Personal Accident and Sickness Cover in NZ vs Income Protection
Personal accident and sickness cover is a policy, usually written by a general insurer rather than a life insurer, that pays a fixed weekly or monthly benefit for a set period if illness or injury stops you working. Income protection insurance is sold by a life insurer, generally underwritten in more depth, and typically pays until you return to work or reach a chosen age such as 65 or 70. Neither product is ACC, which pays only for accidents and is capped well below many incomes, so both exist to cover illness ACC will not touch, or to top up what ACC pays. A licensed adviser can confirm which structure fits a given case.
In short
- Chubb Insurance New Zealand Limited's Individual Personal Accident & Sickness policy, a general insurance product, covers people to age 65 and excludes stress or psychiatric conditions (Chubb factsheet, retrieved 17 September 2026).
- ACC pays weekly compensation at up to 80% of pre-injury earnings for accidents only, capped at a gross maximum of $2,466.20 a week from 1 July 2026 (ACC, retrieved 17 September 2026).
- Income protection benefit periods commonly run for 2 years, 5 years, or to a chosen age such as 65 or 70, well beyond the fixed terms typical of accident and sickness schemes (Fidelity Life, retrieved 17 September 2026).
- AA Life's income protection, underwritten by Asteron Life, needs no medical exam at application, showing how underwriting depth varies between these products (AA, retrieved 17 September 2026).
New Zealanders often run into two products answering what feels like the same question. Personal accident and sickness insurance, sold mostly by general insurers, pays a benefit for a defined period. Income protection, sold by life insurers, is usually the larger policy an adviser recommends as a household's main income cover. Both sit inside the broader income protection category.
What Is Personal Accident and Sickness Cover?
Personal accident and sickness cover is a policy, usually written by a general insurer, that pays a fixed benefit for a set period rather than potentially decades. Chubb Insurance New Zealand Limited, a general insurer distinct from Chubb Life, sells an Individual Personal Accident & Sickness policy with an age limit of 65 (Chubb factsheet, retrieved 17 September 2026).
Chubb's own description of its New Zealand operation separates "Chubb General Insurance" from the life insurance business that writes its income protection products (Chubb, retrieved 17 September 2026). That split runs across the market: accident and sickness cover sits in general insurance, income protection sits in life insurance, even under one global brand.
How Does It Differ From Income Protection Insurance?
| Feature | Accident and sickness cover | Income protection insurance |
|---|---|---|
| Typically written by | A general insurer or underwriting agency, e.g. Chubb or TAI | A life insurer, e.g. AIA, Partners Life, Chubb Life or Asteron Life |
| Typical benefit period | Often a fixed term, e.g. the 52-week benefit on the NZ Dental Insurance Society scheme (NZDIS) | Commonly 2 years, 5 years, or to a chosen age such as 65 or 70 (Fidelity Life) |
| Underwriting | Group schemes are usually arranged through an employer, not individually (TAI) | Depth varies: AA Life needs no medical exam (AA) |
| Illness covered | Narrower; stress or psychiatric conditions are a standard exclusion on Chubb's policy (Chubb factsheet) | Varies by insurer and case; see income protection mental health claims |
(Sources for each row retrieved 17 September 2026.)
The gap between a 52-week benefit and one running to age 65 is the difference between bridging finance and a genuine income replacement plan.
Who Sells Personal Accident and Sickness Cover in NZ?
Chubb Insurance New Zealand Limited sells its individual policy directly and through brokers, to age 65 (Chubb factsheet, retrieved 17 September 2026). TAI, a specialist underwriting agency, places individual and group personal accident and illness cover and calls itself "one of the few providers in New Zealand" doing so (TAI, retrieved 17 September 2026). Some professional associations run their own schemes: NZ Dental Insurance Society members can buy a 52-week accident and sickness policy paying up to $10,000 a week (NZDIS, retrieved 17 September 2026).
Income protection instead comes from life insurers on QuoteHub's panel, such as AIA, Partners Life, Chubb Life and Asteron Life, plus mutual insurer MAS, whose Income Security policy pays up to 75% of pre-disability income until a member returns to work or the benefit period ends (MAS, retrieved 17 September 2026). AA Life, underwritten by Asteron Life, needs no medical exam at application (AA, retrieved 17 September 2026).
How Does This Cover Work Alongside ACC?
Neither product replaces ACC; both cover what ACC does not, or top it up. ACC pays weekly compensation automatically for accidents at up to 80% of pre-injury earnings, capped at a gross maximum of $2,466.20 a week from 1 July 2026 (ACC, retrieved 17 September 2026). That cap, and the fact ACC pays nothing for illness, is why TAI markets its cover as something that "tops up ACC payments from 80% to 100% of pre-accident income" and responds "if ACC does not respond" (TAI, retrieved 17 September 2026).
Self-employed people can also change how ACC pays, through CoverPlus Extra, a separate decision from private cover; see CoverPlus vs CoverPlus Extra and ACC versus private insurance. For what ACC does and does not pay for, see the ACC hub.
What Limits and Exclusions Should You Expect?
Underwriting outcomes vary by insurer and case; a licensed adviser presents an application to insurers directly rather than guessing the result. On Chubb's Individual Personal Accident & Sickness policy, cover stops at 65, and it excludes claims from professional sport training, self-injury, any stress or psychiatric condition, and pre-existing medical conditions, except where illness or disease results directly from medical or surgical treatment made necessary by a covered injury (Chubb factsheet, retrieved 17 September 2026). Exclusions like these are typical of the narrower class; income protection is more likely to consider a mental health claim on its own facts, covered in income protection mental health claims.
Should You Hold Both Types of Cover?
The two are not substitutes. Someone who cannot yet get income protection underwritten, or needs a bridge while an application is assessed, may use a short accident and sickness policy meanwhile, while most households with a mortgage and dependants still need the longer-running cover income protection provides. See disability insurance in NZ for how ACC, income protection and TPD fit together. Pricing depends on occupation, benefit period and underwriting basis, so neither sits in QuoteHub's Premium Index: a premium needs an application, not a table lookup.
Frequently Asked Questions
Is personal accident and sickness cover the same as ACC?
No. ACC is automatic and pays only for accidents. Personal accident and sickness cover is a policy you choose and pay for, and it can also respond to illness, subject to the policy's exclusions.
Does it pay out for a mental health condition?
Not usually. Chubb's policy excludes stress or psychiatric conditions, including depression and anxiety (Chubb factsheet, retrieved 17 September 2026). Underwriting outcomes for a mental health history vary by insurer and case, so a licensed adviser presents the individual's circumstances to insurers rather than guessing the outcome; this is general information, not medical or financial advice about any individual's own cover.
How long does this cover pay for?
It depends on the scheme. Some pay a fixed term such as 52 weeks (NZDIS, retrieved 17 September 2026), while income protection typically offers benefit periods of 2 years, 5 years, or to a chosen age such as 65 or 70 (Fidelity Life, retrieved 17 September 2026).
Can self-employed people buy this cover?
Yes. Self-employed New Zealanders can combine ACC CoverPlus Extra with a private accident and sickness or income protection policy to cover illness ACC will not pay for. See CoverPlus vs CoverPlus Extra.
Talk to a Licensed Adviser
A licensed adviser at QuoteHub can compare a general insurer's accident and sickness policy against a fully underwritten income protection policy, check what each one excludes, and recommend a benefit period that matches the gap ACC leaves, with no pressure to buy. Start your free check or read more on the income protection hub first.
References
- Chubb, Individual Personal Accident & Sickness Insurance Policy Fact Sheet (PDF) (retrieved 17 September 2026)
- Chubb, About Chubb in New Zealand (retrieved 17 September 2026)
- TAI, Personal Accident and Illness (retrieved 17 September 2026)
- NZ Dental Insurance Society, Accident & Sickness (Income Protection) Insurance (retrieved 17 September 2026)
- AA Life Insurance, Income Protection Cover (retrieved 17 September 2026)
- MAS, Income Security Insurance (retrieved 17 September 2026)
- Fidelity Life, Income Protection Cover Factsheet (PDF) (retrieved 17 September 2026)
- ACC, Changes to ACC client payments from 1 July 2026 (retrieved 17 September 2026)
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Explore related pages: Life Insurance, Income Protection, Health Insurance, Trauma Insurance, Free Will.