A.C.C. registers income, payout increases
The Accident Compensation Corporation (A.C.C.) has recorded income of $21.20 million - an increase compared to the previous year while also paying out the most in accident compensation in five years.
The figure is outlined in the Corporation’s annual report for Financial Year 2018-2019.
“The financial performance of the Corporation for the reviewed period is considered satisfactory,” the report said.
The report says that A.C.C.’s total income of $21.2 million exceeded its target by two percent.
Total expenditure for the year of approximately $6.57 million was 3.1 per cent below its budget.
The decrease was attributed mainly to a reduction in administration expenditure.
“Excess income over expenditure of $14.62 million an increase of 4.65 percent over the previous year,” the report said.
“Investment income of $8.9 million represents an increase of 6 percent over the previous year while investment cost of $1.7 million represents an increase of one percent over the previous year.”
The annual report says the major source of scheme income which represented 54 percent of the A.C.C.’s total income, shows an increase of 6 per cent over the previous year.
This increase related to a Government increment rise which took effect on 1 January, 2019.
The cost of operating the scheme was $2.1 million - an increase of 34.9 percent compared to the previous year.
This is recorded as the highest amount in successful claims disbursed in the last five years.
The A.C.C. Operations Manager, Fauono Gladys Fuimaono, told the Samoa Observer in earlier interviews that in 2019 for instance, the number of new claims reached 323, which was a 20 per cent year-on-year rise from 265 new claims.
And as cases increased, so did the compensation paid out.
During the last five years, 2019 saw the highest amount paid out for claims topping $1.6 million from the previous year 2018 and 2017 a total of $1.3 million was paid out.
According to the report, the trend in the number of accidents during the reviewed period increased by two per cent.
“There was one motor vessel and 44 motor vehicle accidents recorded; it is pleasing to note the decline in injuries and fatalities,” the report read.
“The major cause for specified conveyance accidents is the carelessness of road users, especially drivers through speeding and driving under the influence of alcohol.
“The trend encourages the team to work hard in providing effective measures to continuously prevent accidents occurring in the next financial year.”
The report says that accidents occurring to workers after normal working hours continue to decline but the fatality rate has increased substantially - suggesting that while fewer accidents were occurring they were more severe.
“Unfortunately, the number of fatalities shows the severity of these accidents,” the report says.
“As the number of accidents decreased by 3.6 percent the death toll is increasing by 66.7 percent. Three fatalities were from recreational activities.”