ACC Updates - CoverPlus Extra Policies

July 5, 2017

On-time Payments

ACC has stream lined their process regarding the non-payment of CoverPlus Extra (CPX) policies due to their new digital platform. This also means you can now apply for CPX online.

It is now imperative to sort your CPX invoice before the due date because if payment is not made or a payment arrangement is not set up by the due date, ACC will now terminate your CPX policy and you will revert back to the Standard Cover.  Standard Cover levies will be charged for the part of the year that the Standard Cover applies.  To go back on CPX you will need to reapply as a new policy (see CPX Application Life Cycle diagram) and the start date will be as of the new policy date (received at ACC), not the old one. Levies for the year will be pro-rated between the Standard cover and CPX.

To ensure that your CoverPlus Extra policy is not terminated you will need to do one of the following (As per ACC website):

  • Pay in full by the due date
  • Have a payment plan in place prior to the due date
  • 10 month payment plans will continue to roll-over automatically. However, if there have been manual payments or interruptions to the payment then this will break the cycle and the plan will not roll-over and a new plan will need to be set up.

 

New Minimum and Maximum

The new minimum and maximum cover levels have been announced for the 2018 financial year.

Minimum = $25,376

Maximum = $99,242

 

WorkPlace Cover Invoices being reassessed

Shareholders that are on CPX will get a reassessment of their WorkPlace Cover invoices as they already pay their Work and Earner Levies through their personal account and Workplace Cover Invoices are reassessed to ensure the shareholder is only paying this amount once.

 

Preferred Classification Units

A shareholder on CPX can request to be on a Preferred Classification Unit (PCU) which is different to the Classification Unit of the business, if they are not involved in the day-to-day operation of the business. For example: If a husband and wife are shareholders of a business classified as a construction company but one of them only does office administration, they can request to be on a PCU to better reflect the work they do for the business.

The following information is required to process this request (as per ACC website):

  • Your role in the company
  • What specific tasks do you undertake for the business? ACC will need to know a breakdown of your day-to-day tasks.
  • Who looks after the day-to-day operation of the company and what does this include?

 

CPX Application Life Cycle

  1. Application received - ACC has received your application.
  2. Validation is completed - If any mandatory information is missing, the application is returned to the submitter.
  3. Application to be processed - It’s in the queue to be completed.
  4. Application Investigated - We’ll check we have all the information we need to complete the underwriting.
  5. With an Underwriter - Underwriters will assess the requested cover. They may be in contact for further details to support he cover.
  6. Offer is sent to sign - The customer has 21 days to return this to us.
  7. Customer Returns Offer - CPX policy is accepted and we’ll send the customer an invoice.
  8. Customer is Invoiced - And has 30 days to pay from the invoice date. 

 

Article Author:

Brylie Gray

Accountant, Nexia New Zealand

bgray@nexiachch.co.nz

t: 03 379 0829

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