Many minibus operators assume that ACC covers any passenger injuries in the event of an accident. While ACC does cover medical treatment and loss of income, it does not cover all potential claims — and specific passenger liability cover can protect operators from significant financial exposure.
What ACC Covers and What It Doesn't
ACC covers medical treatment, rehabilitation costs, and a portion of lost income for injured passengers. However, ACC does not cover pain and suffering claims, property damage to passenger belongings, or situations where a passenger's injury falls outside ACC's coverage criteria. In these situations, the operator may face civil liability claims directly.
Why Passenger Liability Cover Matters
Passenger liability insurance covers your legal liability to passengers who are injured while travelling in, boarding, or alighting from your minibus. It pays legal defence costs and any court-awarded or settled damages. For commercial operators, schools, and disability support providers, this cover is essential.
How Much Cover Do You Need?
Most comprehensive policies include passenger liability as part of the third-party liability section. However, the limit may be insufficient for high-value claims, particularly for commercial operators with many passengers or disability support providers with vulnerable passengers. Check your policy limits and discuss with your broker whether additional passenger liability cover is needed.
ACC and Insurance Working Together
ACC and passenger liability insurance work together — ACC pays treatment and income replacement, and passenger liability covers any additional civil liability claims. Understanding how these interact helps you structure the right level of cover for your operation.