Motorists could soon find themselves having to fork millions of rands to compensate victims who sustain injuries in car accidents, MPs heard on Wednesday.

Appearing before the national assembly's transport committee, Road Accident Fund executive Jacob Modise said the fund, which is currently struggling to settle claims because of its poor financial situation, was considering invoking a law that would make motorists liable for injuries sustained in vehicle accidents.

"We are running out of cash and it has become impossible to manage the RAF. If the situation does not improve, we will have no option but to invoke section 21 of the Road Accident Fund Act," he said.

The law, which currently shields motorists from being sued for injuries sustained in a car accident, requires victims to first claim from the RAF as opposed to suing a motorist.

However, the same law allows a motor vehicle accident victim to directly sue a motorist for injuries sustained if the fund for some reason was not in a position to pay the claim.

Modise said the value of accident claims lodged with the fund was currently far higher than its income.

He said the fund's income, manly derived from fuel levies, amounted to about R700 million a month, while claims where over R1 billion over the same period. The fund had a R27 billion claims backlog. "Our business will not be manageable unless we get money from somewhere," Modise said.

However, he said the fund would only invoke section 21 as a last resort. "At the moment what we are doing is investigating several options," he said.

The fund would first approach the department of transport as well as the treasury in its bid to get extra funding.

The committee's chairman, Jeremy Cronin, said if all attempts to get extra fund failed, motorist might have to settle claims. "That might be where we end up going," he said.