In New Zealand we are fortunate to have a world class accident compensation scheme. We all hear the sad stories of ACC not meeting people’s expectations, but it is still a great scheme in my opinion, and has many benefits.
At present we are seeing a lot of insurance advisers giving blanket advice to reduce ACC and take out private insurance. In some cases this is prudent, especially if your income would continue in the event of a period off work i.e. dairy farmers. But it’s not for everyone and this is where I get concerned.
ACC pays out after seven days versus private insurance that pays only after 30 days off work (at best). ACC covers you even if you have risky hobbies such as motor sport or mountaineering. Most private insurers would exclude these types of hobbies. ACC also has an accidental death benefit built in as well.
The other thing we see is clients with back and knee exclusions on private cover, and advisers suggesting reducing ACC, just based on a short term premium savings on ACC. This doesn’t always bring about the best outcome.
ACC is a complex product and needs specialist advice. Before you change ACC because of a sales pitch, ask for a written report, as for the proof that the person actually knows ACC in depth. Make sure you are talking to someone who really knows the complexities of ACC and not just someone using ACC as a way to make a sale.
If you want quality ACC advice, or you want to double check what you have had recommended, give us a call and we can refer you to a firm that does nothing but handle ACC.
John Barber