Abstract
In 1974, the New Zealand government created the Accident Compensation Commission (ACC) to compensate citizens for all work-related and nonwork-related injuries. The scheme was designed to meet the egalitarian and social welfare goals of New Zealand's government, and replaced a tort liability system like that of the United States. The scheme served two aims: It idealized the goals of social welfare planners, and avoided what was believed to be the problems and excesses of tort liability. This paper critically examines the 25-year history of the ACC. The paper includes descriptions of the ACC's functions and failures, and analyzes the agency's performance in the light of statutory and administrative changes. This examination concludes that financial and political pressures on ACC have led failure of the present system to achieve the social justice principles of the original scheme. The essence of the failure can be seen in recent changes that have resulted in privatization of accident compensation for work-related injuries.
Similar content being viewed by others
REFERENCES
ACC Annual Report. (1993). Accident Rehabilitation & Compensation Insurance Corporation, Wellington.
ACC Financial Statements. (1996 and 1997). Accident Rehabilitation, Wellington.
ACC Homepage. (October 1997).
ACC Injury Statistics. (1994 and 1995). Accident Rehabilitation & Compensation Insurance Corporation, Wellington.
Brodsky, S. L. (1988). Fear of litigation in mental health professionals. Crim. Just. Behav. 15: 492-500.
Brodsky, S. L. (1994). A Country Without Malpractice Liability (More or Less): Psychological Aspects of the New Zealand Accident Compensation Scheme. Bi-annual Meeting of the Psychology-Law Society. Santa Fe, New Mexico: March 1994.
Brodsky, S. L., and Schumacher, J. S. (1990). The impact of litigation on psychotherapy practice. In Margenau, E. (ed.), The Encyclopedic Handbook of Private Practice, Gardner Press: New York.
Campbell, I. (1997). Compensation for Personal Injury, Auckland University Press, Auckland, New Zealand.
Chapman, R. (1981). From labour to national. The Oxford History of New Zealand. Oliver, W. H., and Williams, B. R. (eds.), Oxford University Press, Auckland.
Collins, D. B. (1992). Medical Law in New Zealand, Booker & Friend Ltd., Wellington.
Consumer (1992). The cost of compensation: What the new ACC scheme means for consumers, #306 (July), pp. 18-20.
Consumer (1994). ACC: Adding insult to injury, #326 (May), pp. 6-9.
Danzon, P. M. (1990). The New Zealand Accident Compensation Scheme: Lessons on no-fault compensation for medical and other injuries. Draft paper.
Dunstall, G. (1981). The Social Pattern. In Oliver, W. H., and Williams, B. R. (eds.), The Oxford History of New Zealand, Oxford University Press, Auckland.
Gellhorn, W. (1988). Medical malpractice litigation (U.S.)—Medical Mishap Compensation (N.Z.). Cornell Law Review 73: 170-212.
Kelsey, J. (1995). Economic Fundamentalism. Pluto Press, London.
Lange, D. (1994). There must be a better way than the ACC. Sunday-Star Times, July 10, 1994.
Lee, H. (1994). ACC—Risk manager or management risk. New Zealand Business 5: 47.
Lewis, A. (1996). No-fault liability—twenty years experience in New Zealand. Medicine and Law 15: 425-428.
Lichtenstein, B. (1997). Tradition and experiment in New Zealand AIDS policy. AIDS and Public Policy J. 12(2): 79-88.
Mannion, R. (1993). Victims of the invisible injury. Sunday Times, September 26, 1993, p. 75.
McLean, S. (1988). No Fault Liability and Medical Responsibility. Medicine, Ethics and the Law: Current Legal Problems (?): 147-161.
McNeil, K. (1998). ACC panel backs lump payments: dropping of most 1992 rules urged. The Press, August 25, 1998, p. 8.
Palmer, G. (1979). Compensation for Incapacity: A Study of Law and Social Change in New Zealand and Australia. Oxford University Press, Wellington.
The Press on Line, Business news, July 21, 1997.
The Press on Line. Local news, August 23, 1997.
The Press on Line. Figures on OOS mislead, September 22, 1997.
The Press on Line. (2) Local news, September 27, 1997.
The Press on Line. Expanding welfare futile, September 29, 1997.
The Press on Line. How far can Nats lurch to the right within coalition? October 4, 1997.
Report of the Royal Commission of Inquiry (The Woodhouse Report) (1967). Compensation for Personal Injury in New Zealand, R. E. Owen, Government Printer, Wellington.
Russell, M. (1992). Winners and losers, Listener and TV Times, 134: 15-18.
Thomas, R. (1991). Accident compensation: A report prepared for the Council for Civil Liberties. NZ J. Physiotherapy 19(3): 26-31.
Todd, S., and Black, J. (1993). Accident compensation and the barring of actions for damages. The Tort Law Review 1: 197-232.
Todd, S., Burrows, J. F., Chambers, R. S., Mulgan, M. A., and Vennell, M. A. M. (1991). The Law of Torts in New Zealand, The Law Book Company Limited, Auckland.
Vennell, M. A. M. (1990). Medical injury compensation under the New Zealand Accident Compensation Scheme. J. Med. Prac. Mt. 5: 243-248.
Vennell, M. A. M. (1993). Brief Country Reports: New Zealand. University of Hawai'i Law Review 15: 568-576.
Vennell, M. A. M., and Manning, J. (1992). Accident Compensation. NZ Recent Law Rev. 1-14.
Vennell, M. A. M. Personal communication, February 5, 1999.
Weiler, P. C., Hiatt, H. H., Newhouse, J. P., Johnson, W. G., Brennan, T. A., and Leape, L. L. (1993). A Measure of Malpractice: Medical Injury, Malpractice litigation, and Patient Compensation. Harvard University Press, Cambridge, MA.
Wright, M. ACC Consumers' Network promises to keep up fight. GP Weekly, November 10, 1993, p. 11.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Lichtenstein, B. From Principle to Parsimony: A Critical Analysis of New Zealand's No-Fault Accident Compensation Scheme. Social Justice Research 12, 99–116 (1999). https://doi.org/10.1023/A:1022043725885
Issue Date:
DOI: https://doi.org/10.1023/A:1022043725885