Submit now or lawyer up later

by frog

With just two days left to make submissions on Nick Smith’s Bill to gut ACC, employers – particularly those in noisy industries such as construction, airlines, mining, manufacturing, music and hospitality – might want to consider this:

MPs have heard that some proposed changes to accident compensation cover may result in the reintroduction of the right to sue.

One of the primary tenets of the Accident Compensation Corporation (ACC) system is that New Zealanders are covered for accidents and forgo the right to sue.

A select committee is hearing submissions on a bill which includes the introduction of a 6% threshold for hearing loss claims.

But the ACC Futures Coalition says that means for the first time in the scheme’s history an injury is being removed from cover.

Its spokesperson, Wellington lawyer Hazel Armstrong, says the move would be a field day for litigators such as herself.

The right to sue in tort in respect of personal injury was a common law right.  It is only the statutory provision of section 317 of the Injury Prevention, Rehabilitation, and Compensation Act that prevents injured people from suing those responsible for their injuries:

No person may bring proceedings independently of this Act, whether under any rule of law or any enactment, in any court in New Zealand, for damages arising directly or indirectly out of—
(a) personal injury covered by this Act; or
(b) personal injury covered by the former Acts.

But remove the cover under the Act, as Nick Smith proposes for hearing loss of less than 6%, and the right to sue for personal injury is restored.

The Government estimates this cut to ACC cover will save ACC up to $4 million a year.    But it is not just that cost that will be borne by employers – there will be the associated costs of investigating and litigating damages claims by employees for low level hearing loss.

Employers have a choice – submit in opposition to this now, or lawyer up later.