The Head of the Accident Compensation Corporation (ACC) was fired from his job on Monday because the ACC was in debt. The costs are more than the income.
Our ACC means that we cannot sue anyone who causes an accident. This is different from countries like the United States. In return for this, ACC pays the costs for doctors, physio-therapists and other health workers when people have an accident. This is to help people get back to work as soon as possible. Serious accidents cost ACC a great deal. There is the cost of long-term hospital care, perhaps a wheel chair and the cost of making changes to a home for someone in a wheelchair.
We all pay for this cost in our car registration fee and through our work. Some of our pay goes to ACC. A little money comes from petrol tax. The Minister of ACC, Nick Smith, would like to increase the petrol tax so that people who use more petrol pay more towards ACC. If you drive more, you have a greater chance of an accident.
Perhaps New Zealand’s ACC means that we take more risks than people in other countries. Many New Zealanders are involved in all kinds of sport, from traditional sports such as rugby, soccer, cycling, skiing, netball, cricket, and tennis to adventure sports like rafting, surfing, rock climbing, hang gliding and many other activities. Sometimes there are minor accidents like sprained ankles.
Sometimes accidents are more serious. ACC pays the costs of health care in all these cases.