Accident Compensation Corporation (ACC)
Accident Compensation Corporation (ACC) Te Kaporeihana Āwhina Hunga Whara, is a New Zealand Crown entity responsible for administering the country’s universal no-fault accidental injury scheme. The scheme provides financial compensation and support to citizens, residents, and temporary visitors who have suffered personal injuries.
What is ACC?
The Accident Compensation Corporation (ACC) is a unique scheme in New Zealand that provides coverage for individuals injured in an accident. The scheme aims to cover the recovery costs by providing financial assistance for treatment, support at home and work, and loss of income. The scheme is funded by levies paid by everyone in the country, including employers, employees, vehicle owners, and tourists renting a car.
ACC Quick Facts
- Name: Accident Compensation Corporation (ACC)
- Key People:
- Honourable Peeni Henare, Minister for ACC
- Megan Main, Chief Executive
- Paul Dyer, Chief Investments Officer
- Year Established: 1974
- New Injury Claims 2022: 1,878,862
- Claims Paid 2022: $1.6B
- Number of employees: 4,049 permanent and temporary staff
- Website: www.acc.co.nz
Services Provided by ACC
ACC provides a range of services to help individuals recover from injuries. These include:
- Recovery at Work: ACC works with employers, employees, and health providers to ensure a smooth transition to work after an injury.
- Injury Prevention: ACC provides resources and support to help prevent injuries from occurring in the first place.
- Support for Wellbeing Initiatives: ACC supports various wellbeing initiatives, such as Farmstrong, which aims to promote wellbeing among rural communities.
- Multi-Sport Events: ACC supports multi-sport events like IronMāori to promote wellbeing among whānau.
History of ACC
The Accident Compensation Corporation (ACC) has a rich history that dates back to the early 20th century.
- 1900: New Zealand introduced the Worker’s Compensation Act, one of the world’s first ‘no-fault systems. This Act required employers to take out insurance to cover employees’ injuries and provided compensation to the families of people who were fatally injured at work.
- 1928: The Motor Vehicles Insurance (Third Parties Risk) Act was established, introducing a compulsory insurance program compensating people injured by motor vehicle accidents.
- 1967: The Royal Commission created the Woodhouse Report to address workers’ frustrations with inadequate weekly compensation payments. This report recommended a new ‘no-fault’ accident compensation program and formed the foundation of ACC.
- 1972: The Accident Compensation Act was passed, and the ACC was established on 1 April 1974.
- 1998: For a brief period, private insurance for work accidents was introduced.
- 2000: ACC was restored as the sole provider of accident insurance coverage.
Over the years, ACC has continued to evolve and adapt to meet the needs of New Zealand’s citizens, residents, and temporary visitors.
Today, ACC is a Crown entity governed by a Board responsible to the Minister for ACC. It administers the country’s no-fault accidental injury compensation scheme, providing financial compensation and support to those who have suffered personal injuries.
ACC Investment Fund
ACC’s annual report reveals that its investment fund grew to $46.9 billion from $45.8 billion in the previous year, driven by positive investment returns.
The fund managed by the ACC is divided into two parts, with 50% invested in bonds and the other 50% split between domestic and global equities. The portfolio includes nearly $1 billion of stocks in Alphabet (Google’s parent company), Microsoft, and Apple. Eight external investment managers manage the equity portion.