9 March 2011

The ACC Futures Coalition has welcomed the Government’s decision to introduce the Accident Compensation Act 2001 Order 2011. This order allows ACC to pay the first week of weekly compensation to any eligible person injured in the 22 February earthquake, who will be on weekly compensation for more than a week, irrespective of whether they were at work when they were injured.

“The Government is to be commended for this move which means employers will not have to make the first week's payment as they would under normal circumstances and employees, who would not normally receive compensation for the first week for a non-work accident, will receive income compensation from 22 February”, said Hazel Armstrong, Coalition spokesperson.

“This is an important initiative,” said Ms. Armstrong,” which will make life easier for those who were injured during the earthquake. However, it is important to point out that an intervention like this by Government to respond to an extraordinary situation would probably not be possible if the Government’s plans for ACC are implemented.”

“If the Government proceeds with its plans to privatise the work account it would be difficult for them to require private insurers to pay above the scheme entitlements in this way. It can only do it because, as the Government, it can carry the risks associated with the decision rather than imposing them retrospectively on a private company, said Ms. Armstrong.

“This is a classic example of one of the founding principles of the scheme being applied”, said Ms. Armstrong. “Under the principle of community responsibility we all accept that the citizens of Christchurch need our help and support as a matter of national interest because their ability to contribute to the general welfare has been interrupted by their individual injury and loss. We don’t want to lose that ability in the future.”

ENDS

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