Up till that time work related accidents were covered by insurance companies under Employers' Indemnity Insurance . The premium levy was controlled by special government legislation . There was no cover after working hours and no cover for non workers . Every year , insurance companies complained that the scheme was too costly and their profits were being affected , and requested increases in levy rates .
Possibly this continual pressure may have contributed to the
introduction of ACC , who knows , but at the time the Government
advised that profit would form no part of ACC .
This scheme was put into effect and private insurance companies played no further part in accident insurance except of course where individuals required more cover than was offered by the scheme.
Like all schemes that are introduced there was some abuse of the provisions but overall the cover was adequate and indeed revolutionary extending as it did to sporting and leisure injuries suffered in non-work time. Companies were charged an ACC levy dependent on the assessment of risk of that particular industry
Insurance companies are now in receipt of all those extra millions , but those of us who remember the old Employers Indemnity days , or may have worked for insurance companies handling those type of claims , know who will benefit the most , and it will not be the claimant .
Despite all its faults , we believed that ACC should stay out of the hands of private enterprise . Whilst we ourselves would not be affected by any change , our children , grandchildren , and their children will . Grey Power urged the Government to think again but were ignored .
Of course there would have been savings as the Insurance companies vie with each other to obtain clients but what of the future when the same companies attempt to recoup their losses and increase their profits as they are no more philanthropic than their client companies.
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