Accident Compensation Corporation
Accident Compensation Corporation
Main page
1887071

Accident Compensation Corporation

logo
Community Hub0 subscribers
What are your thoughts?
Be the first to start a discussion here.
Be the first to start a discussion here.
Accident Compensation Corporation

The Accident Compensation Corporation (ACC) (Māori: Te Kaporeihana Āwhina Hunga Whara) is the New Zealand Crown entity responsible for administering the country's no-fault accidental injury compensation scheme, commonly referred to as the ACC scheme. The scheme provides financial compensation and support to citizens, residents, and temporary visitors who have suffered personal injuries.

The corporation was founded as the Accident Compensation Commission on 1 April 1974 as a result of the Accident Compensation Act 1972. Its principal governing act today is the Accident Compensation Act 2001. As a Crown entity, ACC is governed by a board that is responsible to the Minister for ACC. Unlike most other Crown entities, it has its own dedicated ministerial portfolio, which since February 2025 has been held by Scott Simpson.[citation needed]

The ACC has its origins in the Workers' Compensation for Accidents Act 1900, which established a limited compensation scheme for workers who had suffered injuries where there was no directly responsible party. In 1966, a New Zealand Royal Commission, chaired by High Court judge Owen Woodhouse, was established. In 1967 the Royal Commission recommended extending this compensation to cover all injuries on a no-fault basis. Following this report, the New Zealand Parliament passed the Accident Compensation Act 1972, later amended in 1973. The Accident Compensation Commission was established from 1 April 1974. In 1992, the commission was renamed the Accident Compensation Corporation (ACC), as a short form for its official name Accident Rehabilitation and Compensation Insurance Corporation The Act was later replaced by the Injury Prevention, Rehabilitation and Compensation Act 2001, which was in 2010 renamed the Accident Compensation Act 2001. The Commission's annual report for 1989/90 proposed that the distinction between accidents—which are covered—and "illness"—which is not—should be dropped. This proposal was not taken up by the government.

From 1 July 1999, the fourth National government allowed private insurance operators to provide work-related accident insurance, and ACC was briefly exposed to competition. The fifth Labour government (elected in November 1999) repealed this change, and as of 1 July 2000 re-instated ACC as the sole provider of accident insurance coverage.

On 30 May 2025, ACC chair Tracey Batten resigned effective immediately. In March 2024, the Sixth National Government had renewed a chairmanship for a further three-year term until 2027.

ACC is the sole and compulsory provider of accident insurance in New Zealand for all work and non-work related injuries. The corporation administers the ACC Scheme on a no-fault basis, so that anyone, regardless of the way in which they suffered an injury, has coverage under the scheme. Due to the scheme's no-fault basis, people who have suffered personal injury do not have the right to sue an at-fault party, except for exemplary damages.

However, the Accident Compensation Act 2001 defines "personal injury" in a manner that restricts the concept of injury to physical injury or a mental injury due to a physical injury . Only mental injury caused by sexual assault has been excluded from the definition of personal injury and the claimant does not have to prove physical injury

The scheme provides a range of entitlements to injured people, however 93.5 percent of new claims in 2011 to 2012 were for treatment costs only. Other entitlements include weekly compensation for lost earnings (paid at a rate of 80% of a person's pre-injury earnings) and the cost of home or vehicle modifications for the seriously injured. The scheme offers entitlements subject to various eligibility criteria. ACC works with partners and communities on initiatives to prevent injuries. These initiatives include "RugbySmart" with New Zealand Rugby, "Ride Forever", "Mates and Dates", and "Make Your Home a Safety Zone" with Safekids Aotearoa.

See all
User Avatar
No comments yet.