ACC's Death Penalty

ACC’s Death Penalty 

We have been working in the ACC Risk space since 2011.  

Over that time there have been a ton of changes – some good and some, well, diabolical. 

One of those is the Death Penalty.  Okay, those are our words as ACC refers to it as a Fatality Modifier.  Different wording same result.  You get penalised on your ACC levies if there is a fatality at work due to accident regardless of whether you are to blame or not. 

The penalties are an additional 30% of your ACC levies – 20% in the first year and 10% in the second year.  No questions asked, just a straight penalty on your levies.  Thank you very much ACC. 

We also work in the wider health & safety space and get involved with fatalities and serious harm – the cases where Worksafe get a tad excited.  Through this we deal with solicitors and barristers, the good folk who fight the fight on your behalf should there be a prosecution. 

What we have noticed is that not a lot of people understand the ACC space... Judges included.  Why is this relevant? 

The ACC loading is a given – you have no choice unless the Coroners report states the death is due to a medical event.  The Judge, at sentencing will take into account moneys already paid to the family and other costs involved.  Unfortunately, no one knows about the ACC penalties let alone how they are calculated, and that they should be taken into consideration when a fine / reparation is set. 

This is not quite Double Jeopardy (being convicted of the same crime twice), however, the business is getting penalised twice for the same offence.  We do not think that is right.  

If you want to discuss this or get more information, please reach out through this platform or email Martin Wouters via martin@managecompany.co.nz