The Accident Compensation Corporation minister is claiming ‘refinements’ have been made to the controversial vehicle risk rating system.
The new system hit trouble last year when people discovered in many cases newer vehicles ended up with more expensive ratings then their older – and logically less safe – counterparts.
ACC minister Nikki Kaye says it was clear a ‘new approach’ was needed to the system, while announcing further cuts to vehicle levies, commencing July 1.
“It was clear the new approach needed improved data for some cars and refinements to policy to ensure greater integrity of the system for some models,” Kaye explains.
As part of last year’s public levy consultation, ACC consulted on my behalf on a number of proposed improvements to the system.
“As a result, various changes have been made to the way vehicles will be risk rated from 1 July 2016,” Kaye notes.
“For example, the system now better identifies when improvements have been made to particular models of car, and it better recognises cars that have different names but which are essentially identical vehicles.”
Kaye says enhancements have also been made to ensure greater robustness of the crash data that’s used to help generate risk ratings.
“This is a new system that involves thousands of models of cars, so it’s possible there will be further refinements in years to come,” she notes.
She thanked the trade for their help.
“I’d like to thank everybody who provided feedback as part of the consultation, in particular stakeholders such as the Automobile Association, Motor Trade Association, Motor Industry Association, Imported Motor Vehicle Industry Association, NZTA and MBIE.”
Kaye defended the need for the system.
“The average lifetime cost of a person seriously injured on the road is around $2 million,” Kaye says. “The severity and cost of injuries are reduced if people are in safer cars. A large proportion of cars in the risk bands with the lowest levies are older vehicles, so this is not just about the age of the vehicle.
“Vehicle risk rating is a fairer allocation of levies and helps people have a greater understanding of vehicle safety.”
