This week marks the 50th anniversary of ACC (Accident Compensation Corporation), a New Zealand organization that provides comprehensive, no-fault injury cover. However, the milestone has sparked debate about the need for change within the system.
ACC was established in the 1970s, following a royal commission investigation led by Supreme court judge Sir Owen Woodhouse. The investigation was prompted by workers’ dissatisfaction with inadequate compensation for work-related injuries. The original 1973 Act covered work injuries and car accidents, and an amendment the following year expanded its coverage.
Over the years, the number of claims handled by ACC has increased dramatically, from a few hundred civil disputes and about 5,000 workers’ compensation claims per year to approximately 2 million claims annually. The scope of coverage has also broadened to include sports injuries and sensitive claims, such as abuse in care.
However, critics argue that the system has significant gaps, with only about one percent of sensitive claims receiving compensation. Lawyer and ACC researcher Warren Forster acknowledges that while the ACC system is one of the best globally, it does not work in all cases and fails to provide justice for many.
Don Rennie, a legal consultant to the original ACC, criticizes the current organization, comparing it unfavorably to large insurance companies. He believes that the ACC’s transformation from a commission to a corporation in 1982 led to a shift in focus from the needs of the injured to financial concerns.
ACC chief executive Megan Main disagrees, stating that despite changes over the years, the organization’s original purpose of helping people remains. She acknowledges the need for improvements, particularly as the increasing number of claims puts pressure on rehabilitation facilitators. However, she also celebrates ACC’s unique comprehensive, no-fault injury cover, which is unmatched by any other country.
Main also supports the government’s public service cuts and plans to reduce ACC’s budget by 6.5%. She assures that these cuts will not affect customer-facing staff and will be aimed at eliminating duplication and unnecessary projects.
