Improved ACC disputes resolution announced

Dispute Resolution Services Limited (DRSL) is to become an independent Crown Company on 1 July 2011 as part of the Government’s reforms to improve New Zealand’s system of accident compensation, ACC Minister Nick Smith announced today at a conference on work place safety in Wellington.

“Separating DRSL from ACC is needed to reinforce the independence of the review system. Many claimants view ACC as judge and jury on entitlements because DRSL is directly owned by ACC. It also makes sense now that DRSL is doing significant dispute resolution work for other sectors including financial services, telecommunications, and health,” Dr Smith said.

Disputes Resolution Services is a registered company solely owned by ACC that undertakes between 9000-10,000 review applications from ACC claimants each year. The company employs around 100 staff and is based in Christchurch

“This change is consistent with National’s 2008 Election policy of improving ACC’s dispute resolution services. It would also be a necessary step to separate DRSL from ACC if the Government proceeds with allowing other insurance providers to provide workplace cover.”

DRSL will be listed on the Crown Entity Schedule from 1 July with the shareholding Ministers being the Ministers of Finance and ACC. A new Board will be appointed reinforcing the separation. The Orders in Council creating DRSL make plain that it will be subject to the Official Information Act.

“This change will not affect reviews already in progress. It will enable DRSL to focus on being an efficient and effective provider of dispute resolution services for ACC and other sectors,” Dr Smith said