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Asked by
Mike Davidson
List MP · Green Party
Question
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Did the Minister or his officials seek independent review or validation for the cc-based levy differentials when considering the increase to ACC levies on motorcycles?
Answered by
Hon Scott Simpson
Member for Coromandel · National Party · Minister for ACC
Answer
No. When setting levies every three years, ACC undertakes an actuarial review based on the aggregate levy to ensure the amount collected by ACC in each year are sufficient to cover the lifetime cost of all covered injuries in that year. The most recent levy review found that the level of subsidisation of motorcycle claim costs sat at 73 percent from other motor vehicle types and that the risk relativities across all motorcycles and mopeds had not been reviewed for 13 years. As such, it was determined that a more objective approach to setting the degree of contribution towards motorcycle injury costs for owners of other vehicle types was needed and that a CC-based differential was appropriate.