Accident Compensation Commission: A brief History

Before ACC was in place, New Zealand created in 1900 a ‘No Fault’ system, this was called
‘The Workers Compensation Act. This act was one of the first compensation acts in the
world of its kind. It was in place till 1974 and was slightly changed in this period, several
times. This act only covered injured workers, Therefor in 1928, the government introduced
the Motor Vehicle Insurence Act. This act was compulsory and compensated people who
were injured by accidents on the road.

In 1967, the foundation of ACC was put in place, this after workers getting frustrated, the
weekly compensation payments were not high enough, to survive, when they could not
work after an injury. Therefof the commision created the ‘Woodhouse report’. This report is
called the foundation of ACC. This report recommended a full new accident compensation
programme. This report layed out the way funding had to happen for all different
compensations. Such as all motor vehicle owners had to pay a levy, to fund motor vehicle
injuries; A levy for employers and self-employed people, to pay for all injuries that happen
at work or outside of work. This sceme was based on five main principles, community
responsibility, comprehensive entitlement, complete rehabilitation, real compensation and
administrative efficiency.

1972, The accident Compensation Act passed parliament, fully based on the Woodhouse
Report. Since then all injuries to employees and motor vehicle injuries were covered.

In 1973, the labour Government added an amendment to the Act, that would provide also
cover for student, people who weren’t working and visitors to new Zealand. This
amendment existed out of three schemes.
 The Earner’s scheme, levies pid by employers and self employed people
 Motor Vehicle Accident Scheme, Levies paid by Motor Vehicle owners
 Supplementary Scheme, Govenment funded Scheme for all other compensations

April 1974, was the year where Government established the Accident Compensation
Commision (ACC), This commision had as main repsonsiblity to manage all compensation
programmes.

In 1979, government had growing concerns about the overall cost of ACC and employers
were complaining, they had to pay aslo for non-work injuries. Therefor government created
a cabinat caucus committee.

1982, parliament changed the Accident Compensation Act based on the outcome of the
committee in 1979. No changes where put in place for payments to non-related work
injuries. Changes that occured were:
 Injured person pays part of first medical costs
 Lowered the cost, employers had to pay for employees for the first week after work
related injury
 All three schemes were put in one single scheme, same levies used to fund the single
scheme
Between 1986 and 1987 several govenment officials formed a commitee to review the act.
The report was been published at the end of 1987. Nevertheless The Govenment asked the
law commision to make their own review in 1988.

1990, The government changed to a national government. After demands from the
employees, to stop paying for non-work related injuries, the national gevernment
established their own commision to review the scheme. The reviews outcome showed that
the toatal costs could be reduced, by introducing private companies to provide insurances.

In 1992, the govenment introduced a new act called the Accident Rehabilitation and
Compesation Insurance Act. Nevertheless, this act changed again in 1996 and was even
cancelled in 1998 and replaced by a new act ‘Accident insurance Act’ by the national
governement. This act allowed private insurance for work related injuries, aimed to make
workplaces safer, reduced the cost of ACC to the public and changed all the schemes back to
one funded system.

In 2000 and 2001 The parliament agreed about two act where ACC would gain again the
only provider of accident insurances and where private insurances where stopped.

Between 2005 and 2008, parliament putted a new amendment act in place and later in this
period changed the act to version 2. The Act called ‘Injury Prevention, Rehabilitation, and
Compensation Act, replaced medical misadventure with treatment injury, changed the way
weekly compensation payments were calulated and covered all mental injuries caused by
sexual violance.

Finally in March 2010, parliament passed, the Accident Compensation Amendment Act, into
law. This act aimed to contain costs, improve flexibility and aimed for better working
relationship beween different government agencies, such as Inland Revenue.

[ CITATION ACC181 \l 2067 ]

[ CITATION StJ10 \l 2067 ]
[ CITATION Gra95 \l 2067 ]

References
ACC. (2018, December 12). Our History. Retrieved from ACC: https://www.acc.co.nz/about-
us/who-we-are/our-history/
Duncan, G. (1995). Accident Compensation - 1995 and still languishing. New Zealand Journal
of industrial relations , 17.
St John, S. (2010, 02 01). ACC: the lessons from history. 7.