Quake cost to ACC $370m
The Christchurch earthquake is costing ACC $370 million, ACC Minister Nick Smith said today.
The Christchurch earthquake is costing ACC $370 million, ACC Minister Nick Smith said today.
"A preliminary estimate of the full cost to ACC of claims into the future of the February 22 earthquake is $370 million," Dr Smith said.
"This is not an immediate cost to ACC as much of this will be paid in care, rehabilitation, and income compensation that will be required for decades into the future. The estimate needs to be kept in context of ACC having $14 billion in reserves and claims costs each year of more than $3 billion."
ACC provides entitlements such as emergency care, medical treatment, rehabilitation and lump sum compensation for people significantly injured. It gives funeral and survivors' grants for spouses and dependants of the deceased -- including for visitors to New Zealand.
New Zealand workers are also entitled to income compensation.
"People who are injured or who have suffered the loss of a loved one can be assured that ACC has significant and sufficient reserves to meet the cost of all entitlements that will need to be funded as a result of this event," Dr Smith said.
Cabinet on Monday agreed to waive usual requirements that businesses or individuals pay for the first week of a claim.
"This pragmatic change avoids confusion over whether an injury sustained during lunch was a work or non-work accident. ACC will now pick up a cost that would otherwise fall on businesses and workers who are already under considerable financial pressure."
Dr Smith said some ACC offices in Christchurch were closed and he urged claimants to call ACC.
"I want to assure those who are injured and the families who have lost loved ones that ACC will provide every support and assistance at this trying time."
ACC has a toll free number 0800 101 996 and its website page for those wanting to make a claim is http://www.acc.co.nz/making-a-claim/canterbury-earthquake/index.htm.
NZPA
Wed, 02 Mar 2011
Wed, 02 Mar 2011
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Quake cost to ACC $370m
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