Accident numbers putting pressure on ACC

ACC says it will need to collect $4.7 billion in levies in the 2025/26 financial year, Photo:...
Photo: supplied
Nearly half the population of Otago had active Accident Compensation Corporation injury claims last year, prompting the government agency to raise concerns about the financial pressure it was putting on the sustainability of the scheme.

In 2024, there were 100,336 new injury claims and 124,269 active injury claims made to ACC from people in the Otago region, costing the taxpayer more than $312 million to help them recover.

Otago’s total population in 2024 was 251,300.

ACC injury prevention leader James Whitaker said the number of injury claims and associated costs were the highest in the Otago region for the past five years, and the numbers reflected a nationwide trend.

"In 2020, ACC accepted 90,375 injury claims from the Otago region at a cost of $189m.

"To put it simply, more people are getting injured, and it is taking longer and costing more for them to recover."

He said the data had showed ACC needed to look more seriously at raising collective awareness of the need to prevent injuries.

In 2024, ACC accepted two million injury claims from 1.6 million New Zealanders, and it cost nearly $7b to help people recover from these injuries and to maintain some form of income (weekly compensation).

A total of $4.4b of these costs went towards rehabilitation expenses.

He said over the past 20 years, the costs of supporting New Zealanders with injuries had climbed from just under $1b in 2004, to nearly $4.4b in 2024.

Mr Whitaker said the high number of injury claims and costs was putting pressure on the sustainability of the ACC scheme.

"We want all New Zealanders to get the help and support they need when they’re injured now and for many generations to come.

"What we all need to do is be more mindful and present when there is injury risk present. If I get hurt, what is the impact on those people who I care about?"

The most common injuries occurred at home or in the community (61,920 costing $167m); sport/recreation (26,660 costing $58m); and work (10,346 costing $66m).

ACC Minister Scott Simpson said a report titled "Injuries in New Zealand" would be released annually to help raise the collective awareness and promote injury prevention.

"ACC is a unique and world-leading scheme and one that we cannot afford to take for granted.

"Injuries cause harm to the person injured, but they also put pressure on business productivity and on the financial position of the ACC scheme.

"We need to safeguard ACC, so it is there to help and support our future generations.

"One of the key areas [in which] we need to improve is reducing injuries."

Whether it was at home and in our communities, at work, in sport and recreation or on our roads, the number of people getting injured was too high — especially considering most injuries were preventable, he said.

Mr Whitaker said independent research indicated more New Zealanders were now taking actions to prevent injuries to themselves and other people.

"By being present in the moments when there is injury risk, we can get the job done and continue to do the things we love.

"This is far better than experiencing pain, creating flow-on effects for friends and family, and facing a long rehabilitation."

john.lewis@odt.co.nz

 

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