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Report No. 85

Funds created in New Zealand.- The New Zealand Act creates two main funds from which compensation is to be paid: an Earners Compensation Fund and a Motor Vehicle Accident Compensation Fund1. There is also an Active Service Compensation Fund in respect of accidents in the armed forces, and a General Fund to which most administrative expenses are charged and the income of which is largely derived rateably from the other Funds1. The Motor Vehicle Fund receives money from two sources:

(a) levies charged on every licensed and registered motor vehicle (the amount payable being an adoption of premiums payable under the former third party liability system, e.g., $ 11.35 on private motor cars, $ 7.90 on motor cycles)2,

(b) an annual flat rate levy of $ 2 on every driver's licence3. There is power to prescribe different levies for different classes of drivers4 and to impose penalty rates on drivers with bad records.5

The Earners' Fund in New Zealand pays compensation due to earners, including that payable in respect of motor vehicle accidents arising out of and in the course of employment. This fund receives money from levies on employers in respect of earnings of employees and levies on the self-employed6. The levies are payable at rates prescribed by order-in-council7 and by notice in writing the A.C.C. may impose a penalty rate of levy on any employer or self-employed person whose accident record 'is significantly worse than that normally set by others of the same class'8.

The A.C.C. may also set a rebate of levy where an accident rate is 'significantly better than that normally set by others of the same class'9. The levies must be within limits specified in Part I of the First Schedule (Between 0.25 per $ 100 and $ 5 per $ 100)10, subject to a maximum amount (at present $ 10, 400) of the earnings on which levies are payable11.

1. Section 31.

2. Section 32(3).

3. First Schedule, Pt. II.

4. First Schedule, Pt. III.

5. Section 100.

6. Section 100(d).

. Section 71.

8. Section 72.

9. Section 73(1)(a). This may not exceed the normal rate for that class by more than 100 per cent.

10. Section 73(1)(a).

11. First Schedule, Pt. I.

12. Section 74.

Claims for Compensation under Chapter 8 of the Motor Vehicles Act, 1939 Back

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