ACC overstated e-scooter claims by $5 million

ACC has admitted that it overstated the cost of e-scooter claims by around $5 million.

The state accident insurer says its previous definition of e-scooter claims - including stats released in December - included claims that mentioned “motor scooter” or “motorised scooter” in the accident description.

Now, an ACC spokesman, responding to a Herald query, said there has been an update to the definition.

“Our analysis indicates that most of the time when ‘motor scooter’ or ‘motorised scooter’ is mentioned in the accident description, it is referring to mopeds and mobility scooters – not e-scooters,” he said.

The overstatement did not lead to any extra payouts. “This is merely a classification change and makes no difference to the number of claims accepted or the total money paid to ACC injury claimants,” ACC said.

The result is that the total cost of e-scooter claims for October to December 2018 - the quarter when ride-share scooters first hit New Zealand, has been revised from $634,000 to $234,000.

The 2019 figure has been reduced from $6.44m to $4.48m.

The 2020 figure falls from $7.36m $5.93m.

And the 2021 total reduces from $8.24m to $6.95m.

And the revised total for 2022 is $8.39m or about $1m more than the previous figure, extrapolating from the monthly rate (ACC’s early 2022 numbers were for the year to October).

Overall, ACC overestimated the cost of e-scooter claims between October 2018 and December 2022 by around $5m.

But at a total cost of $25m, e-scooter claims are still substantial for the period, and rising despite councils nudging rideshare firms to adopt GPS-enforced speed limits in crowded areas, safer scooter designs, free helmet programmes and more cycleways.

Tom Cooper - general manager of one of the largest e-scooter rideshare operators in NZ, Beam - told the Herald one factor was more rides been taken. His firm’s customers clocked 1.5m rides last year.

Another was the growing popularity of privately-owned e-scooters, which are not subject to the speed limits and other restrictions imposed on ride-share operators (councils can’t set traffic laws, but can impose conditions as rideshare companies vie for operating licenses).

How many ACC claims relate to private e-scooters? The agency doesn’t know. The name of a rideshare operator sometimes appears in a claim, but ACC keeps no formal statistic.

AI to the rescue?

Sydney-based Cooper was in Auckland for the introduction of new Beam e-scooters that feature obstacle-detection cameras and an AI-powered “Pedestrian Shield” system (see video above).

The new Beams can detect if they are been ridden on a footpath or bike path.

The initial rollout, in partnership with Drover AI, involves 200 of the firm’s e-scooters “learning” the lay of the land in Auckland.

The second phase will see Beam e-scooters adjust their maximum speed depending on whether they’re on the pavement, a cycle lane or the open road.

While GPS can be used to enforce speed limits - as it is now in blanket form for many urban areas - the Drover systems on individual Beams would allow for different speeds on surfaces within 1m of each other.

Drover’s technology also allows for a Beam to slow for a pedestrian, or even swerve around them. Cooper says that’s a future feature that will be discussed with councils.

Tips for safe scootering

Despite its stats now being less-worse than before, ACC says e-scooter advice remains unchanged.

“E-scooters are a convenient way to get around town, but it’s important to look after yourself and others you share the footpath with. The best way to avoid injuries is to assess risks before you do something, then choose to do it safely,” ACC injury prevention leader James Whitaker says.

“If you are going to use an e-scooter be sure to ease your way into it, don’t go full throttle straight away, wear a helmet, and don’t mix e-scootering with alcohol.”

You should wear a helmet, Whitaker says.

“It should fit nice and snug and have two fingers of space from your eyebrows. If you do fall off and have a serious knock to the body or head, see a doctor.”