.jpg)
Parliament has passed the first reading of a bill that will create a “fairer social insurance scheme for New Zealanders.”
The bill addresses the gap in coverage for families of employees who are posted overseas in the course of their employment. It proposes to extend ACC cover to the spouse, or partners, and dependents of Kiwi employees posted offshore.
“This is an important change to make as we do not want to discourage people from representing New Zealand’s interests offshore if they feel that they cannot keep their families together without risk,” Lees-Galloway said.
The bill also removes the requirement for ACC claimants to choose between weekly compensation and New Zealand Superannuation after receiving a year of both.
“This change will ensure that the income they receive will be a closer reflection of their financial situation had they not been injured,” he said.
Moreover, the minister said the bill disestablishes the Accident Compensation Appeal Authority. Maintaining it is no longer cost effective or efficient, given the low number of appeals to the Authority, the amendment is in line with this Government’s intentions to remove the complexity and cost that arises when it is not clear whether the Authority or the District Court should hear an appeal.
“Following the disestablishment of the Authority, all new appeals under the repealed 1972 and 1982 Acts will be heard by the District Court,” he added.
Other amendments proposed under the Bill will:
* Clarify the current transitional provisions to ensure that all claimants who are close to, or above, superannuation qualification age receive up to 24 months of weekly compensation;
* Allow surviving spouses and dependents to receive up to five years of weekly compensation, regardless of age;
* Move from an annual review to a biennial review of the Accident Compensation (Liability to Pay or Contribute to the Cost of Treatment) Regulations 2003;
* Automatically update the maximum and minimum liable earnings to the minimum wage and the Labour Cost Index respectively to improve the workability of biennial levy rounds.
