ACC CoverPlus Extra

ACC CoverPlus Extra is an optional product that lets self-employed people and non PAYE shareholder employees negotiate a pre-agreed level of lost earnings compensation. This way you know exactly how much you’ll receive each week if you are injured and can’t work – whether the injury is work-related or not. If you choose ACC CoverPlus Extra, this will replace your standard ACC CoverPlus product.

On this page

  1. What are the benefits of ACC CoverPlus Extra?
  2. What is the difference between ACC CoverPlus and ACC CoverPlus Extra?
  3. How do I know if ACC CoverPlus Extra is right for me?
  4. Who can apply?
  5. What does it cost?
  6. How do I apply for ACC CoverPlus Extra?
  7. What happens next?
  8. What is the Lower Levels of Weekly Compensation option?
  9. What amount of compensation will I get?
  10. What if I am in a partnership?
  11. What if I work part-time?
  12. How do we assess ACC CoverPlus Extra applications?
  13. How do I renew my cover?
  14. How do I cancel my cover?
  15. Where can I get more information about ACC CoverPlus Extra?

What are the benefits of ACC CoverPlus Extra?

  • You can tailor the level of cover for lost earnings to suit your own personal circumstances, subject to ACC underwriting.
  • If you make a claim, there is no need to prove your earnings, as the weekly compensation has already been agreed. This means that you may receive your weekly compensation quicker.
  • You will receive 100% of the amount of the agreed lost earnings compensation until you are fit for full-time work.

What is the difference between ACC CoverPlus and ACC CoverPlus Extra?

The key difference is the amount of lost earnings compensation you receive. With ACC CoverPlus Extra you get 100% of the amount you negotiate. Because you have agreed cover, you may begin receiving compensation more quickly.

Whichever option you choose, ACC will provide assistance with treatment and rehabilitation costs.

How do I know if ACC CoverPlus Extra is right for me?

ACC CoverPlus Extra may better meet your needs if:

  • your income fluctuates
  • your personal income is not a true indication of actual earnings
  • your business will still generate income while you’re injured
  • you have not been self-employed for long
  • you want a guaranteed level of lost earnings compensation.

Who can apply?

Self-employed people can apply for ACC CoverPlus Extra.

What does it cost?

ACC CoverPlus Extra levies are calculated in a similar way to ACC CoverPlus levies, based on your previous year’s earnings from self-employment and the levy rates specific to your business activity.

In addition the levies also take into account the agreed amount of lost earnings compensation.

See What do I pay? for more information about levies and how they are calculated.

You can estimate your own levy by:

How do I apply for ACC CoverPlus Extra?

You can:

What happens next?

  • We may wish to discuss the application with you and/or your accountant or tax advisor.
  • We will send you a letter of offer that includes details of the ACC5345 ACC CoverPlus Extra Terms and Conditions (PDF 176K) policy. If your application is not accepted, we will contact you to discuss our decision.
  • You must sign the policy acceptance and return it to ACC within 21 days of receiving it, otherwise the offer will lapse.
  • Your cover will start from the date stated in the offer, if the signed acceptance is received within 21 days.
  • We will send you a policy certificate and an ACC CoverPlus Extra invoice once we have received your acceptance. The invoice is payable within 30 days of the invoice date. The due date is shown on the invoice.
  • Your policy may lapse if you do not pay your ACC CoverPlus Extra invoice by the due date shown on the invoice. If this happens your cover will revert to ACC CoverPlus for self-employed or ACC WorkPlace Cover for non-PAYE shareholder-employees.

What is the Lower Levels of Weekly Compensation option?

ACC CoverPlus Extra also has a Lower Levels of Weekly Compensation option.

With this option you pay a slightly lower levy in return for a level of weekly compensation that reduces the more hours you are able to work. This option can be selected on the ACC CoverPlus Extra Application form and/or calculators.

What amount of compensation will I get?

We will work with you to agree on a level of lost earnings compensation that matches your requirements.

The amount of lost earnings compensation needs to be within the minimum and maximum amounts, and must reflect the amount suitable for your business situation.

  • The minimum level of weekly compensation that you can nominate is $415.67 (before tax). This is $21,614.84 per annum.
  • The maximum level of weekly compensation that you can nominate is $1,750.28 (before tax). This is $91,014.56 per annum.

These amounts are for the 2011/12 levy year, and are subject to changes due to indexation each year.

What if I am in a partnership?

Cover can be negotiated based on each individual’s income (provided all partners apply for ACC CoverPlus Extra at the same time).

If one member of a partnership is a ‘passive earner’ (with no involvement in the actual management or operation of the business), the other partner or partners’ level of cover can be negotiated to take into account the partnership’s total liable earnings.

What if I work part-time?

You are considered to be a part-time self-employed person if you work an average of less than 30 hours per week.

If your part-time earnings exceed the minimum earnings threshold, you are eligible for ACC CoverPlus Extra standard cover option.

Note:
Part-time self-employed people are not eligible for Lower Levels of Weekly Compensation cover.

How do we assess ACC CoverPlus Extra applications?

ACC will take the following financial factors into account when considering your application:

  • your self-employed profile (eg. number of years in business, whether in the same or another occupation)
  • your liable earnings as a self-employed person over the last three years
  • whether you spouse receives any income from the business, which would cease if you were off work because of an accident
  • the estimated cost of labour (if labour replacement is an option) – taking into account that replacement labour will generate income for the business
  • the structure of the business, eg whether you are a sole trader or in a partnership.

How do I renew my cover?

All ACC CoverPlus Extra policies come up for renewal on 31 March each year. We will send you a new cover period offer before then. If you are happy with your current level of lost earnings compensation and cover terms, there is no need to contact us directly. We will automatically extend your existing terms into the next cover period and send you a policy certificate and invoice.

If your circumstances change you are welcome to contact us to discuss amending your current level of lost earnings compensation and cover terms.

How do I cancel my cover?

Please contact the ACC Business Service Centre if you are considering cancelling your ACC CoverPlus Extra cover.

Where can I get more information about ACC CoverPlus Extra?

To find out more about ACC CoverPlus Extra:

Last updated: 25 July 2011