Proposed ACC law changes aimed at affordability

Wednesday 14th October 2009

Accident Compensation Corp. law changes will halve proposed levy increases, says its minister Nick Smith.

ACC’s claim costs have risen by 57% in the past four years, and its unfunded liabilities grown to $13 billion from $4 billion, he said, prompting its board to put forward hefty levy increases for next year.

Smith said such increases are too much for New Zealanders to pay and that “reform of ACC requires a difficult balancing of the rights of levy payers with that of claimants.”

“The changes to the law will not reduce the income compensation payments to any existing claimants but future claimants will receive lesser amounts in some circumstances,” Smith said. “Our objective is to secure the long-term future of ACC as an efficient and fair 24/7, no fault insurance scheme for all New Zealanders.”

The law changes are part of National’s wider reform of ACC that began with changes to the board in March, a stock-take in August and other regulatory and operational changes.

Submissions are to be invited on the proposed law changes, key components of which include:

Reversing 2008 income compensation extensions covering casuals, part-timers,
non-earners and abatements for holiday pay
Reversing vocational rehabilitation changes
Introducing a 6% hearing loss threshold
Reversing entitlements for wilfully self-inflicted injury and suicide
Strengthening disentitlements for criminals
Enabling safety incentives for employers and vehicles
Requiring far more open reporting on ACC’s liabilities

Businesswire.co.nz

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