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

Gordon Campbell: On Labour Refusing To Lead A Progressive Drugs Policy

Once again, Labour has chosen not to use (a) its parliamentary majority and (b) the huge mandate it was given at the last election in order to (c) bring about progressive social change. Once again, Labour seems to regard its main purpose for being in power as being to keep National and Act out of power. Will Labour for instance, overhaul our out-dated, unsafe, and unjust laws on drugs? No, it will not... More>>

 

Agriculture: Government To Phase Out Live Exports By Sea

The Government has announced that the export of livestock by sea will cease following a transition period of up to two years, said Agriculture Minister Damien O’Connor. “At the heart of our decision is upholding New Zealand’s reputation for high ... More>>

ALSO:

Norman Gemmell: New Zealand’s New Housing Policy Is Really Just A New Tax Package — And It’s A Shambles

Norman Gemmell , Te Herenga Waka — Victoria University of Wellington Economists like to talk about “optimal policy instruments” — essentially, policies that achieve their objectives more effectively or efficiently than the alternatives, and ... More>>

Climate Change: Emissions Report Shows Urgent Action Needed

Every part of Government will need to take urgent action to bring down emissions, the Minister for Climate Change, James Shaw said today in response to the recent rise in New Zealand’s greenhouse emissions. The latest annual inventory of New ... More>>

ALSO:


Claire Breen: ACC’s Policy Of Not Covering Birth Injuries Is One More Sign The System Is Overdue For Reform

Claire Breen , University of Waikato Recent media coverage of women not being able to get treatment for birth injuries highlights yet another example of gender bias in healthcare in New Zealand. More>>

Police: Police Accept Findings Of IPCA Report Into Photographs Taken At Checkpoint

Police accept the findings of a report by the Independent Police Conduct Authority (IPCA) relating to photographs taken at a checkpoint in Northland. On November 16, 2019, Police set up a checkpoint down the road from a fight night event in Ruakaka ... More>>

ALSO:

Health: Drug-Testing Law To Be Made Permanent

Interim legislation that is already proving to keep people safer from drugs will be made permanent, Health Minister Andrew Little says. More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels