ACC covers accidents. It does not cover illness.

Understanding ACC

Most Kiwis don't realise this until something goes wrong.

Cancer. Heart disease. Stroke. Degenerative conditions. If any of these stop you from working, ACC won't replace your income. It wasn't designed to. This page explains what ACC actually covers, where the gaps are, and what you can do about them.

Henry Smith, Financial Adviser (FSP1010699) · Reviewed by Craig Smith, Financial Adviser · Updated 8 September 2026

80%

of your income

ACC pays for accidents only

$2,466.20

maximum weekly

ACC gross weekly cap, from 1 July 2026

10 days

paid sick leave

Minimum legal entitlement per year

0%

illness cover

ACC pays nothing for illness

What ACC actually covers

ACC covers

Workplace injuries

Falls, strains, equipment accidents. ACC covers treatment and up to 80% of income while you recover.

Car and transport accidents

Injuries from crashes, cycling, pedestrian accidents. Treatment, rehab, and income support.

Sports injuries

Torn ACL on the rugby field, broken wrist from a fall. Covered.

Medical treatment injuries

If something goes wrong during surgery or medical care, ACC can cover the resulting injury.

Home accidents

Slipped in the shower, fell off a ladder. Accidental injuries at home are covered.

ACC does not cover

Cancer

Diagnosis, treatment, time off work. ACC provides nothing. This is the leading cause of death in New Zealand.

Heart disease and stroke

The second biggest killer. If you have a heart attack and can't work for six months, ACC won't pay a cent.

Mental illness

Depression, anxiety, burnout. Unless directly caused by a covered physical injury, ACC does not cover mental health conditions.

Degenerative conditions

Arthritis, multiple sclerosis, motor neurone disease. These develop over time and are not "accidents."

Back pain with no accident

If your back gives out but there was no specific accident, ACC is unlikely to cover it.

Illness that stops you working

Any illness that prevents you from earning income is not covered. Period.

Two Kiwis. Two situations. Very different outcomes.

Sam breaks his leg mountain biking

Sam crashes on a trail and fractures his tibia. He's off work for 8 weeks. ACC covers his surgery, physio, and pays 80% of his income while he recovers. His mortgage payments continue. His family doesn't notice the financial hit.

ACC paid approximately 80% of Sam's income for 8 weeks.

Illness - Not covered by ACC

Sarah is diagnosed with breast cancer

Sarah finds a lump and is diagnosed with stage 2 breast cancer. She needs surgery, chemo, and six months off work. ACC covers nothing. Her employer pays her statutory 10 days of sick leave. After that, her income stops. Her mortgage is $2,800 per month. She has no income protection.

ACC paid nothing. Sarah's income dropped to zero once her sick leave ran out.

The difference isn't luck. It's planning. Sarah's situation is far more common than Sam's. Cancer and cardiovascular disease are New Zealand's two leading causes of death, well ahead of accidental injury. Yet most people only have ACC, which covers accidents and nothing else.

What happens to your income when ACC can't help

Even when ACC does apply, it has limits. ACC pays up to 80% of your pre-injury earnings, but only up to a maximum of $2,466.20 gross per week (ACC's published rate from 1 July 2026, retrieved 8 September 2026). The floor is $766.40 a week for a full-time earner (ACC, changes to client payments from 1 April 2026, retrieved 8 September 2026). Because the cap applies after the 80% calculation, anyone earning more than about $160,000 a year is already exposed to a gap even for accidents.

But for illness, the gap is 100%. ACC pays nothing. Your options are:

If you have income protection insurance

Your insurer replaces a portion of your income (typically 75%) for as long as you're unable to work, whether the cause is an accident OR an illness. Some policies also cover partial disability and rehabilitation.

If you don't have income protection

You rely on savings, family, or government support. Jobseeker Support pays a maximum of $372.55 a week after tax for a single person aged 25 or over (Work and Income published rate, checked August 2026). If your mortgage is $600 per week, the maths doesn't work.

Check your income protection

Your income is your most valuable asset. A 2-minute check could reveal whether you're covered if illness stops you working.

Your mortgage doesn't care why you can't work

Your bank doesn't distinguish between an accident and an illness. If you can't make repayments, the consequences are the same regardless of the cause.

ACC covers the accident side, partially. But if cancer, a stroke, or a serious illness takes you out of work for months, your mortgage still needs to be paid. Every month.

This is why mortgage protection insurance exists separately from ACC. It's specifically designed to cover your repayments when you can't work, for any reason, not just accidents.

If you got your insurance through your bank when you signed your mortgage, it's worth checking whether it actually covers illness, how long it pays for, and whether the cover amount still matches your current mortgage balance. Bank policies often have limitations that standalone policies through a broker don't.

Check your mortgage protection

Your mortgage is probably your biggest financial commitment. Make sure it's actually protected, not just for accidents.

What fills the gap

Three types of cover that work where ACC doesn't

Income Protection

Replaces a portion of your income if you can't work due to illness or injury. Unlike ACC, it covers both. Typically pays 75% of your pre-disability income. Policies vary - waiting periods, benefit periods, and definitions differ between insurers.

Check income protection

Mortgage Protection

Specifically covers your mortgage repayments if you're unable to work. Can be structured as a standalone policy or part of a broader cover package. Ensures your biggest financial commitment is met even if your income stops.

Check mortgage protection

Trauma Cover

Pays a tax-free lump sum on diagnosis of a serious condition - cancer, heart attack, stroke, and others. You choose how to use the money: treatment, living costs, mortgage, time off work. It's not income replacement - it's a financial buffer when you need it most.

Check trauma cover

Not sure which cover you need?

Start with a general check. A licensed adviser can help you work out which gaps matter most for your situation.

Common misconceptions

Things people get wrong about ACC

Six assumptions that could cost you

You're more exposed than you think

ACC covers accidents. It doesn't cover illness.

If your income matters, to you, your family, or your mortgage, it's worth checking.

No obligation. Takes about 2 minutes. Licensed NZ advisers.

Check income protection specifically

Check mortgage protection specifically

Sources

Written by Henry Smith, Financial Adviser (FSP1010699). Reviewed by Craig Smith, Financial Adviser. Last updated 8 September 2026. The information on this page is general in nature and should not be relied upon as personalised financial advice. ACC entitlements and limits are reviewed every year, the weekly maximum on 1 July and the levy year figures on 1 April, so check acc.co.nz before relying on them. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name.

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