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ACC Outsourcing Collection Of Unpaid Premiums
ACC To Start Outsourcing Collection Of Unpaid Premiums
Starting this Monday (5 March) ACC will be outsourcing outstanding employer and self-employed premium collection to third party debt collection agencies.
Ninety five percent of employer and self-employed premiums have been paid, but a total of $67 million has yet to be collected for personal injury cover that has already been received.
“Under our legislation every New Zealander is entitled to ACC cover”, said ACC Chief Executive Garry Wilson.
ACC cover includes things like medical care, rehabilitation, emergency transport and weekly compensation.
“At the same time, people are obliged to pay their premiums for the range of cover they receive”, said Mr Wilson.
The outstanding premiums are 60 days plus overdue and are now past the allowed timeframe for payment. Reminders about the invoices have been sent. While ACC collects its own premiums, some of the overdue premium collection ($30m) will be out-sourced to Dun & Bradstreet NZ Ltd, Credit Consultants NZ Ltd and Baycorp Ltd.
“This is the next step in chasing the unpaid premiums and will initially involve request for payment in full”, said Mr Wilson.
The average outstanding debt for an employer is $560 and for self–employed it is $374.
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