What if the RAF levy disappeared from your fuel bill?

The Democratic Alliance (DA) has renewed a call to scrap the Road Accident Fund (RAF) levy from fuel bills currently R2.18 per litre and replace it with compulsory third‑party insurance for motorists, saying the fund is failing accident victims and is beset by corruption.

Why the DA wants the levy removed

The DA’s transport spokesperson, Chris Hunsinger, told media the RAF has become a failed entity that is both corrupt and unable to deliver settlements to many road accident victims. The party argues that, because the fund is not functioning as intended, it has forfeited its right to taxpayer money.

“The Road Accident Fund is a failed entity. Not only is it wracked by corruption, but it is unable to deliver settlements to hundreds of thousands of real road accident victims,” said Chris Hunsinger.

The call comes as the fund’s former chief executive faces possible criminal charges.

What scrapping the levy would mean at the pump

The RAF levy is currently charged at R2.18 per litre of fuel. The DA says removing that levy would make fuel cheaper immediately, at a time when household budgets are already under pressure.

The DA’s proposed replacement: mandatory third‑party insurance

Instead of a universal levy collected at the pump, the DA proposes compulsory third‑party insurance for all motorists. The party says this would shift financial responsibility from general fuel purchasers to individual drivers through insurance premiums.

The proposal envisages insurance costs tied to a motorist’s risk profile: higher premiums for higher‑risk drivers and lower premiums for lower‑risk drivers. The DA also suggests this change would create incentives for safer driving.

Outstanding issues and next steps

The RAF currently owes large sums to claimants whose cases are delayed in the fund’s backlog. The DA acknowledges that any replacement system would need to address that backlog.

The party has said it plans to raise the proposal with Transport Minister Barbara Creecy and pursue the necessary legislative amendments, though it has given no timeline for that work.

What remains unchanged

• The RAF’s stated purpose is to compensate people injured in road accidents.
• The current levy amount cited in debate is R2.18 per litre of fuel.

Readers were invited in the original report to share their views on replacing the RAF levy with mandatory third‑party insurance.