Illness vs. Accident Statistics

In New Zealand, personal injury insurance for work and non-work related injuries is mandatory for self-employed people through the government’s Accident Compensation Corporation (ACC). When you look at New Zealand’s health statistics, Kiwis are more likely to be out of work from a long-term serious illness rather than an accidental injury.

The Statistics Tell the Story

modern machine operatorAccording to the latest statistics on the ACC website, 207,467 work injury claims were submitted in 2012, with 64.6 percent of those injured people returning to a productive life within three months. What’s more, 82.3 percent returned to work within six months, while 91.6 percent returned within a year.

On the other hand, the New Zealand Ministry of Health statistics show that serious illnesses, such as cancer and heart disease, continue to rise, along with the length of time people remain out of work from these serious illnesses. Furthermore, heart disease is the leading cause of death in New Zealand, according to the Heart Foundation. Forty percent of all deaths each year in New Zealand are a result of heart disease.

On a per day perspective, there are only 3.2 accidental death claims, while 51 people are diagnosed with cancer, 22 people die from cancer and one New Zealander every 90 minutes dies from coronary heart disease.

The statistics clearly show that long-term serious illness, not personal injury, is the biggest risk for self-employed New Zealanders, yet the ACC levies they pay for ACC cover only compensates them for when an injury makes them unable to work. ACC does not cover illnesses or non-injury related disabilities.

Ways to Address ACC Cover Shortages

New Zealand’s self employed must select either ACC Cover Plus or ACC Cover Plus Extra as their personal injury insurance and pay the applicable ACC levy. But more importantly, they need to supplement ACC coverage with private insurance to keep them financially stable when they are unable to work due to an illness.

The most cost-effective way to do this is to select Cover Plus Extra and request a low loss of earnings compensation amount. This will reduce the amount of your ACC levy, freeing up funds so you can purchase private insurance. Private insurance costs less than what you are currently paying in ACC levies and not only supplements your ACC loss of earnings compensation, but also gives you more comprehensive cover for other circumstances that prevent you from working.

With an income protection policy, life insurance, trauma or permanent disability policy, or mortgage protection insurance, or a combination of several policies to match your needs, you are covered for all injuries, accidents, serious and critical illnesses, permanent disability and accidental death. Private insurance also ensures you have enough money to maintain your lifestyle and pay your mortgage, bills and other expenses while you are out of work. Your spouse and children also will be financially secure with your private insurance plans. In addition, the cost analysis shows that you can save hundreds and possibly thousands of dollars when you reduce your ACC cover and its associated levy and supplement it with private insurance.

Start With a Rates Comparison

Shopping around for the best private insurance is made simple with an automated rates comparison. Our free, 24/7 rates comparison gives you rates from up to seven different leading insurance companies. This enables you to do a side-by-side review of the coverage details and applicable rates at your leisure and make an informed decision based on your needs.

If you prefer, we can also advise you on how to reduce your ACC cover so you can save on ACC levies and get more comprehensive cover for less money with private insurance. We know it’s important to you to make sure you and your families are well protected in the event of an injury or illness. It’s important to us, as well. Our goal is to provide you with financial security with private insurance policies that meet your needs and budget.