Understanding ACC Terms
The Accident Compensation Corporation (ACC) is a unique feature of New Zealand's social insurance system, providing financial compensation and support to people who have been injured in accidents. Whether you're a worker, a student, or just living your daily life, understanding how ACC works and the key terms associated with it is crucial. This guide will help you navigate the essential ACC terms so you can make the most of the support available to you.
1. ACC (Accident Compensation Corporation)
ACC is a government agency in New Zealand that provides no-fault insurance coverage for all residents and visitors who suffer personal injury due to an accident. This means that regardless of who caused the accident, ACC will cover the costs of your treatment, rehabilitation, and other support services.
2. No-Fault Cover
No-fault cover means that ACC will provide support and compensation regardless of who is at fault for the accident. Whether you were injured at work, at home, or during recreational activities, you’re eligible for ACC cover as long as the injury was caused by an accident.
3. Personal Injury
A personal injury, in the context of ACC, refers to physical injuries such as fractures, cuts, and burns, as well as conditions like sprains and strains. It also includes more severe injuries like spinal injuries, brain injuries, and mental trauma resulting from physical injuries. ACC covers the costs of treatment and rehabilitation for these injuries.
4. Accident
An accident is an unexpected event that causes physical injury. This can include slips, trips, and falls, car accidents, workplace injuries, or injuries sustained while playing sports. ACC coverage is designed to provide support for injuries resulting from these types of incidents.
5. Treatment Costs
Treatment costs refer to the expenses associated with medical care following an injury. ACC covers a wide range of treatment costs, including visits to doctors, specialists, physiotherapists, and other healthcare providers. They may also cover surgery, prescription medications, and certain types of rehabilitation.
6. Weekly Compensation
Weekly compensation is a payment made by ACC to cover lost income if you're unable to work due to an injury. If you’re employed, ACC typically pays 80% of your pre-injury income after the first week of your injury. This support helps to ease the financial burden while you recover and is available to both employees and self-employed individuals.
7. Rehabilitation
Rehabilitation refers to the process of recovering from an injury and returning to your normal life. ACC provides support for various rehabilitation services, including physiotherapy, occupational therapy, and other treatments designed to help you regain your physical and mental abilities after an injury.
8. CoverPlus vs. CoverPlus Extra
CoverPlus: CoverPlus is the default cover for Kiwi’s. If you are unable to work due to an accident, you receive 80% of your pre-disability income. For employees this is easy to prove with timesheets. For self-employed people this can be a more difficult process as they would need up to date financials to prove income.
CoverPlus Extra: CoverPlus Extra is an option developed for the self-employed. You can choose the level of cover you would like to and pay the respective levies (premium) for this. This is ideal for all self-employed people to have the peace of mind knowing what they will receive.
9. Sensitive Claims
Sensitive claims are claims related to injuries resulting from sexual violence or abuse. ACC provides specialized support and services for survivors of such incidents, including counseling and therapy. Sensitive claims are handled with confidentiality and care to ensure that survivors receive the support they need.
10. Medical Misadventure
Medical misadventure, now referred to as treatment injury, is an injury that occurs as a result of medical treatment rather than the underlying condition. ACC covers treatment injuries, including cases where medical errors or unexpected complications lead to harm. This cover provides support for additional treatment and rehabilitation required due to the injury.
Conclusion
Understanding ACC and its associated terms is vital for making the most of the support available to you in New Zealand. Whether you’re dealing with a recent injury or planning ahead for potential risks, knowing how ACC works and what it covers can help you navigate the process more smoothly. By familiarizing yourself with these key terms, you can ensure that you and your loved ones are well-protected and supported in the event of an accident.
Amy Callon
Financial Adviser
New Vision Financial Services
Plan your future and let us help you have peace of mind along the way.