ACC vs insurance: the gap most Kiwis miss
ACC only covers accidents. Here's what it doesn't cover and what you can do about it.
What ACC covers
ACC covers injury from accidents, including weekly compensation (up to 80% of pre-injury income), treatment costs, and rehabilitation. It does not cover illness, including cancer, heart attack, stroke, or mental health conditions.
What ACC does not cover
Illness — cancer, heart attack, stroke, mental health
Self-inflicted injury
Some workplace gradual process conditions (limited)
How insurance fills the gap
Income protection
Covers illness ACC won't.
Trauma cover
Pays a lump sum on diagnosis.
Health insurance
Shortens wait times for treatment.
Life insurance
Protects the family if the worst happens.
A quick scenario
A 38-year-old IT professional in Auckland is diagnosed with cancer. ACC pays nothing because it's an illness. With income protection paying 75% of income, plus trauma cover paying a lump sum, the family avoids financial crisis on top of the medical one.
- Income protection replaces a chunk of lost income each month
- Trauma lump sum covers extra costs and travel for treatment
- Family focus stays on recovery, not money