Risk rating
The bill departs from ACC’s founding principles by introducing further
risk rating. This undermines the principle that in society we are
all interdependent. Office workers use desks made of timber logged
and milled by workers in more dangerous occupations. We all share
the benefits of each other’s efforts and so should share some of the
risks.
Further cutting and dicing of risk comes at an administrative cost. If
privatisation follows, it will also leave the smaller and often riskier
businesses paying higher levies than those who have the systems and
can afford the administrative costs of proving their lower claims cost
to private insurers. This change would predominantly benefit larger
employers and would over time cost smaller New Zealand businesses
more.
Submitters also said it leads to pressure on injured workers to return
to work prematurely and to disputes about whether an accident is
work-related or outside work. The literature also suggests it leads
to discriminatory employment practices, where previously injured
workers would find it even harder to get work.
If the outcome were lower accident rates or better rehabilitation outcomes,
then we could understand the motivation for it. However of-
ficials advised us there is no clear evidence that this has been the case
overseas, and that research in New Zealand has yet to be carried out.
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