National ACC Policy Gets the Big Tick
27 June 2002
National ACC Policy Gets the Big Tick from Manufacturers
“Returning to manufacturers the right to choose their accident insurer is a step in the right direction,” said John Walley, CEO of the Canterbury Manufacturers’ Association. “It makes sense to be able to ask a broker to consider accident insurance as part of a company’s overall risk management package. Manufacturers with good across-the-board safety practices and records should be able to reduce their ACC premiums.”
As a monopoly with government protection, ACC has been spared the pressure of competition and has not had to focus on gearing ACC costs to actual workplace safety performance. If competition with private insurers becomes a reality ACC will be forced to address its systems if it is to be a viable insurance option and that can only be to everyone’s benefit.
At present there is little incentive to improve particular workplace practice because ACC rates are based on industries rather than specific workplace safety performance. This fails to reward those workplaces that have invested in safety management and not given any incentive to slackers to improve. Competition can recognise the difference, rewarding or penalising as appropriate.
“Workplace safety is part of a good business,” explained Mr Walley, “and any policy which recognises and rewards this is to be welcomed.”