The Road accident fund said it had neglected its primary mandate to settle and investigate claims and had instead been resorting to legal battles that had cost the fund billions of rand.
The fund is government's second largest contingent liability after Eskom, with about R17 billion owed to claimants.
The RAF is reviewing its operating model which has left it R17 billion in the red with liquidity issues.
The new operating model will focus on finalising claims within 120 days and not years as is currently the case.
South Africans expecting a Road Accident Fund (RAF) pay-out after receiving an approved court order, can wait up to one year before seeing any money.
This is another excruciating delay after having typically waited between 2 to 5 years for the case to come to trial.
Payments are delayed due to inefficiencies and serious financial woes at the RAF.