With the Road Accident Fund (RAF) facing a growing financial crisis and an estimated R40 billion unfunded claims liability, many accident victims assume pursuing a claim is no longer worthwhile. However, recent court awards and RAF settlements tell a very different story, with successful claims ranging from more than R2 million to almost R10 million, often accompanied by undertakings to cover future medical costs.
"This perception that the RAF has no money and therefore cannot compensate victims is simply not accurate," says Kirstie Haslam, Partner at DSC Attorneys. "While the system is under significant pressure and claims can take time to finalise, valid claims continue to result in substantial compensation that can fundamentally change the lives of injured victims and their families."
Notable recent RAF payouts
Recent court awards demonstrate the substantial compensation still available to victims of serious road accidents and their families. Haslam cites some of the highest and most notable recent RAF payouts.
• A child who suffered permanent cognitive impairment after a motor vehicle accident was awarded R9.6 million, with the RAF also undertaking to cover all future medical expenses.
• Another child injured in a road accident received R7.5 million in compensation for medical expenses, general damages and future loss of earnings.
• A six-week-old baby left with long-term cognitive and communication difficulties was awarded R6.99 million.
• A Gauteng woman who suffered severe head injuries and was left unable to walk or talk received compensation exceeding R5,417,162, together with an undertaking for all future medical costs.
Haslam says these awards highlight the potentially life-changing value of pursuing a valid RAF claim, particularly where injuries result in long-term disability, loss of earnings or extensive future medical needs.
RAF annual report: claim payouts
The Road Accident Fund’s annual report provides an overview of the RAF’s current status, financial statements and feedback on management and governance for the financial year.
The RAF’s 2024/2025 annual report sheds light on recent RAF payouts.
According to the report, the average RAF claim increased by 21.4% year-on-year, reaching R348,100 per settlement during the 2024/2025 financial year.
Total claims received by the RAF increased marginally from the preceding year to R46.7 billion.
The average values of specific RAF claim types were as follows:
• medical claims: R30,078
• general damages: R583,682
• loss of earnings claims: R1,224,523
• loss of support claims: R666,280
• funeral costs claims: R14,963.
The payouts come despite a worsening financial position at the RAF.
For the year ending 31 March 2025, the RAF recorded a deficit of R2.32 billion - 45.9% higher than the previous year’s deficit of R1.59 billion.
"The figures show that while the RAF is under immense strain, the courts continue to recognise the devastating financial impact that serious road accidents can have on victims and their families," says Haslam. “It’s important to note that this marked increase in deficit has led to an estimated R40 billion unfunded claims liability.
Factors that affect the value of a RAF claim
The payout for a valid RAF claim is influenced by several factors, which Haslam says include:
• the extent to which you were responsible for causing a road accident (if relevant)
• the nature and severity of your injuries
• the expected short- and long-term consequences of your injuries
• medical costs (including likely future costs) associated with your injuries
• loss of income or support as a direct result of your injuries.
Haslam explains that a suitably experienced attorney can determine if your claim has merit. “The attorney will also be familiar with past RAF payouts for claims involving similar elements to yours,” she says.
RAF settlements versus court awards
The RAF is facing a combination of mounting pressure to deliver and eroded legal resources.
Haslam says that in 2020, the RAF made a controversial decision to stop using panel attorneys, to reduce its own legal costs.
In this context, it’s easier and potentially cheaper for the RAF to make out-of-court settlement offers than to engage in protracted court cases.
Unfortunately, Haslam explains that RAF settlement offers are not always fair.
“It’s vital for claimants not to accept settlement offers that are unreasonably low, relative to the compensation that the courts would likely award,” she adds. “An experienced attorney will have a good idea of the RAF payouts for comparable claims, and can advise you on whether to accept a settlement offer.”
