ACC levies 2002-2003 3/9Lianne Dalziel Accident Insurance
ACC Levy Rates2002-2003
Questions and Answers
|Account||Current Rate||New Rate|
|Residual Claims Levy (average)||$0.35||$0.35|
|Motor Vehicle (standard vehicle)||$128.45||$141.10|
When do the rates take effect?
1 April 2002, except motor vehicle that commences 1 July 2002.
Why did the government not accept all of
Last year the Corporation announced an actuarial loss of $313
million. The government has adopted a precautionary approach because it is not
prepared to have ACC dip into its reserves again this year. The basis of a fully
funded scheme is to have reserves to meet the full costs of all claims. The
reserves must be built up to allow this to happen. If ACC is able to meet its
targets this year then the time required to build reserves will be reduced.
There is no increase in the employers levy - it remains the same.
With respect to the self-employed and the earners levy increase, these were in
line with the recommendations of the Department of Labour.
What is the difference between pay-as-you
go and full funding?
Under pay-as-you-go ACC collected levies to meet the costs of all
claims managed in that year. No reserves are required to fund the existing
Under full-funding ACC must collect the full cost, for the life of the claim,
for injuries that occur in the levy year. This requires ACC to establish
reserves to meet the future costs of current claims.
Do the levies include the expected impact
of changes in the range and scope of benefits contained in the Injury
Prevention, Rehabilitation and Compensation Act 2001?
Yes these changes have been taken into account.
What is the government doing to reduce the
cost and number of claims?
The government has worked with ACC to establish programmes to
encourage employers to improve their injury prevention and injury management.
The programmes include ACCWorkplace Safety Management Practices and
These measures along with the new health and safety legislation combine to
make our workplaces safer.
ACC is also working to reduce injuries on the road, in the home, on the
sports fields and in the community. ACC is also developing a New Zealand Injury
How can employers and self-employed people
find out their individual levy classification rates?
The new rates can be found on ACC's website www.acc.co.nz from Wednesday 5 December.