What is ACC CoverPlus Extra?

If you are self-employed or a contractor you have two options for your Accident Compensation Cover –

• Standard CoverPlus (CP)

• CoverPlus Extra (CPX)

You’ll automatically be placed on CoverPlus (CP) and Inland Revenue provides ACC with a summary of your earnings from your income tax return (IR3). This information, combined with your classification unit is used to calculate your levy which is invoiced after your income tax return is filed with IRD.

Standard CoverPlus pays you up to 80% compensation if you’ve had an accident and can’t work. You will have to prove loss of earnings.

CoverPlus Extra (CPX) allows you to choose how much of your income you want to be covered if you have an accident and can’t work. The invoice is generated for the year in advance.

If you have an accident you will be compensated 100% and do not have to prove loss of earnings on the standard option.

This is a suitable option if you have fluctuating income, either yearly or seasonal or if you have other forms of cover such as income protection insurance. It provides greater cashflow certainty as you’ll know exactly how much ACC will compensate you.

For the 2024 year, you can apply for cover for any amount of income between $34,679 and $111,507.

You can apply for CoverPlus Extra if you’re:

• self-employed or a non-PAYE shareholder, ie you don’t receive PAYE deducted earnings from your company
• working full-time (more than 30 hours per week on average)
• working part-time (30 hours or less per week on average) and have earnings above the CPX minimum for the current year.

If you do not pay your CPX invoice by the due date, your agreed level of cover will cancel and you will be defaulted back to the standard CP method.

If you would like to apply for CPX or unsure if it is right for you? Get in touch today.