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INTERMEDIATE OUTCOME 3: A better performing Accident Compensation System

What we are seeking to achieve over the next 3-5 years and why it's important

The accident compensation scheme provides all New Zealanders with 24/7 no-fault personal injury cover. Affordable, efficient compensation, and rehabilitation so people can be appropriately compensated after an accident and return to work quickly after injury are essential for economic growth.

A departmental priority is to improve the scheme, consistent with the Government's commitment to a 24/7 no-fault comprehensive accident compensation scheme.

The objective is for the scheme to continue to be both accessible and affordable for all people in New Zealand and to ensure the system delivers rapid and sustainable rehabilitation after injury. This objective mitigates both the economic and personal cost of injury and the associated loss of productivity. However, the scheme’s costs have increased dramatically over recent years, while rehabilitation rates deteriorated significantly. Changes are needed to ensure it delivers better value for money.

The immediate outcomes the Department seeks to achieve for a better performing accident compensation system are:

  • A comprehensive 24/7 no-fault coverage system, designed to support:
    • injury prevention
    • effective rehabilitation
    • appropriate compensation
  • The system is administered in a way that is sustainable and represents value for money.