What is ACC and how does it work for work visa holders in New Zealand?

ACC (Accident Compensation Corporation) is one of New Zealand's most unique and valuable features - a no-fault personal injury insurance system that covers everyone in the country, including tourists and work visa holders. Understanding ACC is crucial as it significantly impacts your insurance needs and protections.

What is ACC?

ACC is New Zealand's government accident insurance scheme that provides comprehensive coverage for anyone injured in the country. It replaced the right to sue for personal injury, creating a more efficient, no-fault system.

Who's Covered?

Everyone. This includes:

• New Zealand citizens
• Permanent residents
• Work visa holders (including temporary work visas)
• Student visa holders
• Tourists and visitors
• Even people here illegally

If you're injured in New Zealand, ACC covers you - no questions about visa status.

What Does ACC Cover?

ACC covers all accident-related injuries, including:

Medical Treatment:

• Doctor and specialist visits
• Hospital treatment
• Surgery and rehabilitation
• Physiotherapy, occupational therapy
• Prescription medications related to injury
• Medical equipment (crutches, wheelchairs, etc.)

Income Compensation:

• 80% of your earnings if you can't work
• Calculated on pre-injury earnings
• Continues until you recover or reach retirement age
• No waiting period for serious injuries

Rehabilitation:

• Physical rehabilitation
• Vocational rehabilitation and training
• Help returning to work
• Home modifications if needed
• Vehicle modifications if needed

Real-World Examples:

Example 1: Sports Injury

You're playing weekend rugby and break your leg. ACC covers:

• Emergency department treatment: Covered
• X-rays and scans: Covered
• Surgery if needed: Covered
• 6 weeks off work: 80% of salary covered
• Physiotherapy for 3 months: Covered
• Total cost to you: $0

Example 2: Work Accident

You injure your back lifting boxes at work. ACC covers:

• GP visits: Covered
• Specialist consultation: Covered
• Ongoing treatment: Covered
• 3 months reduced hours: Income top-up to 80% of full salary
• Retraining if you can't do your old job: Covered
• Total cost to you: $0

Example 3: Car Accident

You're in a car accident and suffer whiplash. ACC covers:

• All medical treatment: Covered
• 2 weeks off work: 80% salary covered
• Physiotherapy: Covered
• No need to prove who was at fault: Automatic coverage
• Total cost to you: $0

How ACC is Funded:

Earner Levy: 1.67% of your income (capped at NZD $2,551.59 annually)

• Automatically deducted from wages
• Covers you for all accidents, not just work-related

Motor Vehicle Levy: Included in vehicle registration

Business Levies: Employers pay additional levies

What ACC Does NOT Cover:

Important limitations:

• Illness or disease (covered by health system instead)
• Gradual process injuries (like repetitive strain) - harder to claim
• Mental injury alone (must be linked to physical injury)
• Injuries caused by medical treatment (separate process)

Key Differences from Other Countries:

vs United States:

• US: Need expensive health insurance + disability insurance + workers' comp
• NZ: ACC covers everyone automatically
• US: Can sue for damages; NZ: Cannot sue for personal injury (ACC is sole remedy)

vs United Kingdom:

• UK: NHS covers treatment, but limited income protection
• NZ: ACC covers both treatment AND income compensation

vs Australia:

• Australia: Different systems by state, employer liability
• NZ: Single national system, no employer liability for injuries

For Work Visa Holders:

Great News:

1. Coverage starts immediately upon arrival
2. No waiting period
3. No pre-existing condition exclusions for accidents
4. Same coverage as citizens
5. Reduces need for expensive private accident insurance

When to Use ACC:

Do claim for:

• Sports injuries
• Car accidents
• Work accidents
• Falls and injuries
• Anything sudden that causes injury

Don't claim for:

• Gradual onset pain
• Illness (flu, infection, etc.)
• Mental health (unless linked to physical injury)
• Chronic conditions

How to Make a Claim:

1. See a registered ACC provider (most doctors are)
2. They file the claim electronically
3. You may need to provide accident details
4. Decision usually within days
5. Treatment starts immediately
6. For income claims, requires medical certificate

No Paperwork: Unlike US insurance, you don't deal with claims, billing, or denials. Doctor files everything directly.

Impact on Your Insurance Needs:

What You DON'T Need:

• Accident insurance (ACC covers this)
• Disability insurance for accidents
• Income protection for accidents

What You Still NEED:

• Health insurance for faster access to elective treatment
• Life insurance
• Income protection for illness (not accidents)

Common Expat Questions:

Q: Do I still need travel insurance when visiting home?

A: Yes! ACC only covers you in New Zealand.

Q: Does ACC cover my family?

A: Yes, all members covered equally.

Q: What if ACC denies my claim?

A: You can appeal through internal review, then independent review.

Q: Can I top up the 80% income?

A: Some employers offer additional coverage; you can also buy income protection insurance for the gap.

ACC is a significant advantage of living in New Zealand. The peace of mind knowing that any accident is automatically covered - treatment and income - without paperwork or bills is invaluable. It's worth factoring this into your overall compensation package when comparing NZ to other countries.