Comment: ACC Not perfect but it works

The Accident Compensation Corp (ACC) dates from the Woodhouse Report of about 1970 and, although widely respected internationally, has not been copied widely. Not only did it sweep away a lot of work for lawyers, but it also did much to change the insurance industry and our character as a nation.

Once if you suffered any sort of accident - and you could prove it was the fault or negligence of someone else - such as your employer, or the driver of another car, or the manufacturer of a faulty machine - you might claim general and special damages for personal injury and continuing disability, loss of wages or opportunity or enjoyment, and pain and suffering.

Not only were such claims costly and tedious (and they still are in other countries) but they also could delay healing and rehabilitation for months or years, while the claimant waited to prove the case in court. The social and commercial costs could be significant, but also the consequences for the person being sued.

In practice, businesses and many people had insurance for such claims - and every injured person would know it and claim accordingly. Such claims and litigation were settled between lawyers and insurance companies - and often the damages were large. There was a particular set of rules and compulsory insurance for employers' liability - but for anyone who was not insured, such claims were disastrous.

As formerly claimants had to prove both injury and fault or blame; now the extended definition of accident actually includes any injury, and byword of the scheme is "liability without fault". So if you suffer personal injury and medical or other expenses or loss of income, and either temporary or permanent disability, you are entitled to claim even if it's your fault. The compensation will, however, be only the actual cost, 80 per cent of lost wages, and minimal allowance for personal damage.

The emphasis is on "injury by accident" - and you have to satisfy ACC of both: that it's an injury and not an old problem or degeneration or arthritis. The scheme covers every injury - however it happened but not sickness.

It may seem bureaucratic, arbitrary and unjust. It may make you angry and unhappy, but it won't make you rich. Most often it's simple and trouble free but, at other times, it's like a brick wall. We all pay for it and we are all beneficiaries. It's not a perfect scheme but it works. It's not cheap, but it's more economical and practical and socially convenient than proving liability for negligence.

John Tripe is principal with the Wanganui legal firm of Jack Riddet Tripe