The ACC is an insurer. Insurers don't put up with bad risks forever. Just because ACC is historically a social insurance scheme doesn't mean they can't ping you for costing too much. The WSE Scheme is about to happen. Find out what this could mean for your premiums.
- Background
- Partnership Programme
- Workplace Safety Management Practices Programme
- The Stick
- Workplace Safety Evaluation
Background
Go
back a few years - to 1999. The Nats brought back private
accident insurance despite Labour, who promised to re-introduce
ACC if they were re-elected. They were duly elected.
Despite employer protests, by June 2000 it was all change
again and back came ACC.
To show a bit of recognition to employer interests,
the new government permitted the introduction by ACC
of two incentive schemes, the Partnership Programme
for large employers and the Workplace Safety Management
Practices for small/medium employers. (More below).
While this was an incentive to have a safe work place,
the government was, and still remains ideologically
opposed to any form of reward based on actual claims
experience.
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Partnership
Programme
For employers
large enough to provide evidence of financial security,
safety systems in action, the ability to manage claims,
pay compensation and provide rehabilitation and, of
course the desire to take on the risk, ACC allows significant
reductions in premiums.
This is, of course, subject to an annual renewal, where
the above pre-requisites are re-confirmed by an application
and audit process.
Workplace
Safety Management Practices Programme
This is
the "baby brother" of the Partnership
Programme. The key differences are that ACC remains
the claims administrator and provider of compensation
and that the premium discounts are far smaller, between
10% and 20%, depending on the level of achievement.
Audits are required 2 yearly or can be annually if the
employer wishes to achieve a higher discount by progressing
to a higher level.
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The
Stick
Some
employers, (we understand some "household names"
may be among them), have been content to pay their
ACC premium and do very little else. Their claims experience
continues to worry the ACC and create anomalies that
other "good" employers are subsidising to
an unacceptable level.
We have done a bit of asking around and this is what is happening:
- A compliance tool has been developed, using 2 key elements
- Enabling legislation is already in place
- ACC Injury Prevention Consultants have been trained
- The WSE process has been mapped
- Poor performers (> 3 qualifying claims) will be targeted
- The criteria for which employers will be chosen use a combination of factors. Cost of claims is obviously one.
- Chosen employers will be required to work with ACC Injury Prevention Consultants to adopt safer systems.
- After a period under the IPC's assistance, a Panel at ACC will decide whether or not to apply a penalty premium loading of 50%
In summary, this is a sheepdog that can turn into a wolf at the end of the day.
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