Peter Ellis web site - Christchurch crèche case
	ACC Compensation for Sex Abuse - Index
	2004 Index
	The Press December 30 2004 Rise in ACC abuse payouts - One-off compensation for 800 by Anna Claridge The number of lump-sum payouts by the Accident Compensation Corporation (ACC) quadrupled in the past year, with more than 800 people given one-off compensation payments for injury or abuse. Nearly 50 people were given more than $100,000. Critics say the huge increase in lump-sum payments can be put down to a Government decision in April 2002 allowing sexual-abuse victims to receive one-off payments of up to $100,000. ACT MP Heather Roy said yesterday that the ACC was no longer acting as a "back-up" in case of injury. "ACC was meant to be a safety net," she said. "These lump sums change the incentive completely. It's a nice tidy sum and an attractive option for some people. "With sexual-abuse payments, you don't have to name the abuser or prove you have been abused. "If someone ... is plausible enough you can get a reasonably big payout. "(We have) no problem with victims being compensated, but it should be at a weekly rate to cover expenses. ACC was never meant to be a Lotto prize." The corporation was unavailable for comment yesterday but spokesman Fraser Folster has previously said: "ACC does not provide cover and entitlements for sexual abuse per se, but for mental injury arising from sexual abuse. "The diagnosis of mental injury is based on clinical medical evidence (such as) an X-ray indicating internal damage to organs or bones." The corporation uses accredited health providers to determine whether a claimant has suffered mental injury arising from sexual abuse. Figures show that at least 130 accident victims are receiving an annual salary of $95,000 a year through the ACC's weekly compensation scheme. Weekly compensation is paid at a rate of 80 per cent of the victim's wages before the accident. Roy said anyone earning more than $95,000 should be encouraged to take out income-protection insurance so that in the event of an accident the corporation is not forced to make such large weekly payments. In answer to written parliamentary questions, ACC Minister Ruth Dyson said the corporation paid weekly compensation to claimants who "are unable to work because of the injury for which ACC has accepted cover". "Weekly compensation for loss of earnings is paid at a rate of 80% of the claimant's weekly earnings prior to the commencement of their incapacity. "This calculation is prescribed in ACC legislation. "To be entitled to ongoing weekly compensation, claimants must provide ACC with regular medical certificates certifying their incapacity for work."