Proposed ACC changed aimed at affordability
Accident Compensation Corp. law changes will halve proposed levy increases, says its minister Nick Smith.
Wednesday, October 14th 2009, 1:55PM
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
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