Commercial Motor Vehicle Insurance

Transcription

1 Commercial Motor Vehicle Insurance PRODUCT DISCLOSURE STATEMENT AND INSURANCE POLICY Jardine Lloyd Thompson Pty Limited ABN AFS Licence No This Policy is underwritten by QBE Insurance (Australia) Limited, ABN , AFS Licence No of 82 Pitt Street, Sydney QM653

2 TABLE OF CONTENTS ABOUT THIS BOOKLET About Jardine Lloyd Thompson...3 About QBE Australia...3 product disclosure statement Part A Product disclosure statement... 4 Insurer...4 Significant benefits and features...4 Significant risks...8 The cost of this insurance policy...9 Duty of Disclosure What you must tell us...9 Privacy...10 The General Insurance Code of Practice...11 How to make a claim...11 Dispute resolution...11 Taxation implications...12 Cancelling your Policy...12 Cooling-off information...12 Policy Terms And Conditions Part B Policy Terms and Conditions...13 Introduction...13 Agent for you...13 Who insures you...13 Policy Schedule...13 Policy wording...13 Money back promise...13 Your Policy...14 Definitions...14 Who is insured under this Policy...15 Who is the insurer Date of preparation: 1 July 2008 Date effective: 1 July 2008 QM

3 TABLE OF CONTENTS Section 1 Loss or damage to your vehicle Levels of cover...16 Your cover...16 Limits of cover...17 Additional covers...17 Exclusions to section one...19 Section 2 Third Party Liability Your cover...20 Additional covers...20 Limit of our liability...20 Exclusions to section two...21 GENERAL EXCLUSIONS General exclusions...22 General Conditions Excess...25 Faultless excess...25 Fraud...25 Accidents and claims...25 Goods and Services Tax...26 The way we handle your personal information...26 Vehicle alterations...26 Automatic additions...27 Damage caused by Uninsured Vehicles...27 Breach...27 Release...27 Cancellation...27 Errors and omissions...27 ENDORSEMENTS Endorsements

4 ABOUT THIS BOOKLET This booklet contains 2 separate sections: Part A and Part B. Part A Product Disclosure Statement (PDS) Part A of this booklet contains a Product Disclosure Statement (PDS). The PDS is designed to assist you to make informed choices about your insurance needs. It gives a summary of the significant benefits and risks associated with this product (you should refer to Part B Terms and Conditions for full details). The PDS also contains information about costs, our dispute resolution system, your cooling off rights and other relevant information, including other rights, terms, conditions and obligations attaching to this product. Please read Parts A and B of this booklet carefully. Part B Policy Terms and Conditions Part B of this booklet contains the Policy Terms and Conditions, which detail all the terms, conditions and exclusions relating to the Policy. It is Part B which forms part of your legal contract with us. If we issue you with an insurance policy, you will be given a Policy Schedule. The Policy Schedule sets out the specific terms applicable to your cover and should be read together with the Policy Terms and Conditions. The Policy Terms and Conditions and the Policy Schedule we send to you form your legal contract with us so please keep them in a safe place for future reference. If you require further information about this product, please contact your Financial Services Provider. About Jardine Lloyd Thompson Jardine Lloyd Thompson Pty Limited ABN of Level 11, 66 Clarence Street Sydney NSW 2000 (JLT) holds an Australian Financial Services Licence (No ). JLT is one of Australia s largest general insurance brokers, a group totally committed to service and the fulfilment of their client needs. The group offers a diverse range of products and services to all areas of the industry and the wider community in all parts of Australia. In arranging this Policy, JLT is acting on your behalf and not as agent of the insurer. About QBE australia QBE Insurance (Australia) Limited is a member of the QBE Insurance Group (ASX: QBE). QBE Insurance Group is Australia s largest international general insurance and reinsurance group, and one of the top 25 insurers and reinsurers worldwide. The company has been operating in Australia since 1886 and continues to provide industry-leading insurance solutions that are focused on the needs of intermediaries and their clients. QBE is a household name in Australian insurance, backed by sizeable assets, and well known as a strong and financially secure organisation. 3

5 product disclosure statement PART A Product Disclosure Statement (PDS) for Commercial motor vehicle insurance policy Insurer The Policy is underwritten by QBE Insurance (Australia) Limited, ABN , AFS Licence No of 82 Pitt Street, Sydney. Other documents may form part of the PDS. Any such documents will be dated and will include a statement identifying them as part of the PDS. If any major omissions, updates or corrections need to be made to the PDS a Supplementary PDS may be provided. In either case the relevant document will be provided to you with the PDS. Significant benefits and features We believe the most significant benefits of this insurance Policy are that it protects: If your policy has not been endorsed with Endorsement 100 or 101: (a) your financial investment in your motor vehicle if it is stolen, or lost or damaged due to an incident which is covered by Section 1 Loss or Damage To Your Vehicle in the Policy Terms and Conditions part of this document (b) you for your legal liability to third parties in the event of an incident which is covered by Section 2 Third Party Liability in the Policy Terms and Conditions part of this document. If you take Third Party, Fire and Theft Cover (Endorsement 101): (a) your financial investment in your motor vehicle if the loss or damage arises from fire, explosion, self-ignition, lightning, theft or attempted theft (b) you for your legal liability to third parties in the event of an incident which is covered by Section 2 Third Party Liability in the Policy Terms and Conditions part of this document. If you take Third Party only cover (Endorsement 100): (a) you for your legal liability to Third Parties in the event of an incident which is covered by Section 2 Third Party Liability in the Policy Terms and Conditions part of this document. Some additional benefits provided by this Policy include: 1. if your vehicle is damaged or stolen: reasonable costs of taking your vehicle to the nearest repairer or place of safety removal of debris costs up to $5,000 reasonable costs of returning the vehicle after repairs cost of returning your vehicle (following discovery) after being stolen up to $2,000 reasonable additional costs to reach the destination or point of departure up to $1, hire costs following theft up to 21 days, limit $2, where the vehicle is stolen (and still not recovered 30 days after you have told us about it) or damaged beyond what we consider economical repair, and any lease, hire purchase (or other agreement) payout figure exceeds the market value of the vehicle, the most we will pay will be the lesser of the payout figure or the market value plus 20% 4

6 product disclosure statement 4. reasonable costs of replacing lost or stolen keys and of reconfiguring any locking mechanism to suit the new keys 5. we will pay the cost of repairs or the market value of a trailer up to $500 if it is damaged or stolen when it is in your custody or attached to your vehicle 6. we will pay up to $1,000 for personal property belonging to you or your employees that is: (a) damaged in an accident; or (b) stolen from your vehicle provided it is securely locked when left unattended. For the purpose of this Additional Cover, personal property does not include money, cheques, credit cards or debit cards. Significant legal liability benefits include indemnity for compensation arising from: damage to property costs incurred by a public authority as a result of fire, explosion, leakage or spillage of transported goods in or on or from your vehicle your employer s or principal s liability death of or injury to other persons legal expenses. The Policy does not cover certain things Claims may be refused in certain circumstances. Please refer to the Commercial Motor Vehicle Insurance Policy Terms and Conditions which follows this PDS for full details of the terms and conditions of cover and exclusions. The Policy will not cover loss or damage: (a) intentionally caused by you or a person acting with your consent (b) resulting from or caused by: wear, tear, rust, corrosion, mechanical or electrical breakdowns or failures to your vehicle damage to tyres of your vehicle caused by the application of brakes or by road punctures, cuts or blow-outs lawful seizure, confiscation or requisition failure to take reasonable steps to protect or safeguard the vehicle after an accident theft of your vehicle resulting from it being test driven for sale and you or a person acting on your behalf were not in the vehicle at the time it was stolen (c) if the suspension, wheels or engine of your vehicle are altered to increase performance unless: we have previously agreed to such an alteration you have paid any additional premium we require you have agreed to accept any alteration or addition to the terms of this Policy. 5

7 product disclosure statement The Policy will not cover: (a) any amount greater than the maker s latest list price for the supply of any part that is not available locally, if your vehicle is over 25 years old or has been imported privately into Australia (b) any consequential loss inconvenience or other detriment resulting from loss or damage to your vehicle other than as provided elsewhere in this Policy (c) the loss of use of your vehicle other than when your vehicle is stolen and only to the limits provided in clause 2 of Additional covers to Section 1 in the Policy Terms and Conditions (d) damage to property belonging to you or held in trust by you or in your custody or control (e) death or bodily injury to: you or any person in charge of your vehicle, or your or their spouse, de facto spouse, parent, sister, brother or child any person with whom you ordinarily reside or who ordinarily resides with you any employee, agent, contractor or sub-contractor employed or engaged by any person entitled to indemnity under Section 2 in the Policy Terms and Conditions (f) any fines, penalties, or aggravated exemplary or punitive damages (g) for any claim caused by or arising from the use of your vehicle when more than one vehicle, single trailer or caravan is being towed (h) for any claim caused by vibration, or the weight of your vehicle exceeding any lawful requirements or advisory signs (i) for any claim caused by or arising from the use of your vehicle, including any plant or implement attached to or forming part of your vehicle, as a tool of trade to: dig, scrape, bore or drill below the wheel base of your vehicle clear or level land lift items (other than to lift goods on or off your vehicle) spray, suction or vacuum. The Policy will not insure you against liabilities arising: (a) if at the time of the loss or accident your vehicle was used to carry a number of passengers in excess of that for which your vehicle was constructed, registered or licensed (b) if at the time of the loss or accident your vehicle or any caravan or trailer being towed by your vehicle was used to carry or tow a load in excess of that for which it was designed, registered or licensed (c) if at the time of the loss or accident your vehicle was being: tested other than in connection with or whilst undergoing service or repair used in any experiments used in or prepared for reliability trials, speed trials, hill climbing tests, rallies, races or other motor sports events or demonstrations used in or prepared for any stunt or film, video or audio recording used while in an unroadworthy or dangerous condition, and that condition was a contributing factor to the accident 6

8 product disclosure statement (d) if at the time of the loss or accident your vehicle: was used otherwise than in accordance with the description of use stated in the Policy Schedule was used for the conveyance of passengers for hire, for fare or reward other than under a private pooling arrangement We will not regard payment of a travelling allowance by your full-time employer as hire for fare or reward was let out on hire formed part of your stock in trade was used in the business of a motor driving school (e) if at the time of the loss or accident you were not, or any person driving with your consent was not, licensed to drive your vehicle under any law (f) if at the time of the loss or accident you were, or any person was, driving your vehicle: under the influence of or when impaired by any drug or intoxicating liquor with a percentage of alcohol in the breath or blood that was in excess of that permitted by any law. But if you can prove you did not know that the driver of your vehicle was so affected, we will indemnify you but not the driver of your vehicle (g) if following an accident involving your vehicle you or any person entitled to cover under this policy refused to submit to a test to determine the percentage of alcohol in the breath or blood when requested to do so (h) resulting from the transportation, loading or unloading or storage of any of the following dangerous goods: gases (in containers of more than five hundred (500) litres capacity) whether compressed, liquefied or dissolved under pressure the following liquids or pastes when in containers of more than two hundred and fifty (250) litres capacity or solids when in containers of undivided capacity of more than four hundred (400) kilograms flammable liquids or substances with a closed cup flash point below twenty-three degrees (23 C) Celsius flammable solids or substances liable to spontaneous combustion or which emit flammable gases on contact with water oxidising agents or organic peroxides toxic or infectious substances corrosive liquids or substances radioactive substances explosive substances or articles (i) resulting from the use of a fuel system that does not comply with the appropriate Australian Standard Code (j) if you or any person entitled to cover under this Policy has failed to comply with the terms and conditions of this Policy (k) from your vehicle being unregistered. 7

9 product disclosure statement These are only some of the events that are not covered by this insurance. Please read the Commercial Motor Vehicle Insurance Policy Terms and Conditions which follows this PDS for full details of all relevant policy exclusions. The amount of any claim may be reduced The amount of any claim made against the Policy may be reduced: (a) where an excess applies (any applicable excesses will be shown in your Policy Schedule). The excess indicated will be increased 100% on any claim arising from the operation of any lifting mechanism or hoist which forms part of your vehicle or any plant or attachment to your vehicle. An additional excess is payable if at the time of the loss or accident the person driving your vehicle: is under twenty-five (25) years of age, or has been licensed to drive this class of vehicle for less than twenty-four (24) months, or is using your vehicle for tuition purposes. The amount of this additional excess is shown in the Policy Schedule. You are not required to pay this additional excess for: windscreen or side glass breakage damage occurring whilst your vehicle is in the custody of a person in the motor trade for repair, maintenance, service or storage claims caused by fire, explosion, lightning, flood, hail, or other storm damage, theft, malicious damage or damage to your vehicle whilst it is parked (b) where you have not requested the insured value of any item to be specified in the Policy (c) if you do not comply with any Policy condition. Significant risks This product may not match your expectations This product may not match your expectations (for example, because an exclusion applies). You should read the PDS (Part A of this booklet) and the Policy Terms and Conditions (Part B of this booklet) carefully. Please ask your Financial Services Provider if you are unsure about any aspect of this product. Your sum insured may not be adequate It is important that your vehicle and all accessories are insured for their current market values, as our liability is limited to the sum insured you declare to us or the market values of your vehicle and all its accessories, whichever is the lesser. 8

10 product disclosure statement Overdue premium You must pay your premium on time otherwise your Policy may not operate. If you pay an annual premium and you have not paid by the due date or your payment is dishonoured, or, if you pay your premium by instalments and your first instalment payment is dishonoured, this Policy will not operate and there will be no cover. If you pay your premium by instalments and any instalment remains unpaid for: 14 days or more we may refuse to pay any claim 1 month or more we may cancel this Policy. For more detailed information regarding payment options refer to the section headed How you can pay your premium in Part B (Terms and Conditions). A claim may be refused We may refuse to pay or reduce the amount we pay under a claim if you do not comply with the Policy conditions, if you do not comply with your Duty of Disclosure, or if you make a fraudulent claim. The cost of this insurance policy The total premium is the amount we charge you for this insurance Policy. It includes the amount which we have calculated will cover the risk, and any taxes and government charges. The premium and any taxes and government charges will be shown on your Policy Schedule. When calculating your premium we take a range of rating factors into account. These factors, and the degree to which they affect your premium, will depend upon the information you provide to us. The following factors have a significant impact on the calculation of your premium: type of cover selected the make, model and type of the insured vehicle the place where the vehicle is garaged previous insurance and claims history of the insured person and any drivers you have told us about. Premium payments can be made annually or by instalments. You should arrange your method of payment through your Financial Services Provider. A quote for premium may be obtained from your Financial Services Provider. Duty of Disclosure What you must tell us Under the Insurance Contracts Act 1984 (the Act), you have a Duty of Disclosure. The Act requires that before a policy is entered into, you must give us certain information we need to decide whether to insure you and anyone else to be insured under the policy, and on what terms. Your Duty of Disclosure is different, depending on whether this is a new Policy or not. 9

11 product disclosure statement New business Where you are entering into this Policy for the first time (that is, it is new business and is not being renewed, varied, extended or reinstated) you must tell us everything you know and that a reasonable person in the circumstances could be expected to tell us, in answer to the specific questions we ask. When answering our questions you must be honest. Who needs to tell us It is important that you understand you are answering our questions in this way for yourself and anyone else whom you want to be covered by the Policy. If you do not tell us If you do not answer our questions in this way, we may reduce or refuse to pay a claim, or cancel the Policy. If you answer our questions fraudulently, we may refuse to pay a claim and treat the Policy as never having worked. Renewals, variations, extensions and reinstatements Once your Policy is entered into and is no longer new business then your duty to us changes. You are required before you renew, vary, extend or reinstate your Policy, to tell us everything you know and that a reasonable person in the circumstances could be expected to know, is a matter that is relevant to our decision whether to insure you, and anyone else to be insured under the Policy, and if so, on what terms. You do not have to tell us about any matter that diminishes the risk that is of common knowledge that we know or should know in the ordinary course of our business as an insurer, or which we indicate we do not want to know. If you do not tell us If you do not comply with your Duty of Disclosure we may reduce or refuse to pay a claim or cancel your Policy. If your non-disclosure is fraudulent we may treat this Policy as never having worked. Privacy Privacy legislation regulates the way private sector organisations can collect, use, keep secure and disclose personal information. We are bound by the Privacy Act 1988 (Cth.), when collecting and handling your personal information. QBE has developed a privacy policy which explains what sort of personal information we hold about you and what we do with it. We will only collect personal information from or about you for the purpose of assessing your application for insurance and administering your insurance policy, including any claims you make. We will only use and disclose your personal information for a purpose you would reasonably expect. We may need to disclose personal information to our reinsurers, (who may be located overseas), insurance intermediaries, insurance reference bureaux, credit reference agencies, our advisers and those involved in the claims handling process (including assessors and investigators), for the purposes of assisting us and them in providing relevant services and products, or for the purposes of litigation. We may disclose personal information to people listed as co-insured on your policy and to family members or agents authorised by you. We may also disclose information to organisations which conduct customer service surveys on our behalf. We will request your consent to any other purpose. 10

12 product disclosure statement By providing your personal information to us, you consent to us making these disclosures. Without your personal information we may not be able to issue insurance cover to you or process your claim. You also have the opportunity to find out what personal information we hold about you and, when necessary, correct any errors in this information. Generally we will do this without restriction or charge. For further information about our Privacy Policy or to access or correct your personal information, please contact The Compliance Manager, QBE Insurance (Australia) Limited, GPO Box 82 Sydney NSW Telephone: (02) , Fax: (02) or The General Insurance Code of Practice QBE Insurance (Australia) Limited is a signatory to the General Insurance Code of Practice. The Code aims to: promote more informed relations between insurers and their customers; improve consumer confidence in the general insurance industry; provide better mechanisms for the resolution of complaints and disputes between insurers and their customers; and commit insurers and the professionals they rely upon to higher standards of customer service. How to make a claim Please contact your Financial Services Provider to make a claim. We will only accept responsibility for repairs or payments to third parties under a claim where you have told us about them beforehand and we have accepted your claim. Full details of what you must do for us to consider your claim are provided in the Accidents and Claims section in Part B of this booklet. Dispute resolution We will do everything possible to provide a quality service to you. However, we recognise that occasionally there may be some aspect of our service or a decision we have made that you wish to query or draw to our attention. We have a Complaints and Dispute Resolution Procedure which undertakes to provide an answer to your complaint within 15 working days. If you would like to make a complaint or access our internal dispute resolution service please contact your nearest QBE office and ask to speak to a dispute resolution specialist. If you are not happy with our answer, or we have taken more than 15 working days to respond, you may take your complaint to the Insurance Ombudsman Service (IOS), an ASIC approved external dispute resolution body. The IOS resolves certain insurance disputes between consumers and insurers and will provide an independent review at no cost to you. QBE is bound by the determination of the IOS but the determination is not binding on you. We will provide the contact telephone number and address of the IOS office upon request. 11

13 product disclosure statement Taxation implications Goods and Services Tax The Policy has provisions relating to GST. In summary, they are as follows but please read the provisions in full. They can be found in Part B Terms and Conditions, under the heading How Goods and Services Tax affects any payments we make. The amount of premium payable by you for this Policy includes an amount on account of the GST on the premium. When we pay a claim, your GST status will determine the maximum amount we pay. Other taxation implications There may be other taxation implications affecting you, depending upon your own circumstances. We recommend that you seek professional advice. Cancelling your Policy How you may cancel this Policy You may cancel this Policy at any time by telling us in writing that you want to cancel it. You can do this by giving the notice to your Financial Services Provider. Where you involves more than one person, we will only cancel the Policy when a written agreement to cancel the Policy is received from all persons named as the insured. How we may cancel this Policy The premium We may cancel this Policy in any of the circumstances permitted by law by informing you in writing. We will give you this notice in person or send it to your address last known to us. We will refund to you the proportion of the premium for the remaining period of insurance. Cooling-off information If you want to return your insurance after your decision to buy it, you may cancel it and receive a full refund. To do this you may notify your Financial Services Provider electronically or in writing within 30 days from the date the Policy commenced. This cooling-off right does not apply if you have made or are entitled to make a claim. Even after the cooling-off period ends, you still have cancellation rights however your Financial Services Provider may deduct certain amounts from any refund for administration costs or any non-refundable taxes. 12

14 Policy Terms And Conditions Part B Policy Terms And Conditions for Commercial motor vehicle insurance Policy Introduction Who is Jardine Lloyd Thompson Pty Limited Jardine Lloyd Thompson Pty Limited (JLT) is one of Australia s largest General Insurance Brokers, a group totally committed to service and the fulfilment of our clients needs. The group offers a diverse range of products and services to all areas of industry and the wider community in all parts of Australia. Agent for you In arranging this policy, JLT is an insurance broker and is acting as your agent and not an agent of the Insurer. Who insures you The policy is underwritten by: QBE Insurance (Australia) Limited, ABN In this policy the Insurer is called we, us or our. Policy Schedule Policy Schedules are a record of your specific insurance covers. When you receive them please check the Policy Schedules carefully and inform us immediately if you feel anything needs to be changed. In order that you always have a complete up-to-date record of your cover, we will send you a new set of Policy Schedules whenever your insurance cover is renewed or changed in any way. Policy wording This Policy Wording details all the terms and conditions of cover. In certain cases Additional Covers, Definitions, Exclusions and Conditions have been included or varied. In these cases Endorsements are included with the relevant Policy Wording and shown on your Policy Schedule. Money back promise If you are not completely happy with your policy, we will try to help you with your concerns, or you can return it with the Policy Schedule for a refund. We will refund the full amount of the premium if you do this within 30 days of cover starting and no event for which a claim could be made has occurred. 13

15 Policy Terms And Conditions Your Policy When you have paid or agree to pay to us the premium stated in the policy schedule then, subject to the terms, conditions and exclusions contained in or endorsed on this Policy, we will insure you against loss, damage or liability (as described) occurring during the period of insurance arising from the use of your vehicle: (a) in connection with your occupation or business; (b) for social, domestic or pleasure purposes; (c) in connection with its repair or service; (d) for tuition purposes provided such is not for reward. This Insurance applies only to claims for events occurring within Australia. Who is insured under this Policy The Insured, You, Your means the party or parties named as the Insured in the policy schedule and any parties having an insurable interest under any lease, hire purchase or other agreement relating to your vehicle. Each of the parties comprising the Insured shall, for the purposes of this insurance, be considered in the same manner as if that party were the only party named herein as the The Insured and we will waive all rights of subrogation or action which we may have or acquire against any of such parties. Who is the insurer In this Policy the insurer (shown in the Policy Schedule) is called We, Us or Our 14

16 Policy Terms And Conditions Definitions Some of the words in this policy have a special meaning. These words are listed below. Word or Term Agreed Value Market Value Your Vehicle Policy Schedule Period of Insurance Substitute Vehicle Meaning (Only applicable to sedans, station wagons, coupes, 4WDs, utilities or vans with goods carrying capacity under two (2) tonnes). The fixed amount for which Your vehicle is insured for each period of insurance regardless of any price change for your vehicle during that period. The Agreed value includes the value of insured accessories and equipment. the value of Your vehicle just before the damage occurs based on the age and condition of Your vehicle. It takes into consideration standard accessories, tools, equipment or spare parts that were originally supplied by the manufacturer and any non-standard vehicle accessories or equipment that are specified in the Policy Schedule. the vehicle(s) described in the policy schedule including: (a) standard accessories, standard tools, equipment and spare parts supplied by the manufacturer, (b) equipment, apparatus and accessories including gates, ropes, chains and tarpaulins up to $1,000 any one item, unless fitted by the original vehicle manufacturer, attached to or built into the vehicle as maintained by you (including the property of your employees), (c) any signwriting or artwork affixed to the vehicle. Your vehicle also means a vehicle which permanently replaces your vehicle provided you advise us within seven (7) days of the date of purchase and pay any required premium adjustment the Schedule, Insurance Certificate, Renewal Invitation or Revised Policy Schedule issued by us whichever is the most current the period of time commencing on the From date stated in the current policy schedule and ending on the To date stated in that policy schedule a vehicle used by you or on your behalf in connection with your business in substitution for the insured vehicle whilst it is undergoing repairs or service 15

17 Section 1 Loss or damage to your vehicle LEVELS OF cover You can choose from three levels of cover depending on your insurance needs. For each level of cover, the Policy operates as follows: 1. Comprehensive You have cover under: (a) Section One Loss or damage to your vehicle; and (b) Section Two Third Party Liability. 2. Third Party Fire and Theft You have cover under: (a) Section One Loss or damage to your vehicle if the claim is in respect of loss or damage caused by fire, explosion, self ignition, lightning, theft or attempted theft only; and (b) Section Two Third Party Liability. 3. Third Party only You have cover under: (a) Section Two Third Party Liability. The level of cover selected for each insured vehicle will be shown on your Policy Schedule. Your cover 1. If during the period of insurance your vehicle is (a) stolen and not recovered within thirty (30) days of the date you reported the loss to us,or (b) damaged beyond an amount we consider economical to repair, We will (provided the Limits of Cover are not exceeded) pay the market value of your vehicle at the date of loss or damage. However, if your vehicle is a sedan, station sedan, coupe or utility or van with a goods carrying capacity under two (2) tonnes and the loss or damage occurred within two (2) years of the date of the original registration when new, we will replace your vehicle with a new vehicle (of the same make, model and series) unless the finance arrangements on your vehicle prevent such replacement. 2. If during the period of insurance your vehicle is damaged (not beyond the amount we consider economical to repair) we will pay the cost of repairs to your vehicle. If we elect to repair Your vehicle: (a) You can suggest a repairer, or we can suggest one for you. If we do not accept your choice of repairer, you must still cooperate with us to select another repairer that we both agree on. This is our policy on choice of repairer. (b) When Your vehicle is repaired, the repairer may use new or reusable parts or parts that are not manufactured by a supplier to the vehicle s original manufacturer which: (i) are consistent with the age and condition of the vehicle; (ii) do not affect the safety or the structural integrity of the vehicle; (iii) comply with the vehicle manufacturer s specifications and applicable Australian Design Rules; (iv) do not adversely affect the post-repair appearance of the vehicle; and (v) do not void or affect the warranty provided by the vehicle manufacturer. (c) In repairing Your vehicle, we may arrange for a part of the repair to be carried out by a specialist service provider e.g. windscreen repairs. 16

18 Section 1 Loss or damage to your vehicle (d) We guarantee workmanship of the repairs authorised by us. This guarantee is for the life of the vehicle and is in addition to your statutory rights against the repairer and warranties that you have from the repairer directly. Wear and tear is not covered by this guarantee. We will arrange for repairs authorised by us to be rectified at no cost to you if we agree that the repairs are defective. Before we can arrange for any defective repairs to be rectified, you must give us the opportunity to inspect the vehicle. Limits of cover If your Policy Schedule shows you are insured for Agreed value, the maximum amount we will pay under this Section is: 1. The Agreed value of Your vehicle as shown in the Policy Schedule. If your Policy Schedule shows you are insured for Market value, the maximum amount we will pay under this Section is: 2. The Market value of Your vehicle at the time of loss; or 3. The Sum insured, as shown on your current Policy Schedule, Whichever is the lesser. Additional covers 1. If your vehicle is damaged or stolen, and we agree to pay your claim, we will also pay in addition to the limits of cover; (a) Emergency repair costs up to the limit of $500 to enable you to reach your destination, or a repairer after an accident. (b) The reasonable costs of taking Your vehicle to the nearest repairer or place of safety. (c) The costs incurred for the removal of Your vehicle s debris and Your vehicle s load arising from an accident or resulting from goods falling or leaking from Your vehicle, but only up to $5,000, including charges imposed by the Fire Brigade, Emergency Services or Police. (d) The reasonable costs of returning Your vehicle to you (following the completion of repairs). (e) The cost of returning Your vehicle (following discovery) after being stolen, irrespective of whether Your vehicle was damaged, but only up to $2,000. (f) The reasonable additional costs (including any accommodation or meals) incurred by your driver and offsider(s) to reach their destination or point of departure, whichever is required by your, but only to $1, If Your vehicle is stolen, we will also pay, in addition to the limits of cover, the cost of hiring a replacement vehicle of similar type for a period of up to twentyone (21) days, but not beyond the date of recovery of Your vehicle if it can be driven or until it is repaired if it is damaged as a result of the theft. The maximum we will pay is $2,000 any one event. 3. We will pay the amount incurred by you as a result of general average being declared on a journey total within Australia in which Your vehicle is being transported whether by road, rail, sea or air. (General average can only be declared on a marine journey and is expenditure made to safeguard all property common to the journey.) 4. If Your vehicle is: (a) stolen and not recovered within thirty (30) days of the date you reported the loss to us; or (b) damaged beyond an amount we consider economical to repair; and 17

19 Section 1 Loss or damage to your vehicle if the amount of your financial obligation to any parties having an insurable interest under any lease, hire purchase or other agreement relating to Your vehicle is greater than the Market or Agreed value (in accordance with the basis of cover as shown in the Policy Schedule) or Your vehicle, we will pay up to the Market value or Agreed value (whichever applies) plus 20% toward the discharge of those obligations. 5. We will pay the cost of repairs or the Market value of a trailer up to $550 if it is damaged or stolen when it is in your custody or attached to Your vehicle. 6. We will pay up to $1,000 for personal property belonging to you or your employees that is: (a) Damaged in an accident. (b) Stolen from Your vehicle, provided it is securely locked when left unattended. For the purpose of this additional cover, personal property does not include money, cheques, credit cards or debit cards. 7. If the keys to Your vehicle are lost or stolen, we will pay the reasonable and necessary cost of replacing the lost or stolen keys. We will also pay the reasonable and necessary cost of resetting or reconfiguring any locking mechanism to suit the new keys. 8. You will not lose your No Claim Bonus for the first claim on each of Your vehicles if the claim is for breakage of a windscreen or window forming part of Your vehicle; and there is no other damage to Your vehicle. 9. We will pay $5,000 if Your vehicle is being driven by you or any authorised driver and as a direct result of an accident involving Your vehicle the driver: (a) Dies. (b) Permanently and totally loses sight in one or both eyes. (c) Permanently and totally loses the efficient use of one or both hands or feet. We will only pay one claim of $5,000 for any one accident. We will pay the driver or, if the driver dies, the driver s estate. We will not pay if the death or disability happens: (a) more than twelve (12) months from the date of the accident, or (b) because the driver committed or attempted to commit suicide. 18

20 Section 1 Loss or damage to your vehicle Exclusions to section one We will not pay: 1. for loss, expense or damage as a result of wear and tear, rust or corrosion, mechanical or electrical breakdowns or failures to your vehicle. 2. for damage to the tyres of your vehicle caused by the application of brakes or by road punctures, cuts or blow-outs. 3. for loss or damage to your vehicle caused by lawful seizure, confiscation or requisition. 4. if your vehicle is stolen or further damaged following an accident, if reasonable steps to protect or safeguard your vehicle were not taken after the accident. 5. for loss or damage occasioned as a result of the theft (or following the theft) of your vehicle by a purported purchaser or a person acting in collaboration with a purported purchaser unless you or a person acting on your behalf were in the vehicle at the time it was stolen. 6. any amount greater than the maker s latest list price for the supply of any part that is not available locally, if your vehicle is over twenty-five (25) years old or has been imported privately into Australia. 7. for any monetary loss incurred by you through contractual financial arrangements on your vehicle other than as provided in clause 4 under Additional Covers to Section One. 8. for any consequential loss, inconvenience or other detriment of any kind resulting from loss or damage to your vehicle other than as provided elsewhere in this Policy. 9. for the loss of use of your vehicle other than when your vehicle is stolen and only to the limits provided in clause 2 of Additional Covers to Section One. General exclusions on Page 22 to 24 also apply to cover under Section One Loss or Damage to Your Vehicle. 19

21 Section 2 THIRD PARTY LIABILITY YOUR COVER If your vehicle (or any vehicle used in substitution for your vehicle on your behalf or in connection with your business) is registered or licensed as required by any law relating to the use of motor vehicles on public roads (or if your vehicle is a towed vehicle for which registration or licensing is not required by any such law) we will pay the amount for which (a) you, (b) any person in charge of your vehicle, with your permission, (c) any person in or on, or getting in or on or getting out of or off your vehicle, (d) your employer, principal or partners (if liability is incurred whilst on their business), or (e) following the death of any person entitled to Indemnity in (a) to (d) above, the legal representatives of that person: may be held legally liable to pay as compensation resulting from an accident occurring during the period of insurance and caused by or arising out of the use of your vehicle (or arising from goods or items being carried by or falling from your vehicle) for: 1. Damage to property. If the damage is caused by, or arising out of the towing of a vehicle, single trailer or caravan no cover will be provided under this Section for damage to the towed vehicle, single trailer or caravan. 2. The costs incurred by or on behalf of a public authority as a result of fire, explosion, leakage or spillage of transported goods in or on or from your vehicle. 3. Death or bodily injury but we will not pay (i) if you have been or are entitled to be partially or wholly indemnified, by any statutory compulsory insurance or accident compensation scheme, or would have been so entitled to be indemnified under any such scheme as it existed at the commencement date of the period of insurance, or (ii) for any claim for which you would have been partially or wholly indemnified, but for your failure to insure or register your vehicle in accordance with a requirement of any statutory compulsory insurance or accident compensation scheme. Additional covers 1. We will also pay all legal costs incurred with our written agreement following an accident which is the subject of a claim under Section Two, together with any claimants costs recoverable from you. 2. We will also provide cover under Section Two if the registration on your vehicle is cancelled or suspended without your knowledge as a consequence of a traffic fine payment default. Limit of our liability The maximum amount we will pay for the total of all claims arising from a single accident or series of accidents with the same original cause is shown in the policy schedule. However the maximum we will pay for the total of any bodily injury claims is five million dollars ($5,000,000). 20

22 Section 2 THIRD PARTY LIABILITY Exclusions to section two We will not pay: 1. for damage to property belonging to you or held in trust by you or in your custody or control but this Exclusion will not apply to any vehicle including contents thereof belonging to your employees, customers or visitors whilst such vehicle is within the confines of a car park owned or operated by you. 2. for death or bodily injury to: (a) you or any person in charge of your vehicle; (b) the spouse, de facto spouse, parent, sister, brother or child of any person in (a) above, or the parents, sister, brother or children of any of these persons; (c) any person with whom you ordinarily reside or who ordinarily resides with you; (d) any employee, agent, contractor or sub-contractor employed or engaged by any person entitled to indemnity under Section Two. 3. for any claim brought against any person (entitled to cover under Section Two) in any country outside Australia or in a Court within Australia exercising the jurisdiction of a country other than Australia. 4. any fines, penalties, or aggravated exemplary or punitive damages. 5. for any claim caused by or arising from the use of your vehicle when more than one vehicle, single trailer or caravan is being towed. For the purposes of this Exclusion only, an articulated vehicle comprising a prime mover and one trailer will be regarded by us as a single vehicle. 6. for any claim caused by vibration, or the weight of your vehicle exceeding any lawful requirements or advisory signs. 7. for any claim caused by or arising from the use of your vehicle, including any plant or implement attached to or forming part of your vehicle, as a tool of trade to: (a) dig, scrape, bore or drill below the wheel base of your vehicle; (b) clear or level land; (c) lift items (other than to lift goods on or off your vehicle); (d spray, suction or vacuum. General exclusions on Page 22 to 24 also apply to cover under Section Two Third Party Liability. 21

23 GENERAL EXCLUSIONS These General Exclusions apply to the whole Policy We will not pay any claim: 1. if at the time of the loss or accident your vehicle was used to carry a number of passengers in excess of that for which your vehicle was constructed, registered or licensed. 2. if at the time of the loss or accident your vehicle or any caravan or trailer being towed by your vehicle was used to carry or tow a load in excess of that for which it was designed, registered or licensed. 3 if at the time of the loss or accident your vehicle was being: (a) tested other than in connection with or whilst undergoing service or repair; (b) used in any experiments; (c) used in or prepared for reliability trials, speed trials, hill climbing tests, rallies, races or other motor sports events or demonstrations; (d used in or prepared for any stunt or for film, video or audio recording; (e) used while in an unroadworthy or dangerous condition, and that condition was a contributing factor to the accident. 4. if at the time of the loss or accident your vehicle: (a) was used otherwise than in accordance with the description of use stated in the policy schedule; (b) was used for the conveyance of passengers for hire, for fare or reward other than under a private pooling arrangement. We will not regard payment of a travelling allowance by your full-time Employer as hire for fare or reward; (c) was let out on hire; (d) formed part of your stock in trade; (e) was used in the business of a motor driving school. 5. if at the time of the loss or accident you were not, or any person driving with your consent was not, licensed to drive your vehicle under any law. 6. if at the time of the loss or accident you were, or any person was, driving your vehicle: (a) under the influence of or when impaired by any drug or intoxicating liquor; (b) with a percentage of alcohol in the breath or blood that was in excess of that permitted by any law. But if you can prove you did not know that the driver of your vehicle was so affected, we will indemnify you but not the driver of your vehicle. 7. if following an accident involving your vehicle you or any person entitled to cover under this Policy refused to submit to a test to determine the percentage of alcohol in the breath or blood when requested to do so. 22

24 GENERAL EXCLUSIONS 8. This Policy excludes loss, damage, destruction, death, injury, illness, liability, cost or expense of any nature directly or indirectly caused by, contributed to by, resulting from, arising out of or in connection with any of the following, regardless of any other cause or event contributing concurrently or in any other sequence to the loss: (a) War, invasion, acts of foreign enemies, hostilities or war-like operations (whether war be declared or not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of or amounting to an uprising, military or usurped power, or (b) Any act(s) of Terrorism For the purpose of this exclusion, an act of terrorism includes any act, or preparation in respect of action, or threat of action designed to influence the government de jure or de facto of any nation or any political division thereof, or in pursuit of political, religious, ideological or similar purposes to intimidate the public or a section of the public of any nation by any person or group(s) of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s) de jure or de facto, and which: involves violence against one or more persons, or involves damage to property, or endangers life other than that of the person committing the action, or creates a risk to health or safety of the public or a section of the public, or is designed to interfere with or to disrupt an electronic system. (c) Radioactivity or the use, existence or escape of any nuclear fuel, nuclear material, or nuclear waste or action of nuclear fission or fusion. This Policy also excludes any loss, destruction, damage, death, injury, illness, liability, cost or expense of any nature directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with any action taken in controlling, preventing, suppressing, retaliating against, or responding to or in any way relating to (a), (b) or (c) above. 9. resulting from the transportation, loading or unloading or storage of any of the following dangerous goods: (a) gases (in containers of more than five hundred (500) litres capacity) whether compressed, liquefied or dissolved under pressure. (b) the following liquids or pastes when in containers of more than two hundred and fifty (250) litres capacity or solids when in containers of undivided capacity of more than four hundred (400) kilograms: (i) flammable liquids or substances with a closed cup flash point below twenty-three degrees (23 C) Celsius; (ii) flammable solids or substances liable to spontaneous combustion or which emit flammable gases on contact with water; (iii) oxidising agents or organic peroxides; (iv) toxic or infectious substances; (v) corrosive liquids or substances. (c) radioactive substances. (d) explosive substances or articles. 23