ACC levies 2002-2003 6/9

Lianne 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
Recommended Rate		 Department of Labour Recommended Rate
$1.35 $1.75 $1.69 $1.70
- $1.80

General

  • 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
    on.

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.