Do you hate paying your ACC Invoice?

Well if you are self-employed and receiving Non – PAYE shareholders salary or taking drawings, then this is for you.

New Zealand is a land of Small to Medium Enterprises, and if you are like many business owners who began your business and ended up on the default ACC schemes of CoverPlus, or WorkPlace Cover then help is at hand.

There is an alternative which may suit your situation and allow for significant savings to provide better insurance cover for both sickness and injury, not just injury. Let me introduce you to CoverPlus Extra.

CoverPlus Extra is an agreed value accidental injury scheme where you can select the level of cover you want (within limits) and therefore provide the ability to reduce the cover and the associated levy.

Do you split your income for tax purposes?

Under the default schemes you have to “prove a loss”. This may be difficult when your partner is seeking to claim, as the income does not reduce due to the efforts of the other partner.

Example:

Paul is a Plumber who’s taxable Income is $40,000.

Paul’s wife Wendy, has a taxable income is $40,000. Wendy runs the office for 5 hours a week.

ACC may not pay if Wendy was to claim, as Paul generates the whole $80,000! With CoverPlus Extra you can “lock in” the benefit that will be paid as it is an Agreed Value contract.

Are you on the correct Occupation Code?

All shareholders must be on the same Occupation Code under the default schemes.

With CoverPlus Extra each shareholder can be coded as per their occupation within the business. So this would mean for the above scenario Wendy could be rated as an Administrator – saving even more money!

So what’s the catch?

Well nothing. There are some Pro’s and Con’s as with all schemes, and these need to be discussed along with your insurance cover to ensure that they fit together and work at claim time without paying for more than you need.

However, in general I have found CoverPlus Extra to be a significant advantage for many business owners looking to save money, get better cover and more certainty at claim time.

The Last Word

As individual circumstances vary, always seek advice from a Authorised Financial Adviser before making any changes to your existing insurance plans (including ACC), or taking out new insurance policies.

The Accident Compensation Corporation (ACC) provides comprehensive, no-fault personal injury cover for all New Zealand residents and visitors to New Zealand.

What injuries am I covered for?

Wounds, lacerations, sprains, strains, fractures, dislocations and work-related injuries such as hearing loss may all be covered. Most physical injuries are covered if they’re caused by:

an accident

a condition that comes on gradually because of your work (gradual process)

medical treatment

sexual assault or abuse

There is a specific definition of ‘injury’ in the Accident Compensation (AC) Act 2001, which is the law that ACC must apply when considering applications for claims and assistance.

ACC has to be satisfied that you have suffered a personal injury, which can mean any of:

physical injury

mental injury suffered due to physical injury

mental injury caused by certain criminal acts (Listed under Schedule 3 of the Accident Compensation Act 2001 )

damage (other than wear or tear) to dentures or prostheses that replace part of the human body

death due to a physical injury.

What doesn’t ACC cover?

ACC does not cover:

illness

stress, hurt feelings, loss of enjoyment or other emotional issues(these may be covered if these are the direct result of a physical injury or sexual abuse)

injuries related mainly to ageing. That means we don’t cover injuries to teeth from normal use, or heart (cardio-vascular) disease or brain

(cerebro-vascular) disease, unless it stems from medical treatment or a work injury involving abnormal or excessively intense effort

non-traumatic hernias (eg from coughing or sneezing, or not directly as a result of trauma)

injuries that come on gradually and are not due to a work task (non-occupational gradual process injuries).

Note – All details were accurate at time of publication.

Vaughan is an Authorised Financial Adviser who specialises in Insurance and Mortgages. And he has also been recognised within the industry as a leading adviser with awards in 2009 and 2010. http://www.insurancebrokerschristchurch.co.nz

Vaughan is an Authorised Financial Adviser who specialises in Insurance and Mortgages. And he has also been recognised within the industry as a leading adviser with awards in 2009 and 2010. http://www.insurancebrokerschristchurch.co.nz

Author Bio: Vaughan is an Authorised Financial Adviser who specialises in Insurance and Mortgages. And he has also been recognised within the industry as a leading adviser with awards in 2009 and 2010. http://www.insurancebrokerschristchurch.co.nz

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