Why people are still buying health insurance while ACC covers

SP Insurance 

Everyone in New Zealand is covered by the Accident Compensation Corporation (ACC). ACC is a New Zealand Crown entity that provides financial compensation and support to citizens, residents, and temporary visitors who have suffered personal injuries.

ACC are free, no registration and fees are required. Once the accident happens, if it causes injury to the individual's body and the settlement standard of ACC is met, ACC can be settled and the medical expenses for treatment and rehabilitation will be reimbursed.

However, if the accidental injury claims have been reimbursed by ACC, but the damages are exemplary damages, then the parties shall not take legal action on liability party. Also no further individual compensation can be claimed, due to the principle of no - fault cover.

The main reason of no - fault cover is to prevent both parties from wasting time and money on litigation, which is not conducive to personal health recovery while consuming social resources. This is one of the main significance of the ACC compensation system.

Why people are still purchasing health insurance in New Zealand?

First, people who purchase health insurance tend to have a better understanding of New Zealand's health care system.

Second, understand the high expenses for hospital treatments.

Thirdly, ACC only covers accidental injuries. Once the medical expense is not within the scope of ACC, you will need to handle the payment.

For example, international students studying in New Zealand are not qualified for free medical benefits in New Zealand. Once they receive treatment in local hospitals, it may cost hundreds or even thousands of dollars. As a result, the New Zealand government has made it compulsory for all international students studying in New Zealand to buy student insurance during their studies.

Once people who are working in New Zealand have any accident, they can claim for ACC as well. However, the compensation paid by ACC unlikely covers all medical expense in most situations. People still need to pay the medical cost if there is no any health insurance provided.

So, with a good understanding of the ACC's coverage, many people would still choose to purchase health insurance policy that suits them.


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