The ACC, or Accident Compensation Corporation, is the government body responsible for administering the Accident Compensation Act.


An unforeseen or unintended event. Insurance is designed to pay for accidental events.

Agreed Value

The value you agree with us at the time your vehicle is first insured or at any renewal afterwards.

Accident Compensation Act

The purpose of the Accident Compensation Act 2001 was to minimise both the incidence of injury and the impacts of injury on the community, including economic, social, and personal costs.



Theft or attempted theft that involves force or violence, or the threat of force or violence.



When you tell us about the accidental damage to or loss of your insured property (your car, house or possessions) and you ask us to reimburse you for it.  A claim includes where we will pay for your liability only.


A type of vehicle insurance that covers damage to your own vehicle, as well as your legal liability to others.

Cosmetic damage

Scratches, dents, and any other damage that does not affect the working of an item.



Any item is considered damaged rather than destroyed if it can still be repaired.

Defence costs

All reasonable legal expenses to get expert assistance to investigate, defend, settle or appeal a claim made against you.


Any item is considered destroyed rather than damaged if it is not possible to repair it.



An amount subtracted from your payout before any other money comes due.



An amount of money a person has been ordered to pay as a penalty for an offence. This can include an unpaid infringement that has been filed in court for collection.


Health and Safety at Work Act

A 2015 Act that sets out everyone's duties and rights in relation to workplace health and safety.


Insurance policy

A contract between you and a company that agrees to financially compensate you under specific circumstances.


Legal liability

Legal responsibility.


The process of fighting or defending a case in a civil court of law.


The process of selling assets and settling debts whilst winding up a business.

Load recovery

The task of salvaging spilled goods after an insured motor vehicle accident.


Market Value

The reasonable retail value of your asset immediately before it was damaged or lost. 

Material fact / material information

Any information that might influence the decision we make as to whether to provide insurance or continue to provide insurance, and, if so, on what terms and at what premium.


NZ Building Code

Specifies that all buildings must abide by certain safety and performance standards.



A set of several insurance policy types, purchased together.


Any type of punishment imposed for breaking a law. Types of penalties include damages and fines.

Period of Insurance

The period shown in your policy schedule, commencing on the ‘From’ date and expiring at 11.59pm on the ‘To’ date.


The contract between yourself and your insurer, in which the insurer agrees to compensate the policyholder for certain risks.

Policy schedule

This is a summary of your cover and should be read together with your policy wording. Together, these documents outline the limits, conditions, and exclusions that apply to your insurance cover.


The payment(s) made by you in exchange for insurance coverage.


A single insurance policy, covering a specific type of risk.



A statement of how much your policy will cost. SMECC quotes are valid for 30 days unless you are told otherwise.



A sum of money you're ordered to pay to the victim of an offence under the Sentencing Act 2002. Reparations are a specific type of payment and do not include other costs such as: damages, fines, penalties or your defence costs.

Replacement value

The amount it would cost to replace the item today. This may differ from the amount you originally paid for it.

Resource Management Act

A 1991 Act that promotes the sustainable use of natural and physical resources.

Road clearing

The task of clearing the road after an insured motor vehicle accident that creates debris or spillage.



A single cover, for a specific type of risk, within your package.

Small business

A business with between 0 and 20 employees.

Specified items

Specific property described in your policy schedule.


Goods or merchandise for sale.



The unauthorised and illegal removal of property without the use of force or violence.

Third Party

A general term for the other person(s) involved in the same accident as you.


The income of your business during a specified period.


Unspecified items

Property only generally described in your policy schedule.



Any type of machine on wheels or self-laid tracks that is not propelled by muscle power. This definition includes trailers attached to the vehicle.


Work premises

The building and grounds where you carry out your business.

Written off

A vehicle is considered written off if, in our opinion, it is not safe to repair the damage, if repair costs exceed the agreed value, or it is otherwise uneconomical to repair. A vehicle will also be written off if it has been stolen and not recovered.