Jeff Burchell
Posted by toxic — Sep 01, 15:11 NZST
I've mentioned before that New Zealanders don't sue each other. Part of this is because of the ACC (Accident Compensation Corporation), which is funded through tax dollars, and pays all claims regarding any sort of "Accident" in the country, regardless of fault or visa status. So if I were to trip on the stairwell of the local bar and break my arm, ACC would cover it, and some portion of my lost wages for being unable to type, and so on.
Because of this, Kiwis aren't inclined to sue each other or place blame -- that's up to the authorities. This creates some interesting side-effects.
For instance, we just purchased insurance for our car (a 1997 Tercel). In the event of an auto accident (a "Prang" as it's called here), the police determine who is at fault, and that driver (or his insurance) pays for damages to the other driver's car (or the fence, building, or whatever else you ran into). Medical attention caused by a prang is covered by ACC. There are no pain-and-suffering damages.
The two of us, with our California licenses (we won't have NZ ones for another month or so), were able to get $2,000,000 of no-fault insurance coverage for $104 per year. We can now go out and sideswipe a row of Ferraris and only be on the hook for a $250 deductable (called an "Excess" here).
Back at home, the minimum liability insurance is $15,000. Imagine what that minimum level of coverage would cost for someone new to California, still using their foreign license. Then realize that we've got more than 100 times the protection. Still think the American legal system is the best that money can buy?
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