Accident compensation regulatory system
This page describes the Accident Compensation Regulatory System, its objectives and our qualitative assessment of it. It also lists the main statutes and changes to regulation either planned or in progress.
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System description and objectives
System description
The accident compensation regulatory system restricts the ability to sue for personal injury and substitutes New Zealand’s accident compensation scheme. The regulatory system includes provisions dealing with:
- injury prevention
- coverage of accidental injuries
- entitlements to compensation
- rehabilitation and the provision of treatment
- decisions and review of decisions
- establishment of the Accident Compensation Corporation (ACC)
- management of the scheme and setting and collection of levies
- management of injury related information, and
- the accredited employer regime and other aspects of the scheme.
The scheme is an integral part of New Zealand’s social contract. It is a key social and economic institution tasked with promoting injury prevention and providing rehabilitation and compensation entitlements to people who are injured so that they can return to normal life as quickly as possible.
It excludes regulation of insurance and investment within the financial markets conduct regulatory system.
Objectives
The objective of the accident compensation system is to provide for a fair and sustainable scheme for managing personal injury while minimising the overall incidence of injury in the community, and the impact of injury on the community (including economic, social, and personal costs).
The scheme is guided by five principles, which have endured over the scheme's 40 year history:
- community responsibility: the community supports an individual when their ability to contribute to the society by their work is interrupted by injury
- comprehensive entitlements: all injured people are entitled to a consistent level of assistance for a similar level of incapacity/need regardless of the causes which gave rise to their injury
- complete rehabilitation: injured people should be supported to achieve timely physical and vocational recovery
- real compensation: payment of income-related benefits for income losses for the period of incapacity and in recognition of permanent bodily impairment
- administrative efficiency: all aspects of the scheme should be managed in a timely, consistent and economical way.
Ministerial portfolio and key statute
| Portfolio | Key statute |
|---|---|
| ACC(external link) | Accident Compensation Act 2001 |
Regulatory agencies and their roles
| Agency | Role |
|---|---|
| MBIE | Responsible for advising the Minister for ACC on matters relating to the scheme including broader scheme direction and performance as well as the legislation and regulations governing the scheme. MBIE also administers the appropriation for the Crown-funded Non-Earners’ Account and provides advice on the setting of levy rates including the engagement of independent actuarial review of the levy proposals. |
| Accident Compensation Corporation (ACC) | Delivers the scheme as framed in legislation, focusing on effective delivery of injury prevention initiatives and no-fault personal injury cover for everyone in New Zealand, including overseas visitors. |
| The Treasury | Monitors ACC’s performance, leads advice to the Minister on ACC accountability documents, and supports the Board appointments and evaluation process. Treasury also supports the Minister of Finance directly with advice for Crown Financial Institutions, of which ACC’s investment function is one, and policy and fiscal advice. |
Collaboration and information-sharing between regulatory agencies
MBIE and ACC, and MBIE and Treasury, have close working relationships in order to ensure the scheme operates effectively.
The division of responsibility between MBIE and ACC reflects ACC’s status as a Crown Agent and allows ACC to focus on the effective and efficient delivery of the scheme.
The ACC Board is the primary monitor of ACC performance.
Regulated parties and main stakeholders
Regulated parties:
- Employers
- ACC
Main stakeholders:
Everyone in New Zealand is covered by ACC’s no-fault scheme if they’re injured in an accident. This includes those not employed such as children, beneficiaries and students.
Other key stakeholders include:
- Employers and employees
- Advocates
- Health sector.
Processes for engagement with regulated parties and stakeholders
Customer Advisory Panels (Rongoā Māori, Sexual Violence, The Crowd - Scheme Customer Advisory Panel): Provide insights about ACC services and policies and scheme settings. They also complement ACC’s research, analytics, staff feedback, and customer co-design.
Public consultation on policy proposals: Discussion documents / issues papers.
Direct engagement with key stakeholder groups: Mainly carried out by ACC.