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New Zealand Government
November 30, 2000
A Short History Of ACC
Press Release
1967- Woodhouse Report recommends comprehensive 24 hour
cover, no fault scheme for compensation of personal injury. Benefits to
relate to earnings. Workers' compensation system dismantled and the right to
sue for damages removed.
1972 Accident Compensation Act establishes Earners' & Motor Vehicle
Accident Schemes. Accident Compensation Commission established to administer
both schemes.
1973 - Accident Compensation Amendment Act (No 2) extends coverage of principal
Act to all persons not covered by the two existing schemes.
1974 - Accident Compensation Commission up and running.
1979 - Government Committee set up to review the Act since 1974, chaired by
Derek Quigley MP.
1982 Accident Compensation Act:
pay-as-you-go funding
employers' obligations drops from 100%
to 80% for first week following a work accident.
1991 - Budget night announcement "ACC - A Fairer Scheme".
1992 Accident Rehabilitation and Compensation Insurance Act:
scheme separated into different
accounts ;
earners premium introduced;
experience rating discounts and
loadings for employers;
entitlements specified in regulations;
weekly compensation calculation
specified;
lump sum entitlements replaced by
Independence Allowance;
Accident Compensation Appeal Authority
scrapped - District Court takes over its role
1992 – 1995: various minor amendments to 1992 Act made.
(1995/96 employer premiums = $2.18 per $100 wages or salary)
1996 Accident Rehabilitation and Compensation Insurance Amendment Act (No 2)
1996
(1996/97 employer premiums = $2.55)
independence allowance assessed using
the AMA Guides
rates increased
Work Capacity Assessment Procedure;
ACC now able to purchase health and
rehabilitation services;
some minor changes to the calculation
of weekly compensation;
changes to rehabilitation allowing
flexibility and discretion.
1998 Accident Insurance Act
(1997/98 ACC employer premiums = $2.67)
Employers Account now managed by
private insurers. ACC not allowed in this market. Self employed allowed to
choose to stay with ACC;
Office of the Accident Insurance
Regulator established to oversee the private market;
ACC split into business units
all accounts (excluding non earners)
moved back to full funding;
objectives of rehabilitation changed
1999 Accident Insurance Amendment Act and Accident Insurance (Transitional
Provisions) Acts: (1998/99 Employer premiums = $1.42- 1999/2000private market
employer premiums = $1.21)
restored ACC as the sole provider of
workplace accident insurance;
provided the framework for ACC to
introduce the Partnership Plan and the Safety Management Practices products.
2000 Injury Prevention and Rehabilitation Bill introduced
(2000/01 employer premiums = $1.16)
2001 (2001/02 employer premiums = .90 c)
(please note- because ACC is so incredibly complicated these rates can change
with interpretation!)
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