Hon Dr Michael Cullen
Minister Responsible for Accident Insurance

November 27 2000
For Immediate Release Media Statement

ACC premiums on the way down - again

ACC premiums are on the way down again, almost a year after the Government introduced legislation to remove private insurers from work place accident insurance.

Accident Insurance Minister Dr Michael Cullen announced his plans today to lower the average risk weighted premiums.

Dr Cullen says an improvement in ACC’s injury prevention programmes and a commitment to getting people back to work earlier is behind the drop in premiums.

He says while ACC has recommended slightly lower premiums in most instances, as Minister he is obliged to ensure a prudential margin in the premium rates.

Residual claims levy
Currently 40 cents per $100 earnings
New Rate 35 cents per $100 earning
A reduction of 12.5%

Employers Premiums
Currently $1.16 per $100 earnings
New Rate .90 cents per $100 earning
A reduction of 22.4%

Private scheme rate $1.21 per $100 earnings
Reduction between new and private scheme rate 25.6%
Self Employed Premiums
Currently $1.64 per $100 earnings
New Rate $1.35 per $100 earnings
A reduction of 17%

Earners Premiums
Currently $1.30 per $100 earnings
New Rate $1.10 per $100 earnings
A reduction of 15%

Motor Vehicle Account
Currently ACC receives $132.20 from the registration of most wheel vehicles
New Rate $128.45
A reduction of 3%

The .2 cents per litre petrol levy will remain.

Dr Cullen says the changes will come into effect on 1 April 2001 (with the exception of the motor vehicle premium which comes into force on July 1 2001).
The second ACC legislation, the Injury Prevention and Rehabilitation Bill is expected to become law later next year.

ENDS

© Scoop Media