“Ordinary” ACC cover is based on your income. Where you are self-employed or receive an end-of-year salary allocation as a shareholder employee the income will be the previous financial year’s amount. ACC normally pay 80% of this amount to you after a stand down period. This can work well but if you have a lower income year then an accident in the following year will give you 80% of the previous year’s now lower earnings. This is a real risk.
For self-employed and shareholder salaried clients (When your salary is credited at year-end an not through the payroll) there is a simple answer to this “problem” – getting an ACC CoverPlusExtra (CPX) policy in place. CPX works when you and ACC agree the level of cover you will need, in the hopefully unlikely event of an accident. (At home, work, driving, sports etc)
The “standard” ACC often needs us to help you with your claim – proving income etc and delays can often result – especially if you have not yet brought your records to us.
However, with CPX in place your compensation can start immediately ACC have proof of your accident.
The attached ACC 5432 sets out the details for CPX.
There is also another great option – to take on CPX at a lower level and use the “savings” to purchase a personal insurance policy for accidents and illness as well and get a better “bang for your buck”.
With illness protection you now have wider cover – ACC doesn’t help you if you get sick. To explore these options, I recommend you call Arthur Prinsen of Discovery Bay Services 021 741 013 or email Arthur on Arthur@discoverybayservices.co.nz. Many of these policies have premiums that are also tax deductible as well!