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Experience Rating 

 

What the ACC were finding was that companies that were getting a discount for having an approved OSH system in place were not necessary any better (injury rate wise) than companies in the same industry. They also found that if two companies in the same industry were getting the discount, one may have a significantly recued injury rate compared to the other, but were not getting any reward for the lower injury rate. So they introduced the Experience Rating as of 01 Apr 2011.

The details are here but in a nutshell, smaller companies will simply get a no-claim bonus if the numbers of injuries are zero/low. Larger companies will have their injury rate compared to others in their risk group. Poor performers will have their levy increased by up to 50%! Good performers will have their levy reduced by up to 50%. Now how would a 50% loading on your current ACC levy cost you today?

 

In summary then smart NZ companies will receive a discount for having an OSH System in place. The smartest companies will have an OSH system that actually works for their business.

Note the Minister of the ACC has confirmed that workplace injuries that resulted from the Christchurch earthquake will not have their injuries included in their Experience rating. Good to see some common sense at work.