ACC Product Comparison

 
Grange Associates Ltd - 26 July 2013

ACC provides self-employed business people and shareholder employees with both a standard, "do-nothing" level of cover with CoverPlus and Workplace Cover and also an optional, more flexible product with CoverPlus Extra.

ACC CoverPlus & ACC Workplace Cover

These are ACC’s standard cover products, CoverPlus is for self-employed, and Workplace Cover is for non-PAYE shareholder employees.  Cover is in place as soon as the business starts.

Standard Benefits:

• 24/7 cover for all injuries
• Access to a full range of medical and rehabilitation benefits
• Weekly compensation based on up to 80% of previous tax year’s earnings or previous 52 weeks taxable earnings
• Weekly compensation abates if you return to work part-time
• Levies are calculated on 100% of taxable earnings (up to the maximum level of $113,768)

For the standard cover products, proof of loss of earnings is required at claim time to calculate your compensation, which can mean more paperwork and a hold up in receiving compensation while waiting for filing and assessment of tax returns to establish your claim entitlements.

ACC CoverPlus Extra

This is ACC’s optional product for both self-employed and non-PAYE shareholder employees.  Unlike the standard products, which automatically begin when the business starts, you must apply for CoverPlus Extra.

In addition to the standard benefits of CoverPlus and Workplace Cover noted above, CoverPlus Extra also provides:

• Weekly compensation based on 100% of a pre-agreed level of cover
• Full compensation remains when returning to work part-time
• No proof of loss of earnings required at time of claim
• Levies calculated on an agreed level of cover

It may be worth considering CoverPlus Extra if…

• Your income fluctuates as you can agree a set level of cover with ACC
• You are starting out in business and have no income history
• Your taxable income is not indicative of your actual loss of earnings e.g income is split with a partner
• You would prefer a reduced level of cover as you hold private insurance with another provider
• You have shareholder employees that are eligible for a different ACC classification rate from your main business rate

To be eligible for CoverPlus Extra you must earn over $22,464 OR work more than 30 hours per week.

Cost Comparison

As an example, John is a self-employed carpenter with a taxable income of $80,000.  Based on 2013/14 ACC levy rates, the various options & their costs would be:

So, for an extra $194 under CoverPlus Extra, John would receive the same level of compensation as the standard CoverPlus but would not need to prove loss of earnings when making a claim and would also receive full compensation when returning to work part-time.

If John wanted to cover his income in full, rather than the standard 80%, it would cost an extra $1,215 per annum and also with the added benefits above of no need to prove earnings and full compensation whilst returning to work part-time.  

If you are interested in finding out more or applying for CoverPlus Extra, contact ACC. 

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