Summary

The Department of Transport intends to introduce the Road Accident Benefit Scheme (Rabs) Bill to Parliament in 2026. Rabs would replace the Road Accident Fund (RAF) entirely, shifting from the current fault-based system to a no-fault scheme with defined, structured benefits. Under the current fault-based system, an injured person must prove that someone else's negligence caused the accident before they can claim compensation – and if successful, receives a once-off lump sum. Under Rabs, fault would be irrelevant: any road accident victim could claim, regardless of who caused the crash, but benefits would be standardised and paid as structured periodic payments rather than lump sums.
The concept is not new. The RAF Commission, chaired by Judge Kathy Satchwell, recommended a scheme along these lines as early as 2003. A formal bill was introduced to the Portfolio Committee on Transport in 2017, went through extensive public hearings in 2018, but lapsed at the end of that parliamentary term. In 2020, the sixth Parliament's transport committee rejected it in its entirety, finding amendments to the existing RAF Act more appropriate at that stage. Parliament has rejected iterations of the bill three times in total.
Transport Minister Barbara Creecy has signalled a revised approach. In addition to the no-fault bill, the department is exploring a hybrid funding model that would combine public and private contributions to reduce fiscal dependency on the fuel levy. A gap analysis and business case are under way, covering the benefits model design, the interface with third-party motor insurance, the legal and regulatory framework and actuarial funding considerations.
Significant opposition remains. The legal fraternity argues the no-fault model strips innocent victims of their common law rights and restricts access to compensation, while capped structured benefits and state-prescribed medical tariffs risk leaving seriously injured people inadequately covered.
The RAF is insolvent. Funded almost entirely by the fuel levy, the rise of electric and hybrid vehicles threatens to erode its tax base further, making the current model structurally unsustainable. The 2026 Budget Review put the RAF's reported liabilities at R370.3bn at end-2024/25, with those projected to rise to R422.6bn by 2027/28. However, the RAF has confirmed its liabilities could increase by a further R300bn to R400bn because of its decision to revert to its previous accounting standard, having previously departed from established insurance standards which masked the true liabilities. Furthermore, the April 2026 Supreme Court of Appeal ruling reviving hundreds of thousands of unlawfully rejected claims could add a further ~R180bn in previously unrecorded liabilities. The court found that the RAF had exceeded its powers when it introduced a revised claim form in 2022 that imposed documentation requirements far stricter than the RAF Act required.