Minister tightens up ACC to ward off hikes

Published: 12:44PM Wednesday October 14, 2009 Source: NZPA

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The government has unveiled a series of major changes to the financially troubled Accident Compensation Scheme (ACC).

The move comes after ACC posted a $4.8 billion loss for the year to June.

ACC is struggling to cope with rising costs and a $13 billion gap between the corporation's assets and liabilities.

ACC Minister Nick Smith wants to halve proposed levy increases by tightening and limiting entitlements.

The ACC had recommended increases in the work account levy from $1.31 to $1.89 per $100; in the earners account from $1.51 to $2.48 per $100. Also it said the motor vehicle account levy should go up to $417.28 from $287.

Smith said the proposed increases were too steep and the Government was introducing legislation to halve them.

What do you think of the proposed changes? Comment on the messageboard below.

Click here for the full list of proposed changes and details on how to make a submission on the proposals.

Key changes 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.

- Further restricting entitlements for criminals.

- Allowing incentives for employers and vehicles.

- Requiring more open reporting of ACC liabilities.

- Extend the date by which the ACC has to be fully funded from 2014 to 2019.

Smith says the need for change has arisen because the previous Labour government made numerous extensions to entitlements but did not fund the extra cost of them.

"These changes are necessary because ACC's claim costs have risen by 57% and its unfunded liabilities have grown from $4 billion to $13b in just four years... our levies are not meeting the cost of claims," says Smith.

The public will get a chance to comment on the government's proposed changes with the ACC encouraging New Zealanders and affected organisations to have their say before the deadline for submissions on November 10.
 
Final decisions are due to be made in February before coming into force in July 2010.

You can send your submission: 

By post:

Levy Consultation
ACC
PO Box 242
Wellington 6140
 
By fax: 04 918 4395
 
By email: 
consultation@acc.co.nz

Deadline for submissions: 5pm, 10 November 2009

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  • mouthguard said on 2009-12-10 @ 14:59 NZDT: Report abusive post

    The unfair bit is this: the ACC forms for accident claims have a wee box that you fill in about how it happened. If you mention a motorbike, then that statistic goes on.This includes farm bikes that are responsible for a lot of injury claims, but are responsible for no ACC levies as they are not registered. That is why you are being screwed roadbikers. Blame the farmers, levy them, it is only fair.

  • Pucky said on 2009-12-10 @ 14:41 NZDT: Report abusive post

    I'm sorry that Tiggy obvously doesn't understand bikers. I myself live in a family of bikers. All of whom are resposible, sensible riders. Why does this person believe if a car (or truck) hits US it is us who should pay? Does tiggy also believe if they get hit by a larger vehicle then they should pay for there own treatment? We already pay higher registration fees. Bikes also produce less greenhouse gases surely this should be taken into account.

  • tiggy said on 2009-12-04 @ 13:22 NZDT: Report abusive post

    Bikers should pay up! If you choose to ride a bike and your involved in an accident you will suffer a more serious injury, doesnt matter if its your fault or not. Choose to ride..choose to pay!!

  • diogenes said on 2009-12-03 @ 00:51 NZDT: Report abusive post

    I also am thoroughly disgusted with these antics and I am not a biker although have been and was contemplating selling our older second car and buying a new 250. Looks like that ain't now going to happen! Using cc rating as any sort of a yardstick anyway is a joke! I've known of souped up 125s blowing the pants off 250 cruisers. Somehow cc rating is being equated with speed. I'm with bikers all the way in opposing this iniquitous hike in charges! And .. last time I'll be voting National!

  • wasteoftime said on 2009-12-01 @ 21:07 NZDT: Report abusive post

    Agree it is totally unfair, but we riders don't help ourselves by blaming others. Fact is a third of bike crashes only involve the bike, of the rest half are the riders fault and half the other drivers. So at least 2/3 are the riders fault, and you could say that if you get hit by a car you generally deserve it for not riding defensively. Sometimes we shouldn't shout too loudly - just give it the berries when nobody is watching.

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