ACC will be consulting on regulations for the 2002/03 premiums and levies for the following Accounts:
? Employers';
? Self-employed Work;
? Earners';
? Motor Vehicle; and
? Residual Claims.
Premiums will pay for the costs associated with injuries sustained during the period 1 April 2002 to 31 March 2003. Levies will fund the ongoing costs of injuries that occurred before 1 July 1999.
ACC is keen to have public input on its pricing proposals before it makes recommendations to the Minister for Accident Insurance in October 2001.
ACC would like to invite premium payers to make submissions on the following proposed rates and regulations which also includes the funding requirements for the increased range and scope of entitlements incorporated in the Injury Prevention, and Rehabilitation Bill (Bill). They are as follows:
Employers' Account
The net average premium is proposed to reduce by 11% to $0.76c per $100.00 of payroll (currently an average of $0.85c).
ACC is able to propose a reduction in workers' compensation because:
? workplace injuries are down;
? rehabilitation is working well; and
? the tail of long term claimants has reduced.
This reduction reflects ACC's success in increasing the emphasis on workplace safety practices. Changes in the scope and range of entitlements incorporated within the Bill are included in this rate.
Self-employed Work Account
The average premium is proposed to increase by 25% to $1.69 per $100.00 of liable earnings (currently an average of $1.35). The increases reflect the recent increases in the number of self-employed injuries and the costs of managing these claims. Changes in the scope and range of entitlements incorporated within the Bill also included in this rate.
Earners' Account
It is proposed that the combined earner premium and levy remain at $1.10 (G.S.T. inclusive) per $100.00 of earnings.
Changes in the scope and range of entitlements incorporated within the Bill are also included in this rate.
Motor Vehicle Account
The ACC portion of the annual motor vehicle licence fee is proposed to increase by 13% to $145.00 per standard vehicle (currently $128.45). This increase is due to the increased number and costs of motor vehicle injuries and the additional changes in entitlements in the Bill.
The ACC Board is also proposing that:
? certain previously exempt vehicles (i.e. ambulances, fire service vehicles and hearses) be charged a premium for 2002/03;
? non-petrol powered vehicles (e.g. diesel vehicles) pay an additional premium equivalent to the petrol excise duty currently paid by users of petrol powered vehicles; and
? motor cycle premium differential be increased from 105% to 150% of the standard vehicle rate to reflect the higher costs of injuries to motorcyclists.
Residual Claims Account
This levy funds the ongoing costs of injuries that occurred prior to 1 July 1999. It is proposed that the average residual claim levy remains at $0.35c per $100 of earnings.
Changes in the scope and range of entitlements incorporated in the Bill have minimal impact on this Account.
Summary
The proposals can be summarised as follows:
Premium Levy
Account Current Proposed Current Proposed Proposed
2001/02 2002/03 2001/02 2002/03 Changes
Employers' $0.85 $0.76 ? ? -11%
Self-employed Work $1.35 $1.69 ? ? +25%
Earners' $0.93 $0.95 $0.05 $0.03 0%
Motor Vehicle $65.80 $79.00 $62.65 $66.00 +13%
Residual Claims ? ? $0.35 $0.35 0%
*All premiums and levies quoted are exclusive of G.S.T. (The Earners' Account rates have been rounded).
Full details of the premium and levy 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 ACC on telephone (04) 918 7923, email consultation@acc.co.nz 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 no later than 5.00 p.m. on Thursday, 20 September 2001.
ACC Consultation Briefings
ACC is also hosting a series of briefings on the proposed rates. All premium payers are welcomed to attend. The venues and dates for these briefings are as follows:
AUCKLAND - Albany
Date: Thursday, 23 August 2001
Time: 9.00 a.m. to 10.30 a.m.
Venue: North Shore Events Centre, Silverfield (off Porana Road), Glenfield.
AUCKLAND - Manukau
Date: Friday, 24 August 2001
Time: 9.00 a.m. to 10.30 a.m.
Venue: Lakeside Convention Centre, Montgomerie Road, Airport Oaks, Auckland International Airport.
HAMILTON
Date: Monday, 27 August 2001
Time: 9.00 a.m. to 10.30 a.m.
Venue: Novotel Tainui, 7 Alama Street.
WELLINGTON
Date: Thursday, 23 August 2001
Time: 9.00 a.m. to 10.30 a.m.
Venue: James Cook Centra / Hotel Grand Chancellor, 153 The Terrace.
CHRISTCHURCH
Date: Friday, 24 August 2001
Time: 9.00 a.m. to 10.30 a.m.
Venue: Rydges Hotel, corner of Oxford Terrace and Worcester Street.
DUNEDIN
Date: Monday, 27 August 2001
Time: 9.00 a.m. to 10.30 a.m.
Venue: Southern Cross Hotel, corner of Princes and High Streets.