New Zealand’s accident compensation scheme came into operation on 1 April 1974. It was based on an insurance model that provided cover for all, regardless of fault or cause of injury. The model was recommended by a Royal Commission in its report, known as the Woodhouse Report.
Royal Commission on workers’ compensation
New Zealand was an early leader in state intervention to lessen some of the consequences of personal injuries, and in particular to provide compensation for work injuries.
In 1966 a Royal Commission was established to report on complaints about the limitations of the Workers’ Compensation for Accidents Act 1900. This Act provided injured workers with weekly benefits, or in cases of workplace death, compensation for their dependents.
However, the benefits were small and were paid for only six years. The Act also didn’t cover non-work injuries or motor accidents.
Employers had to take out insurance to cover themselves, and workers could sue their employer for negligence.
The Woodhouse Report
In 1967 the Royal Commission produced the Woodhouse Report, named after its chairman, Mr Justice Woodhouse (now the Right Honourable Sir Owen Woodhouse).
The Woodhouse Report signalled a significant shift in how New Zealand dealt with the consequences of injury. It proposed a move away from a litigious, fault-based system, toward a completely new ‘no-fault’ approach to compensation for personal injury.
The report recommended a scheme that covered:
- all injuries to earners whether occurring at work or not, funded by a flat-rate levy on employers for the cost of all injuries to their employees. A levy on the self-employed to pay for injuries occurring at work or outside of work was also proposed
- all motor vehicle injuries, funded by a levy on owners of motor vehicles and drivers.
Governing legislation
Since 1974 ACC’s governing legislation has been developed and amended five times, but our core principles have remained the same.
ACC is now governed by the Accident Compensation Act 2001. For more information about our current legislation, see Legislation.
To view the full act, see Accident Compensation Act 2001 (external link).
For the full version of ACC’s history, see History of ACC in New Zealand.
Last updated: 15 December 2008