At Work Insurance To Make Sure Work-related Injuries Covered On 1 July: Proposal

  • Murray McCully
Accident Insurance

"The Government proposes that those employers who have failed to insure their employees with a commercial insurer for work-related injuries in time for 1 July be allocated to the new SOE insurer, At Work Insurance," ACC Minister Murray McCully said today.

"This means that in effect there will be a "do nothing" option for employers. However, employers who end up allocated to At Work rather than selecting an insurer may well be missing out on the benefits competition will bring, such as premiums that reflect the employer's focus on safety and rehabilitation.

"But allocation will ensure a smooth transition to the new regime and that all employees receive their entitlements in the event that they have a work-related accident and their employer has not purchased accident insurance," he said.

Consultation has begun on a proposed approach to addressing the issue of employers who have not purchased accident insurance in time for this market opening to commercial insurers on 1 July.

While self-employed people remain with ACC by default if they do not shop around for a commercial insurer, employers will not be able to stay with ACC after 1 July and must choose an insurer to cover their employees for work-related injuries.

"It is proposed that employers who have not purchased an accident insurance contract from an insurer of their choice by 25 June will be allocated to At Work. This allows the legal requirements of the Accident Insurance Act 1998 relating to issuing of an insurance certificate and provision of information to employees to be met by At Work and employers, " Mr McCully said.

"Those employers who are allocated to At Work will receive a transitional contract and it is proposed that this will be for a minimum of three months to allow for smooth transition. The contract will continue past that minimum unless other arrangements are made, for instance the employers moves to another commercial insurer.

"At Work will set the terms and condition of the policy, including the premium to be paid."

Submissions on the proposal close on 19 April.