INSURANCE WORDING PHYSICAL DAMAGE INSURANCE

Transcription

1 Reference Purposes Only INSURANCE WORDING PHYSICAL DAMAGE INSURANCE (Issued together with the Decision No.6556/QĐ-BHBV date December 28 th, 2017 of Baoviet Insurance Corporation) IMPORTANT NOTE 1. Customers read carefully the conditions and terms of the wording before insured; 2. In the event of accident, the Automobile Owner (or driver) shall immediately inform to Baoviet for support and guidance 3. This wording issued basing on the approval of the Ministry of Finance in Official Letter No. 3906/BTC-QLBH date 25/03/2015. PUBLIC

2 CATEGORY SECTION 1- GENERAL PROVISION...2 Article 1. Interpretation...2 Article 2. Insurance Contract...2 Article 3. Insurance validity and Premium...3 Article 4. Amendments for Insurance Contract...3 Article 5. Termination prior to the duration...4 Article 6. Coincident insurance upon insurance contracts...4 Article 7. Accident related to third party liability (who has fault for damage)...4 SECTION 2- SCOPE OF COVERAGE...4 Article 8. Scope of coverage...4 Article 9. Necessary costs under scope of coverage...5 Article 10. Sum insured...5 Article 11. Compensation for damage...5 SECTION 3- INSURANCE EXCLUSIONS & COMPENSATION DEDUCTION... 6 Article 12. Insurance Exclusions...6 Article 13. Compensation deduction...7 SECTION 4- SUPPLEMENTARY CONDITIONS Non-deductive upgrading accessory insurance (Appendix No.1 -BVVC) Pay rental cost (Appendix No.02-BVVC) Repair at genuine authorized garage insurance (Appendix No.02-BVVC) Automobile Deductible Insurance (Appendix No.04-BVVC) Stolen Component Insurance (Appendix No.05-BVVC) Flooded automobile Insurance (Appendix No.06-BVVC): Limited Liability Insurance (Appendix No.07-BVVC): Insurance for accident occurring outside the territory of the Socialist Republic of Vietnam (PLNLT) Other supplementary conditions (under the control of Head Quarter):...10 SECTION 5- NOTICE OF ACCIDENT AND CLAIM FOR COMPENSATION Article 14. Notice of accident and Claim for compensation...10 Article 15: The claim files...11 Article 16: The duration for claim, compensation and dispute settlement...12 PUBLIC - 1

3 On the proposal of the Automobile Owner and his payment of specified premium, Baoviet Insurance Corporation (briefly as Baoviet) provides the Automobile physical damage cover to all the Articles of this Wording. Article 1. Interpretation SECTION 1- GENERAL PROVISION 1.1 "Baoviet": Bao Viet General Insurance Corporation and Bao Viet Insurance Branches 1.2 "The Automobile Owner": refers to every entity that legally possesses or permitted to possess, use or drive motor vehicles by motor vehicle owners, or has purchase contract but has not yet to make property registration procedures as prescribed "Automobile": refers to any motor car, tractor, construction vehicle, trailers and semi-trailers pulled by motor cars, specialized vehicles a or heavy-duty vehicles b. Not included motorcycle, motor tricycle, motorbike, electric bicycle, electric scooters a) Specialized vehicles: Vehicles with a structure and equipped to perform a special purpose functions, including: road sweepers, septic tank trucks, concrete mixer lorry, concrete pump lorry, cranes automobile, bucket trucks, drilling vehicles, rescue vehicles; another specialized vehicles as: television-mobile trucks, bridge inspection trucks, underground-cable inspection trucks, mobile X-ray trucks, mobile surgery trucks, ambulance, bank trucks, funeral car b) Heavy-Duty vehicles: construction vehicle, vehicle for agricultural or forestry uses and other types of military vehicles for the use of national security and defense "Fire" is a chemical reaction between oxygen and combustibles in the air with the heat and the light "Actual Value/Market Value" The average sale price of a similar vehicle production with the same year, the same manufacturer (make), the same model (model), the same odometers, the same purpose being offered on the market at the time of determining the market value of the car. 1.6 "The vehicle usage" shall be calculated from the month of initial registration in Vietnam to the month of signing the insurance contract. For imported vehicles which has been used in foreign countries, the time of use shall be calculated from January of manufacture year to December of the year in which insurance contract has been signed. Article 2. Insurance Contract Automobile Insurance contract shall include: 2.1 Automobile Insurance Wording: comprises provisions regarding to rights and responsibilities of Automobile Owner and Baoviet, and is given by Baoviet upon request of the Automobile Owner. This Insurance wording is posted on BaoViet Website. PUBLIC - 2

4 2.2 Proposal Form (available in printed form): for Automobile Owner to request for insurance and insurance contract establishment. This is an integral part of insurance contract. When entering into insurance, the Automobile Owner shall have to fill all the information required in the Proposal Form. In case The Automobile Owner or Applicant have not signed on the Proposal Form but have paid the Insurance premium it means Automobile Owner or Applicant agreed with the information witten on The Contract / The Certificate of Insurance / Insurance Policy issued by BaoViet. 2.3 The Certificate of Insurance / Insurance Policy: shall be issued by Baoviet upon request of Automobile Owner. It shall be considered as proof of insurance contract and regulated by this Wording. 2.4 Contract s endorsements: are parts of insurance contract; accepted to add to the contract by Baoviet upon request of Automobile Owner. 2.5 Other written agreements between Automobile Owner and Baoviet (If any). Article 3. Insurance validity and Premium 3.1 The commencement and termination are written on the Insurance Contract / Certificate of insurance/ Insurance Policy. The commencement start at the time The Automobile Owner (or applicant) paid specified insurance premium unless there is another written agreement. 3.2 The Automobile Owner (or applicant) shall pay specified insurance premium before the effective date of insurance or before the regulated payment period in advance to receive all the Insurance Interest. 3.3 If The Automobile Owner fails to pay premium timely as regulated periods and without any notification to Baoviet or any other agreements redefining payment period, the insurance contract s effect shall automatically terminated until the premium is paid 3.4 Debt extension agreement betweent Baoviet & The Automobile Owner comply with the provisions of state documents related to the payment of insurance premiums 3.5 The Insurable interest shall remain in force during the period of insurance notwithstanding the possession of automobile has been transferred. Where the benefits under the contract of insurance have not been transferred to the new owner, Baoviet shall return premium to the former, following the Article 5 hereinafter. Article 4. Amendments for Insurance Contract 4.1 During the period of insurance, any changes in the purposes of vehicle utilization, causing the increase or reduction in risks that the owners should have been insured, The Automobile Owner has to inform timely to the insurer to be applied with the suitable premium for the residual duration of the insurance contract PUBLIC - 3

5 4.2 During the period of insurance, The Automibile Owner can request Baoviet to amend the Insurance Contract. Base on the request, the amendment shall be issued in written if Baoviet accept the request. 4.3 The Automibile Owner shall pay or/ be refunded a part of Insurance premiums (depending on the degree of risk, the coverage of each amendment) at the ratio between the duration of amendments to the term of the insurance contract. Article 5. Termination prior to the duration 5.1 The Automobile Owner may terminate the insurance contract by giving 15 days written notice to Baoviet. Where the termination is agreed by the parties, within 5 (five) workings days Baoviet shall return a proportionate part of 70% of premium corresponding to the unexpired period of insurance, unless any insurable event occurs during the validity of the insurance contract. 5.2 If it is due to requirement from Baoviet to cancel the insurance contract before the duration, it must sent the written notice to the Automobile Owner before 15 days and return a premium corresponding to the unexpired period of insurance. The Insurance Contract terminated at the time Baoviet received The the termination notice. Article 6. Coincident insurance upon insurance contracts Where the same entity enters into two or more different Insurance Contracts / Insurance Certificates / Insurance Policies, compensation settlement and compensation divisions shall be calculated according to the proportion of the sum insured specified in that contract to the whole sums specified in all insurance contracts. The sum insured specified in each contract does not ecxeed the car market value at time of loss Article 7. Accident related to third party liability (who has fault for damage) Where the accident occurred due to third party's liability, the Automobile Owner shall reserve his rights of recourse against such party and transfer to Baoviet his rights of recovery together with all necessary documents concerned thereof and closely corporate with BAOVIET to recourse such party within the amount of compensation paid or to be paid by Baoviet. If a certain amount of compensation has been paid to the Automobile Owner by such party, Baoviet shall indemnify to the Automobile Owner the difference between the compensation calculated by Baoviet and that amount (if any). In any circumstances, the amount received by the Automobile Owners should not exceed the physical damage occurred to his insured property. Article 8. Scope of coverage SECTION 2- SCOPE OF COVERAGE Baoviet will indemnify the Automobile Owner for any loss or damage to the automobile insured due to: 8.1 Unforeseen accident and out of control of the Automobile Owner, Driver in the following events: Collision, overturning, dropping; Fire, explosion; being dropped, crashed by other objects. 8.2 Force majeure: Storm, typhoon, flood, landslide, lightning, earthquake, hail, tsunami; PUBLIC - 4

6 8.3 The entire automobile is stolen. Article 9. Necessary costs under scope of coverage Notwithstanding the above circumstances, Baoviet shall also reimburse the owner for any necessary and reasonable costs, expenses arising out of accident (maximum not exceeding 10 % of the sum insured ) for preventing, minimizing of further loss of the automobile, protecting and towing the damaged automobile to the nearest repair shop; assessment of damage. Article 10. Sum insured The sum insured shall be agreed by the owner and Baoviet in accordance with actual value of the automobile in the market at the time of proposal for insurance. The Automobile Owner may decide a sum insured which is equal to or less than the actual value of the automobile insured The sum insured should equal to market value in order to ensure full insurance interest Article 11. Compensation for damage Baoviet shall discharge the actual repair cost, replacement cost (if the repair is unable) of the damage part, or pay in cash the amount of the loss or damage base on the controlled expenses that would have paid for reinstate the damaged automobile. The actual repair cost, replace cost base on the quotation of Baoviet Co-operated Workshops (unless otherwise add-in the supplementary condition No.03-BVVC). In case the damaged accessories or damaged automobile are admitted to have compensation (or replaced to a new one(s)) by Baoviet or Baoviet recovers the remained value of the damaged automobile by proportion as payment amount to the automobile s actual value (in case of under insurance, other insurance or compensation from third party) Partial damage compensation a. In case the sum insured of the automobile is less than the actual value thereof, the amount paid by Baoviet is calculated as a proportion of sum insured against the actual value of the automobile. b. If the old damaged part is replaced by the new one during the process of repair, Baoviet shall indemnify the replacement cost of spare parts with the actual cost and the deductible applied at the following levels : - The vehicle usage less than 3 years: 0% deductible of the new parts replaced value; - The vehicle usage from 3 years to less than 6 years: 15% deductible of the new parts replaced value; - The vehicle usage from 6 years to under 10 years: 25% deductible of the new parts replaced value; - The vehicle usage from 10 years to under 15 years: 35% deductible of the new parts replaced value; - The vehicle usage from 15 years: 50% deductible of the new parts replaced value. c. Baoviet shall pay the cost of repainting the automobile provided that the extent of damaged of its painted surface incurred in the accident is above 50% thereof and on the basis of the calculation as stipulated in item 11.1.a. PUBLIC - 5

7 11.2 Total loss compensation The insured automobile shall be considered as total loss in the following cases: a. The estimate repair cost quotation approvaled is over 75% the actual value of the automobile. b. When it is reported as missing, theft, robbery (concluded/temporary suspended by the authorized agencies) The total payment is equal to the actual value of the automobile immediately prior to the accident (damage) and shall not exceed the total sum insured mentioned in the Certificate of Insurance Deductible is the amount that car owners have to bear the loss in each case. Deductible is recorded on the Certificate of insurance/policy/insurance Contracts issued to the car owners. Deductible of at least: VND 500,000. SECTION 3- INSURANCE EXCLUSIONS & COMPENSATION DEDUCTION Article 12. Insurance Exclusions Baoviet will NOT indemnify the Automobile Owner for any loss or damage to the automobile insured due to: 12.1 Acts by an Automobile Owner, Driver, or beneficiary deliberately causing damage; 12.2 The certificate for technical safety and environment verification of the automobile is not valid (unless otherwise agreed); (applicable where the automobile is joining traffic); 12.3 Driver does not have qualified driving license (or legal document to prove driver s capability to control special vehicles) - applicable where the automobile is operating by driver); 12.4 Racing (legal or illegal); 12.5 Indirectly consequential losses such as: Depreciation, business interruption, in use, exploiting; 12.6 Accidents occur out of the territory of the Socialist Republic of Vietnam; 12.7 The automobile carried illegal combustibles and explosives or goods illegally 12.8 War Driver is under influence of alcohol, beer or other stimulants while joining traffic (certified in writing by police) Violation of traffic law such as: driving on restricted road, crossing red light, going in the opposite direction, failure to comply with police commands Vehicle carried exceedingly more than 50% its standard loading capacity (with goods carrying vehicle) or seats (with passenger carrying vehicle (excluding children under 07 (seven) years old)). Maximum loading amount or number of passengers allowed is in compliance with the certificate for technical safety and environment verification of the automobile PUBLIC - 6

8 12.12 Wear and tear; depreciation in quality or value, breakdown through defect or additional damage due to repair, during repair process (including test running) Electrical breakdown or any equipment components, machines which is not due to accidents stated in Section Article 8 above Electrical or mechanic breakdown due to operation in the flooded area Damages to tires, canvas cover, logo unless damage is occur to other parts of the automobile by the same cause and at the same time Partial loss due to theft The entire car is stolen due to fraud, abuse of trust (unless otherwise agreed) Losses to supplementary components not assembled by the manufacturer (unless otherwise agreed) Losses to specialized components in car (i.e. air conditioner or other electrical devices) except for losses occurring at the same time with other components in one accident. Article 13. Compensation deduction 13.1 Baoviet shall deduct 05% of compensation amount in following circumstances: a. The car owner fails to notify Baoviet 5 days after the date of occuring accidents (except for force majeure or being inspected of damage during this time); b. The driver exceeds more than 10% of allowed speed (verified in writing by police) c. In case the Automobile owner moved the damaged vehicle without permission of Baoviet which causes difficulty in loss assessment (except for neccessary measures to maintain safety, minimize losses of human and damage to properties or for the observance of the competent authority s order). d. The car owner is dishonest in providing information, claim documents related to accidents causing losses to Bao Viet Baoviet shall deduct 30% of compensation amount in case that the car owner dismantling or repairing by purpose without permission of BaoViet which causes difficulty in assessment of losses (Unless otherwise preventing, minimizing of further loss of the automobile/body injury or request by the authorities) 13.3 Baoviet shall deduct from 50% to 100% of compensation amount in case that The car owner doesn t reserve the right to complaint to third party; 13.4 Baoviet shall deduct the compensation liability by percentage of claim amount basing to the percentage of overloading at the time of occur (for vehicle exceeding 10% & not exceeding 50% of overload provisions in The certificate for technical safety and environment verification of the automobile (excluding children under 07 (seven) years old); 13.5 Baoviet shall deduct the compensation liability by a rate corresponding to the actual paid premium and the stipulated premium, in following circumstances: a. The Automobile Owner declared incorrectly in the proposal form, leading to the insufficiency of charged insurance premium. PUBLIC - 7

9 b. The Automobile Owner declared no additional risks, which requires additional premium, such as changing usage purpose, reforming, upgrading to raise the automobile value etc. In case more than one compensation deductions are applied, Baoviet will apply the deduction that has the highest rate of decline. SECTION 4- SUPPLEMENTARY CONDITIONS Supplementary conditions apply only for physical damage coveraged Insurance. The automobile owner may add one or more supplementary conditions to enlarge insurance coverage or to lower the insurance premium. 1. Non-deductive upgrading accessory insurance (Appendix No.1 -BVVC) In consideration of proposal and the payment of addition premium by the Insured, this endorsement modifies insurance provided under the following: Remove regulation of partial loss compensation at the Section 11 Point 11.1.b Automobile Physical Damage Insurance Wording. Expanded coverage: Materials, spare parts covered by insurance liability are able to be upgraded without being charged for any deduction or depreciation for upgrading. 2. Pay rental cost (Appendix No.02-BVVC) In consideration of proposal and the payment of additional premium by the Insured, this endorsement extends to cover for losses of operation interruption due to automobile accident as follows: - In case that the insured automobile is being repaired as consequence of an accident covered by this policy, Baoviet shall be charged the fees paid by the Insured for hiring Taxi. (invoices and receipts showing the total hiring costs are required). - VAT Invoices issued by Rental Party. - In any circumstances, the limit of liability should not exceed the limit of liability per day & the limit of liability per occurrence. - Deductible for Renting car cost = the limit of liability per day x 3 days. Other terms and conditions of this Automobile Insurance Wording remain unchanged 3. Repair at genuine authorized garage insurance (Appendix No.03-BVVC): In consideration of proposal and the payment of addition premium by the Insured, Baoviet agrees to give the right for the Insured to repair at genuie authorized workshop (repair shop). Terms of application: Applicable for automobile with maximum 5 years old since the year of its production and being insured by automobile Physical Damage Insurance at Baoviet PUBLIC - 8

10 4. Automobile Deductible Insurance (Appendix No.04-BVVC) Based on choosing the deductible being higher than standard by the Insured, Baoviet will offer discount rate for the insured. The deductible will be stipulated in the Certificate of insurance/policy/insurance contract. In case that the damage is less than or equal to the deductible, the Insured shall bear all costs; Or The damage is greater than the deductible, Baoviet will be paid the amount exceeding the deductible. 5. Stolen Component Insurance (Appendix No.05-BVVC) In consideration of proposal and the payment of addition premium by the Insured, this endorsement modifies insurance provided under the following: Remove provision partial loss due to theft at the Article 12 Section Automobile Insurance Wording. Expanded coverage: Baoviet shall indemnify for the stolen/robbery component in accordance with conditions as follows: - Two times in 12-months to 18 months-years contract. (Do not apply for less-than-1-year contract.) - Three times in more-than-18-months contract. Deductible: 20% of compensation amount and at least VND 2,000,000. Do not apply any other additional deduction which has been specified in the insurance contract. (if any) 6. Flooded automobile Insurance (Appendix No.06-BVVC): In consideration of proposal and the payment of addition premium by the Insured, this endorsement modifies insurance provided under the following: Remove provision at Article 12 Section Automobile Insurance Wording - Electrical or mechanic breakdown due to operation in the flooded area. Baoviet shall indemnify for enginery or electrical damages of the automobile, caused by operating in the flooded area due to action of the driver, if the automobile is insured in Automobile Physical Damage Insurance at Baoviet (not applicable for hull automobile insurance - partial insurance) Deductible: 10% of compensation amount and at least VND 3,000,000. Do not apply any other additional deduction which has been specified in the insurance contract. (if any) 7. Limited Liability Insurance (Appendix No.07-BVVC): In consideration of proposal and the payment of addition premium by the Insured, this endorsement modifies insurance provided under the following: Remove provision partial loss compensation at the Article 11 Section 11.1.a Automobile Insurance Wording. PUBLIC - 9

11 Expanded coverage: The automobile insured by limited liability insurance condition which is understood as it is physically insured at a value below its actual value. The remaining value is self-covered by the owner. When damage occurrence belongs to insurance coverage, Baoviet shall indemnify equally to the automobile insured at its actual value (for partial damage) or indemnify the sum insured (for total loss). 8. Insurance for accident occurring outside the territory of the Socialist Republic of Vietnam (PLNLT) In consideration of proposal and the payment of addition premium by the Insured, this endorsement modifies insurance provided under the following: Expanded coverage: Baoviet will be indemnity for the accident occurring outside the territory of Vietnam and in China, Laos, Cambodia and Thailand. 9. Other supplementary conditions (under the control of Head Quarter): Apart from the above supplementary conditions, automobile owner and Baoviet may reach to other written supplementary conditions (for example: legal racing, driving practice, specialized equipment...) for other insurance requests of each party, upon the acceptance of Baoviet follow as: enlarge coverage ~ increase premium; narrow coverage ~ decrease premium SECTION 5- NOTICE OF ACCIDENT AND CLAIM FOR COMPENSATION Article 14. Notice of accident and Claim for compensation 14.1 Notice of accident: a) Notice of accident: In the event of accident, the Automobile Owner (or driver) shall take all necessary measures to assist the victim, to avert and minimize the damage and shall at the same time immediately notify to the Police, the nearest office of Baoviet in order to jointly handle the consequences of accident. Within 5 (five) days after the date on which the accident occurred, the Automobile Owner shall reconfirm by sending a written notice (following the printed form) to Baoviet.(except for force majeure) b) The Automobile Owner shall not be permitted to remove, dismantle or repair the damaged automobile without obtaining the Baoviet s consent, unless such actions are considered to be necessary either for the safety of the automobile or the observance of the order of the competent authority. c) Where the accident caused by other party s liability, the Automobile Owner shall specify & supply information for Baoviet to contact & define the accident d) If the insured automobile is missing or being stolen, the Automobile Owner (or driver) must immediately report to the Police or local Authority, and send a writing notice of accident to Baoviet within 24 hours Inspection of damage: PUBLIC - 10

12 a) All damages to properties such as automobile, goods etc. shall be directly inspected by Baoviet in the presence of the Owner, other related parties or the Owner s legal representative to ascertain the cause and the extent of damage. Baoviet is responsible for inspection cost b) Third-party inspection: - If both parties cannot agree upon the result thereof, a qualified technician shall be appointed by them and his conclusion shall be final decision. - If both parties fail to reach an agreement on the selection of third-party inspection agency, either of them may request a local court where the damage incurs or the motor vehicle owner resides to appoint a third-party inspection agency. - Where the conclusion of the third-party inspection agency is inconsistent with that of the insurer, Baoviet shall pay all incurring costs for the third party inspection agency s assessment. Where the conclusion of the third-party inspection agency matches insurers, the Automibile owner shall pay all incurring costs for the third party inspection agency s assessment. c) Where it is unable to carry out the damage assessment, Baoviet is permitted to determine the degree of damage and causes of occurrence based on records, conclusions of competent authorities and other relevant documents. d) In respect of damages which are not subject to inspection or traffic police's report, the Owner shall have the duty to furnish information in details concerning the cause and development of the accident, the extent of damage together with full set of documents to Baoviet for settling the claim. Article 15: The claim files The Owner, Claimant co-operates with Baoviet to collect and submit the following documents: 15.1 Accident notice and Claim for compensation (the form ready made by Baoviet) 15.2 Copied versions of: the Certificate of Insurance, Certificate of automobile registration, Certificate of technical safety and environment verification of motor vehicles on the road traffic, Driving license (or legal document to prove driver s capability to control special vehicles); 15.3 Copy of documents defining accident causes and results: a. Copy of a set of accident file includes: Minutes of inspection at the scene of accident (attached the drawing of the accident site), Minutes of inspection of the automobile related to accident, Minutes of accident settlement; Police s accident final report; b. Judgement or decision of the Court (if any); c. Documents pertaining to third party liability d. In circumstance of accident without Police attendance, the Automobile Owner shall in no time inform Baoviet (unless there is any reasonable excuse) to corporate in establishing necessary documents, collecting documents revealing accidents causes and results. PUBLIC - 11

13 15.4 Documents defining loss or damage due to The automobile and Property damage: documents defining the repair costs of automobile and properties such as: Fees for inspection report, lifting or towing the damaged automobile, repair costs and documents related to property value (if necessary) Article 16: The duration for claim, compensation and dispute settlement 16.1 The time limit for claim shall be 01 (one) year since the accident occurred Baoviet shall be liable to consider and settle the claim within 15 (fifteen) days after receiving full reasonable documents and not beyond 30 (thirty) days if the inspection of documents is needed The period of legal proceedings for the Insured shall be within 3 (three) years after the date of receiving payment or refuse to compensate from Baoviet. All claims shall be invalid after such period Any disputes arising out of the insurance contract shall be referred to a court in Viet Nam for settlement if Baoviet and the Automobile Owner failed to resolve that dispute by amicable negotiation. PUBLIC - 12