ACC rate drop cold comfort for some

By RICHARD BRADDELL

WELLINGTON - The self-employed will pay much more for workplace accident insurance than their employee counterparts, despite cabinet approval for an 11 per cent reduction in their levy.

The Government said yesterday that the average self-employed rate would drop from $1.85 a $100 of earnings to $1.64.

While the rate is still well ahead of the $1.16 average set for the earners' account when ACC's workplace insurance monopoly is reinstated on July 1, the Government justifies the difference on the basis that many of the self-employed are in high-risk occupations such as fishing, construction, forestry and farming.

Legislation confirming the end of privatised workplace accident insurance was passed two weeks ago after strong protests from employers and insurance companies. All workers will be covered by ACC from July 1.

While the self-employed had the option of going private or staying with ACC in the privatised market, few took advantage of the private market to negotiate more favourable terms.

The new ACC regime will give the self-employed access to improved benefits. In addition to compensatin for their own loss of earnings, the self-employed will also be able to insure the cost of replacement labour.

Proposals for the structure of the new accredited employers' scheme, which will enable some employers to manage aspects of workplace insurance, will be considered by the cabinet on April 10.