Accident Compensation Act 2001

Reprint as at 7 May 2015

Coat of Arms of New Zealand

Accident Compensation Act 2001

Public Act
2001 No 49
Date of assent
19 September 2001
Commencement
see section 2

Act name: substituted, on 3 March 2010, by section 5(1)⁠(a) of the Accident Compensation Amendment Act 2010 (2010 No 1).

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Business, Innovation, and Employment.

Contents

1Title
2Commencement
3Purpose
4Overview
5Act to bind the Crown
6Interpretation
7Acute treatment
8Cover
9Earnings as an employee: what it means
10Earnings as an employee: payments to spouse or partner
11Earnings as an employee: what it does not include
12Earnings as an employee: Work Account levy payable under section 168
13Earnings of private domestic workers
14Earnings as a self-employed person
15Earnings as a shareholder-employee
16New Zealand
17Ordinarily resident in New Zealand
18Spouse (and spouse in relation to deceased claimant)
18APartner (and partner in relation to deceased claimant)
19Key terms in this Part
20Cover for personal injury suffered in New Zealand (except mental injury caused by certain criminal acts or work-related mental injury)
21Cover for mental injury caused by certain criminal acts
21ACover under Accident Rehabilitation and Compensation Insurance Act 1992 for mental injury caused by certain criminal acts
21BCover for work-related mental injury
22Cover for personal injury suffered outside New Zealand (except mental injury caused by certain criminal acts or work-related mental injury)
23Cover for personal injury suffered by persons not ordinarily resident in New Zealand: exclusions while travelling to, around, and from New Zealand
24Cover for personal injury caused by work-related gradual process, disease, or infection: exclusion for events occurring outside New Zealand before 1 April 1974
25Accident
26Personal injury
27Mental injury
28Work-related personal injury
29Personal injury that is both work-related and motor vehicle injury
30Personal injury caused by work-related gradual process, disease, or infection
31Ministerial advisory panel on work-related gradual process, disease, or infection [Repealed]
32Treatment injury
33Treatment
34Cover for personal injury caused by medical misadventure before 1 July 2005
35Motor vehicle injury
36Date on which person is to be regarded as suffering mental injury
37Date on which person is to be regarded as suffering personal injury caused by work-related gradual process, disease, or infection
38Date on which person is to be regarded as suffering treatment injury
39Meaning of Corporation
40Purpose of Code
41Code applies generally
42Corporation to prepare draft Code in consultation with persons nominated by Minister
43Public consultation on draft Code after agreement by Minister
44Approval of draft Code by Minister
45Corporation’s obligations in respect of Code
46Application of Legislation Act 2012 to Code
47Amendments to Code
48Person to lodge claim for cover and entitlement
49Treatment provider lodging claim on behalf of person
50Responsibilities of Corporation after claim lodged
51When claim is lodged and received
52Manner of making claim
53Time for making claim
54Responsibility of Corporation to make reasonable decisions in timely manner
55Responsibilities of claimant to assist in establishment of cover and entitlements
56Steps Corporation takes to action claims for cover
57Steps Corporation takes to action complicated claims for cover
58Effect of failure to meet time limits
59Decision on cover independent of acceptance of levy
60Decision on claim for Schedule 2 injury
61Decision on claim for noise-induced hearing loss caused by work-related gradual process
62Decision on claim for treatment injury
63Corporation must tell claimant about review rights
64Corporation must give notice of decisions
65Corporation may revise decisions
66Corporation must keep claims files
67Who is entitled to entitlements
68Corporation provides entitlements in accordance with this Act
69Entitlements provided under this Act
70Claimant’s and Corporation’s obligations in relation to rehabilitation
71Employer’s obligations in relation to rehabilitation
72Responsibilities of claimant who receives entitlement
73Payment of treatment providers for acute treatment
74Limits on treatment providers in decisions on acute treatment
75Corporation to determine need for rehabilitation plan
76Provision of rehabilitation before and after individual rehabilitation plan agreed
77Assessment of needs and content of plan
78Individual rehabilitation plan must be updated
79Purpose of social rehabilitation
80Purpose of vocational rehabilitation
81Corporation’s liability to provide key aspects of social rehabilitation
82Corporation may provide other social rehabilitation
83Date of entitlement to social rehabilitation
84Assessment and reassessment of need for social rehabilitation
85Corporation liable to provide vocational rehabilitation
86Matters to be considered in deciding whether to provide vocational rehabilitation
87Further matters to be considered in deciding whether to provide vocational rehabilitation
88Vocational rehabilitation may start or resume if circumstances change
89Assessment of claimant’s vocational rehabilitation needs
90Occupational assessor
91Conduct of initial occupational assessment
92Report on initial occupational assessment
93Medical assessor
94Assessments when medical assessor unavailable
95Conduct of initial medical assessment
96Report on initial medical assessment
97Employee’s right to receive first week compensation
98Employer’s duty to pay first week compensation
99First week compensation is salary or wages for certain purposes
100Entitlement to weekly compensation depends on claimant’s incapacity for employment and vocational independence
101Procedures for determining incapacity for employment and vocational independence
102Procedure in determining incapacity under section 103 or section 105
103Corporation to determine incapacity of claimant who, at time of personal injury, was earner or on unpaid parental leave
104Effect of determination under section 103 on entitlement to weekly compensation
105Corporation to determine incapacity of certain claimants who, at time of incapacity, had ceased to be in employment, were potential earners, or had purchased weekly compensation under section 223
106Effect of determination under section 105 on entitlement to weekly compensation
107Corporation to determine vocational independence
108Assessment of claimant’s vocational independence
109When claimant’s vocational independence to be assessed
110Notice to claimant in relation to assessment of vocational independence
111How determination that claimant has vocational independence is to be regarded
112Claimant with vocational independence loses entitlement to weekly compensation
113Claimant who no longer has vocational independence regains entitlement to weekly compensation
114Payment of interest when Corporation makes late payment of weekly compensation
115Indexation of weekly compensation and related amounts
116Indexation of lump sum compensation, funeral grant, survivor’s grant, and child care payments
117Corporation may suspend, cancel, or decline entitlements
118Disentitlement because proceedings brought: personal injury caused by work-related gradual process, disease, or infection
119Disentitlement for wilfully self-inflicted personal injuries and suicide
120Disentitlement for conviction for murder
121Disentitlement during imprisonment
122Disentitlement for certain imprisoned offenders
122AExemption from section 122(1)
123Entitlements inalienable
124Entitlements to be provided to claimant only
125Corporation to pay amount for child to caregiver or financially responsible person
126Corporation to pay amount to claimant’s estate
127Payment of weekly compensation and lump sum compensation to claimant outside New Zealand
128Payment for rehabilitation to claimant outside New Zealand
129Payment for attendant care to claimant outside New Zealand
130Payment to claimant outside New Zealand may be in New Zealand dollars to New Zealand bank account
131Advances of compensation and grants
132Adjustment of payments for part periods
133Effect of review or appeal on decisions
134Who may apply for review
135How to apply for review
135ATime frame for lodging review application where alternative dispute resolution conducted about same matter
136Corporation to acknowledge receipt of review application
137Corporation to engage and allocate reviewers
138Reviewer’s duty to act independently and disclose previous involvement
139Corporation’s duties to secure independence of reviewer
140Conduct of review: general principles
141Conduct of review: hearing to be held
142Persons entitled to be present and heard at hearing
143Record of hearing
144Review decisions: formalities
145Review decisions: substance
146Deemed review decisions
147Effect of review decisions
148Costs on review
149Who may appeal against review decision
150District Courts rules and this Act apply to appeal
151Manner of bringing appeal
152Corporation to provide names of persons entitled to be heard
153Notice of hearing place and date
154Corporation’s duty to make record available
155Hearing of appeal
156Evidence at appeal
157Appointment of assessor
158Involvement of assessor
159Court may make order as to persons who may be present
160Court may make order prohibiting publication
161Decisions on appeal
162Appeal to High Court on question of law
163Appeal to Court of Appeal on question of law
164Recovery of costs of appeals
165Duty of Corporation
166Separate Accounts
167Application and source of funds
168Employers to pay levies
168APrivate domestic workers to pay levies
168BSelf-employed persons to pay levies
169Rates of levies
169AABasis on which funds to be calculated
169ALimit on offsets in case of earnings as self-employed person
170Classification of industries or risks
171Classification of self-employed persons and employees engaged in 2 or more activities
172Work Account levy not payable on earnings of employee over specified maximum
172AWork Account levy not payable on earnings of self-employed person over specified maximum
173Estimation of levy
174Employer to notify increase or decrease of relevant employee earnings
175Risk adjustment of Work Account levies
176Incorporation by reference
177Copy of audit tool and material incorporated by reference to be available to public
178Criteria for upward adjustment of levies
179Process for Corporation to decide whether to require audit
180Effect of audit or refusal to allow audit
181Interpretation
182Objectives of sections 181 to 189
183Framework to be established
184Accreditation agreements
185Accreditation requirements
186Corporation may be accredited employer
187Accredited employers to provide entitlements
188Monitoring and audit
189Reporting and information
190Purchase of weekly compensation by shareholder-employees
191Effect on Work Account levy
[Repealed]
192Application and source of funds [Repealed]
193Liability to pay Residual Claims levy [Repealed]
194Rate of levy [Repealed]
195Classification of industries or risk [Repealed]
196Classification of employees engaged in 2 or more activities [Repealed]
197Classification of self-employed persons engaged in 2 or more activities [Repealed]
198Residual Claims levy where 2 or more employers [Repealed]
199Promotion of employer involvement [Repealed]
200Residual Claims levy not payable on earnings over specified maximum [Repealed]
[Repealed]
201Application and source of funds [Repealed]
202Self-employed persons to pay levies [Repealed]
203Rate of levies [Repealed]
204Limit on offsets in case of earnings as self-employed person [Repealed]
205Classification of industries or risk [Repealed]
206Classification of self-employed persons engaged in 2 or more activities [Repealed]
206ARisk adjustment of Self-Employed Work Account levy [Repealed]
206BIncorporation by reference [Repealed]
206CCopy of material incorporated by reference to be available to public [Repealed]
207Self-employed Work Account levy not payable on earnings over specified maximum [Repealed]
208Purchase of weekly compensation by self-employed persons
209Procedure for reaching agreement
210Effect of agreement
211Levies for self-employed persons who purchase weekly compensation
212Earner levies for self-employed persons who purchase weekly compensation
213Application and source of funds
214Rate of levies
215Basis on which funds to be calculated
216Levy categories
217Collection of levies
218Application and source of funds
219Earners to pay levies
220Rate of levies
220ABasis on which funds to be calculated
221Collection of levies by deduction from employee earnings
222Payment of Earners’ Account levy by self-employed persons
223Persons eligible to purchase weekly compensation
224Compensation for persons who purchase weekly compensation
225Levies for persons who purchase weekly compensation
226Resumption of employment by persons who purchased weekly compensation
227Application and source of funds
228Application and source of funds
229Levy categories and rates
230Collection of levies
231Mixed earnings as employee and self-employed person
232Work Account levy payable by employers on disposal or cessation of business or when ceasing to employ
233Levies payable to Corporation by self-employed person who ceases to derive earnings as such
234Levies may be collected by instalments
235Collection of levies from self-employed and employers [Repealed]
236Challenges to levies
237Corporation may revise decisions
238Effect of review or appeal about levy
239Corporation to define risk classification and decide levy if activity not classified by regulations
240Determinations
241Statements
242Failure to provide statement
243Power to assess levies
244Amounts of levy exempt from payment
245Agent to whom levies may be paid
246Information available to Corporation
247Change of balance date
248Recovery of debts by Corporation
249Penalties due to Corporation in respect of overpayments
250Penalties and interest due to Corporation in respect of unpaid levies
251Recovery of payments
252Relationship with social security benefits: reimbursement by Corporation
253Relationship with social security benefits: reimbursement to Corporation
254Limitation period
255Refunds payable by Corporation
256Application of payments
257Application of sections 248, 249, and 254 to third parties
258Production of documents
259Accident Compensation Corporation
260Powers of Corporation [Repealed]
261Relationship between Corporation and subsidiaries
262Functions of Corporation
263Prevention of personal injury
264Money expended or received for injury prevention to be managed through Accounts
265Ancillary powers of Corporation
266Provisions relating to Crown entity subsidiaries
267Board of Corporation
268Protection of names “Accident Compensation Corporation” and “Accident Rehabilitation and Compensation Insurance Corporation”
269Further provisions applying to Corporation
270Corporation to comply with Government policy [Repealed]
271Service agreements between Corporation and Minister
272Statement of intent
273Provision of financial information
274Management of Accounts
275Investments
276Power to borrow, etc
277Loans and grants to Corporation [Repealed]
278Annual financial statements
278AAnnual financial condition report
279Purposes for which Corporation to collect information
280Disclosure of information to Corporation
281Disclosure of information by Corporation for benefit and benefit debt recovery purposes
282Disclosure of information by Corporation for health purposes
283Disclosure of information by Corporation for injury prevention purposes
284Reporting of risk of harm to public
285Personal injuries in nature of medical misadventure [Repealed]
286Corporation to provide information to Ministry of Business, Innovation, and Employment and to WorkSafe
287Purpose of this Part
288Injury-related statistics are classified under Statistics Act 1975
289Information manager
290Information manager can require government agencies to provide injury-related information
291Ministerial advisory panel [Repealed]
292Minister to require information manager to enter into purchase agreement
293Funding of information manager
294Scope and purpose of sections 295 to 297
295Obligation to provide entitlements where subsequent injury occurs
296Failure to reach agreement
297Entitlements not affected by court direction
298Work-related gradual process, disease, or infection involving exposure before 1 April 2002
299No contracting out of this Act
300Public interest
301Service agreement for purchase of public health acute services and other health services
302Minister of Health’s responsibilities for purchase of public health acute services and other health services
303Restriction on purchase by Corporation of public health acute services
304Minister of Health acts on behalf of the Crown
305Joint purchasing arrangements for emergency transport services
306Sick leave may be used when employer not liable for first week compensation
307How documents given or information notified
308Offence to mislead Corporation
309Offence not to provide requested information to Corporation
310Offence not to provide earnings information to Corporation
311Goods and services tax not payable on penalties or fines
312Directors, employees, and officers
313Charges
[Repealed]
314Summary conviction [Repealed]
315General fine for offences
316Offences in relation to deductions
317Proceedings for personal injury
318Proceedings for personal injury caused by work-related gradual process, disease, or infection
319Exemplary damages
320Corporation to be heard
321Powers of Corporation when person has right to bring proceedings
322Regulations relating to definitions
322ADefinition of health practitioner may be limited
323Regulations relating to claims for noise-induced hearing loss caused by work-related gradual process
324Regulations relating to rehabilitation
324AAnnual review of amounts prescribed by regulations made under section 324
325Regulations relating to ancillary services for rehabilitation
326Regulations relating to lump sum compensation
327Regulations relating to indexation
328Regulations relating to reviews and appeals
328ARegulations relating to alternative dispute resolution
329Regulations relating to levies
330Consultation requirements for regulations relating to classifications, risk rating, or treatment injury
331Consultation requirements for regulations relating to levy setting
332Regulations relating to information
333General power to make regulations
334Regulations may confer discretion
335Regulations may prescribe offences and fines
336Amendment of Schedule 2 by Order in Council
337Consequential amendments
338Consequential tax amendments
339Consequential repeals and revocations
340Purpose of this Part
341Interpretation
342Savings in respect of accident insurance contracts and injuries to which contracts apply under 1998 Act
343Saving in respect of other ongoing matters under 1998 Act
344Funding of Regulator
345Regulator’s functions in respect of Non-Compliers Fund
346Amendments to 1998 Act
347Saving in respect of 2000 Act
348Savings in respect of Accident Insurance (Payment for Public Health Acute Services) Regulations 2001
349Regulations
350Interpretation
351References to former Acts
352Purpose of this Part
353Part not to apply to certain claims
354Processing of claims
355Claims for cover accepted under former Acts
356Claim for cover lodged but not yet determined if injury suffered before 1 July 1992
357Claim for cover lodged before 1 July 1999 but not yet determined if injury suffered on or after 1 July 1992 but before 1 July 1999
358Claim for cover lodged on or after 1 July 1999 but not yet determined if injury suffered on or after 1 July 1992 but before 1 April 2002
359Injuries suffered before 1 April 1974
360Claim for cover under former Acts not lodged until on or after 1 April 2002
361Exclusion of cover for personal injury caused by work-related gradual process, disease, or infection if events before 1 April 1974 and death before 1 July 1992
362First week compensation for incapacity commencing before 1 April 2002
363Application of sections 364 to 387
364Treatment
365Weekly compensation under Accident Insurance Act 1998
366Weekly earnings of certain claimants increased
367Multiple employment
368Weekly payments for permanent incapacity under 1972 and 1982 Acts
369Cessation of weekly compensation under any former Act because of capacity for work
370Cessation of weekly compensation under any former Act because of national superannuation qualification age
371Interest on late payments of weekly compensation
372Individual rehabilitation plan
373Time limit on vocational rehabilitation
374Compensation for pecuniary loss not related to earnings under 1972 and 1982 Acts: attendant care and household help
375Compensation payable outside New Zealand for pecuniary loss not related to earnings under 1982 Act: attendant care
376Compensation for pecuniary loss not related to earnings under 1972 and 1982 Acts
377Independence allowance for personal injury suffered before 1 July 1999
378Personal injury suffered on or after 1 July 1999 and before 1 April 2002
379Payment of independence allowance to claimant outside New Zealand
380Lump sum compensation under former Acts
381Funeral expenses for death before 1 April 2002
382Survivor’s grant to surviving spouses or partners, children, and other dependants for death before 1 April 2002
383Compensation payable to surviving spouses or partners, children, and other dependants under Accident Insurance Act 1998
384Compensation payable to surviving spouses or de facto partners under 1972 and 1982 Acts
385Compensation payable to children and other dependants under 1972 and 1982 Acts
386Child care payments for children of deceased persons
387Compensation for pecuniary loss not related to earnings under former Acts: child care for child of deceased person
388Indexation of certain entitlements payable under former Acts
389Disentitling sections apply
390Corporation may revise decisions
391Review and appeal proceedings for decisions under former Acts
392Allocation of existing funds
393Levies, premiums, and other payments under former Acts
394Accredited employers under Accident Rehabilitation and Compensation Insurance Act 1992
395Accredited employers under Accident Insurance Act 1998
396Regulations providing for transitional matters [Expired]
397Expiry of section 396
398Collection of HSE levy
399Corporation in lead-up to commencement of this Act
400Transfer of rights and liabilities under former Acts
401References to premiums under former Act include levies under this Act
Reprint notes