Adapting to Radical Innovation: Accident Compensation in New Zealand

Abstract

This paper profiles the 1974 introduction of a new system for compensating individuals who suffer accidental injuries in New Zealand. It reviews the development of this scheme through the late 1980s and highlights the increase of political pressures for subsequent reform. Among the various difficulties identified in implementation are the operation of the "no fault" principle, the effect of the duration of disability, the payment of lump-sum compensation and the question of indexing payments. Disputes about the detailed funding of the scheme and politically inspired changes in the revenue base are explained. The major dilemma posed by different levels of compensation for those disabled by accident or sickness is examined. The paper concludes by querying whether the identified problems are a reflection of weaknesses in the original scheme or a result of less-than-full implementation. Copyright 1993 by The Policy Studies Organization.

The Commodification of Compensation? Personal Injuries Claims In an Age of Consumption

“…This combined with the underpayment of others and the legions of potential claimants who negotiate their losses without award together suggest that the litigation model of compensation distribution is inefficient (DeWees et al, 1996) and indeed at times unjust, favouring above all else the bottom line of the insurance companies (Abel, 1987). Some jurisdictions, notably New Zealand, have socialized compensation through levying to provide a universal, social security model of care and recompense (see Uttley, 1993). Ultimately less open to claims and insurance industry profiteering, this welfarist model is generally considered more efficient and fair.…”