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Accident Compensation Act 2001

Management of the Scheme - Financial management

166A: Principles of financial responsibility in relation to Accounts

You could also call this:

“Rules for keeping ACC's money fair and steady”

ACC has special accounts for different types of injuries. These accounts need to have enough money to pay for all the claims people make. This is called being ‘fully funded’.

When the Minister makes rules about how much money people need to pay into these accounts (called levies), they need to think about a few important things:

The money collected for each account should be enough to pay for all the costs of injuries that happen in a year, for as long as those injuries need treatment.

If an account doesn’t have enough money to pay for all the claims, or if it has too much money, the Minister should change how much people pay in the next year or years to fix this.

The Minister should try not to make big changes to how much people have to pay all at once.

These rules help make sure that ACC has enough money to help people when they get hurt, without asking people to pay too much or too little.

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166: Separate Accounts, or

"ACC keeps different accounts for different types of injuries and claims"

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166B: Funding policy statement, or

"The Minister must write a plan about money for accident insurance"

Part 6 Management of the Scheme
Financial management

166APrinciples of financial responsibility in relation to Accounts

  1. The cost of all claims under the levied Accounts are to be fully funded by meeting the outstanding claims liability in respect of the claims by offsetting an adequate level of assets to fund the cost of those claims.

  2. When making recommendations in respect of regulations made under section 329 setting levies, the Minister must have regard to the following principles:

  3. the levies derived for each Account should meet the lifetime cost of claims in relation to injuries that occur in a particular year:
    1. if an Account has a deficit of funds to meet the costs described in subsection (1), or has accumulated surplus funds, that deficit or surplus should be corrected by the setting of levies at an appropriate rate for a subsequent year or years:
      1. large changes in levies should be avoided.

        Notes
        • Section 166A: inserted, on , by section 5 of the Accident Compensation (Financial Responsibility and Transparency) Amendment Act 2015 (2015 No 85).