ACC vs Travel Insurance - The Definitive Guide for New Zealanders Heading Overseas

Our guide explains what ACC covers and doesn't cover during overseas travel, why travel insurance is necessary for New Zealanders travelling and the impacts of being uninsured from real-life case studies. Our guide explains misconceptions about ACC and travel insurance and their overlap in domestic travel.

Updated 3 April 2024

Summary

There is a misconception among some New Zealanders that ACC covers you for travel accidents overseas. Unfortunately, this is not the case, and we've published this guide to explain the differences. While it may seem obvious that ACC would never cover overseas accidents and illnesses, many New Zealanders travel uninsured, thinking that ACC will pick up the bill if they incur hospital costs or need to be flown back to New Zealand.
ACC, or the Accident Compensation Corporation, is a New Zealand organization that provides comprehensive, no-fault personal injury cover for all New Zealand residents and visitors to New Zealand. However, there are limitations to this coverage, and ACC doesn't cover international travel.
Understanding these limitations is essential to ensure you purchase adequate travel insurance coverage when travelling abroad.
ACC provides a valuable service, but it's not designed to replace travel insurance. It has significant limitations, particularly when it comes to international travel. For this reason, only travel insurance allows New Zealanders to travel overseas without worrying about potential financial risks.
Per the ACC's website which specifies overseas injuries, if you're a New Zealand resident and you return home with an injury that happened while you were travelling overseas, (ACC) "can help cover costs; this includes if you've been travelling for business, a holiday, or visiting friends or family".
This guide reinforces the fact - we repeat the point multiple times below to make it clear that ACC is not travel insurance in any form.

To make the limitations clear, our guide covers:

Know This First: ACC makes its cover limitations clear - ACC won't cover you for:

Non-accident medical emergencies or illness
Overseas treatment costs
Disrupted travel plans and lost deposits
Assisted travel or emergency travel for a relative
Non-working spouses or dependents, if they are out of New Zealand for longer than six months.

What Does ACC Cover (and Not Cover) When You're Overseas?

ACC covers physical injuries caused by accidents, irrespective of who's at fault, within New Zealand. This includes injuries caused by medical treatment, sexual assault, or work-related gradual process conditions. While ACC coverage is quite comprehensive within New Zealand, it isn't a replacement for travel insurance.

ACC Does Not Cover Illness

ACC does not cover illnesses, which is a significant risk when travelling. People can fall ill for various reasons, such as different climates, food, water, and environment, or contracting diseases prevalent in the destination country.
Comprehensive travel insurance typically covers medical expenses arising from sudden illnesses, which ACC does not.

ACC Coverage is Limited Overseas

In some cases, ACC may support cover for injuries from accidents that happened while travelling overseas. However, any such coverage is limited to the cost of treatment in New Zealand when you're back home, and there's no guarantee you'll be covered.
In addition, if medical expenses in the country where the accident occurred are higher than in New Zealand, ACC does not cover the difference. As a result, ACC cannot assist if and when you're overseas and injured.

ACC Does Not Cover Additional Travel Expenses

If an accident happens when you're overseas, you might incur additional expenses, such as extended hotel stays, flight change, or repatriation back to New Zealand. If you don't have travel insurance, you'll have to pay for these personally - ACC does not cover such expenses.
Travel insurance policies usually cover these additional costs, providing crucial financial support and avoiding asking family for money or relying on savings, loans or credit cards.

ACC Does Not Cover Losses Due to Cancelled or Delayed Trips

Travel plans can change unexpectedly due to severe weather, personal illness, or bereavement. ACC does not provide coverage for trip cancellations or delays. On the other hand, travel insurance often covers the financial losses incurred due to cancelled or delayed trips.

ACC Does Not Cover Lost, Damaged or Stolen Property

When travelling, there's a risk of loss, damage, or theft of personal belongings. ACC does not provide coverage for such incidents, even if the loss was due to an injury or accident. Travel insurance policies typically cover personal belongings, providing financial reimbursement or replacement.

ACC Does Not Cover Personal Liability

While overseas, you might accidentally cause harm or damage to other people or their property, which could result in legal liability. However, ACC does not cover personal liability claims, whereas travel insurance usually includes personal liability coverage.

Case Studies - ACC vs Travel Insurance

The case studies below are published to help explain the limits of ACC and when travel insurance needs to be in place to pay for medical and other travel disruption costs. Every situation is different - as a reminder, please remember that ACC never covers illnesses and treatments for overseas injuries are very limited.

Case Study 1: Medical Emergency Abroad

Consider a scenario where a New Zealander, John, travels to the United States for a two-week holiday. During his trip, John has a bad fall and breaks his leg. He is taken to a hospital, where he incurs substantial medical bills due to the high cost of healthcare in the U.S.
If John had relied solely on ACC, he would be in a difficult situation. ACC might contribute to his treatment and recovery, but only in New Zealand - overseas treatment costs are not covered by ACC.
John would be responsible for the balance of the medical expenses.
However, if John had comprehensive travel insurance, his policy would likely cover the medical expenses up to the policy limit. Additionally, travel insurance could cover costs like additional accommodation and flight changes, which ACC would not cover.

Case Study 2: Lost Luggage

Sarah, a New Zealander, goes on a trip to Europe. During her journey, her luggage gets lost. The luggage contained her clothing, some essential medications, and valuable items.
ACC does not cover personal property loss, so Sarah would have to replace everything out of pocket if she relied only on ACC. On the other hand, if she had travel insurance, she could file a claim for the lost luggage, and the policy could provide reimbursement, allowing her to replace the essential items.

Case Study 3: Workplace Injury Abroad

Moana, a New Zealand resident, travels to Japan for a three-month work assignment. While there, she gets injured in a fall at her workplace. She receives immediate medical treatment in Japan, but the costs are high. Moreover, she incurs additional costs due to the extended hotel stay and changes in her flight schedule.
In this case, Moana's ACC coverage comes into play after she returns to New Zealand. She contacts ACC upon her return, and they agree to cover the cost of her ongoing treatment in New Zealand. This is because Moana is ordinarily resident in New Zealand and was temporarily overseas for less than six months due to her job.
It's important to note that ACC doesn't cover the treatment cost she incurred in Japan or any other additional travel-related costs. However, since Moana also has travel insurance, she can file a claim with her travel insurance provider to cover these costs, including the medical expenses in Japan, the additional hotel stay, and the flight changes.

The combination of ACC and comprehensive travel insurance ensures that Moana is not left with substantial out-of-pocket costs due to her accident overseas. ACC provides support for her treatment upon her return to New Zealand, while her travel insurance provides coverage for her treatment and additional expenses overseas. This example demonstrates the importance of having both ACC and travel insurance when working abroad.

Must Know ACC-Specific Misconceptions - Avoid Being Uninsured by Knowing ACC's Limits

If I get injured while travelling, will ACC cover my medical expenses?

ACC can contribute towards the cost of treatment if you're injured in an accident while overseas, but this is limited to the cost of treatment in New Zealand.

What additional costs might I incur if I get injured while travelling overseas, and does ACC cover these?

Additional costs might include extended hotel stays due to hospitalization, changes to your flights, or repatriation costs to get you back to New Zealand. ACC does not cover these additional travel-related expenses; such costs are typically covered under travel insurance policies.

What if I need to cancel my trip or it gets delayed? Does ACC provide any coverage for this?

No - only travel insurance is designed to cover such eventualities, providing compensation for any financial losses incurred.

What if I cause harm or damage to someone else or their property while travelling overseas? Does ACC cover personal liability claims?

No - ACC does not cover personal liability claims. However, you could be legally liable if you accidentally cause harm or damage to others or their property while overseas. Personal liability coverage, usually included in travel insurance, can help protect you in such scenarios.

Domestic Travel Insurance vs ACC - Is There Overlap?

If you're planning to travel around New Zealand and are considering insurance cover, this section explains how you can benefit from ACC entitlements should you have an accident or injury.

Do I need domestic travel insurance in New Zealand if I am already covered by ACC?

Yes, you may still benefit from Domestic Travel Insurance. While ACC covers accidental injuries, domestic travel insurance can cover additional aspects such as trip cancellations, loss of personal belongings, and disruption caused by circumstances like weather or mechanical breakdowns, which ACC does not cover.

Does ACC cover cancelling domestic trips within New Zealand?

No, ACC does not cover cancellation or disruption of trips. Travel insurance can provide compensation if you have to cancel or reschedule your trip due to unexpected circumstances, but ACC will not cover this.

If my personal belongings are stolen during my trip to New Zealand, will ACC cover it?

No, ACC does not cover the loss or theft of personal belongings. However, travel insurance can provide compensation depending on your policy's terms and conditions if your belongings are lost, damaged, or stolen during your trip.

Does ACC cover medical emergencies unrelated to accidents, like a sudden illness, during my domestic travel in New Zealand?

ACC does not cover illnesses or health conditions unrelated to an accident. For coverage of medical treatments due to non-accident related circumstances, you'll need to go onto a public waiting list, pay for private treatment or claim on private health insurance. Our guide to income protection insurance vs ACC also details how ACC won't cover a loss of income from an illness.

I got injured while travelling domestically and have both ACC and travel insurance. Which one should I claim from?

You can claim from both ACC and travel insurance. ACC can contribute towards the treatment costs of your injury, and your travel insurance may cover additional expenses related to your injury, such as travel disruption or additional accommodation costs.

Does travel insurance cover more than ACC for domestic travel within New Zealand?

Yes, travel insurance typically covers more situations than ACC. For example, in addition to injury-related medical costs, travel insurance can cover cancellation and disruption of your trip, loss or theft of belongings, and personal liability, none of which are covered by ACC.

Frequently Asked Questions

What is ACC, and what does it cover?

ACC is a New Zealand crown entity responsible for administering the country's universal no-fault accidental injury scheme. It covers physical injuries caused by accidents within New Zealand, irrespective of who's at fault. This includes injuries caused by medical treatment, work-related conditions, and certain criminal injuries.

What is the difference between ACC and travel insurance?

ACC is a government scheme that covers accidental injuries that happen within New Zealand and is paid by levies; travel insurance is a paid policy that covers various scenarios like trip cancellation, medical emergencies, luggage loss, and personal liability during your travel, both domestically and internationally. ACC won't help you out overseas if you have an accident or get sick.

What should I do if I'm injured overseas and intend to claim from ACC upon return to NZ?

If you're injured overseas, seeking immediate medical attention is essential. Ensure you keep all the medical records and receipts related to your treatment, as you'll need to provide these when making your claim for ongoing care. Once you return to New Zealand, you should visit a health professional (doctor, physiotherapist, etc.) who can help you file a claim with ACC for your injury. Please remember that ACC coverage is limited to the cost of treatment in New Zealand.

How do I prove to ACC that my injury occurred overseas and qualifies for coverage?

When you file a claim with ACC upon your return, the documentation provided by your overseas healthcare provider becomes crucial. It should detail the cause and nature of your injury, the treatment provided, and any associated costs. Detailed medical records will provide a solid foundation for your claim.

How can I contact ACC from overseas if I need to?

If you need to contact ACC while you're overseas, you can do so by calling their international contact number outlined on their overseas injuries page.

If I am a non-working spouse or dependent travelling with a New Zealand citizen, and I am out of NZ for longer than six months, can ACC still cover me?

According to ACC's coverage policies, ACC does not cover non-working spouses or dependents if they are outside New Zealand for longer than six months. However, if they return to New Zealand and suffer an accident, ACC will cover them. Therefore, purchasing a comprehensive travel insurance policy is advisable for overseas coverage beyond six months.

If I'm a permanent resident of New Zealand but am currently residing overseas, can I still claim from ACC for injuries?

ACC typically provides coverage to permanent residents of New Zealand while they are in the country. If a permanent resident is injured overseas, ACC may contribute to treatment costs upon their return to New Zealand, similar to the policy for NZ citizens. However, this is limited to the cost of treatment in New Zealand. For full coverage while overseas, purchasing travel insurance is recommended.