Calls for accident compensation scheme reform

Proposal follows OECD review of New Zealand’s mental health and work policies

Calls for accident compensation scheme reform

Insurance News

By Krizzel Canlas

New Zealand needs to do more to help people with mental health issues, and the government should consider a reform of its accident compensation system to cover these illnesses, according to a new OECD report.

The report comes amid a review of New Zealand’s mental health work policies and outcomes. It highlights that one in five New Zealanders in any given year will experience a diagnosable mental health issue. This adversely affects well-being and costs the economy some $12-15 billion every year, equivalent to around 4-5% of annual GDP.

Among the key areas of action, as outlined by the OECD report, is a structural reform of the accident compensation scheme.

“Currently, there is a strict distinction in New Zealand between injuries, which are covered by the ACC system in an effective and well-resourced way, and illnesses, which are covered by an under-resourced general health and means-tested welfare system,” it says. “Mental health issues usually fall into the latter group.”

Other proposals to address the issue include:  the development of a national mental health and work strategy; limiting the risk of long-term benefit dependence; and investing in employment support services for jobseekers with mental ill-health as well as encouraging support once in employment.

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