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It’s one of Australia’s closest allies and a top travel destination, but experts warn that visiting New Zealand comes with an unexpected legal risk—one that could leave injured travelers without compensation.
Peter Carter, Director of Carter Capner Law, cautions Australians that, unlike in Australia and most other developed nations, visitors to New Zealand cannot sue for personal injury compensation, even if the accident was caused by recklessness or negligence.
Speaking to Yahoo News, Carter described New Zealand as a “liability-free zone” for foreigners.
“If you get injured, you’re better off staying there,” he said. “They’ve got no recourse against the careless or reckless person that causes their injury.”
Why Are Injured Travellers Not Compensated in New Zealand?
The issue stems from New Zealand’s Accident Compensation Corporation (ACC) scheme, a no-fault compensation system that has been in place since the 1970s. Under ACC, all injured individuals—regardless of how or where the injury occurred—receive financial support for medical treatment, rehabilitation, and lost wages.
However, in exchange for this universal coverage, people cannot sue for personal injury compensation, even if their injury was caused by recklessness or negligence.
“[This includes] road accidents, recreational accidents, light aircraft accidents—any type of accident where someone makes a mistake and someone is careless,” Carter explained. “No one thinks that serious injury is going to happen to them, but they should. They really need to think twice.”
Real Cases Highlight Legal Risks
Carter cited the example of a Queensland woman who suffered serious spinal injuries when a speeding car crossed into her lane and hit her head-on.
Despite an eight-year legal battle, she was ultimately unable to claim damages.
“Australia’s health system will cover you for some medical expenses on your return, but you are on your own if you can’t return to full-time work,” Carter said.
He urged all travelers to take out income protection insurance before visiting New Zealand, but noted its limitations.
“Even that has some limitations as well,” he added.
While New Zealand’s ACC covers treatment costs, it does not compensate for:
✅ Emotional distress
✅ Ongoing pain
✅ Punitive damages
For Australians accustomed to personal injury lawsuits and large settlements, this could be a major adjustment.
More Than One Million Australians Visited New Zealand in 2024
With New Zealand remaining a top destination for Australian travelers, Carter’s warning is a reminder to understand the legal risks before booking a trip.