ACC levies 2002-2003 6/9Lianne Dalziel Accident Insurance
ACC Levy Rates 2002-2003 Self-Employed Work Account
At A Glance:
|Current Rate average 2001-2002 per $100 of payroll||New Average Rate 2002-2003||ACC
|Department of Labour Recommended Rate|
- Self-employed Work Account Levy meets the costs of all self-employed work injury claims from 1 July 1999.
- This levy has 2 components:
- an income-benefit portion to fund income-related benefits (weekly compensation) and
- a non-income benefit portion to fund non-income related benefits (independence allowance, medical treatment costs, social rehabilitation).
- 550 risk rated levy classes based on services provided or goods produced.
Each class has a levy rate used to determine the self-employed person payable
levy, based on liable earnings
Reasons for Increase
- Recent increases in claim frequencies and costs of managing claims mean the
average levy for 2002/03 will increase. The need to build reserves in this
account also impacts on the increased levy.
History of the Account
- The account is new (since 1999) and has limited historical evidence to draw
ACC CoverPlus Extra
- Allows self-employed some flexibility of cover for personal injuries.
- ACC standard cover injured self-employed who need weekly compensation
receive up to 80% of the previous year's liable earnings. This standard cover
may not suit people with fluctuating incomes eg, farmers.
- ACC CoverPlus Extra allows self-employed to agree, with ACC, the level of
weekly compensation they would receive if they were unable to work.
- ACC CoverPlus Extra up-take rate has significantly increased.