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Accident Compensation Act 2001

Accident Compensation Corporation - Provisions relating to accountability of Corporation

274: Management of Accounts

You could also call this:

“How ACC manages its money and accounts”

The Corporation, which is the organisation responsible for accident compensation in New Zealand, has to handle different accounts separately. This means they need to keep the money coming in and going out for each account separate from the others. They can’t use money from one account to pay for things in another account, unless the law says it’s okay.

Sometimes, a claim might be linked to more than one account. When this happens, the Corporation needs to split the costs between the accounts in a fair way. The Minister can also tell the Corporation to put all or some of the costs for certain types of compensation into the Non-Earners’ Account.

The Corporation needs to make sure that the costs of running these accounts are shared fairly between them. For costs that aren’t directly linked to one account, they need to split them between all the accounts. They do this either by following instructions from the government or by splitting the costs in a way that makes sense based on how much each account is affected.

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Topics:
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Part 7 Accident Compensation Corporation
Provisions relating to accountability of Corporation

274Management of Accounts

  1. The Corporation must ensure that revenue and expenditure relating to each Account is received, applied, and accounted for separately.

  2. Except as otherwise authorised under this Act and subject to subsections (3) to (5), the Corporation must not use funds from one Account to meet any costs arising under another Account.

  3. Costs in relation to a claim that is associated with more than 1 Account must be apportioned, if practicable, to the relevant Accounts in a way that reasonably represents the relative costs to each Account of the claim concerned.

  4. Repealed

  5. The Minister may, without complying with section 115(2) of the Crown Entities Act 2004, direct the Corporation to attribute in full, or apportion in part, to the Non-Earners' Account the costs of lump sum compensation for permanent impairment caused by gradual process, disease, or infection.

  6. The Corporation must take all reasonable steps to ensure that the administration costs in relation to the management of the Accounts are fairly apportioned among the Accounts.

  7. Costs incurred by the Corporation in carrying out all the functions, duties, and powers under this Act that cannot be directly attributed to an Account must be apportioned,—

  8. if a policy direction for the time being in effect under section 103 of the Crown Entities Act 2004 provides for the apportionment of those costs, in accordance with the direction; or
    1. if no relevant policy direction is for the time being in effect under section 103 of the Crown Entities Act 2004, to all Accounts in a way that reasonably represents the relative costs to each Account of the costs concerned.

      Notes
      • Section 274(3A): repealed, on , by section 42 of the Accident Compensation Amendment Act 2010 (2010 No 1).
      • Section 274(3B): inserted, on , by section 45 of the Injury Prevention, Rehabilitation, and Compensation Amendment Act (No 2) 2005 (2005 No 45).
      • Section 274(3B): amended, on , by section 27 of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2008 (2008 No 46).
      • Section 274(5)(a): amended, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).
      • Section 274(5)(b): amended, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).
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