ACC is not an insurance scheme, it’s a virus. “No Fault” is absurd, and invitation to abuse. If ACC (with $12.8 billion gap between assets and liabilities) is the world’s best no-fault accident insurance scheme, then what would the worst look like?
Fact is, the whole white elephant was never truly sustainable -- it’s just a failed way to prop up the welfare system, the health system and to help massage unemployment figures.
It’s not an insurance scheme, it’s a virus. As Deborah Hill-Cone says, “The theory was that people had actually paid their premiums and so shouldn’t feel they were getting summat for nothing. Dinky idea, but as we now know [as if we didn’t already], the premiums do not cover the cost of the ACC scheme – so claimants are getting something for nothing. Actually.”
It’s not viable, it’s not an insurance scheme -- it’s just another failed welfare state experiment and, like all failed welfare state experiments, it can’t be repaired, it needs to be taken out and shot. Richard McGrath says it better than I could:
“In the wake of catastrophic multi-billion dollar losses, ACC should be put into liquidation, and the accident insurance market privatised,” said Libertarianz leader Richard McGrath.
“Proposed rises in the ACC levy of 50% or more are outrageous. The National Party said before the last election they would give New Zealanders tax relief. But self-employed people now face a 1.5% increase in taxation on their income, thanks to ACC’s ability to coerce people into buying their insurance at whatever price ACC sets - a privilege not granted to private insurers.”
Richard McGrath said his party advocates the dissolution of ACC to allow New Zealanders to choose their own accident insurance provider. “Competition in this market will weed out the incompetent players such as ACC, and remove political influence on insurance providers.”
“The National Party obviously has no qualms about raising taxes, despite their rhetoric during the last election campaign.”