RACV Warranty Three choices of cover Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
Congratulations on the purchase of your vehicle and the RACV Mechanical Breakdown Insurance. We would like to take this opportunity to thank you and ask you to take a few moments to familiarise yourself with your and our obligations under this Warranty Agreement. General Enquiries Phone 03 9723 9888 Email warranty@racv.com.au Website racv.com.au Claims Department Phone 1800 981 177 Fax 03 9723 1564 Email warranty@racv.com.au Office Hours Monday Friday 9am-5pm AEST Please address all correspondence to RACV Warranty Po Box 1461 Traralgon Vic 3844 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty V1 08/17 IEW1708006
CONTENTS Combined Financial Services Guide and Product Disclosure Statement Financial Services Guide: Introduction 2 Our services 3 What fees are we paid? 4 Our professional indemnity insurance 4 Making a complaint about our services 4 How we protect your privacy 5 Important information regarding consumer rights 5 How can you contact us? 5 Product Disclosure Statement 6 About the Insurer and Integrity 6 The terms and conditions of this insurance 7 Choosing the right type and duration of cover 7 Warranty Options - Summary 8 Cost of the Product 9 Information About Your Rights Duty of disclosure 10 Cooling off period 10 The General Insurance Code of Practice 11 Complaints internal and external complaints procedure 11 How to make a claim 11 Privacy 11 Collection 12 Use and disclosure 12 Indirect Collection 13 Overseas recipients 13 Marketing 13 Access and correction 13 Data quality and security 14 Privacy Policy 14 Complaints 14 Your Contract of Insurance Insurance terms we use 16 Our contract with you 17 What Is Covered Option A: Engine, Gearbox & Differential Cover 18 Option B: Specified Parts Cover 19 Option C: Manufacturer s Type Cover 20 What is not covered 20 What are the conditions 25 Contact Details Inside Back Cover racv.com.au 1
COMBINED FINANCIAL SERVICES GUIDE AND PRODUCT DISCLOSURE STATEMENT Financial Services Guide Introduction This Financial Services Guide (FSG) describes the services offered by your Authorised Representative, Royal Automobile Club of Victoria (RACV) Ltd, ABN 44 004 060 833 (RACV) and Integrity Car Care Pty Ltd (ABN 58 056 621 893 AFS Licence No: 247069) (Integrity) in relation to the RACV Mechanical Breakdown Insurance. It also explains how we are remunerated for our services, our professional indemnity insurance and describes your rights as our client, including how any complaints you may have about the services will be handled. A Product Disclosure Statement (PDS) describing the key features of the RACV Mechanical Breakdown Insurance is in the next section of this document. It also provides you with information about the insurer of the RACV Mechanical Breakdown Insurance. Reading it will help you to decide if the RACV Mechanical Breakdown Insurance suits your needs, objectives and financial situation. 2 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
Our services Your Authorised Representative is an authorised representative of Integrity. They can arrange the RACV Mechanical Breakdown Insurance for you and answer questions you have about the product. Your Authorised Representative is authorised by Integrity to arrange and provide general financial product advice on RACV Mechanical Breakdown Insurance. Your Authorised Representative acts for Integrity and does not act on your behalf. RACV is an authorised representative of Integrity, they act for Integrity and do not act on your behalf. RACV is authorised by Integrity to market, promote and endorse the RACV Mechanical Breakdown Insurance. Integrity is authorised to issue the insurance as an agent of the insurer, Acasta European Insurance Company Limited (Acasta). Integrity has authority from Acasta to issue, vary and cancel the RACV Mechanical Breakdown Insurance and to handle and settle claims. Integrity acts for Acasta and not on your behalf. If your Authorised Representative or Integrity advise you about the product, we can only advise you in general terms; we cannot advise about your individual situation. racv.com.au 3
What fees are we paid? Integrity receives a commission from Acasta when you purchase the RACV Mechanical Breakdown Insurance. Integrity shares the commission with your Authorised Representative and the RACV. The commission (which varies depending upon the volume of RACV Mechanical Breakdown Insurance products sold) is calculated as a percentage of the premium (excluding taxes and statutory charges). This does not increase the total premium charged by Acasta, for details on the cost of the product see page 4 of the PDS. Employees of your Authorised Representative, RACV and Integrity are paid an annual salary for the services they provide and they may receive a bonus for the sale of the insurance. You can ask for further details of the remuneration that we receive. If you are interested in this information, you must ask us for it within a reasonable time frame after receiving this FSG. You must ask us before any financial services are provided to you, such as arranging your insurance. Our professional indemnity insurance Integrity has professional indemnity insurance in place which covers Integrity for any errors or mistakes relating to our insurance services. This insurance also covers your Authorised Representative and the RACV for any errors or mistakes relating to their insurance services that occur during the period that they are authorised representatives of Integrity regardless of whether they remain authorised representatives of Integrity and provided Integrity notify Acasta of the claim when it arises and this is done within the relevant policy period. This insurance meets the requirements of the Corporations Act. Making a complaint about our services If you have a complaint about the quality of the insurance services of the RACV or Integrity contact Integrity s Internal Disputes Officer. We will acknowledge receipt of your complaint within 5 business days, and attempt to resolve it within a further 20 business days. The contact details for Integrity within this document. Integrity is a member of Financial Ombudsman Service Limited, an external dispute resolution scheme. If you are not satisfied with the outcome of Integrity s review of your complaint, you are entitled to take your complaint to them. You can access this scheme for free and any decision they make is binding on us but not on you. Financial Ombudsman Service GPO Box 3, Melbourne VIC 3001 National Toll Free 1300 780 808 4 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
How we protect your privacy Your Authorised Representative, RACV and Integrity are committed to protecting your privacy. We use the information you provide to advise about and assist with your insurance needs. We only provide your information to Integrity and Acasta (and their representatives or services providers) for the purpose of providing the insurance and related services to you (such as handling claims and arranging repairs). We do not trade, rent or sell your information. You can check the information we hold about you at any time. For more information about our privacy policy, please ask us for a copy. More information is in the PDS on page 5 and 6 of this document. Important information regarding consumer rights This RACV Mechanical Breakdown Insurance provides benefits that are in addition to your rights and remedies under other laws applying to the supply of your vehicle, including the Australian Consumer Law. You are not required to pay extra for those rights and remedies. Your rights under those laws must be enforced by you against the dealer from whom you purchased your vehicle or the vehicle s manufacturer, not Acasta. Nothing in this Mechanical Breakdown Insurance affects your rights under those other laws. We are required by law to include the following words in this FSG: Our goods come with guarantees that cannot be excluded under the Australian Consumer Law. You are entitled to a replacement or refund for a major failure and for compensation for any other reasonably foreseeable loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure. The reference to our goods above should be interpreted as a reference to the vehicle if you purchased from a licensed motor dealer. How can you contact us? The contact details for your Authorised Representative, RACV, Integrity and Acasta can be found within this document. racv.com.au 5
PRODUCT DISCLOSURE STATEMENT This Product Disclosure Statement (PDS) contains important information about the RACV Mechanical Breakdown Insurance. Please read this PDS carefully as it sets out the benefits of this insurance product (including limits, exceptions, conditions and other terms) and information about your rights. The PDS also contains the terms and conditions of the policy and these terms along with your Policy Schedule constitute your Contract of Insurance. About the Insurer and Integrity The Insurer is Acasta European Insurance Company Limited (registered no. 96218). Acasta is authorised and regulated by the Gibraltar Financial Services Commission and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority for the conduct of UK business. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from Acasta European Insurance Company Limited on request. Acasta is an unauthorised foreign insurer and not authorised under the Insurance Act 1973 (Cth) to conduct insurance business in Australia and therefore not subject to the provisions of the Insurance Act 1973 (Cth) which establishes a system of financial supervision of general insurers in Australia. This certificate is issued to you as part of a master policy arranged by Australian Broker Network (AFSL 253131) ABN 89 062 882 080. Acasta European Insurance Company Limited (the Insurer) is an Unauthorised Foreign Insurer and is not regulated by APRA. Integrity is authorised by Acasta to arrange and administer the insurance on Acasta s behalf. Integrity is able to issue, vary and cancel contracts of insurance and to handle and settle claims, as an agent of Acasta. All notices and queries relating to the insurance should be directed to Integrity. Contact details for Integrity and Acasta can be found at the within this document. 6 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
The terms and conditions of this insurance RACV Mechanical Breakdown Insurance provides insurance against the cost of repair or replacement of certain Components and Parts of your new or used Vehicle, due to a Mechanical Breakdown. Acasta provides cover to you on the terms contained in this PDS, and the Policy Schedule. The Policy Schedule contains important information relevant to your insurance, including the Period of Insurance, your premium, details of the Vehicle and other information. These documents make up your Contract of Insurance and are contained in this document. Keep this document in a safe place. Important insurance terms used in this PDS can be found on page 8 and 9. To understand the cover provided by this insurance, it is important that you read: Insurance terms we use - sets out what we mean by certain defined terms in this PDS; What is covered - contains full details of what is covered by the Contract of Insurance; What is not covered - contains full details of what is not covered by the Contract of Insurance; What are the conditions - contains full details of obligations that both you and we have under your Contract of Insurance, including what you need to do in relation to a claim. If you do not meet your obligations, we may cancel your insurance or reduce our liability in respect of a claim. Choosing the right type and duration of cover It is important that you choose the type of cover that best suits your needs and requirements. Your Authorised Representative, RACV and Integrity cannot give you advice as to which product best suits your needs. You need to decide yourself, using this PDS to assist you. You can choose from three types of cover as described overleaf in the Warranty Options Summary table. The option you receive will be shown on the Policy Schedule in this document. You also have a choice as to the duration of the insurance. You may choose a Period of Insurance from our minimum duration of 1 year through to our maximum duration of 3 years. racv.com.au 7
Warranty Options - Summary COVER OPTIONS Option A: Engine, Gearbox & Differential Cover Summary of Items covered Engine, Gearbox and Differential. This is a component specific warranty covering the above 3 components only. For full details of Components and Parts covered see page 10. Maximum Claim Limit per claim Suitable for Vehicles $3,000.00 Any age or mileage at the time of purchase. Option B: Specified Parts Cover Option C: Manufacturer s Type Cover Engine, Gearbox, Differential, Cooling System, Air Conditioning, Fuel System, Brakes, Electrical System, Clutch, Electronics, Steering, Turbo Charger, Drive Line, Suspension. This is a component specific warranty with broad coverage. For full details of Components and Parts covered see pages 10. Most Components and Parts covered by the Vehicle s original Manufacturer s Warranty. This is a comprehensive coverage warranty designed to give the broadest cover. For full details of Components and Parts covered see pages 11. Market value of the Vehicle Market value of the Vehicle That are less than 10 years old and have travelled less than 160,000 kilometres at the time of purchase. Cover automatically ceases when the Vehicle has travelled 220,000 kilometres since first registration. That are less than 6 years old and have travelled less than 120,000 kilometres at the time of purchase. Cover automatically ceases when the Vehicle has travelled 180,000 kms since first registration. 8 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
Cost of the Product The premium for this insurance consists of the base premium, statutory charges and taxes (such as GST and stamp duty) and the commission paid to Integrity, RACV and your Authorised Representative. We take into account a number of factors when determining the base premium, including: the type of cover; the age of the Vehicle; the mileage travelled by the Vehicle at the time of purchase; and the period of the insurance. The maximum total premium (incl. GST and 10% stamp duty) payable for the RACV Mechanical Breakdown Insurance products are set out below: COVER OPTIONS 1 year 2 year 3 year Option A: Engine, Gearbox & Differential Cover $431.97 $615.89 $798.60 Option B: Specified Parts Cover $1301.96 $1683.11 $2052.16 Option C: Manufacturer s Type Cover $1539.12 $1875.50 $2262.70 There is no excess when you make a claim under this insurance. racv.com.au 9
INFORMATION ABOUT YOUR RIGHTS Duty of disclosure Before you enter into your Contract of Insurance with us, you have a duty under the Insurance Contracts Act 1984 to disclose to us every matter that you know, or a reasonable person in the circumstances could be expected to know, is relevant to our decision whether to accept the risk of the insurance and, if so, on what terms. We will ask you various questions when you first apply for your Contract of Insurance. When you answer those questions, you must: give us honest and complete answers; tell us everything you know; and tell us everything that a reasonable person in the circumstances could be expected to know. The duty applies to everyone that is an insured under the Contract of Insurance. If you answer questions for other insured s you do so on their behalf. If you or they fail to comply with the duty of disclosure, we may be entitled to reduce our liability under the Contract of Insurance in respect of a claim or cancel it. If the nondisclosure is fraudulent, we may be able to treat the Contract of Insurance as if it never existed. Cooling off period You have the right to cancel your Contract of Insurance at any time up to 14 days from the date when your Contract of Insurance was issued and receive a full refund provided that you paid for the insurance. You may cancel the Contract of Insurance by either telephoning or writing to Integrity and letting them know that you want to cancel during the cooling off period. However, you cannot cancel within the cooling off period and obtain a refund if you have already made a claim or are entitled to make one. Note: A posted notice is deemed given to you at the time it would have been delivered in the ordinary course of the postal service. 10 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
The General Insurance Code of Practice The Insurance Council of Australia Limited has developed the General Insurance Code of Practice, which is a self-regulatory code for use by all insurers. The Code aims to raise the standards of practice and service in the insurance industry. We have adopted and endorse the Code. If you want further details, please contact Integrity. Complaints internal and external complaints procedure If you have a complaint in relation to your Contract of Insurance (including claims), please telephone or write to Integrity stating what you disagree with and why. Integrity s contact details can be found within this document. Integrity will attempt to resolve your complaint immediately and if necessary they will then refer the matter to Integrity s Internal Dispute Resolution Committee (IDRC). If you are not satisfied with a decision by the IDRC, the matter may be referred to an independent alternate dispute resolution body, the Financial Ombudsman Service (FOS) provided it falls within their jurisdiction. The Financial Ombudsman Service contact details are listed below: Financial Ombudsman Service GPO Box 3, Melbourne VIC 3001 National Toll Free 1300 780 808 Email info@fos.org.au Website www.fos.org.au How to make a claim Refer to the section on Claims Procedure on page 25 of this PDS. Privacy We are committed to meeting our privacy obligations to you under the Privacy Act 1988 (Cth) ( the Act ). The Act provides for information to be collected, used, disclosed and held in accordance with the Australian Privacy Principles (APPs). You agree that we may collect, use, disclose and hold your personal information as set out below. racv.com.au 11
Collection We collect information which is reasonably necessary to provide our services for underwriting and administering your insurance, claims handling, market and customer satisfaction research and to develop and identify products and services that may interest you. Collection will only take place by lawful and fair means. We collect information regarding you, other people, any risk to be insured, previous claims or losses, details of previous insurances and insurers, credit status and any matters relevant to the insurance to be provided. We collect personal information directly or indirectly by telephone, email, facsimile, online, post, external agencies and in person from you or another person or persons. If we collect information pursuant to a law, regulation, or court order then we will advise you of the law or the court order applicable. If you fail to provide us with personal information then this insurance may not meet your needs. If you fail to provide information further to your duty of disclosure to us, then there may be no cover or a reduced cover for any claim made and in some cases the policy may also be avoided. At the time of collection or as soon as practicable thereafter we will notify you or make sure you are aware of our identity, contact details, the purposes for which we collect the information, the consequences of not providing the information, how you can access and correct the information, that we will disclose the information overseas and the countries we will so disclose to. Use and disclosure We may disclose your personal information to our agents, overseas service providers, other insurers, mailing houses and document service providers, financial institutions, insurance and claim reference agencies, credit agencies, loss assessor and adjusters, financial or investigative service providers, internal dispute resolution officers and dispute resolution providers such as the Financial Ombudsman Service. We use and disclose your personal information for the purposes of providing insurance, administration of your policy, claims handling and dispute resolution. We may also use or disclose your personal information for a secondary purpose and you agree that we may so use it. 12 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
Indirect Collection When you provide information about other individuals you must make them aware of the disclosure and the use to which their personal information will be put. We will only collect personal information about an individual from that individual, unless it is unreasonable or impractical to do so. Overseas recipients If your personal information is collected by or supplied to an organisation outside of Australia we will ensure it will be held, used or disclosed only in accordance with the Act. Marketing We also collect your information so that we and our related companies and business alliance partners can offer you services and products that we believe may be of interest to you. You agree that we may so use your personal information. However, you can opt out of receiving such communications by contacting us. Access and correction You can seek access to your personal information by contacting us. You can require us to correct the personal information if it is inaccurate, incomplete or out of date. We will respond to any such request within a reasonable time. We will provide you with access within a reasonable time in the manner requested, unless we are entitled to refuse to provide access. If we decline to provide you with access we will provide you with the reasons for our refusal and how you may access our internal dispute resolution (IDR) process. If we correct information we will inform you. If we refuse to amend information we will provide you with our reasons for the refusal and details of how to access our IDR process. racv.com.au 13
Data quality and security We will take such steps as are reasonable in the circumstances to ensure the personal information we collect is accurate, up to date, complete and protected from unauthorised access, misuse, modification, interference or loss. Privacy Policy If you would like more details about our privacy policy, would like to seek access to or correct your personal information, or opt out of receiving materials we send, please contact us. Complaints If you have a complaint regarding our management of your privacy you may access our internal dispute resolution (IDR) process by contacting us. In the first instance you should contact us requesting a resolution. The person contacted has one business day to resolve your complaint and if he or she cannot do so must refer the complaint to a manager. The manager has a further five business days to resolve the matter. If the manager cannot resolve the matter you may ask him or her to refer it to Integrity s IDR Committee which then has 15 business days to make a decision. When Integrity make their decision they will also inform you of your right to take this matter to the Office of the Australian Information Commissioner (OAIC) together with contact details and the time limit for applying to the OAIC. In addition if you have not received a response of any kind to your complaint within 30 days, then you have the right to take the matter to the OAIC. The OAIC is the statutory body given the responsibility of complaint handling under the Act. The OAIC is independent and will be impartial when dealing with your complaint. The OAIC will investigate your complaint, and where necessary, make a determination about your complaint, provided your complaint is covered by the Act. You have 12 months from the date you became aware of your privacy issue to lodge your complaint with the OAIC. The contact details of the OAIC are: Office of the Australian Information Commissioner GPO Box 2999, Canberra ACT 2601 Telephone 1300 363 992 Website www.oaic.gov.au Email enquiries@oaic.gov.au 14 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
You also have a right in limited circumstances to have your privacy complaint determined by the Financial Ombudsman Service (FOS). The FOS can determine a complaint about privacy where the complaint forms part of a wider dispute between you and us or when the privacy complaint relates to or arises from the collection of a debt. The FOS is an independent dispute resolution body approved by the Australian Securities and Investments Commission. We are bound by FOS determinations, provided the dispute falls within the FOS Terms of Reference, but you are not so bound. You have two years from the date of our letter of decision to make an application to the FOS for a determination. You can access the FOS dispute resolution service by contacting them at: Financial Ombudsman Service GPO Box 3, Melbourne VIC 3001 National Toll Free 1300 780 808 Email info@fos.org.au Website www.fos.org.auintegrity privacy statement Personal information that Integrity collects about you is protected under the Privacy Act and the Australian Privacy Principles. Because Integrity holds an Australian financial services licence, Integrity may be required to collect personal information about you under the Corporations Act. Integrity collects information about you to: process, assess and verify your application, including assessment of the risk we undertake in relation to this policy; administer and manage the products or services Integrity provides, including calculating payments, responding to your queries and determining, assessing and verifying any entitlements and/or claims you may make in our capacity as agent for Acasta; provide you with information about other Integrity products or services that may be of benefit to you (unless you tell Integrity that you do not wish Integrity to do so); and facilitate Integrity s internal business operations, including updating internal databases, conducting consumer satisfaction surveys, fulfilling regulatory and legal requirements and system testing. If you do not provide the information sought by Integrity from time to time, it may affect Integrity s ability to provide you with, and administer, its products or services. Integrity may disclose your information to Acasta and to Integrity s Australian-based agents, consultants, auditors, contractors, contracted staff or service providers that provide financial, legal, administrative or other services, including to authorised repairers in the event of a claim under this Warranty. racv.com.au 15
The Integrity privacy policy contains information about how you can request access to any personal information that we hold about you, and seek correction of any such information. It also contains information about how you can complain about Integrity s handling of your personal information, and our complaint handling process. You can access a copy using the contact details for Integrity within this document, or at the website www.iwarranty.com.au YOUR CONTRACT OF INSURANCE Insurance terms we use The following definitions apply to your Contract of Insurance: Contract of Insurance means the contract between you and us (including the Policy Schedule, this PDS, and any other documents Integrity gives you which form part of the contract). Components and Parts means those components and parts listed as covered by your Contract of Insurance. Financier means any registered finance company referred to in the Policy Schedule. RACV Warranty Administrator means Integrity Car Care Pty Ltd (ABN 58 056 621 893 AFS Licence No: 247069). Manufacturer s Warranty means the warranty provided by the Vehicle manufacturer (including any statutory warranty) but does not include any partial extension of such warranty (ie Drive Train/Powertrain or Rust or Corrosion warranties). Mechanical Breakdown means the failure under normal use and service of mechanical or electrical Components and Parts or the breaking down or burning out of Components and Parts causing sudden stoppage of their function necessitating repair or replacement and arising from defects in material and/or workmanship of the Components and Parts. Period of Insurance means the period: (A) Commencing the latter of: 1 The date you sign the Policy Schedule and your Authorised Representative receives cleared funds for the total amount of the premium; or 2 The date that the dealer statutory warranty (if applicable) expires; or 3 The date that any part of the Manufacturer s Warranty expires; and 16 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
(B) Ceasing on the earlier of either: 1 At 4.00p.m. on the day that the selected term in months has elapsed from the date that cover commences under clause (A) above; or 2 When the Vehicle has travelled a total distance of: a b c For Option A: Engine, Gearbox & Differential Cover unlimited kilometres. For Option B: Specified Parts Cover 220,000 kilometres from date of first registration. For Option C: Manufacturer s Type Cover - 180,000 kilometres from date of first registration. Policy Claim Limit means the maximum amount we will pay for the repair or replacement of any Component or Part which is listed in your Contract of Insurance for any single claim. Policy Schedule means the schedule supplied by Integrity detailing information relevant to your Contract of Insurance including the Period of Insurance, your premium and details of the Vehicle. Service Validation Coupon means the coupons attached to this document and marked Service Validation Coupon. Total Limit of Liability means the maximum amount we will pay in total for all claims in the aggregate which may arise for the Vehicle in each option of cover up to and not exceeding the market value of the Vehicle at the time of Mechanical Breakdown. Market Value is the trade value of the Vehicle as detailed in the Red Book (see www.redbook.com.au). Vehicle means the vehicle described in the Policy Schedule which must be either a sedan (petrol or diesel), a station wagon or Commercial Vehicle up to 3000kg GVM (petrol or diesel). we/us/our means the insurer, Acasta European Insurance Company Limited (registered no. 96218) 1st Floor, Grand Ocean Plaza, Ocean Village, Gibraltar. you/your means the purchaser and owner of the Vehicle. Our contract with you In return for the payment of the premium, we will indemnify you up to the Total Limit of Liability on the terms contained in this document if any of the Vehicle s Components and Parts require repair and/or replacement due to Mechanical Breakdown during the Period of Insurance and while being used within Australia. We will only pay the amounts shown in either Option A, Option B or Option C according to which option you have been covered for as shown in your Policy Schedule. racv.com.au 17
WHAT IS COVERED Option A: Engine, Gearbox & Differential Cover If you purchase Option A, we will pay the repair costs for Mechanical Breakdown to the following Components and Parts up to the Policy Claim Limits set out below: What is covered - Option A: Engine, Gearbox & Differential Cover Engine All internal engine parts as listed: Pistons, piston rings, gudgeon pins and bushes, connecting rods, main bearings, big end bearings, oil pump drive gears and shafts, timing belt, timing chain and timing gears, crankshaft, camshaft and camshaft bearings, cam followers, valve guides, valve stems, valve rockers, valve springs, cylinder head(s), cylinder head studs/bolts, engine cylinder head gasket, intake and exhaust valves. Except timing belts which are not replaced in accordance with the Vehicle manufacturer s recommendations which have failed as a result of not following the manufacturer s recommendations to change the belts. There is no cover for any parts that are not internally lubricated. Gearbox and Transfer Case (automatic and manual) All internal transmission parts as listed: All gears, bearings, bushings and spacers, seals and O rings, clutch plates (automatic transmissions only), friction and steel drums, oil pumps, servo units and torque converter, valves and valve body, synchromesh assembly, speedometer drive gears, internal electronic solenoids, internal wiring harnesses, springs and detents, gear shift forks and rails. The transmission case is covered only if the damage was caused by one of the above listed components. Except there is no cover for clutch assemblies for manual gearboxes. Differential All internally lubricated parts within the differential case as listed: Crown wheel and pinion, all bearings (excluding axle bearings), bushes and spacers, axles, LSD friction plates, springs, clutches and cones and spider gears. The axle (diff) housing is covered only if the damage was caused by one of the above listed components. Policy Claim Limit Period of Insurance 1, 2 or 3 years $3,000.00 $3,000.00 $3,000.00 18 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
Option B: Specified Parts Cover If you purchase Option B, we will pay the repair costs for Mechanical Breakdown to the following Components and Parts up to the Policy Claim Limits set out below: What is covered - Option B: Specified Parts Cover Engine All internal engine parts as listed: Pistons, piston rings, gudgeon pins and bushes, connecting rods, main bearings, big end bearings, oil pump drive gears and shafts, timing belt, timing chain and timing gears, crankshaft, camshaft and camshaft bearings, cam followers, valve guides, valve stems, valve rockers, valve springs, cylinder head(s), cylinder head studs/bolts, engine cylinder head gasket, intake and exhaust valves. Except timing belts which are not replaced in accordance with the Vehicle manufacturer s recommendations which have failed as a result of not following the manufacturer s recommendations to change the belts. There is no cover for any parts that are not internally lubricated. Gearbox and Transfer Case (automatic and manual) All internal transmission parts as listed: All gears, bearings, bushings and spacers, seals and O rings, clutch plates (automatic transmissions only), friction and steel drums, oil pumps, servo units and torque converter, valves and valve body, synchromesh assembly, speedometer drive gears, internal electronic solenoids, internal wiring harnesses, springs and detents, gear shift forks and rails. The transmission case is covered only if the damage was caused by one of the above listed components. Except there is no cover for clutch assemblies for manual gearboxes. Differential All internally lubricated parts within the differential case as listed: Crown wheel and pinion, all bearings (excluding axle bearings), bushes and spacers, axles, LSD friction plates, springs, clutches and cones and spider gears. The axle (diff) housing is covered only if the damage was caused by one of the above listed components. Cooling system Cooling system being radiator, water pump, cooling fan, heater core, thermostat and welch plugs. Air conditioning Air-conditioning being compressor, evaporator, condenser, clutch, pressure hoses and heater fan motor. Fuel system All mechanical components connected with the carburettor or with petrol injection, fuel pumps, fuel tank and pressure regulators. Except electrical and electronic components and dirty fuel. Brakes Brakes being master cylinder, wheel cylinders and calipers, hydraulic lines and fittings, power brake booster units and ABS modulator. Electrical Electrical features being starter motor, wiper motor, alternator, voltage regulator and solenoid, electronic ignition reluctor and impulse sensor, indicator flasher relay, ignition coil, all internal parts of the distributor, power window motors, power seat motors, power door lock motors, and wiring loom. Policy Claim Limit Period of Insurance 1, 2 or 3 years Market value of the Vehicle Market value of the Vehicle Market value of the Vehicle Market value of the Vehicle Market value of the Vehicle Market value of the Vehicle Market value of the Vehicle Market value of the Vehicle Clutch (manual only) Pressure plate, clutch cable, clutch master cylinder and clutch slave cylinder. Except clutch plates. Electronics Electronic engine management control unit, transmission management control unit, dashboard gauges, trip computer, ABS control unit and cruise control (if fitted by the manufacturer). Steering All internal parts within the steering box, steering box housing, power steering pump, rack and pinion assembly, pressure lines, steering column and shaft. Turbo charger Impellers, bearings and housing of turbo charger where originally fitted by the Vehicle manufacturer. Drive Line Drive shafts, CV joints and universal joints. Except boots or damage caused by damaged boots. Market value of the Vehicle Market value of the Vehicle Market value of the Vehicle Market value of the Vehicle Market value of the Vehicle Suspension Upper and lower control arms, shafts and bearings or bushings, upper and lower ball joints. Market value of the Vehicle Seals and Gaskets Coverage for seals and gaskets is limited to major leaks only and for the above listed components only. Some seepage is normal and replacement is not covered under this warranty. N/A racv.com.au 19
Option C: Manufacturer s Type Cover If you purchase Option C, we will pay the repair costs for Mechanical Breakdown to the components and parts that were originally covered by the Manufacturer s Warranty except those components and parts described under What is not covered. The most we will pay in relation to any one claim is limited to the market value of the Vehicle as at the date of the Mechanical Breakdown. What is not covered VEHICLES THAT ARE NOT COVERED: 1 Vehicle(s) purchased for under $3,000.00 Any Vehicle where the purchase price is $3,000.00 or less. 2 Some imported vehicles Any Vehicle which was not imported into Australia by the Vehicle manufacturer or their authorised Australian distributor. 3 Vehicle(s) age and mileage restrictions at purchase 4 Vehicle(s) used as a taxi or for hire 5 Vehicle(s) owned by a Authorised Representative or vehicle service centre Any Vehicle which at the time of purchase, in the case of: Option A - Engine, Gearbox & Differential Cover no restrictions on age or mileage. Option B - Specified Parts Cover - is 10 years old or more or has an odometer reading of 160,000 kilometres or more. Option C - Manufacturer s Type Cover is 6 years old or more or has an odometer reading of 120,000 kilometres or more. Any Vehicle which is used as a taxi, for hire, or for courier services. Any Vehicle which during the Period of Insurance is owned by a business or natural person whose occupation is selling or servicing vehicles. 20 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
WE WILL NOT PAY YOU FOR ANY OF THE FOLLOWING: 1 Unauthorised repairs Claims relating to any Vehicle where repairs or work are commenced without the prior consent and authorisation of Integrity or repairs where we have not issued an authorisation number. Any claims where the repair has been performed by someone other than an authorised service facility. 2 Maximum mileage coverage Claims relating to Vehicles that have travelled a total distance since first registration as follows, in the case of: Option A - Engine, Gearbox & Differential Cover Unlimited kilometres; Option B - Specified Parts Cover 220,000 kilometres; and Option C - Manufacturer s Type Cover 180,000 kilometres 3 Vehicle(s) not shown on the Policy Schedule Claims relating to any Vehicle which is not listed in the Policy Schedule 4 Modified vehicle(s) Claims relating to any Vehicle which has been modified, used for racing competitions, rallies, motor sporting events or any damage arising out of off-road use. 5 Vehicle(s) not serviced according to the conditions Claims relating to any Vehicle which is not serviced in accordance with the Service Requirements noted in the section What are the conditions. 6 Collision damage Damage attributable to impact or road traffic accident. 7 Vehicle(s) with faulty odometer Claims relating to any Vehicle where the odometer has been tampered with, is faulty or inoperative prior to or during the Period of Insurance. 8 Components and Parts that have not broken down, are modified, not properly repaired, not covered or performance enhanced 9 Operating performance of the Vehicle(s) 10 Product recalls and inherent faults Claims relating to Components and Parts which: have not broken down but which are replaced during the course of servicing or repair; have been improperly repaired; have been modified from manufacturer s specification; are not listed as covered by your Contract of Insurance; are performance enhancing not being an original fitment; or are not approved by the manufacturer. Claims relating to gradual reduction in operating performance commensurate with age and kilometres travelled by the Vehicle. Claims relating to faulty parts which are either subject to recall by the manufacturer or concessionaire or can be considered as having inherent faults. 11 Pre-existing faults Claims where the fault causing the Mechanical Breakdown was evident prior to the expiry of the Manufacturer s Warranty or prior to the purchase of the Vehicle, or costs covered by any other warranty entitlement including any manufacturer, dealer, and/or statutory warranty and or repairers guarantee. Any faults that existed prior to the commencement of cover, of which you were aware, or ought to have been aware. This includes any un-rectified faults listed as I, E, or W, on any applicable RACV inspection report undertaken at the time of purchase of the vehicle. 12 Misuse or neglect Claims relating to a Vehicle which has been misused or neglected. Any claim attributable to a failure to follow the Vehicle manufacturer s operating guidelines or Mechanical Breakdown attributable to exceeding the manufacturer s operating limitations. racv.com.au 21
13 Consequential loss Claims relating to consequential loss of any kind. Loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss. 14 War, invasion, rebellion etc. Loss or damage directly or indirectly occasioned by, happening through, or in consequence of war, invasion, acts of foreign enemies, hostilities, (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalisation or requisition or destruction of or damage to property by or under the order of any government or public or local authority, riot, civil disobedience, malicious or wilful damage. 15 Radioactivity, nuclear fuel/ waste etc. Any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from: ionising radiations or contaminations by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof. 16 Aircraft and aerial devices Loss, destruction or damage directly occasioned by pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds. 17 Certain components and parts of the Vehicle are not covered Claims for repairs and replacement of the following components and parts: oil leaks (unless failure is such that the Vehicle is deemed unroadworthy according to clamps, mountings; Victorian roadworthy standards, and leakage occurs from a covered component or part); in-vehicle entertainment timing belts (where the Vehicle s equipment and aerials; manufacturer requires routine satellite navigation systems; replacement at intervals specified car phones; by them); wires, terminals; damage caused by failure to change timing belts at the Vehicle lamps, bulbs and fuses; manufacturers recommended intervals; damage caused by overheating, nor any resultant damage; paintwork, bodywork; water ingress and corrosion; glass; trim and bright work; locks; wheels, wheel balancing and alignment, tyres; exhaust system; engine tuning; cleaning of fuel lines; upholstery; components in relation to impact or external damage to LPG fitment (other than radiators; manufacturer fitment); cleaning of radiators; windscreen wiper blades and rubbers; tappings, studs, screws and nuts; adjustments, alignments and items associated with manufacturer s recommended routine servicing; fuel chemicals, fluids, grease or oils unless required in direct connection with the repairs or replacement of a part covered by your Contract of Insurance; seals or gasket oil leaks except where they necessitate removal of engine, gearbox/drive unit and drive shafts or differential unit to carry out repairs; clutch linings, clutch bearings, brake linings and pads; worn or glazed cylinder bores; switches and non-standard items. 22 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
18 Continued operation Any repairs required as a result of continued operation of the Vehicle once a defect or fault has occurred (including loss of lubricants and coolant). 19 Maintenance Any maintenance, adjustment, upgrade, modification and/or re-programming required to any covered component. 20 Fuel Any Mechanical Breakdown caused by detonation, and/or failure caused by poor quality fuel, or the incorrect grade of fuel. This includes damage caused by lead replacement and/or Diesel Engine lo- sulphur fuel and any non proprietary bio fuels. 21 Ordinary servicing parts Any items that require replacement as part of normal vehicle maintenance. These include (but are not limited to) spark plugs and leads, glow plugs, belts, filters, hoses, brake and clutch linings, brake pads,disc rotors and/or disc or drum machining, batteries and globes. 22 Oil usage related to nonmechanical failure Any claim relating to excessive use and/or burning of oil where no Mechanical Breakdown has occurred. 23 Unspecified components Any component or part not specifically listed in the Contract of Insurance for the option you have selected on your Policy Schedule (i.e Option A, B or C). racv.com.au 23
What are the conditions We will pay a claim that is covered by your Contract of Insurance provided you comply with the following conditions: Service Requirements The Vehicle must be serviced at regular intervals as follows: For all Vehicles - at least every 6 months or 10,000kms whichever occurs first, or in accordance with the manufacturer s directions or recommendation. For the purposes of this condition a service must include a full lubrication service applicable to the make and model of the Vehicle. The cost of the service is your responsibility and not payable under your Contract of Insurance. All services and maintenance on new or used Vehicles must be carried out by: the Vehicle s selling dealer; or an RACV service centre; or a franchise dealer for the make of the Vehicle; or a service outlet approved by the RACV Warranty Administrator. Once a service has been completed you must make sure the service facility completes and stamps the Service Validation Coupons contained at the back of this document and then you may choose to do one of the following: Option 1 - Retain all service invoices and stamped Service Validation Coupons as they will be required in the event of a claim; or Option 2 - Mail the completed Service Validation Coupon to the RACV Warranty Administrator within 7 working days. In the event of a claim this will help speed up the processing of your claim. Note: Option 1 and Option 2 applies to all routine services including those services carried out during the Manufacturer s Warranty period. Where the Service Validation Coupon is mailed to the RACV Warranty Administrator you should be in a position to provide proof of posting whenever required. You must allow the RACV Warranty Administrator to inspect the Vehicle whenever it wishes. 24 RACV Financial Services Guide and Product Disclosure Statement Motor Vehicle Warranty
Claims Procedure In order to make a valid claim you must, before the commencement of any repairs or work: 1. Take the Vehicle to the selling dealer, an RACV service centre, a franchise dealer for the make of the Vehicle or a repairer approved by the RACV Warranty Administrator. 2. Ask the repairer to provide to the RACV Warranty Administrator: a policy number; current Vehicle kilometerage; cost of repairs and/or replacement parts; details of the Mechanical Breakdown damage (before commencing any work); address of venue where the Vehicle may be inspected intact. all service invoices and stamped Service Validation Coupons that you retained in compliance with Option 1 under the Service Requirements outlined above (unless these have already been mailed to the RACV Warranty Administrator in accordance with Option 2 of the Service Requirements outlined within this document). 3. When the RACV Warranty Administrator has confirmed the damage constitutes a valid claim, the RACV Warranty Administrator will: provide a claim authorisation number; authorise the repairer to carry out the repairs; authorise the repairer to bill the RACV Warranty Administrator on your behalf for the cost of the authorised repairs; pay the repairer within 30 days of receipt of a tax invoice for the authorised repair costs. You are responsible for any expenses incurred claiming under this Warranty. For example, we will not cover expenses incurred by you in taking the Vehicle to the approved repairer. Note: We will not pay for claims under your Contract of Insurance where repairs or work have been commenced or carried out without our knowledge and authority number issued. The contact details for the RACV Warranty claims department can be found within this document or call 1800 98 11 77. racv.com.au 25