Road Accident Fund Faces New Costs

What Happened?

Transport Minister Barbara Creecy announced that the Road Accident Fund (RAF) will have an additional liability of at least €390 million after a recent court ruling.

The Court Decision

The Supreme Court of Appeal (SCA) decided that the RAF must compensate all victims of road accidents, including undocumented foreign nationals. The judges interpreted the phrase “any person” in the RAF Act to cover everyone, regardless of immigration status.

Earlier Lower Court Idea

Before the SCA ruling, the Gauteng High Court in Pretoria had suggested a policy that would require foreign nationals to prove legal residency in South Africa at the time of injury to claim compensation.

Why the Change Matters

The High Court’s proposal had left many claims from undocumented victims labelled as “unpayable.” The SCA decision overturns that stance, meaning those previously blocked claims could now become due.

Financial Impact

Creecy said that, according to the latest “Requested Not Yet Paid” (RNYP) register, claims totalling around R390 million could now be payable. This amount is the source of the €390 million figure she cited.

What the RAF Board Is Doing

The RAF board is currently:

• Seeking legal advice on the ruling.
• Considering the possibility of appealing the decision to the Constitutional Court.
• Still deliberating whether to file an appeal.

Creecy noted, “The board is still in the process of deliberating whether to appeal this decision.”

What This Means for South Africa

• Fund Strain: The RAF may face increased payouts, potentially affecting its financial health.
• Policy Review: The government may need to revisit how the RAF handles claims from non‑citizens.
• Legal Uncertainty: Until the board decides on an appeal, the exact scope of the liability remains unclear.

Conclusion

The SCA ruling expands the RAF’s responsibility to cover every road‑accident victim in South Africa, regardless of documentation. With hundreds of millions of rand now potentially payable, the fund’s board is weighing its legal options while the country watches how this will affect both the RAF’s finances and future compensation policies.