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New Zealand Government
November 30, 2000
Injury Prevention & Rehabilitation Bill Questions And
Answers
Press Release
Why
is this Bill needed?
IPR Bill is the second phase of the Government's commitment to building a
first class, fair and sustainable scheme for reducing personal injury which
upholds the unique principles of no-fault, 24 hour cover.
What
are the main differences to the current AI Act 1998?
Improved emphasis on injury prevention, improved management of injury-related
information, improved emphasis on rehabilitation, lump sum compensation for
permanent impairment, more flexibility in assessing weekly compensation for
loss of earnings, more flexible products for self-employed, a Code of ACC
claimants' rights.
What
happens to me if I was injured before this Bill becomes law?
You will continue to be covered by the current law. The Bill maintains
entitlements currently available and it contains transitional provisions to
make sure that people who received entitlements under previous Acts, and
remain eligible, continue to receive such entitlements.
Will
the Work Capacity Testing be changed?
The work capacity assessment procedure will be used as it was originally
intended - a rehabilitation tool rather than a means of removing a claimant's
entitlement to cover. Injured workers must first go through comprehensive,
monitored vocational rehabilitation before they are even considered for work
capacity testing.
Who
will be eligible for lump sum compensation?
People who suffer permanent impairment as a result of an injury. The intent
of this change is to provide fairer compensation for those who, through
impairment, suffer non-economic loss. This includes both physical impairment
and mental injury (caused by a physical injury or sexual abuse).
Lump sums will be available to claimants who sustain injuries after the Act’s
implementation date, and the assessment of impairment will be based only on
injuries that take place after the Act’s implementation date.
How
will people be assessed for lump sum compensation?
Assessment will be made using American Medical Association (AMA) guides
and/or other guides as may be specified in regulations and is based on what
is called "whole person impairment".
There will be a minimum payment of $2,500 and a maximum of $100,000.
The assessments will be calibrated so that more seriously injured claimants
receive proportionately more than less seriously injured claimants and the
assessment will take place when the claimant’s condition has stabilised, or
after 2 years, whichever occurs first.
Examples of indicative whole person impairment calculations:
Loss of ring finger 5% whole person impairment
Loss of index finger 11%
Loss of thumb – 22%
Loss of leg (above knee) 32%– 40%
Loss of arm 57% – 60%
Loss of hearing 35%
Loss of vision in one eye 24%
Loss of vision in both eyes 85%
How
much will lump sums cost?
Estimates from Treasury and the Department of Labour put the cost of lump sum
payments at around $60 million dollars fully funded costs per accident year,
across all accounts. This figure represents around 7 percent of the amount
spent on compensation during 1998/1999.
Can
I get a lump sum payment and weekly compensation?
Yes.
Will
ACC costs and premiums go up when the new Bill becomes law?
The cost of lump sums will be partially off set by the cessation of the
Independence Allowance and the cost will also be absorbed by more effective
rehabilitation. The Bill will not impact on the new lower ACC levies
announced this week and set to come into force next April.
When
is the Bill expected to become law?
The Bill will probably take 6 months to move through the House after its
introduction. Then it will be another 6 months before it comes into effect
because of the many regulations etc that will need to be changed.
Which
Select Committee is likely to consider the Bill?
The Minister's intention is that it will be referred to the Transport and
Industrial Relations Select Committee
How
do I make a submission?
You can contact the Select Committee Office to get them to send you a booklet
on making a submission- phone 04 471 9520 or fax 04 499 0486. Or you can go
to Parliament's website –
Long address:
www.clerk.parliament.govt.nz/publications/submission/contents.html
shorter address:
www.clerk.parliament.govt.nz Then go to Publications and Information, and
select 'Making a Submission to a Parliamentary Select Committee'
How
do I find out more information about the Bill
Further information is available on the following websites:
www.dol.govt.nz
www.executive.govt.nz/acc
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