Accident Compensation Corporation
The Accident Compensation Corporation (ACC) (Maori. Te Kaporeihana Awhina Hunga Whara ) is a New Zealand Crown entity responsible for administering the country's universal no-fault accidental injury scheme. The scheme provides financial compensation and support to citizens, residents, and temporary visitors who have suffered personal injuries.
Features [ edit ]
ACC is the sole and compulsory provider of accident insurance for all work and non-work injuries. The ACC Scheme is administered on a no-fault basis, so that anyone regardless of the way in which they incurred an injury, is eligible for coverage under the Scheme. Due to the Scheme's no-fault basis, people who have suffered personal injury do not have the right to sue an at-fault party, except for exemplary damages. [ 2 ]
The ACC Scheme provides a range of entitlements to injured people, however 93.5 percent of new claims in 2011-12 were for treatment costs only. Other entitlements include weekly compensation for lost earnings (paid at a rate of 80% of a person's pre-injury earnings) and the cost of home or vehicle modifications for the seriously injured. The entitlements offered by the Scheme are subject to various eligibility criteria.
Initially ACC was not available to veterans, as the scheme was not introduced until 1974 and was not retrospective. However ACC law specialist John Miller claims a 1992 law change did make the scheme retrospective. [ 3 ] Full funding of historic claims is due to come into effect in 2014. [ 4 ]
History [ edit ]
ACC is rooted in the 1900 "Worker's Compensation Act", which established a limited compensation scheme for workers who had
suffered injuries where there was no directly responsible party. In 1967, a Royal Commission. chaired by High Court judge Owen Woodhouse. recommended that this compensation should be extended to all injuries on a no-fault basis. Following this report, on 1 April 1974 the Accident Compensation Commission was established, to implement the requirements of the 1972 Accident Compensation Act, and the 1973 Amendments. The Act was later replaced by the Injury Prevention, Rehabilitation and Compensation Act 2001, which was renamed the Accident Compensation Act 2001 in 2010. The Annual Report (1989/90) of the Accident Compensation Commission [ 5 ] proposed that the distinction between "accidents" (which is covered [ 6 ] ) and "illness" (which is not) should be dropped. But this proposal was not taken up. In 1992 the Accident Compensation Commission changed its name to the "Accident Compensation Corporation".
From 1 July 1999 the Fourth National government allowed private insurance operators to provide work-related accident insurance, and ACC was briefly exposed to competition. Following the election of the Fifth Labour government in November 1999, this change was repealed, and as of 1 July 2000, ACC was re-instated as the sole provider of accident insurance coverage.
Administration of levies [ edit ]
ACC is funded through a combination of levies and government contributions. Income collected from each source goes into predetermined account based on the source. Costs relating to an injury are paid from one of these accounts based on the type and cause of the injury.
The four main accounts are: Work, Earners, Non-Earners, and Motor Vehicle. There is also a fifth account, Treatment Injury (formerly Medical Misadventure) that draws on both the Earners and Non-Earners account. [ 7 ]