ACC - whither now ?

The current government announced in the first term its intention to reverse the present legislation that allowed the privatisation - it is interesting to look at the history of this legislation

Its Birth

In the early seventies , ACC was introduced . -- This scheme was revolutionary , a first in the world .
Twenty four hour accident cover for everybody , set benefits , and a no blame clause .

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

Its demise

In 1998 the wheel has turned full circle and ACC was opened up to private competition . As a basic reason for change the Government attempted to portray ACC as being out of control , but the truth of the matter was that the current levies were lower then than in the past . In fact they had so much money available that corporation staff were being paid huge bonuses if they are able to reduce number of claimants above the normal quota.

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 .

The rebirth

We believe that the current intention to return to the previous ACC is the correct course of action despite the protestation of the Insurance Companies that they wish to be compensated for setting up to administer a business which is essentially their prime function , insurance policies . Also despite the protestations of business who cite the vast savings that they have made by the privatisation .

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.

[Previous page-Bill 124-1] [Home page] [Top of page] [Next page]