How Does Road Accident Fund Settlements Work in South Africa?

A Road Accident Fund settlement in South Africa is the negotiated resolution of a third-party claim lodged against the RAF — the statutory fund that compensates victims of motor-vehicle collisions caused by the negligent driving of another — under the Road Accident Fund Act 56 of 1996 (as amended by Act 19 of 2005 and the 2008 Regulations). Settlements typically cover one or more of four statutory heads of loss: general damages, past and future loss of earnings, and medical expenses (with loss of support preserved for accidents before 1 August 2008). The settlement itself can happen at several stages — directly with the RAF after an offer is tabled, on the steps of trial after pleadings have closed, or as a court-sanctioned agreement after a Rule 41 settlement conference — and the route chosen has a direct impact on how quickly the money is paid and whether the RAF funds it directly or by structured payout.

What the RAF Is and What It Pays For

The RAF is a statutory fund — a schedule 2 public entity reporting to the Minister of Transport — that compensates victims of motor-vehicle collisions caused by the negligent driving of another. It is the compulsory third-party insurance backstop for South African road use, funded through a fuel levy and administered regionally.

The statutory basis is the Road Accident Fund Act 56 of 1996, amended by the Road Accident Fund Amendment Act 19 of 2005. The 2008 Regulations made under the Amendment Act govern the form of claim, the supporting documents, and the medical tariff applicable to claimed expenses.

Loss of support (previously known as “maintenance”) was removed from the RAF’s statutory liability for accidents occurring on or after 1 August 2008. For accidents after that date, only general damages, past and future loss of earnings, and medical expenses remain available for non-fatal claims. Loss of support remains claimable for accidents before 1 August 2008, but the amount is capped in terms of the transitional provisions in the Amendment Act.

The Four Heads of Loss a Settlement Can Cover

Head of Loss	What It Covers	Key Notes
General damages	Pain, suffering, and loss of amenities of life	Quantified by reference to the claimant’s serious / non-serious injury classification under the 2008 Regulations
Past loss of earnings	Income lost between the accident and settlement	Must be supported by employment records and IRP5-equivalent documentation
Future loss of earnings	Loss of future earning capacity	Actuarial calculation often required; the Multidisciplinary Panel outcome report is a key input for serious-injury claims
Medical expenses	Past and future hospital, treatment, and related costs	Subject to the RAF tariff; future medical is typically settled as a lump sum or, where appropriate, an undertaking under Section 17
Loss of support (pre-2008 accidents)	Dependant’s claim where the breadwinner died	Subject to the cap in the transitional provisions; not available for accidents on or after 1 August 2008

The Claim Process, Step by Step

1. Lodge Form 1. Complete and lodge the official RAF claim form (Form 1) on the RAF portal as soon as reasonably possible after the accident. The statute imposes a long-stop limitation period of three years from the date of accident (or two years from the date of death in fatal matters).
2. File the supporting documents. Lodge the supporting bundle: identity document, accident report from SAPS, hospital and medical records, IRP5 or payslips, and (for serious-injury claims) the Multidisciplinary Panel Report.
3. Receive the claim number and regional allocation. The RAF acknowledges the claim and assigns a claim number. The matter is allocated to the RAF’s regional office (Pretoria, Johannesburg, Cape Town, Durban, and so on) based on the claimant’s residential address.
4. Undergo RAF merits and quantum investigation. The RAF investigates the merits and quantum, often requesting further documentation or arranging a medical examination by a specialist of its choice.
5. Receive the offer or repudiation. The RAF issues a settlement offer or a repudiation letter. If the merits are disputed, the matter is referred to the disputes section; if quantum is in issue, the RAF tables an offer based on its own assessment.
6. Negotiate or litigate. If the offer is accepted, the settlement is reduced to a written agreement and the RAF pays out. If not, the claimant files a summons in the relevant court to pursue the claim.
7. Close pleadings and settle or proceed to trial. Once pleadings have closed, the matter proceeds through discovery, pre-trial conferences, and (if still unresolved) trial. Most settlements are reached in this window, either directly or as a court-sanctioned settlement on the steps of trial.

How Settlement Negotiations Actually Work

Direct settlement (without summons) is the most efficient route: the claimant’s attorney submits a comprehensive settlement bundle, the RAF tables an offer, and the parties negotiate by correspondence. Smaller, clean claims — where quantum is low and the merits are clear — often resolve this way within 12 to 18 months.

Settlement after summons is issued is the route for contested merits or higher-quantum matters. The attorney files a summons in the Magistrate’s Court (for claims within the magistrate’s jurisdictional limit) or the High Court (for claims above the limit or where the RAF disputes liability fundamentally). Settlements reached after summons are typically more favourable in quantum because the RAF is now incurring litigation costs.

Settlement on the steps of trial is where the bulk of the RAF settlement market actually resolves — between the pre-trial conference and the trial date. The settlement is recorded as a consent order (in the High Court) or a written agreement (in the Magistrate’s Court), and the RAF pays out the agreed amount.

Rule 41 settlement conferences are a formal High Court mechanism: a settlement conference can be convened by the registrar at the parties’ request, and the outcome is a consent order that has the same effect as a trial judgment.

Burger Huyser Attorneys’ general litigation practice, led by Director & Head of General Litigation Nadine Roesch-Prinsloo at the Roodepoort branch, runs matters through each of these routes for Gauteng-based claimants.

Section 17 Undertakings — The Medical Expenses Exception

Where a claimant has an ongoing medical need — long-term care, periodic surgery, future treatment — the settlement can include a Section 17 undertaking under which the RAF agrees to fund the future medical expenses directly, rather than capitalising the cost into the lump-sum settlement. The claimant retains the right to claim against the RAF for those future medical expenses as they arise, instead of taking a discounted lump sum now. Section 17 undertakings are typically the subject of separate negotiation alongside the main settlement and require specific drafting to be enforceable.

What Delays a Settlement (and How to Manage It)

The single largest delay factor is the seriousness of the injury classification. For “serious injuries” as defined under the 2008 Regulations, the Multidisciplinary Panel Report is mandatory, and panel appointments have historically been a bottleneck.

Quantum disputes are the second most common cause of delay. The RAF’s quantum offers are routinely lower than the claimant’s attorney would recommend, and the gap can take months of correspondence to narrow.

Disputes about the identity of the driver, ownership of the vehicle, or causation (whether the accident was actually caused by the alleged negligent driving) can take the matter all the way to trial.

A claimant’s attorney can compress the timeline by ensuring the claim form is fully and accurately completed at lodgement, the supporting documents are filed together as a complete bundle, and the Multidisciplinary Panel application is lodged as soon as the claimant is medically stable.

What the Settlement Money Looks Like in Practice

Settlements are paid by the RAF directly into the claimant’s attorney’s trust account. The attorney deducts the contingency fee — capped by the Contingency Fees Act 66 of 1997 and the relevant Law Society rules — and disbursements before paying the balance to the claimant.

The capitalised portion of a future-loss-of-earnings settlement is usually taxable as a lump-sum receipt; the claimant’s accountant should be consulted on the tax treatment.

Where the settlement is reduced to a court order, the order is enforceable under the ordinary rules of civil execution. If the RAF defaults, the claimant can levy against the RAF’s assets — in practice, the State Attorney’s office handles payment on the RAF’s behalf, and persistent defaults are typically resolved by a letter of demand from the claimant’s attorney.

What Happens if the RAF Disputes Liability or Quantum

A merits dispute — the RAF denies that the third party’s driver was negligent, or that the accident caused the injuries — takes the matter to trial. The claimant must prove negligence on a balance of probabilities and prove causation.

A quantum dispute — the RAF accepts it is liable but offers less than the claimant’s attorney recommends — is a negotiation, not a litigation. The claimant’s attorney can reject the offer and proceed to trial if the gap cannot be bridged.

Constitutional and appellate jurisprudence continues to shape the RAF settlement landscape. Constitutional Court and Supreme Court of Appeal decisions in recent years have addressed the RAF’s liability, the calculation of general damages, and the constitutional validity of the existing statutory caps — making the appellate dimension a live part of any contested settlement strategy.

Why Use a Specialist Attorney for an RAF Settlement

The Multidisciplinary Panel process, the Section 17 undertaking drafting, and the capitalisation of future loss of earnings are all specialised work — a general practitioner with no RAF experience is at a structural disadvantage in negotiation.

The RAF tables its offers based on its own internal actuarial and legal model. A specialist attorney knows where those offers are systematically low and where negotiation has leverage.

Contingency-fee arrangements are common in this field and regulated by the Contingency Fees Act 66 of 1997 — the attorney must disclose the fee structure in writing at the start of the engagement.

Burger Huyser Attorneys’ Litigation (General & Commercial) practice fields this work through the firm’s general litigation department, with branch-based client contact across Gauteng. The firm takes instructions on a contingency-fee basis and is set up to manage the procedure from lodgement through to settlement or trial.

Where the National Scheme Touches Down Locally

The Road Accident Fund Act is national, but every claim is filed through the RAF’s regional office based on the claimant’s residential address, and every defended claim is heard in the court with territorial jurisdiction — the Magistrate’s Court for the district where the accident occurred or where the claimant resides (for claims within the magistrate’s jurisdictional limit), or the relevant High Court division (the Gauteng Division, sitting at Pretoria or Johannesburg, is the venue for higher-value Gauteng matters). Claimants based in the Gauteng region are typically allocated to the RAF’s Johannesburg or Pretoria regional office, and defended matters are filed in the Gauteng Division of the High Court at the seat most convenient to the parties.

Burger Huyser Attorneys’ litigation practice coordinates RAF and MVA third-party claims across the Gauteng region, with the general litigation department managing the matter and the most convenient branch handling the day-to-day client contact:

• Centurion branch (012 644 4990) — Centurion and the southern Tshwane area
• Bedfordview branch (011 201 7190) — the East Rand and the R21 corridor
• Randburg head office (011 888 0246) — the northern suburbs
• Roodepoort branch (011 668 0030) — the West Rand, under Director & Head of General Litigation Nadine Roesch-Prinsloo
• Sandton branch (011 253 3080) — Sandton and the broader Johannesburg North

The Fund’s current claim form, supporting documents checklist, and any gazetted amendments to the RAF Act are available on the RAF portal at raf.co.za and remain the authoritative reference for any lodgement.

Frequently Asked Questions

How long does an RAF settlement take in South Africa?

Smaller, clean claims settled directly with the RAF (without summons) typically resolve within 12 to 18 months of lodgement. Contested or higher-value claims that go through summons and pre-trial conferences typically resolve within 24 to 36 months from lodgement. Claims requiring a Multidisciplinary Panel Report (serious-injury claims) take longer because panel appointments have historically been a bottleneck.

How much does an RAF settlement pay out?

The amount depends on the severity of the injury, the strength of the evidence, and the heads of loss being claimed. A minor soft-tissue injury with a short period of lost earnings may settle in the tens of thousands of rands. A quadriplegia or serious brain injury claim, with a full Multidisciplinary Panel Report, can settle in the tens of millions. There is no fixed settlement schedule — each claim is assessed on its own facts.

Can I settle directly with the RAF without a lawyer?

Yes, in principle — but the RAF’s quantum offers are typically conservative, and a claimant without legal representation is at a structural disadvantage in negotiation. Most claimants in contested or higher-value claims instruct an attorney on a contingency-fee basis (the attorney’s fee is a capped percentage of the recovery) so that the cost of representation is not an up-front barrier.

What is loss of support and is it still claimable?

Loss of support is the dependant’s claim for the income a deceased breadwinner would have contributed to the family. It was removed from the RAF’s statutory liability for accidents occurring on or after 1 August 2008 by the 2005 Amendment Act. It remains available for accidents before that date, subject to the transitional cap in the Amendment Act.

Will the RAF pay future medical expenses directly or as a lump sum?

Either, depending on the structure of the settlement. A Section 17 undertaking is the mechanism by which the RAF agrees to pay future medical expenses directly as they arise, rather than capitalising the cost into the lump sum. Section 17 undertakings are typically used for claimants with ongoing medical needs (e.g. long-term care, periodic surgery) and require specific drafting to be enforceable.

What happens if the RAF defaults on a settlement payment?

If the settlement is reduced to a court order (consent order or trial judgment), the claimant can enforce the order against the RAF under the ordinary rules of civil execution. In practice, the State Attorney’s office handles payment on the RAF’s behalf, and severe delays are typically resolved by a letter of demand from the claimant’s attorney.