By JAMES GARDINER
Big increases in ACC premiums under the renationalised workplace insurance scheme have confirmed the worst fears of some employers - though ACC says most are better off.
Six weeks after law changes restored the ACC monopoly and forced employers to cancel accident insurance policies with private companies, groups as diverse as childcare centres, farmers and electrical contractors have been hit by bills up to 56 per cent higher than they had been paying.
But ACC says its average premium is $1.16 per $100 of wages, compared with $1.21 for private insurers.
It estimates that 70 per cent of employers are going to pay less this year than last.
Accident Insurance Minister Michael Cullen estimates that, rather than increasing compliance costs as many employer groups had warned, the change would mean that employers' total bill for workplace insurance would fall by $25 million this year from about $462 million in the year to June 30.
But that is cold comfort for the losers in the shakeup - those who have been reassessed by ACC as posing a greater risk.
The Ao'ga Fa'a Samoa childcare centre in Ponsonby faces a $2000 increase in its premiums this year, despite a 16-year unblemished safety record.
Supervisor Jan Taouma said the premium had been 45c per $100 of wages under ACC in 1998, rose to 50c last year with private insurers and now, back under ACC, was 78c.
"We just cannot comprehend the changes - we're a non-profit organisation, and although ours is not a high-risk occupation, we will be hit very hard by the costs."
The centre is one of 1600 nationally which will together pay an additional $1.2 million in premiums, an average $750 each.
However, premiums for primary, secondary and special education schools have dropped to 20c per $100 of wages.
Federated Farmers says livestock farmers are paying ACC premiums for staff that are up to 35 per cent higher than under private insurers.
Jean Hamilton, a dairy farmer with one worker at Takanini in South Auckland, saw her premiums as an employer fall from $652 under ACC in 1998 to $422 last year with Farmers Mutual Group, a 35 per cent drop. Premiums for herself dropped 58 per cent from $1031 in 1998 to $428 with FMG.
This year, back under ACC, it will cost $666 for her employee and she does not know what her own earnings - and therefore her premium - will be.
"I actually preferred the private system. I had an accident and they [FMG] rang me and checked how I was. It actually seemed like they cared. I don't like being in a regimented system. I would much rather have a choice."
Federated Farmers' general policy manager, Gavin Forrest, said the premiums for the farmers themselves, as for most self-employed people, were much the same under the renationalised scheme, but the increase in rates for staff ranged from 21 per cent for farmers who had made claims to 35 per cent for those who had not.
ACC said the increase in the average market premium for livestock farmer employers was relatively slight.
Fruit, vegetable and crop growers had seen their average premiums fall from $1.93 per $100 of wages under the private scheme to $1.48 this year under ACC.
Marty Collins, owner of TS Bishop electrical contractors and engineers, of Penrose, said he was facing increased premiums of between $5000 and $10,000 this year for his 35 staff.
Mr Collins, president of the Auckland Electrical Contractors Association, said others in the industry faced similar increases.
"They all say that going from the private back to the public is costing them more money."
Meanwhile, many big employers appear to be opting for the self-insurance "partnership programme" ACC offers, which is designed for the country's 600 largest employers.
This enables them to escape up to 90 per cent of the premiums they would otherwise pay, but they have to meet criteria for preventing accidents and treating and rehabilitating injured staff at their own expense.
So far 126 businesses representing about 210,000 employees, or 20 per cent of the fulltime workforce, have become accredited.
ACC staff say more are joining every month.
- Additional reporting by Richard Braddell and Stacey Bodger
ACC fears come true
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