Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

ACC – cheaper and safer than private insurers

14 August 2000

ACC – cheaper and safer than private insurers

Employers and the self employed are paying $50 million dollars less this year for workplace accident insurance than they did under the private scheme and further reductions are likely with good safety management programmes says Accident Insurance Minister Dr Michael Cullen.

ACC's average workers' compensation premium after safety management discounts is $1.11 for every $100 of wages. That is 9 percent lower than the average $1.21 charged by the private market during 1999/2000. Dr Cullen says the average premium is lower in ten out of eleven overall industry categories.

Dr Cullen says employers now have three basic premium options with ACC.
 The standard premium, with discounts (10%, 15% and 20%) available for good health and safety management practices
 The partnership discount plan with average 37% or 43% discounts available for short term self-management, and
 The full self cover partnership plan with large discounts (up to 90%) in which employers take on more risk and fully manage the injury prevention and rehabilitation programmes.

By the end of the calender year, ACC expects that either the partnership or safety management programmes will cover 30 percent of all New Zealand workers.

Dr Cullen says at least 70 percent of employers have received lower premium rates from ACC and smaller employers have benefited most because most insurers had a minimum cost of establishing a relationship with an employer, regardless of size, whereas ACC levies are governed exclusively by liable earnings.



"On average, companies with $10 million liable earnings or more are more likely to have higher premiums under ACC, while those with $10 million liable earnings are likely to have a lower premium with ACC than they had with private insurers.

"We are dealing in average prices when there is a very large range in premiums – from 20c per $100 of wages, or 2 percent in teaching to around $8 or 8 percent for professional rugby and league players. Employers in high-risk industries can lower their own ACC premiums by introducing safety management practices and reducing the injury rate of their employees", said Dr Cullen.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Discussion Doc: National's Primary Sector Plans

Today National has released our third discussion document, this one on the primary sector. It showcases our positive and innovative approach to what is the backbone of our economy, Leader of the National Party Simon Bridges says. More>>

ALSO:

Govt Adopts Working Group Plan: Unions Welcome Film Industry Collective Bargaining

The announcement today by the Minister for Workplace Relations and Safety Iain Lees-Galloway, to support collective bargaining for those working in the film and screen industry, is welcomed. More>>

ALSO:

Greenpeace: New Oil Rig Arrives

A drill rig commissioned by oil giant OMV has arrived in New Zealand, a little over a year after the Government issued a ban on new oil and gas exploration permits... More>>

ALSO:

Proactive Non-Release: Housing Minister Says Unpublished Meeting 'Not A Secret'

Housing Minister Phil Twyford says an error from his office meant a meeting with another minister and the Auckland mayor was not included in his publicly released diaries. More>>

ALSO:

'Signalling Urgency': Auckland Council Declares Climate Emergency

“By unanimously voting to declare a climate emergency we are signalling the council’s intention to put climate change at the front and centre of our decision making,” says Mayor Phil Goff. More>>

ALSO:

Potential Disasters: Insurance Taskforce To Deal With Skyrocketing Premiums

Wellington Mayor Justin Lester said the group would look at how the insurance market was functioning amid massive premium increases, which have also led to claims the market is broken. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels