No Win No Fee RAF Claims: What It Costs to Claim From the Road Accident Fund

Under a no win no fee agreement, claiming from the Road Accident Fund (RAF) costs you no attorney fees if the claim fails, and a capped success fee if it succeeds. The Contingency Fees Act 66 of 1997 fixes the ceiling: the lower of double the attorney’s normal fees, or 25 per cent of the amount awarded or obtained, excluding costs.

There is no fixed price to shop for: the fee is a regulated slice of the outcome, not a quoted amount. The Act sets the outer limits, and your agreement sets the actual figure inside them. This page works through that formula as arithmetic, covers what you owe at each outcome, and lists what the signed agreement must disclose.

How No Win No Fee Agreements Cover RAF Claims

A contingency fees agreement is lawful for a RAF claim because the claim is civil proceedings for a money award, exactly the category the Contingency Fees Act regulates. The Act excludes criminal and family-law matters, and a RAF claim is neither.

Under section 2(1), an attorney who reasonably believes your claim has prospects may agree in writing to charge no fees unless you succeed. On success, the attorney may charge more than normal fees, and that uplift is the success fee the caps govern. A RAF claim being an ordinary money claim, the framework governing contingency agreements in South Africa applies unchanged.

What You Pay If the Claim Succeeds

On success you pay the agreed fee, and section 2(2) places two ceilings on it. The fee may not exceed double the attorney’s normal fees, and because a RAF claim sounds in money, the total success fee may also not exceed 25 per cent of the amount awarded or obtained, excluding costs. The lower ceiling binds.

Outcome	Fees for services	Success fee	Other amounts
Claim fails	Nothing under the agreement	Not payable	Disbursements and opponent’s costs as the agreement discloses
Claim succeeds (award or settlement)	Payable under the agreement	Capped at the lower of double normal fees or 25% of the amount obtained, excluding costs	Costs recovered, if any, are dealt with as the agreement discloses

Work the formula once with round numbers. If a claim is finalised for an illustrative R200,000 and the attorney’s normal fees would have been R40,000, the double-fee ceiling is R80,000 and the 25 per cent ceiling is R50,000. The lower wins, so the total success fee cannot exceed R50,000. The award figure is an arithmetic device, not an estimate of what RAF claims pay.

Section 3(3) also requires the agreement to define success and partial success; that definition, not the court record alone, decides when the fee triggers.

What You Pay If the Claim Fails

If the claim fails, you owe no fees for the attorney’s services under the agreement. That is the whole of the “no win” promise.

“No fee” is still not “no cost”. Section 3(3) requires the agreement to state how disbursements, such as medico-legal reports, are treated, and to record the rule that the losing party may pay the opponent’s taxed party-and-party costs. Ask about both before signing.

Claiming Directly Versus Using an Attorney

No law requires an attorney, and the Fund accepts claims lodged directly by the public on the prescribed RAF-1 form, which the Road Accident Fund publishes with its claim guidance. If you lodge the claim yourself, no attorney fee arises and the fee question falls away.

The trade-off is the work the claim carries: medical evidence, statutory forms, and the quantification of losses. Either way, the claim follows the same stages, because lodgement and investigation belong to the RAF claim process, not the fee model. One deadline is shared: a claim generally prescribes three years after the accident, so choosing funding should not delay lodgement.

What the Agreement Must Tell You Before You Sign

The agreement must be written, in the prescribed form, signed by you and the attorney, with a copy delivered to you on signing. Section 3(3) lists its required contents; four items carry most of the weight for a RAF claim:

• The other ways you could fund the matter, including lodging the claim yourself.
• The rule that the losing party may pay the opponent’s taxed party-and-party costs.
• What counts as success, and when fees and disbursements become payable.
• Your right to withdraw by written notice within 14 days of signing.

The Act counts a “day” as a court day, which lengthens that window when weekends fall inside it. On withdrawal, the attorney may claim fees only for necessary work. Two protections then apply while the claim runs: before accepting a settlement, section 4 requires an affidavit comparing the offer with the estimated trial outcome and the fees under each route, and section 5 lets you refer an unreasonable fee to the Legal Practice Council.

Common Mistakes to Avoid

• Signing a fee arrangement that is not the prescribed written form.
• Reading “no win no fee” as “no cost ever”, when disbursements and party-and-party costs are disclosed separately.
• Comparing attorneys on percentage alone, when the cap is measured against each firm’s normal fees.
• Treating the 25 per cent ceiling as the fee itself; the agreement may set less.
• Letting the funding decision run down the three-year prescription period.

Otrebski Attorneys handles RAF claims from its Sandton office and records the fee basis, the applicable cap, and the disbursement position in writing before signature.

Frequently Asked Questions

How much does a no win no fee lawyer take from a RAF claim in South Africa?

The Contingency Fees Act 66 of 1997 caps the total success fee at the lower of double the attorney’s normal fees or 25 per cent of the amount awarded or obtained, excluding costs. The agreement may set a lower figure, never a higher one.

Will I owe anything if my RAF claim fails?

You owe no fees for the attorney’s services if the claim fails. Disbursements such as medical reports, and any party-and-party costs awarded against you, depend on what the written agreement discloses, so check both before signing.

Can I cancel a no win no fee RAF agreement after signing?

Yes. Section 3 of the Contingency Fees Act gives you 14 days from signature to withdraw by written notice, counted in court days. On withdrawal the attorney may claim fees only for necessary work done to protect your interests.

Is a settlement with the RAF a win under the agreement?

Usually yes, if the agreement defines settlement as success, which section 3(3) requires. Before the attorney accepts any offer, section 4 requires an affidavit comparing the settlement with the estimated trial outcome and the fees under each route.

Disclaimer. This article is general information, not legal advice for a specific matter. Fee arrangements and their tax treatment differ between matters and change over time. Confirm the current position on contingency fees with the Legal Practice Council, and consult an admitted attorney about your specific circumstances before signing any fee agreement.