ACC payout law 'discriminatory,' tribunal rules

Report details landmark human rights ruling

ACC payout law 'discriminatory,' tribunal rules

Insurance News

By Krizzel Canlas

A Human Rights Review Tribunal ruling has declared a law on welfare and accident compensation “discriminatory.”

An article by Radio NZ detailed the decision on the case of a woman in a decade-long fight over her Accident Compensation Corporation (ACC) payout. The situation was that Maree Hennessy was injured in 2002. In 2010, she got her ACC payout but it was reportedly cut from $40,000 to just $500. This was because all her welfare benefits were deducted from it, under the government’s “one benefit” principle.

Now, the tribunal has ruled the law discriminates on the prohibited grounds of “employment status.” However, the new ruling won’t get the woman any more money even though the Ministry of Social Development reportedly agrees with it saying it must implement the law as it is.

“For those of our clients who are receiving income support from us and compensation from ACC, we are unable to make any change in practice despite the tribunal’s finding,” the ministry said in a statement.

Hennessy was aware she won’t receive a backdated payment, lawyer Greg Robins said noting this was the best outcome they could have hoped for.

“It’s always going to be a landmark declaration of this sort ... it’s clear and it’s unequivocal and it places the issue squarely on the agenda,” Robins added.

Radio NZ reported the government has until later this month to appeal the ruling, or until June to respond to it. It also quoted Minister for Social Development Carmel Sepuloni, saying the problem of ACC and benefits was raised with the Welfare Expert Advisory Group. The independent group is due to report back at the end of this month, which is said to possibly lead to law changes.

 

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