ACC's recent performance has shown lower accident rates and better and quicker rehabilitation has reduced the scheme's overall costs.
These cost savings are reflected in the premium and levy rate reductions ACC are proposing for consultation.
ACC will be consulting on regulations for 2001/02 premiums for the following Accounts:
· Self-employed Work;
· Earners'; and
· Motor Vehicle.
Premiums will pay for the costs associated with injuries sustained during the premium year from 1 April 2001 to 31 March 2002.
ACC is keen to have public input on its pricing regulation proposals before it makes recommendations to the Minister for Accident Insurance. The ACC Board will make its recommendations in November 2000.
ACC invites premium payers to make submissions on the following proposed rates and regulations.
They are as follows:
The average premium be reduced by 28% to $0.80c per $100.00 of payroll (currently an average of $1.11).
With the inclusion of Workplace Safety Management Practices loading, the gross average premium be increased to $0.85c per $100.00 of payroll (currently an average of $1.16).
Self-employed Work Account
The average premium be reduced by 21% to $1.30 per $100.00 of liable earnings (currently an average of $1.64).
The combined premium and levy be reduced by 23% to $1.00 (G.S.T. inclusive) per $100.00 of earnings (currently at $1.30).
Motor Vehicle Account
The ACC portion of the annual motor vehicle licence fee be reduced by 6% to $124.65 per standard vehicle (currently $132.20).
This can be summarised as follows:
Account Current Proposed Current Proposed Proposed
2000/01 2001/02 2000/01 2001/02 Saving
Employers' $1.11 $0.80 6 6 28%
Self-employed Work $1.64 $1.30 6 6 21%
Earners' $0.96 $0.86 $0.20 $0.03 23%
Motor Vehicle $82.40 $62.00 $49.80 $62.65 6%
*All premiums and levies quoted are exclusive of G.S.T. (The Earners' Account rates have been rounded).
At the same time, ACC is also consulting on a proposed reduction in the Residual Claims Levy. This levy, collected by Inland Revenue, funds the ongoing costs of claims prior to 30 June 1999.
It is proposed that the average levy be reduced by 23% to $0.31 of $100.00 of payroll (currently an average of $0.40).
Full details of the premium rates have been set out in discussion papers (which include the proposed regulations).
Copies of the discussion papers and the actuarial assessments are available by contacting the ACC Business Service Centre on telephone 0800 222 776 or by writing to:
Premium and Levy Consultation, ACC, P.O. Box 242, Wellington.
Copies of the discussion papers are also available from ACC's web site: www.acc.co.nz
Submissions must be in writing and received by ACC on Thursday, the 26th day of October 2000, no later than 5.00 p.m.