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ACC A Monstrous Failure - ACT

New Zealand's accident compensation scheme of the last 25 years has been a monstrous failure. ACC costs exploded from 0.8% of GDP in 1984 to 1.8% of GDP today while our safety and healthcare has worsened. ACC is inflexible and wasteful. Too often the result is that those in genuine need miss out.

ACT was the driving force behind the introduction of choice in workplace insurance - without ACT, National wouldn't have done it. ACT will provide greater security to New Zealanders by allowing everyone to choose their own accident insurance cover.

ACT's goals · To reduce accidents and have safer workplaces

· To allow full choice and competition in accident insurance

· To minimise the burden on the community of financing accident insurance

· To ensure a safety net is in place for hardship cases

ACT believes

· Governments should not own insurance companies; doing so undermines competition, puts taxpayers at risk and makes customers vulnerable to changes in political opinion about what the state should provide

· The role of Government should be limited to watch-dog and provider of a safety net for those that need it

· It is more important that everyone has the security of accident insurance than who provides it

· Only customer choice can ensure that premiums give value for money. The reductions in premiums for most companies after the employers' account was opened up to competition proves this

· There should continue to be a general safety net for hardship cases

ACT will

· Provide greater security to New Zealanders by allowing everyone to choose their own accident insurance cover

· Restore choice to accident insurance. Only ACT says that everyone should have the same right to choose their insurer as employers now have

· Maintain a safety net for those who need it

· Remove the monopoly on existing schemes as soon as possible

· End government ownership of accident insurers and managers, after a short transitional period

· Tender the management of the 'tail' of existing claims, so as to reduce taxpayer risk and get people back to work faster

· Fund the 'tail' of existing claims from general taxation

· Ensure that commitments to those who are already injured are honoured

ENDS


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