026, the RAF reported to Parliament’s Standing Committee on Public Accounts (SCOPA) that it had made over 72,000 calls to trace unrepresented claimants in an attempt to clear this backlog. Worryingly, half of these individuals could not be contacted due to outdated details. This effort underscores the systemic access-to-justice issues faced by many claimants. Despite the RAF’s encouragement for direct claims to reduce legal costs, its communications head, McIntosh Polela, stated to SCOPA in October 2025 that only a small percentage of claims (3%) are direct, and that claimants should not be encouraged to proceed without legal counsel. Legal experts often advise against direct claims, citing the complexity of the process and the potential for lower settlement offers. For more insights into legal trends affecting communities, you can visit https://studentportal.org.za/category/trending/.

Financial instability remains a significant concern for the RAF. The fund is primarily financed through a fuel levy. By March 2025, its liabilities had outstripped its assets by R27.7 billion, and its 2024/25 annual report declared a deficit of R2.3 billion for the year. This precarious financial state led to the dissolution of the previous board and the appointment of an interim board by Transport Minister Barbara Creecy in August 2025. This new board, under the leadership of Kenneth Brown, has committed to a turnaround strategy, including prioritising the payment of claims older than 180 days, estimated at over R20 billion. However, the High Court in Pretoria’s dismissal of the RAF’s application to extend its payment moratorium in September 2025 highlighted the immediate pressure on the fund to settle outstanding obligations.

Looking ahead, significant legislative changes are on the horizon. The highly debated Road Accident Fund Amendment Bill, which sought to transform the RAF into a social benefits scheme and remove lawyers from the claims process, was reportedly abandoned in June 2025. Instead, the government is reviving the long-rejected Road Accident Benefit Scheme (RABS) Bill. This proposed change aims to streamline processes and reduce litigation but has faced criticism from legal practitioners who argue that a standardised formula for compensation may not adequately address the diverse financial needs of accident victims. The shift from a compensation model to a social benefit scheme is a contentious issue, with legal firms arguing that it could undermine victims’ rights to individualised compensation based on their actual losses. The ongoing developments in road accident fund news reflect a critical period for this vital public institution, as it navigates legal, financial, and structural reforms to better serve road accident victims in South Africa.

Questions and answers about the road accident fund news

• Q: What is the biggest news regarding the Road Accident Fund (RAF) recently?
  A: The most significant recent news is the Supreme Court of Appeal’s (SCA) ruling on 17 April 2026, which affirmed that the RAF must compensate all road accident victims, including undocumented foreign nationals.
• Q: Why did the RAF try to exclude foreign nationals from claiming?
  A: The RAF, through a management directive in June 2022 and an amendment to its claim form in July 2022, attempted to require foreign claimants to provide proof of legal presence in South Africa at the time of the accident. They argued that “any person” in the RAF Act should not include those unlawfully in the country. However, the SCA disagreed.
• Q: Is the RAF facing financial problems?
  A: Yes, the RAF is in a difficult financial position. By March 2025, its liabilities exceeded its assets by R27.7 billion, and its 2024/25 annual report showed a deficit of R2.3 billion. This has led to concerns about its ability to meet its obligations.
• Q: What is being done to address the backlog of claims?
  A: The RAF has launched initiatives to tackle the backlog, including making over 72,000 calls to unrepresented claimants in early 2026 to encourage settlement. An interim board, appointed in August 2025, has also committed to prioritising and speeding up payments for claims older than 180 days.
• Q: Should I claim directly from the RAF or use a lawyer?
  A: While the RAF has sometimes encouraged direct claims to cut legal costs, many legal experts advise against it. The claims process is complex, and individuals without legal representation may receive lower compensation offers or face delays due to errors. The RAF’s own communications head even noted in October 2025 that only 3% of claims are direct, and advised against not using a lawyer.
• Q: Are there any new laws or reforms proposed for the RAF?
  A: Yes, the government is reviving the Road Accident Benefit Scheme (RABS) Bill, which aims to replace the current compensation system with a no-fault, social benefits scheme. This is a significant proposed change from the current fault-based system and has generated debate among legal professionals.
• Q: How long does it usually take for a RAF claim to be finalised?
  A: On average, it can take anywhere from three to six years for a RAF claim to come to trial and be finalised. Even after a court order is issued, claimants can experience payment delays, sometimes up to a year, despite the theoretical 180-day payment period.