Merit Rating For Premiums Urged

Press, Volume CVI, Issue 31236, 7 December 1966, Page 1

Merit Rating For Premiums Urged

(Sew Zealand Press Association)

WELLINGTON, December 6. Two groups today urged the Royal commission inquiring into compensation for industrial injuries to support a merit rating system for workers’ compensation premiums.

They are the Manufacturers' Federation and the Employers’ Federation.

The Manufacturers’ Federation general secretary, Mr A. R. Dellow, said his body supported the principle of giving tangible recognition to positive and successful safety promotion. The Employers’ Federation executive director, Mr P. J. Luxford, said efforts towards merit rating had so far failed. There could be some administrative problems, but these had been over-emphasised. Mr Luxford said only about 1 per cent of the total of “lost time” accidents resulted in common law claims. This extremely small number accounted for about 30 per cent of the total amount paid in all claims. “This situation is an indictment of the principle of equality and fairness ivhich shpuld exist between workers

. who suffer a similar injury,” [Mr Luxford said. “It is wrong that our system of compensation should permit such gross distinctions 'which often depend on on|y minor differences in the cause of the accident.” He said that in 1964 the average payment 'for workers’ compensation claims was £4O. For common law claims, which amounted to .9 per cent of the total claims, the average payment was £1932.

There would be many instances of almost the same type of injury being settled at the average of £4O, while injuries with minor differences were settled at common ’law at an average payment of nearly £2OOO, Mr Luxford said.

He submitted that the benefits of present workers’ and Social Security legislation had i removed the need to continue [the common law right of action as an alternative basis.