By Dan Satherley
From October next year, employers will be able to purchase accident insurance from providers other than ACC.
ACC Minister Nick Smith made the announcement this morning, saying it was about cutting costs and providing choice for employers.
"We are proposing giving employers who want it a choice of workplace accident cover for their workers from either ACC or a private insurer," says Dr Smith.
"The Government is committed to retaining our unique 24/7 no-fault system and workers' entitlements but wants to improve the incentives for safer workplaces, better rehabilitation and greater cost effectiveness."
He says private insurers will have to maintain existing minimum worker cover and entitlements, and adhere to minimum prudential standards for insurers.
There will also be a market regulator, a single claims lodgement unit and an independent disputes resolution service.
"'This policy is all about choice," says Dr Smith. "Employers and the self-employed will be able to continue with ACC or, if they wish, purchase insurance from another provider. These are not radical reforms.''
He insists they are not the first step towards privatising ACC.
"This is simply a decision to remove ACC's monopoly and allow employers the choice of obtaining work-related personal injury insurance from providers other than ACC.''
The Green Party has slammed the proposal, saying the only people who will benefit are "Australian insurance companies".
“Every accident victim deserves a fair go and this will not happen under a private insurance system," says MP Kevin Hague.
“This is essentially another proposed state-assets sale by John Key’s Government, as it allows for Australian insurance companies to take over parts of a public provider."
He says the Government "manufactured" a crisis in ACC in order to justify the changes, which have already been tried and failed in the 1990s.
"There was no financial crisis in ACC," says Mr Hague. "In 2009, when the 'crisis' was supposedly happening, ACC took in a billion dollars more than it spent on claims.”
Labour ACC spokesman Chris Hipkins says Kiwis will be paying more, and getting less in return.
"The only way the private insurance industry will make money from taking on ACC's role will be by reducing entitlement or increasing costs. Either way, Kiwis will lose."
He says Dr Smith the changes amount to "privatisation, pure and simple".
Labour will reverse the changes if it becomes the Government.
Submissions on the proposals can be made to the Department of Labour until July 15.
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