Bike riders in for fall

BY DENISE PIPER

Whangarei residents are getting revved up about proposed ACC changes.

The potential changes could see a hike in ACC levies with large motorbike riders being the hardest hit.

The levies for bikes over 600cc will skyrocket from $273 to $746 to cover the cost of motorcycle accidents.

The changes also see the average worker pay $300 a year more.

Springs Flat riders Diane Unkovich and Brendan Shepherd, who have three motorbikes for recreational use, say the increase is unfair.

Ms Unkovich says while the cost of motorcycle crashes is high, cyclists and motocross riders also have a high injury toll and do not have to pay any direct levies.

"Cyclists play a big percentage in the statistics and motocross riders would be right up there too because they're throwing themselves into the air."

Standard sports and recreation accidents are covered by the earners' account, paid by employees and self-employed through PAYE.

Ms Unkovich says ACC should be privatised so there are options.

"It's like a dictatorship saying you're not allowed to ride a motorbike or if you do you have to pay."

Mr Shepherd says the levy is just penalising one area and does not reflect experience, crash history or how often the bikes are used.

The couple's private motorcycle insurance has recently been halved because they have such a good no-claim record.

Mr Shepherd is considering selling one of his motorbikes if the increases go ahead.

"I could live with a $50 rise but not $500," he says.

The pair, who are part of Hikurangi Riders, plan to protest the changes and ride to Parliament if necessary.

But ACC Minister Nick Smith says changes are needed to make the scheme affordable, sustainable and fair.

Mr Smith's proposed changes are less than changes proposed by the corporation.

The changes for motorcyclists are proposed because of escalating costs of motorcycle accidents - which cost four times more than injuries in other motor vehicle accidents, he says.

"If the true cost was charged the levies would range from $1200 for smaller motorbikes to $3700 for those over 600cc," he says.

Motorcycle riders are 16 times more likely to be involved in a road crash than any other road users, he says.

But a Whangarei resident turned ACC advocate, John Robinson, says ACC is losing money because it is not making smart decisions.

For one of his clients, ACC paid thousands of dollars having the case reviewed because it did not want to pay interest on back-dated payments, worth about $100, he says.

If the case went to court it could have cost another $10,000, says Mr Robinson.

"That's why a huge amount of money is being lost. They're making stupid decisions that's taking money from our pot."

Another costly decision is paying out for medical accidents, he says, instead of people being able to sue for malpractice.

ACC paid $73.7 million in compensation for treatment and patient injuries during 2007-08.

As far as the motorcycle increases, Mr Robinson believes every section needs to pay to cover its costs -
including motorcyclists,
bicyclists and sports players.

"The word is poll tax, that's the only way to get it right, then everybody contributes," he says.

Mr Robinson is also concerned about changes to entitlements, which could see the self-employed and labour-only workers not covered if they happen to not be working at the time of the accident.

"Someone like a labour-only builder gets paid for one house and might have a week or so off. If something happens during that week they're not covered."

Proposed changes

The levy changes proposed by ACC Minister Nick Smith are:

•  For the Work Account for work injuries paid by employers and self-employed:From $1.31 per $100 earnings to $1.47
•  For the Earners' Account for non-work injuries paid by employees and self-employed: From $1.51 per $100 earnings to $2.18
•  For the Motor Vehicle Account for road accidents paid through vehicle registrations and petrol levies: From $287 an average vehicle to $317
•  For mopeds up to 50cc: From $58.97 to $257.58
•  For motorcycles 125cc-600cc: From $252.69 to $511.43
•  For motorcycles 600cc-plus: From $252.69 to $745.77.

- ACC is calling for submissions on the proposed changes by November 10. Go to www.acc.co.nz or call 0800 ACC RATES (0800 222-728) for more information.

 

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