Self-Employed Work Account Premium Regulations 2000
ACC has recommended to the Minister for Accident Insurance that the average self-employed work premium be reduced by 16% from $1.85 to $1.56 per $100.00 of earnings.
Legislative Change
Parliament is currently considering a Bill designed to make changes to the competitive provision of accident insurance. This Bill, the Accident Insurance (Transitional Provisions) Bill, was introduced into Parliament before Christmas and it is expected it will become law by 1 April 2000.
For self-employed people, the Bill focuses on removing the ability of the self-employed to choose an insurer other than ACC from 1 April 2000. There will be no change for those self-employed people who remained with ACC. However, those who have chosen to be covered by a private insurer will be returned to ACC for cover from 1 July 2000.
Self-Employed Work Account Premium Rates
The Self-employed Work Account pays for the costs associated with the work related personal injuries of those self-employed people and private domestic workers who are insured with ACC.
The Accident Insurance Act 1998 requires that
self-employed work premiums be calculated on a full funded basis and are to include a competitive neutrality component. The Minister for Accident Insurance issued a policy direction on 13 December 1999, that the competitive neutrality portion is to be a nil amount.
As required by section 409 of the Act, ACC has completed consultation with premium payers, and has recommended the self-employed work account premiums to the Minister for Accident Insurance.
ACC recommended a 16% decrease in the average premium rate from $1.85 to $1.56 per $100.00 of liable earnings, G.S.T. exclusive, with the following components:
· An average income related benefit premium rate of $1.07 that has been calculated to provide funding for income related benefit costs (e.g. weekly compensation);
· An average non-income related benefit premium rate of $0.49. This has been calculated to provide funding for non-income related benefit costs
(e.g. independence allowance, medical treatment costs, rehabilitation benefits etc). These benefits are not related to the level of income earned by the injured person. Rather they are a uniform benefit per person.
Individual premiums for each classification will be
finalised and incorporated into draft regulations by the
Department of Labour.
A copy of the recommendation may be obtained by contacting the ACC Business Service Centre on telephone: 0800 222 776.