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ACC Compensation for Sex Abuse - Index

 

2004 Index 

 




Otago Daily Times
June 11, 2004

ACC claimants paid $73,000 pa Payouts for sexual abuse soar
by Kevin Norquay of NZPA

Wellington: Some sexual abuse claimants are getting up to $1418 a week in compensation from ACC, or a gross annual income of $73,000.

Two claimants receive compensation of $1418 each week, official figures show, while 10 ACC sexual abuse claimants are on more than $60,500 a year .

One sexual abuse claimant had a payment of $153,077 in backdated compensation approved by ACC, answers to written parliamentary questions by Act New Zealand MP Heather Roy showed.

Another was compensated $100,002 in backdated weekly payments, while nine backdated compensation payments have topped $40,000 since 2000.

Weekly compensation payments were based on 80% of a claimant's taxable liable earnings, ACC spokesman Fraser Folster told NZPA.

Those figures indicate those drawing the top two compensation amounts - which are GST exclusive and pre-tax - once held down jobs paying $92,000 a year.

"ACC does not provide cover and entitlements for sexual abuse per se, but for mental injury arising from sexual abuse," Mr Folster said.

"The diagnosis of mental injury is based on clinical medical evidence [such as] an X-ray indicating internal damage to organs or bones."

ACC used accredited health providers to determine whether a claimant had suffered a mental injury arising from sexual abuse, he said.

Mrs Roy said it was hard to believe somebody suffering severe mental injury resulting from sexual abuse could have held down a high-paying job.

"You have to be functioning at a pretty high level to earn that sort of money, and to be suddenly struck down is hard to comprehend," she said.

"That's not to say it doesn't happen, I'm sure it does. The real crux of the matter is people no longer have to prove that they were sexually abused."

ACC annual payouts to sex abuse claimants have soared by more than $9 million in the past three years.

ACC paid out $27,231,652 to claimants in the year ending last October, compared with $17,951,300 for the same period in 2001.

Mr Folster would not provide general background about those topping the compensation payment lists, citing privacy considerations.

People who suffer mental injury from sexual abuse came from "every segment or demographic" of society, he said.

Claimants would move off the lists when clinically diagnosed as having returned to independence or work-readiness, Mr Folster said.

In April 2002, the Government introduced lump sum payments of up to $100,000 for sex abuse claims, prompting predictions from Opposition MPs that costs would rise.

At the time, a Christchurch law firm launched a campaign to attract new ACC clients.

Backdated payments were not lump sums, Mr Folster said. They were an aggregation of either backdated payments of individual weekly compensation, or backdated payments of individual quarterly paid independence allowance amounts.

Lump sums can be paid to claimants suffering sexual abuse-related mental injury once the mental injuries have stabilised, he said.