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Choice Vital in Accident Insurance


Choice Vital in Accident Insurance

New Zealanders can be rightly aggrieved that they are forced to continue with a monopoly insurer and have no choice but to foot the bill, says Charlie Pedersen, Federated Farmers National Vice President.

"Giving motorists a "Claytons" choice of paying 22% more for ACC via an increased registration cost or an increased levy on fuel is disguising the real issue, Mr Pedersen said.

"If the Government is serious about reducing compliance costs then it is vital all New Zealanders are free to choose their accident insurer.

"As the memory of competition fades the lingering question for all New Zealanders is what will prevent ACC slipping back into old habits where it raised levies rather than tackling the cause of increased costs.

"If ACC is indeed serious about reducing the number of accidents and the associated costs, they need to adopt sound private sector discipline such as experience rating and incentives for individuals to reduce their claims.

"Federated Farmers believe that customer choice is the only effective brake on ACC overcharging," said Mr Pedersen.


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