What is Accident Compensation Corporation (ACC) and what does it cover?
The Accident Compensation Corporation (ACC) in New Zealand is a no-fault personal injury insurance scheme designed to support anyone injured in an accident within the country. It covers a broad range of injuries and provides various forms of compensation to aid recovery and rehabilitation.
Coverage and Eligibility
ACC covers everyone in New Zealand, including visitors, and extends to New Zealanders injured overseas under certain conditions, such as having a permanent home in New Zealand and not being overseas for more than six months (with possible extensions for work). It also offers support for sexual abuse or assault, which can be sought even for past incidents.
Types of Injuries and Compensation
ACC addresses physical injuries, treatment injuries, mental injuries from sexual abuse or work-related trauma, and injuries that develop gradually due to work. Compensation includes medical treatment, weekly payments for lost income, social and vocational rehabilitation, and lump sums for permanent impairments.
Detailed Survey Note
The Accident Compensation Corporation (ACC) in New Zealand operates as a unique no-fault personal injury insurance scheme, established to provide comprehensive support for individuals injured in accidents. This survey note aims to detail the coverage, eligibility, types of injuries addressed, and compensation provided, based on available information as of July 2, 2025.
Background and Scope
ACC, founded under the Accident Compensation Act 2001, is New Zealand’s response to personal injury claims, replacing the traditional fault-based litigation system. It ensures that anyone injured in an accident within New Zealand receives support, regardless of who is at fault. This includes New Zealand citizens, residents, and temporary visitors, making it a broad and inclusive scheme.
Who is Covered by ACC?
The scheme’s coverage is extensive, encompassing:
- New Zealand citizens and residents, ensuring local populations are protected.
- Temporary visitors to New Zealand, except in specific scenarios such as injuries occurring while boarding, on board, or leaving a ship or aircraft they arrived on, are staying on while visiting, or are leaving New Zealand on (e.g., cruise ship passengers).
- New Zealanders injured overseas, provided they or their partner/child have a permanent home in New Zealand (“ordinarily resident”) and have not been overseas for more than six months. This period can be extended for work-related reasons with the intent to return, ensuring expatriates and frequent travelers are not excluded.
This inclusivity reflects ACC’s commitment to a no-fault system, where the focus is on recovery rather than blame, aligning with New Zealand’s social welfare ethos.
What Injuries Are Covered?
ACC covers a diverse array of injuries, categorized as follows:
- Physical Injuries Caused by Accidents: This includes broken bones, muscle tears, strains, deep cuts, and sprains, covering common accident-related damages.
- Treatment Injuries: Injuries resulting from medical treatment, ensuring that healthcare-related mishaps are also addressed.
- Mental Injuries: Specifically, mental injuries caused by sexual abuse, recognizing the psychological impact of such trauma, and work-related mental injuries, acknowledging workplace stress and trauma.
- Work-Related Gradual Process Injuries: Conditions like long-term exposure to substances (e.g., asbestos) at work, addressing occupational health hazards that develop over time.
This broad definition ensures that both immediate and gradual injuries are considered, providing a safety net for various scenarios, including intentional injuries like assault.
Compensation Provided
Once a claim is accepted, ACC offers several forms of compensation to support recovery and rehabilitation:
- Medical and Other Treatment: Covering costs for necessary medical procedures, ensuring access to healthcare without financial burden.
- Loss of Income (Weekly Compensation): Up to 80% of the individual’s income if they cannot work due to the injury, providing financial stability during recovery.
- Social Rehabilitation: Aimed at restoring everyday independence outside the workplace, such as help with daily activities or home modifications.
- Vocational Rehabilitation: Focused on restoring independence in working life, including retraining or job placement support to return to employment.
- Lump Sums for Permanent Disabilities (Permanent Impairment): Financial support for those with lasting impairments, acknowledging long-term impacts on quality of life.
These compensations are tailored to individual needs, ensuring a holistic approach to recovery, and are funded through levies and government contributions, reflecting a collective societal responsibility.
Special Considerations
A notable aspect is ACC’s support for victims of sexual abuse or assault, offering free assistance regardless of when the incident occurred. This is particularly significant, as it addresses a sensitive and often underreported issue, providing a pathway for healing and support. The scheme also has restrictions, such as not covering injuries deliberately self-inflicted or occurring during criminal activities, balancing support with accountability.
For employers part of the Accredited Employers Programme, responsibilities include deciding coverage, paying claim costs, and aiding rehabilitation, shifting some administrative burden to ensure workplace safety and support.
Supporting Information and References
The information is derived from reliable sources, including:
- The official ACC website , which provides detailed guidance on claims and coverage.
- Community Law’s overview of the ACC scheme , offering legal insights into eligibility and entitlements.
These sources confirm the accuracy of the provided details, ensuring the survey note is grounded in authoritative data as of July 2, 2025.
Summary Table
To organize the information, here is a table summarizing key aspects:
| Category | Details |
|---|---|
| Who is Covered | New Zealand citizens/residents, temporary visitors (with exceptions), New Zealanders injured overseas (specific conditions). |
| Injuries Covered | Physical (accident-related), treatment injuries, mental (sexual abuse/work-related), gradual work-related. |
| Compensation Provided | Medical treatment, weekly income loss, social/vocational rehabilitation, lump sums for permanent impairments. |
| Special Support | Free help for sexual abuse/assault victims, regardless of when it occurred. |
| Restrictions | Excludes self-inflicted injuries, injuries during criminal acts. |
This table encapsulates the core elements, facilitating easy reference for understanding ACC’s scope and operations.
Conclusion
In conclusion, ACC stands as a cornerstone of New Zealand’s social welfare system, providing comprehensive, no-fault coverage for personal injuries, with specific provisions for sensitive issues like sexual abuse and support for overseas injuries. This survey note ensures a thorough understanding, supported by credible sources, reflecting the scheme’s role in fostering recovery and societal wellbeing.