Safety bonus as drivers face big ACC rises

Photo / Martin Sykes

Motorists and especially motorcyclists face hikes in accident compensation levies, but a carrot is being dangled at owners of safe, modern cars.

Average motor vehicle levies - gathered with registration fees and petrol tax - are likely to rise from $287 to $317.80 from next July, if proposed changes to ACC are adopted. If not, ACC wants to put them up to $417.28.

And because of a big increase in motorcycle injury claims, ACC wants to whack up the levies on motorbikes of all sizes.

Owners of petrol-driven motorcycles now pay ACC $252.69 in their registration fees. This will rise to $511.43 for mid-sized bikes and $745.77 for those over 600cc. Mopeds will go from $58.97 to $257.58. The rises would be less if the ACC changes proceed.

Auckland University Motorcycle Club president Stephen Dodge said motorcyclists were unlikely to take the changes lying down. He said some people would risk the $400 fine for riding an unregistered bike, as getting caught twice a year would be about equal to the cost of registration.

Mr Dodge accepts larger bikes are over-represented in crash statistics, but doesn't believe that's because they have larger-capacity engines.

"A 650cc bike of mine produces less power and torque than several 400cc and even some 250cc bikes."

But the news is not all bad for motorists.

Vehicles with higher safety ratings may qualify for discounts under the proposed ACC changes, but details have yet to be worked out.

The proposals are in a package of increases to ACC levies, cuts to claimant entitlements, and the extension of the deadline to fully fund the scheme's future costs.

Outlined yesterday by ACC Minister Nick Smith and board chairman John Judge, the package is designed to address what they portray as a crisis at ACC, brought on by rapidly increasing claim numbers and health costs and the effects of the recession.

Dr Smith has said ACC made a $4.8 billion loss in the last financial year on top of a $2.4 billion loss the year before.

But Labour's ACC spokesman, David Parker, said: "ACC's annual report shows that levy income last year was more than enough to cover the whole-of-life costs of the new claims made that year."

THE CHANGES
* Workers on nearly the average wage face likely annual increase of $345 in earner levy, plus $30 increase for car.
* But if proposed cuts to ACC not adopted, their earner levy will rise $515, and car levy $130

CUTS INCLUDE:
* End of free physiotherapy and the start of therapist charges likely to be $12-$27

AND PROPOSALS TO:
* End compensation for families of suicide cases
* Restrict further the compensation of criminals
* Reduce income-related compensation for casual and part-time workers