12:15 PM Tuesday Dec 21, 2010

The Accident Compensation Corporation’s work account, which covers workplace injuries, will be opened up to private insurers, ACC Minister Nick Smith says.

The decision was announced today following the Government’s consideration of a \”stocktake\” of the scheme begun late last year.

The work account was opened to private insurers in the late 1990s by the previous National Government but that was reversed when Labour came to power in 1999.

Smith said employers would have the choice of purchasing workplace insurance from providers or continuing to use the ACC. This was at odds to the advice from the stocktake that ACC exit from providing workplace cover.

He also said he had declined the ACC board’s recommendation to lift ACC levies next year.

See a Government provided Question and Answer document on the ACC changes here.

more to come