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Otago Daily Times
January 10, 2002

Calls from abuse victims flood ACC
NZPA Staff correspondent

Wellington: The Accident Compensation Corporation (ACC) has been flooded by calls from past sex abuse victims wrongly believing they can get lump sum compensation pay-outs.

More than 2000 people have called ACC since a Christchurch law firm sent out a million leaflets nationwide offering to help abuse victims get compensation pay-outs.

An ACC spokeswoman said the leaflet was "misleading the public" and "upsetting some people" because it stirred up bad memories.

Incorrect media reports that victims who lodged a claim after April 1 for previous abuse could get a $25,000 payment had compounded the problem.

The new Injury Prevention, Rehabilitation and Compensation Bill, which begins on that date, says a person who suffers mental injury "is not entitled to lump sum compensation . . . if the act last occurred before April 1".

The date is the marker for compensation, not when the claim is lodged.

However, someone who was sexually abused before that date could qualify for an independence allowance if they could show their life was impaired more than 10% by the abuse.

This allowance could be backdated to create a larger lump payment, but none of these entitlements were changed by the new law.

One senior ACC official said it was "predatory" for a lawyer to claim a 25% fee for such work when the claim would be lodged and assessed by independent counsellors and ACC.

That publicity over ACC entitlements might encourage false claims is also causing worries about a budget blow-out.

ACC has no way of weeding out those who are trying to make some money because of the publicity from the leaflet and those who are genuine until at least part of the claims process is completed.

Law firm spokesman Garry Wakefield said thousands of abuse victims did not receive their entitlements .

"I do not accept that the ACC go out and proactively advise people of their entitlement. Quite clearly there is evidence they don't," he said yesterday.