Minister needs educating on ACC
Education minister Nick Smith is not comparing apples with apples, when he claims a significant saving for schools and the Ministry of Education from the Government's ACC changes, Labour ACC spokesperson Ruth Dyson said.
"Mr Smith claims the education sector
will save $8.2 million when private insurers take over the
provision of workplace accident cover. He has deliberately
failed to account for four factors.
· He hasn't mentioned
the Ministry of Education's ACC rebate, which is due any
day.
· He hasn't mentioned the risk-sharing arrangement
with the new private insurer. Schools and the Ministry will
meet a significant part of each claim themselves. Just like
you car insurance, if you pay a large excess, your premium
is less. ACC offered full coverage.
· He hasn't mentioned
the increased number of Board of Trustee members who are now
registered as self-employed, and are not covered by the new
arrangements.
"The fourth factor is the advantage of being big. The Ministry of Education is the biggest employer in the country. Insurance companies are prepared to under-price to get the business. It is clear from the cases sent into my office that the cost of this under-pricing is being borne by small employers, who have until tomorrow to find an insurer," Ruth Dyson said.
Examples include:
1. An
Auckland commercial milk vendor. His ACC premium was $690pa.
His quotes from insurance companies range from $2,000 to
$2,500 - a 300 percent increase. He is having to lay off one
of his two drivers as a result.
2. A Gisborne
family-owned earth contracting business that employs 4
workers and has never had a work-related accident. Their ACC
premium was $5,300. Their insurance quote is $17,785.
3.
An Auckland wholesale butcher. His ACC cost was $17,000. His
new quotes range from $21,000 to $46,000.
4. A Marton
retailer. Employs one part-time staff member. ACC cost was
$56, the insurance quotes range from $238 to 281.
5. A
Wellington charity shop with one part-time worker. ACC
accident cover was $54.10. The lowest insurance quote is
$337 - a 600 percent increase.
"Once again National is looking after its big business buddies and loading additional costs onto small employers," Ruth Dyson concluded.