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Accident Compensation Act 2001

Entitlements and related matters - General provisions

123: Entitlements inalienable

You could also call this:

"You can't give away or sell your ACC entitlements"

You cannot sell, give away, or use your entitlements as security for a loan. This means that your entitlements are protected and cannot be taken away from you, even if you go bankrupt or owe money to someone.

However, there are some exceptions to this rule. The Accident Compensation Corporation (ACC) can still recover money or make deductions from your entitlements if they are allowed to do so by law.

You can assign your independence allowance to an insurer or ACC for up to 5 years if ACC agrees to it.

There are also some specific laws that can affect your entitlements. These laws deal with things like Māori housing, court orders, fines, child support, student loans, KiwiSaver, taxes, and legal aid.

These exceptions allow the government to make deductions from your entitlements in certain situations, even though your entitlements are generally protected.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM101801.

Topics:
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"The Minister can make special exceptions to a rule for unusual cases"

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"You get help only if you made the claim, with some exceptions"

Part 4Entitlements and related matters
General provisions

123Entitlements inalienable

  1. All entitlements are absolutely inalienable, whether by way of, or in accordance with, a sale, assignment, charge, execution, bankruptcy, or otherwise.

  2. This section does not affect—

  3. any right of the Corporation to recover any amounts under this Act or to make any deductions authorised by this Act from any entitlements that the Corporation is liable to provide; or
    1. an independence allowance that is assigned for a period of not more than 5 years to—
      1. an insurer; or
          1. the Corporation, if the Corporation is liable to provide the allowance and the Corporation agrees to the assignment; or
          2. sections 4 and 5 of the Maori Housing Act 1935; or
            1. sections 154 to 161 of the District Court Act 2016; or
              1. sections 87(2)(b), 88AE(1)(a), 103, 104, 105, 106, 106A, and 106B of the Summary Proceedings Act 1957; or
                1. section 27Y of the Social Security Act 1964 (as saved by section 256(1) of the Child Support Act 1991) or regulations made under section 444 of the Social Security Act 2018; or
                  1. sections 105, 110, 118, and 121 of the Family Proceedings Act 1980 (as saved by section 259(1) of the Child Support Act 1991); or
                    1. the Child Support Act 1991; or
                      1. subparts 1, 2, and 5 of Part 2 or section 193 of the Student Loan Scheme Act 2011; or
                        1. subpart 1 of Part 3 of the KiwiSaver Act 2006; or
                          1. section 157 of the Tax Administration Act 1994 ; or
                            1. section 41B of the Legal Services Act 2011.

                              Notes
                              • Section 123(2)(b)(ii): repealed, on , by section 241(2) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).
                              • Section 123(2)(d): replaced, on , by section 261 of the District Court Act 2016 (2016 No 49).
                              • Section 123(2)(e): amended, on , by section 26 of the Summary Proceedings Amendment Act 2011 (2011 No 32).
                              • Section 123(2)(f): amended, on , by section 459 of the Social Security Act 2018 (2018 No 32).
                              • Section 123(2)(i): replaced, on , by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
                              • Section 123(2)(i): amended (with effect on 1 April 2012), on , by section 45 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
                              • Section 123(2)(ia): inserted, on , by section 231 of the KiwiSaver Act 2006 (2006 No 40).
                              • Section 123(2)(j): amended, on , by section 4 of the Accident Compensation Amendment Act 2013 (2013 No 44).
                              • Section 123(2)(k): inserted, on , by section 4 of the Accident Compensation Amendment Act 2013 (2013 No 44).