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Dominion Post
April 28 2003

Claims for sex abuse soaring
by Fran Tyler

Floodgates are set to open on thousands of compensation claims for alleged sex abuse that could each cost ACC up to $100,000.

More than 12,000 people have lodged "sensitive claims" – for sexual abuse – in the past two years in a flurry of claims that began after publicity the Government was reintroducing lump-sum payments.

As many as 5744 of those – claims accepted since 2002 – might be considered for lump-sum compensation worth up to $100,000, regardless of whether police had investigated the alleged assaults.

In 2001, Christchurch law firm Wakefield Associates sent out fliers about the then-planned law change. By February 2002 the number of claims had increased five-fold – from an average of 100 a week to 500.

The scheme came into effect with the introduction of the Injury Prevention and Rehabilitation and Compensation Act on April 1, 2002.

No one has so far received the bulk payment, but five have cleared the obstacles to be considered. And for thousands of others it might now just be a matter of time.

The lump-sum payments are only considered once a claimant's condition has stabilised – when ACC has evidence that the injury will not improve in the following 12 months, with or without treatment.

Claimants had to undergo counselling and treatment before they could be assessed for lump-sum compensation. And the time is ticking down for other claimants who refused treatment, who have a two-year wait before ACC will assess their claims.

ACT NZ, which opposed the scheme at the time, said yesterday the increase in claims and potential for lump-sum payouts should be a concern.

"While the majority of cases will undoubtedly be genuine, it's far too easy for the small number of people who want to abuse the system, to do so," ACT MP Muriel Newman said.

"It's an open-ended opportunity for people who want to gain rewards through foul means."

ACC did not require claimants to name those who perpetrated the abuse and this allowed offenders to walk free, Dr Newman said.

Compensation for sexual abuse should be the result of a criminal prosecution, not administered by "bureaucrats and administrators" who might make the wrong decisions.

It should not be the role of ACC, which was funded by employers, employees and motorists, to compensate victims of crime, she said.

Any lump-sum compensation should be reparation from the perpetrators of the crime, not from employers and employees, she said.

ACC spokesman Fraser Folster said the five applicants already seeking lump sums had been deferred because the claimant's conditions had not stabilised – they are still in treatment, or their doctor has not yet certified the stability or permanency of their conditions.

More than 1000 of the 6779 people who claimed since April 1, 2002, have had their claims declined.

Prior to the announcement of the re-introduction of lump-sum payments the number of claims had steadily been declining.

The lump-sum payouts are only available to people who suffered abuse after April 1, 2002