“No fault” Accident Compensation System
New Zealand has a statutory no-fault accident compensation scheme providing cover for most individuals who suffer a personal injury by accident in New Zealand. The scheme (which originated in the Accident Compensation Act 1972) is set out in the Accident Compensation Act 2001 (AC Act).
The AC Act covers personal injuries suffered by any person in New Zealand, including visitors, whether the injury occurs at work or otherwise. The AC Act prohibits legal claims for compensation arising out of or relating to most types of personal injury suffered in New Zealand as a result of an accident. A wide range of cover is available under the ACC Act for most types of personal physical injury suffered as a result of an accident.
Means of compensation include payments for loss of earnings, medical treatment, rehabilitation costs, disability allowances, and death benefits for dependants. Accident compensation benefits are available to visitors who are injured in New Zealand, although earnings related compensation is not available where the visitor’s income is derived outside New Zealand.
The accident compensation scheme is funded largely through levies on employers, employees, and taxes on vehicle registration and petrol. The scheme is administered by the Accident Compensation Corporation (ACC).