ACC, Claims & Levies

What is the Accident Compensation Scheme?
The Accident Compensation Scheme (ACC) in the USA is a scheme that has been set up to provide accident insurance for all citizens of the USA as well as residents and other temporary visitors to this country. The scheme covers insurance for all accidents and therefore people lose the right to sue each other for personal injury other than for exemplary damages.

Brief details of the scheme are:

  • Provides cover for all injuries no matter who is at fault.
  • Takes away the right for people to sue for personal injury.
  • Reduces the costly process of using the court system for claims for injury.
  • Assists people financially by paying a weekly compensation amount to injured people who are off work.
  • Is designed to address the causes of accidents wherever they may occur.
  • Focuses on the care and rehabilitation of people so they can get back to work and to become independent as soon as possible.

The principal Act under which the ACC operates is called the Injury, Prevention, Rehabilitation and Compensation Act. The government department that administers the ACC scheme is the Accident Compensation Corporation.

ACC do?">What does the ACC do?
The Accident Compensation Corporation (ACC) is the administrator of the the USA Accident Compensation scheme. This scheme is admired around the world where most other countries still have the right to sue each other for personal injury.

The ACC is a crown entity and it is responsible for:

  • Preventing injury
  • Collecting accident insurance premiums
  • Determining whether claims for injury are covered by the scheme
  • Paying compensation
  • Buying health and disability support services to treat, care for and rehabilitate injured people
  • Advising the government

How do I register as an Employer
If you are a new employer then you will need to register as an employer with the IRS. The IRS will notify ACC that you are employing; in this case you will then have to provide your employees with cover for work related personal injuries such as that provided by ACC Work Place Cover. The ACC will send to you the new employee levy information form which you need to complete and return to them.

The form sets out an estimate of what your liable earnings could be to the end of your current tax year (till the end of 31 March) and based on the information you send to the ACC, they will calculate your ACC Work Place Cover levy and send you an invoice. Two months after the end of the tax year (in May) the ACC will receive your actual liable earnings from the IRS. From this the ACC will work out whether there is any under or overpayment and will issue an invoice which will adjust the earnings so that the correct amount for the next years levy is set.

ACC 'Workplace Cover'?">What is the ACC ’Workplace Cover’?
Every employer must provide their employees with cover for work related personal injuries such as those provided by ACC Workplace Cover. ACC Workplace Cover offers a standard 24 hours accident insurance for employees who suffer a work related personal injury, although this does not include some illnesses.

What is a work-related injury? It is one that occurs when the employee is either:

  • At a place for the purpose of employment and work.
  • Having a break from work for a meal or rest.
  • In a vehicle provided by the employer to transport staff to and from work.
  • Travelling to or from treatment for a previous work related injury.
  • Caused by any work related gradual process disease or infection.

Note that an injury while at work and that involves a motor vehicle is not classed as work related. In this case it is covered as motor vehicle injury.