Insurance Policy Guidelines
Important – This is only a brief summary; for further information please refer to your vehicle or finance consultant.
Mechanical Breakdown Insurance (MBI)
MBI Insurance is a policy that provides cover for the reasonable cost of repair due to the actual failure of mechanical and electrical parts as a result of sudden and unforeseen breakdowns that occur during normal vehicle use.
There are many different cover options, excesses, claim limits and benefits that are specific to different categories of vehicles, for example petrol and diesel powered, Japanese or European made vehides.
Policies available provide additional benefits:
- AA Roadservice covering towing and assistance with flat batteries, lockouts, lost keys, flat tyres and out of fuel 24 hours a day, 7 days a week – with up to 2 call outs per year.
- Reimbursement of part or all costs associated with accommodation or rental car hire or return home costs or vehicle repatriation where you have a valid claim and the repairs will take longer than 24 hours and you are more than 100kms from home.
There are exclusions, limits and conditions which apply to both repair costs and the additional benefits which are set out in the policy. There are also servicing requirements which you are required to have evidence of. No repairs must be undertaken unless authorised by Claims Services.
Payment Protection Insurance (PPI)
PPI is a policy which may cover the policyholder’s monthly instalments on a Credit Contract if they suffer from an insured event . In the unfortunate event of death, long term injury or illness, PPI may cover the outstanding balance on the loan.
You can select between Single, Double and Joint Cover for your insurance type, for the meaning of these see the heading ‘Insurance type as shown on policy certificate’ in the policy.
The policy cover options and benefits are specific to the policyholder’s source of income at the time entering into a Credit Contract. The benefits are payable directly to the financier and the insured events are listed below.
WAGE & SALARY EARNER COVER
Insured Events: Death, Accident, Illness, Bankruptcy and Redundancy
SELF EMPLOYED COVER
Insured Events: Death, Accident, Illness, Business Interruption and Bankruptcy.
RETIREE BENEFICIARY OVER
Insured Events: Death, Permanent Total Disablement, Hospitalisation or Bed care and Bankruptcy.
The policy sets out the criteria to qualify for these benefits and the limits that apply, in the section applicable to each of the three different covers. The policy has an overriding maximum limit of $200,000. There are exclusions and conditions which apply to all three covers which are set out in the policy under those headings.
The policy will automatically cancel upon full prepayment of the credit contract, the policy shows this and the other circumstances in which you can cancel. There is also a cooling off period which is explained in the policy as well. The policy has a maximum period of cover of 60 months.
Loan Equity Insurance (Gap Cover)
Gap Cover is an insurance policy that may cover the difference (the Gap) between what an insurance company pays out on a vehicle if it is stolen and not recovered, or damaged beyond economical repair (write off) and the balance outstanding on a credit contract. How payment is calculated is set out in the policy under the heading ‘Cover’ and will also depend upon the Cover Option selected.
GAP has range of coverage limits to choose from. Policies also include additional benefits.
Additional Benefits (Reimbursements)
- Comprehensive Motor Vehicle insurance premium in relation to a replacement vehicle .
- On Road Costs comprising of dealer delivery and registration related to the purchase of the replacement vehicle.
- Deposit for a replacement vehicle up to $1000.
- Out of pocket expenses up to $200
- Any amount relating to a prior debt included in the credit contract .
- The cost of hiring a rental vehicle for a maximum of S days.
- Any Excess in relation to the total loss vehicle
There are exclusions which are listed in the policy under the heading “Exclusions”. The policy can’t be cancelled prior to one of the events set out in the policy under the heading ‘When the Policy Ends’ occurring.
Motor Vehicle Insurance Policy (MVI)
This policy insures the motor vehicle for accidental loss or damage.
The maximum amount payable for any one claim is the Market Value of the vehicle at that time. The policy also covers the insured’s liability for accidental damage caused to property by the insured vehicle (including legal costs) – up to $1 million for any one event. The liability cover may also apply to people driving the insured vehicle with consent or to insured’s liability for accidental damage to other property where they are driving an uninsured vehicle.
There are also benefits such as cover for towage, storage and accommodation and return home costs.
There are exclusions and conditions which apply to the cover for the motor vehicle and liability cover as well as the benefits, these are set out in the policy and appear in a number of sections such as Liability Exclusions, Providing Correct Information, Who Is Covered To Drive My Vehicle, Policy Conditions, Making A Claim, and Exclusions.
Cover options can be provided for Private, Farming and some Business Vehicle use.
There are a number of different excesses which will show on the policy schedule and more than one of these may be applied to a claim.
There is a 14 day cooling off period in which this policy can be cancelled with a full refund of premium, providing no claims have been made. The policy can also be cancelled after the cooling off period see the policy for full details.