New Zealand’s Accident Compensation Corporation continued to improve its performance rehabilitating injured New Zealanders this past financial year according to a recent report.
The report says four key rehabilitation indicators improved during the year. They are: people no longer dependent on ACC after 70 days: – 71 percent, up from 67 percent two years ago; people no longer dependent on ACC after 273 days: 93 percent, up from 91 percent two years ago; number of people on ACC long term: about 12,000, down from 14,500 two years ago; proportion of people going on to require time off work after an injury: 3.25 percent, down from 4.1 percent two years ago.
“Getting people back to their normal lives, as far as possible and as soon as possible is ACC’s core role. So these results are very pleasing,” said ACC Chairman John Judge. “Additionally, this improved performance has led to a further reduction in ACC’s net deficit, making the scheme more sustainable into the future.”
Preliminary financial results for the 2010-11 year show a forecast net surplus of about $2.5 billion. That means the corporation’s net deficit will fall from last year’s $10.3 billion to about $7.8 billion.
The $2.5 billion surplus is calculated by figuring improved performance of the insurance business, improved investment performance, economic, and miscellaneous factors. Overall, ACC’s scheme solvency has improved to 72% from just 46% two years ago. These results are due to a range of factors, most notably improved rehabilitation of injured clients and improved investment returns. It has also reportedly been important that ACC has stuck more closely to its legislation than was perhaps the case in the past.
“ACC received over 1.6 million new claims this year. By helping these people get back to work or gain independence faster we’ve not only improved their lives but also lowered our own claim costs and stopped the growth in our future liabilities that was so severe for so many years,” Judge said.
“This is a great result, due in no small part of the efforts of ACC staff, but there is still a long way to go. The remaining deficit of $7 billion is still a major issue and now is not the time to rest on our laurels. These positive trends could easily reverse,” Judge added.
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