Lower premiums on cards for ACC

By RICHARD BRADDELL

ACC is proposing premium reductions in excess of 20 per cent for many of its coverage categories.

Net average premiums in the employers' account for workplace accident insurance would fall 28 per cent from $1.11 per $100 of payroll to 80c, after taking account of proposed average safety discounts of 7c, up from 5c this year.

Meanwhile, the self-employed would pay an average premium of $1.30, down 21 per cent from $1.64 in the present year. The higher rate reflects riskier work categories such as construction.

ACC is also proposing a drop in the residual claims levy which covers the remaining cost of accidents that happened before 1999 when the corporation moved from a pay-as-you-go basis to full funding.

The levy would fall from 40c now to 31c per $100 of payroll.

In the earners' account, which covers non-workplace accidents, the composite rate, which includes a prior claims levy and GST, would drop from $1.30 to $1, with the prior claims portion down from 20c to 3c and the premium from 95.56c to 80c.

A 25 per cent drop in motor vehicle premiums will be mostly offset by a 26 per cent rise in the prior claim levy, giving an overall drop of 6 per cent to $124.65.

ACC is seeking comment on its proposed rates before making recommendations to the Government.