The RAF Is Going Bankrupt!
Or Is It?
It’s not.
Rumors have been swirling that the Road Accident Fund (RAF) is on the brink of financial ruin, sparking concerns about its ability to compensate those suffering from severe bodily injuries in motor vehicle accidents. But let’s set the record straight: the RAF isn’t going anywhere.
Funded primarily by a fuel levy, supplemented by government grants and various investments, the RAF’s financial structure is healthy. The RAF Fuel Levy, a charge on fuel nationwide, is adjusted annually by the National Treasury. So, if you’ve ever seen, ridden in, or even heard a car, rest assured— the RAF has money.
Clients often ask if it’s worth lodging a claim with the RAF given its rumored financial instability. While it’s true that the RAF faces financial difficulties, primarily due to a backlog of claims and administrative hurdles, the idea of its imminent collapse is largely unfounded. Unless Elon Musk decides to take over the South African market, it is reasonable to assume that the RAF is here to stay.
Though it needs some TLC and a keen eye on the books, the RAF remains a crucial lifeline for those hit by road mishaps. So, don’t let the rumor mill scare you off—your claims are still as valid as ever!
