898 NEW ZEALAND GAZETTE No. 41

SPR = Standard premium rate for the relevant Accredited Employer as set out, from time to time, in regulations made under the Act (expressed in dollars per $100 of liable earnings)

SMP = Safety management practices discount for the relevant Accredited Employer as set out, from time to time, in regulations made under the Act (expressed as a percentage)

BHC = Bulk health costs calculated in accordance with paragraph 9.3 (expressed as a percentage)

PHC = Allowance for primary health costs incurred by the Manager calculated in accordance with paragraph 9.4 (expressed as a percentage)

A_AEP = Contribution to the administration cost to the Manager of the Accredited Employers Programme calculated in accordance with paragraph 9.5 (expressed as a percentage)

F_FSC = Amount for employer liability cap calculated in accordance with paragraph 9.6 (expressed as a percentage)

9.3 The Manager is to remain liable to meet bulk funded health costs including public health acute services and ambulance expenses. “BHC” is intended to meet the Accredited Employer’s contribution to such costs. “BHC” is to be fixed by the Manager from year to year based (to the extent reasonably practicable) on the following formula:

BHC =       LE      SPR     1
        ---- x ---- x C x --- 100
        LE_T        APR      

Where (to the extent not defined in paragraph 9.2):

LE_T = Estimated total liable earnings across all employers

APR = Average premium rate for all employers

C = Estimated bulk health costs for the Cover Period

The estimated figures are to be the subject of paragraph 21.

9.4 Although primary health costs incurred by employees as a result of work-related personal injuries are required to be met by the relevant individual Accredited Employer, it is recognised that there will, at times, be administrative difficulties of properly identifying:

• that the injury is a work-related one;
• which Accredited Employer is liable; and
• collecting the cost from the correct Accredited Employer.

These difficulties will mean that some of those costs will be borne by the Manager. “PHC” in the formula in paragraph 9.2 is intended to recover those costs across all Accredited Employers as well as the cost of administering the collection of primary health costs from Accredited Employers generally. “PHC” is to be fixed by the Manager from year to year based on actual experience with the proposed cost being the subject of paragraph 21.

9.5 The Manager is to be entitled to recover the likely administration costs during the Cover Period and Claim Management Period arising in respect of the Accredited Employers Programme as it affects the particular Accredited Employer. “A_AEP” is intended to reflect that cost. This amount is to be fixed from year to year by the Manager so as to provide full cost recovery but is not to exceed 3% of the premium that would otherwise be payable by the Accredited Employer if it was not a member of the Full Self Cover Plan (or the Partnership Discount Plan).

9.6 An Accredited Employer under the Full Self Cover Plan must be protected by the employers liability cap (as set out in paragraph 16). “F_FSC” is to be a charge fixed by the Manager in relation to that particular Accredited Employer having regard to the general risks associated with the employer, its size and the industry in which it operates.

9.7 An Accredited Employer may seek to have the premium payable under the Accredited Employers Programme reviewed under section 310 of the Act (as though that section also applied to Part 10A of the Act) but an Accredited Employer must agree that a certificate from the auditors of the Manager as to the matters referred to in paragraphs 9.3, 9.4, 9.5 and 9.6 is to be conclusive of those matters in the absence of manifest error.

9.8 Notwithstanding the provisions of paragraphs 9.3 and 9.4, paragraph 21 shall not apply to the setting of the premium for the period to 31 March 2001.