What ACC Doesn't Cover (and What Most Kiwis Get Wrong)

ACC is one of the best systems New Zealand has. It’s simple, no-fault, and it helps a lot of people when something goes wrong. But it’s also widely misunderstood.

We see this all the time:
“ACC will cover me if something happens, right?”

Sometimes. Often, not fully. And in a few important cases, not at all. Here’s what ACC doesn’t cover, in real terms.

1. Illness (not caused by an accident)

ACC mainly covers accidents, not illness.

That means if you’re unable to work because of:

• cancer
• heart disease
• stroke
• autoimmune conditions
• mental health conditions
• chronic pain
• pregnancy complications
• And many more conditions

ACC usually does nothing. This matters because illness, not accidents, is the most common reason people stop working long-term.

2. Your full income

Even when ACC does pay, it doesn’t replace everything. ACC generally pays:

• Up to 80 percent of your income
• Based on capped earnings
• Often with delays and admin

That missing 20 percent sounds small until:

• you have a mortgage
• childcare
• rising living costs
• or you’re self-employed

For many families, that gap is the difference between coping and stress.

3. Self-employed and business owners (the gaps are bigger)

If you’re self-employed or run a business, ACC is even less complete.

Common issues:

• income assessments lag behind reality
• business expenses are not covered
• no protection for lost contracts or clients
• no cover for business continuity

We regularly see business owners assume ACC “has them covered” — until they actually need it.

4. Trauma or critical illness support

ACC does not provide a lump sum if you’re diagnosed with a serious condition. There’s no payment for:

• a cancer diagnosis (read more about this here)
• a heart attack
• a stroke
• life-changing medical events

Even if you survive and recover, the financial impact can be huge. ACC doesn’t step in here.

5. Long-term financial certainty

ACC is designed as a safety net, not a full plan.

It doesn’t:

• clear your mortgage
• fund your kids’ education
• replace your partner’s income if you die
• give you certainty about how long payments last

It helps, but it doesn’t solve everything.

So what’s the takeaway?

ACC is great at what it’s designed to do. It’s just not designed to cover every scenario that affects your ability to earn or support your family. Most people don’t need to replace ACC. They need to top it up so the gaps don’t become problems.

That’s where income protection, trauma cover, and life insurance come in, not as scary extras, but as practical tools.

If you’re unsure where ACC stops for you

You don’t need to figure this out alone. We're here to help you understand:

• what ACC would actually pay them
• where the gaps are
• and what’s worth covering versus what’s not

If you’ve been assuming “ACC will cover it,” this is your sign to double-check. And we can help. Contact us today.