Chch earthquake excluded from ACC experience rating

ACC Minister Nick Smith is reassuring Christchurch employers that they won’t be penalised by ACC for injuries to their workers caused by the 22 February earthquake.

“Under ACC’s existing regulations, employers who had staff injured or killed in their workplace during the Christchurch earthquake of 22 February could have their Work Account levies increased as a result. This is unfair and that is why an exception needs to be made,” Dr Smith said.

“I will declare the Christchurch earthquake to be an ‘adverse event’ for the purposes of ACC experience rating. This means an employer’s experience rating will not be affected by injuries sustained directly from the earthquake –unless an employer contributed materially to an employee’s injuries.”

Under experience rating, which is due to be introduced on 1 April this year and is measured on a business’ claims history over three years, businesses may receive discounts or loadings on their workplace levies. The objective of experience rating is to provide a stronger financial incentive for employers to prevent injuries and to make ACC's levies fairer so low-risk employers don’t subsidise high-risk employers.

“Penalising employers in Christchurch for what was an exceptional and catastrophic event that was clearly beyond their control is wrong,” Dr Smith said. “By declaring the Christchurch earthquake an adverse event this will ensure that fairness and good sense will prevail when it comes to applying experience rating provisions to Christchurch employers.”