There has been a significant drive to save money on ACC Levies via Coverplus Extra (CPX), by reducing the compensation to the minimum (min $22, 880 max $94, 553 -2014/15)
Although not adverse to this, we do recommend clients get professional advice specifically due to the additional risk this may incur, there are four main considerations:
- Reduced Fatal entitlements (accidental death), paid as a weekly benefit to the family; the difference in lost benefit (changing from maximum to minimum levels) for a young family could be greater $1.35Million
- Significantly reduced weekly compensation until income protection kicks in (typically 4-13 weeks). Can you afford to find over $15,000 in lost compensation over 13 weeks until your private insurance starts paying a claim?
- No cover for excluded pre-existing conditions on private cover (e.g. Back excluded)
- Most income protection policies are reduced by any benefit received from ACC
With on average *39% of male claims are accident related (*51% Blue Collar), as advisers we make sure you are aware of the risk and that your private policy works with ACC, not against it.
* Gen Re Reinsurance experience 2004-2008