on the Non-Compliers Fund Established
Under the Accident Insurance Act 1998
and Continued Under the Injury Prevention, Rehabilitation, and Compensation Act 2001
To: The Accident Compensation Corporation.
Background
The Non-Compliers Fund ("the fund") was established under the Accident Insurance Act 1998 ("the AI Act") in order to cover the cost of claims relating to the employees of employers who failed to take out accident insurance cover for work-related personal injury under that Act.
As well as administering the fund, the Regulator has the role of ensuring that where an employer failed to enter into, or maintain in force, an accident insurance contract, as required by the AI Act, any employee of that employer receives any statutory entitlements from the fund to which they are entitled.
With the return of the provision of workplace accident insurance to the Accident Compensation Corporation
("the corporation") and the winding down of the various roles of the Regulator under the AI Act, the Government has decided to transfer the role of the Regulator in relation to the fund to the corporation.
Under section 345 of the Injury Prevention, Rehabilitation, and Compensation Act 2001, the Minister for ACC may direct the corporation to assume the Regulator's role in relation to the fund.
The effect of such a direction is that the corporation assumes the role of the Regulator in all respects in relation to the fund and the Regulator has no further responsibilities in relation to the fund.
Under section 345 (4), the corporation and the Regulator must then enter into an agreement to achieve the effect of the direction.
Policy Direction
Pursuant to section 345 of the Injury Prevention, Rehabilitation, and Compensation Act 2001, I hereby direct:
? the corporation to assume the Regulator's role in relation to the fund; and
? that in administering the fund, the corporation must comply with the accounting requirements set out in section 277 of the Accident Insurance Act 1998, as that section applies to the fund.
This direction continues in force until it is revoked.
Dated at Wellington this 19th day of June 2002.
LIANNE DALZIEL, Minister for ACC.