The Road Accident Fund (RAF) has urged claimants to safeguard and manage their settlement payouts responsibly, warning that poor financial decisions and fraud could leave victims without the long-term support the compensation is intended to provide.
The appeal comes as South Africa marks National Savings Month in July, with the RAF encouraging beneficiaries to use their compensation wisely to secure their financial future.
The Fund said compensation paid to road crash victims is intended to help people who have suffered life-changing injuries, lost loved ones or become permanently disabled as a result of motor vehicle accidents.
While no amount of money can undo the trauma caused by a crash, the settlements are designed to provide long-term financial support and restore dignity to affected individuals and their families.
According to the RAF, approximately R79.33 billion was paid in claims and related obligations between October 2024 and May 2026, benefiting more than 310,000 claimants. During the same period, R57.54 billion was paid to attorneys, while approximately R4.48 billion was paid directly to claimants.
The Fund warned that some beneficiaries spend their compensation too quickly or become targets of scammers and criminal syndicates after receiving their payouts.
To avoid financial hardship, the RAF encourages claimants to carefully consider both their immediate and future financial needs before making major purchases. Where necessary, beneficiaries should seek independent and reputable financial advice to help them make informed decisions.
The RAF also advised claimants not to publicly disclose details of their settlements, to be cautious of unsolicited investment offers or requests for financial assistance, and to report suspicious activity to the relevant authorities. Claimants should verify the status of their claims only through the RAF’s official communication channels to avoid fraud and misinformation.
The Fund said settlement payouts should be viewed not simply as compensation, but as a resource to help victims rebuild their lives and provide financial security for themselves and their families in the years ahead.
