Tips & Tricks for ACC’s Permanent Injury Compensation (PIC)

If you’ve suffered a permanent loss of function due to an injury, you might be eligible for a lump sum payment from ACC. Here’s what you need to know:

1. Understanding Permanent Injury Compensation (PIC)

What is it?
PIC is a non-taxable payment for permanent impairment caused by a covered injury. It is often referred to as a lump sum.

Eligibility:
Based on permanent loss of function, not disability. ACC assesses how much an injury has physically or mentally impacted your ability to function.

Assessment:
A trained specialist evaluates your injury using the American Medical Association (AMA) Guides to the Evaluation of Permanent Impairment. This assessment assigns an impairment rating as a percentage, which determines whether you meet ACC’s threshold for compensation.

2. Disability vs. Loss of Function – What’s the Difference?

It’s important to understand how ACC assesses impairment versus disability:

• Loss of function (impairment): A measurable, medical condition affecting a body part, organ, or system. Assessed through medical tests and assigned an impairment percentage.
• Disability: The impact an injury has on your daily life, work, or ability to participate in society—this is more subjective and based on personal experience.

ACC assesses impairment, not disability. This means your payment is based on a measurable impairment percentage, not how much the injury affects your life. If you feel your assessment doesn’t reflect your situation, talk to us, we can help.

3. How to Apply

Step 1:
‍Ask your GP to complete the ACC554 Lump Sum/Independence Allowance medical certificate. Ensure they include all injuries that have caused lifelong impairment.

Step 2:
‍Request your claimant schedule of injuries from ACC—this lists all accepted injuries, helping ensure nothing is missed.

Step 3:
‍Submit your application to ACC for assessment.

4. Payment Options

Your PIC payments may be structured in different ways, depending on when your accident happened and when you applied:

• Quarterly payments (Independence Allowance)
• Every 5 years (option available for some older claims)
• One-off lump sum (for newer claims)

5. Disagree with Your Assessment?

The PIC process can be complex, and many people feel their assessment doesn’t fully reflect their condition.

What if you disagree?

Your ‘impairment rating percentage’ determines your compensation, but it doesn’t always capture the broader impact of a lifelong injury. If you believe your assessment is incorrect, you can challenge it.

Way Finders specialises in helping people understand and challenge PIC assessments. If you're struggling with the process, we’re here to help.

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