SHANNONS
MOTOR VEHICLE
INSURANCE
PRODUCT DISCLOSURE
STATEMENT & POLICY WORDING
Agent for Insurer & Authorised Representative
Shannons Limited
ABN 91 099 692 636 Authorised Representative No. 239594
Insurer & Licensee
SHANNONS BRANCHES
Australian Capital Territory
Unit 1, 74 Newcastle Street, Fyshwick 2609
New South Wales
Unit B, 12 Frederick Street, St Leonards 2065
Northern Territory
Hidden Valley Motor Sports Park, Hidden Valley Road, Berrimah 0828
Queensland
3-11 Ross Street, Newstead 4006
South Australia
6/212 Brighton Road, Somerton Park 5044
Tasmania
337-341 Argyle Street, North Hobart 7000
Victoria
321 Warrigal Road, Cheltenham 3192
Western Australia
Unit 2/101 Belmont Avenue, Belmont 6104
Call 13 46 46 for the cost of a
local call from anywhere in Australia.
Contents
If your vehicle has been damaged in an accident or has been stolen or someone is claiming against you, telephone us on 13 46 46 immediately so that we can take care of everything for you. You can call us 24 hours a day, 7 days a week.
How to use this Product Disclosure Statement
and Policy Wording
No policy covers everything – therefore we have designed this Product Disclosure Statement and Policy Wording so that it is easy for you to distinguish between what is covered and what is not covered. In most areas of the policy wording we have put “WHAT IS COVERED” on the left page of the booklet and “WHAT IS NOT COVERED” on the right page. We have also used green shading to highlight the limitations and exclusions.
To fully understand your cover, you should read the appropriate section on the left page and then refer to the specific limitations and exclusions directly opposite. You must also read the exclusions and conditions which are on pages 43 to 49.
If there is anything you don’t understand about the policy, feel free to discuss it with your nearest Shannons branch either by telephone or in person. Please keep this document and your schedule in a safe place.
Notice
If more than one person is an insured under this policy, a failure or wrongful action by one of those persons may adversely affect the rights of the other person(s) insured under this policy.
Definitions applicable to your policy
The headings and examples in the policy are not part of the policy itself. Their only purpose is to give you a general guide about the content of the text. Some other words used in the policy have special defined meanings. These words are in bold.
This insurance product is issued by:
Australian Alliance Insurance Company Limited ABN 11 006 471 709 Australian Financial Services Licence No. 235011
Level 4, 440 Collins Street, Melbourne VIC 3000 This Product Disclosure Statement was prepared on 21/11/05
Important Messages
The General Insurance Code of Practice
Part One - Product Disclosure Statement 2
Significant Features and Benefits 2 Important Information 4
Part Two - Policy Wording 7
Our agreement with you 7
Definitions 8
Section One - Damage to your vehicle 16 Section One - Additional Benefits 24 Section One - Endorsements 32 Section Two - Legal Liability 36 Section Three - Uninsured Third Party 38
Excesses 40
No Claim Bonus 41
Exclusions 43
Conditions 47
What to do if you have a complaint 50
What to do if you have an accident 52
The General Insurance Code of Practice
The General Insurance Code of Practice is a commitment by the whole insurance industry to aim for the best standards of service possible and promote better relations between customers and insurers.The Code describes standards in the areas of employee training, plain language policy documentation, claims handling and dispute resolution.
The Code has been introduced with the backing of consumer groups, the federal government, insurers like Australian Alliance Insurance and the Insurance Council of Australia (ICA).
More information on the Code may be obtained from offices of the ICA or your local Shannons branch.
Please read this Product Disclosure Statement and the Policy Wording carefully so that you are aware of the risks, limits of cover and other significant features associated with this policy.
Significant Features and Benefits
The Shannons Motor Vehicle Policy offers two types of cover for you to choose from. The cover you have selected is indicated in your
schedule. Following is a brief summary of the significant features
of each cover. For the full details you must read the entire policy wording which starts on page 7.
Third Party Only Cover
Refer to Sections Two & Three for full details of cover.
The significant features of this cover are:
• damage to someone else's property caused by or in connection with your vehicle and for which you or any person you permit to drive/ride or travel in your vehicle are legally liable – up to $20,000,000 (no cover if the driver/rider of your vehicle has been refused motor vehicle insurance) other than property owned or controlled by the person legally liable for the damage; • up to $5,000 loss or damage to your vehicle if we accept that
the accident is an excess free claim, but was caused by an uninsured driver/rider of another vehicle who is not related to you and does not live with you.
Comprehensive Cover - Agreed Value
Refer to Sections One & Two for full details of cover.The significant features of this cover are:
• we will replace your vehicle with the consent of any relevant lender if it is a total loss, less than one year old and you bought it new. We will also pay all on road costs. Otherwise, we will pay the
agreed value if your vehicle is a total loss. We will first pay out
finance provided by any relevant lender and pay you the balance; • we will pay or arrange for repairs to your vehicle if it is a partial
loss up to the agreed value. We will not pay more than the cost
assessed by our assessor. You must obtain a quote unless your
Part One: Product Disclosure Statement
• your choice of repairer;
• we will not pay for air freight for replacement parts;
• non-standard modifications to your vehicle are only covered if we agree;
• your vehicle is covered while being driven/ridden by another driver/rider. Please note that drivers/riders under the age of 25 will be subject to a $1,500 excess if not nominated and a $400 excess if nominated;
• damage to someone else's property caused by or in connection with your vehicle (and a trailer, caravan or another vehicle you are towing legally for no reward) – up to $20,000,000 (no cover if the driver/rider of your vehicle has been refused motor vehicle insurance);
• one windscreen or window glass breakage replacement during the
period of insurance without your basic excess or no claim
bonus being affected;
• we can keep any damaged or recovered stolen property unless you have the total loss salvage option;
• laid up, wedding or chauffeur driven/ridden hire, club plates and club racing (maximum $20,000 cover) options are available; • lifetime guarantee on repairs;
• no claim bonus and protected no claim bonus (for you and your spouse) available;
• hire vehicle for up to 14 days if your vehicle is stolen.
For both types of cover:
• your vehicle is only covered whilst in private use unless we agree to cover the use of your vehicle in connection with your occupation or business;
• an excess may be payable for a claim under the policy. For more information see page 40;
• other conditions and exclusions apply – please read the
Important Information
About the insurer
Australian Alliance Insurance Company Limited ABN 11 006 471 709
(AAI), Level 4, 440 Collins Street, Melbourne 3000, has prepared
this Product Disclosure Statement and is the issuer of policies effected by Shannons Limited (Shannons) ABN 91 099 692 636. Shannons is the authorised representative and wholly owned subsidiary of AAI, and acts as AAI’s agent under an authority given to it by AAI to enter into contracts of insurance on behalf of AAI as insurer and deal with and settle claims on behalf of AAI.
What you must tell us
When answering our questions you will need to answer for yourself and for anyone else who may receive a benefit under this insurance
policy. It is important that you answer these questions truthfully
and accurately as they may affect our decision to insure you or pay a claim.
Risks for you to consider
Risks related to holding this policy which you should consider include: • whether the policy will provide the cover you require.
Cover may not be adequate because:
• the type or amount of cover you require does not match the cover provided by the policy;
• you do not satisfy the terms and conditions of cover; or • an exclusion applies;
• if you do not comply with the terms and conditions of the policy we may refuse to pay part or all of a claim under the policy; • our ability to pay claims when they are made.
Exclusions
Your policy may not provide you with cover in certain circumstances. Further information about the circumstances in which exclusions under this policy may apply is contained on pages 43 to 46.
Premiums
We calculate your premium after taking a variety of factors into account. Some factors are set, such as our costs of distribution and profit component. Other factors can affect the amount of your premium. The higher your risk profile, the higher the premium. Using our experience we decide what factors will increase your risk profile and how they impact on the premium. For example, if you choose a lower sum insured, or if we believe your claims history is good, your
premium reduces. However, where you take a higher sum insured or
your claims history is not as good, this may increase your premium. The following table is a guide on how these factors combine together and may impact on our assessment of the risk and therefore, your premium.
Factor May Reduce Premium May Increase Premium
Postcode in which the Lower risk postcode Higher risk postcode vehicle is garaged
Age of the youngest driver/rider Older driver/rider Younger driver/rider Age of your vehicle Older vehicle Newer vehicle Make/model of your vehicle Lower risk vehicle Higher risk vehicle Agreed value of your vehicle Lower value Higher value Frequency with which you Weekend /
use your vehicle infrequent use
Finance on your vehicle Finance secured by a lending institution Modifications to your vehicle Non-standard modifications Multi-Vehicle discount Having more than 1
vehicle insured with Shannons
No Claim Bonus (based on Higher No Claim Lower No Claim Bonus number of years you have been Bonus
insured without making a claim)
Salvage rights Having salvage rights, (if vehicle is less than 35 years old)
Racing extension Having racing extension, (if vehicle is less than 60 years old)
Usage of your vehicle Business Use /WeddingHire
Your premium also takes into account our obligation to pay any relevant compulsory government charges, taxes or levies (eg. Stamp Duty, GST and Fire Services Levy) in relation to this policy. These amounts will be set out separately on your schedule as part of the total
premium payable.
Part One: Product Disclosure Statement
Part One: Product Disclosure Statement
(continued)
Part Two: Policy Wording
What to do if you have a complaint
For information about how we deal with your complaints, see “What to do if you have a complaint” on pages 50 and 51.
Your privacy
Shannons complies with Australia’s privacy laws. We may communicate your information to organisations to whom we outsource certain functions such as claim assessing or mail processing. In these circumstances confidentiality agreements apply. On occasion, we may be obliged to disclose information by law if requested to do so. To request a copy of our privacy brochure call 13 46 46, visit a branch or log on to www.shannons.com.au.
Shannons likes to keep you informed about our products and special offers. If you would prefer not to receive any promotional material and have not previously told us, then please call 13 46 46 at any time.
How to contact us
• By telephone on 13 46 46 • In person at any Shannons branch • On the web at www.shannons.com.au.
Notification of change
Information in this Product Disclosure Statement is subject to change from time to time. We will issue a supplementary or replacement Product Disclosure Statement if there is any change that we are required by law to notify you of.
For other changes, updated information can be obtained at any Shannons branch or by calling 13 46 46. A paper copy of any updated information will be provided, free of charge, on request.
Part Two: Policy Wording
Our agreement with you
Shannons Limited ABN 91 099 692 636 (Shannons) on behalf of Australian Alliance Insurance Company Limited ABN 11 006 471 709 agrees in return for your premium to insure you in the circumstances and subject to the terms and conditions and amounts of cover set out in this policy.
Excess
When you make a claim under this policy, you may be required to pay an excess in respect of your claim.
There are 5 types of excess that may apply to this policy 1. Basic excess
This amount will apply to every claim unless it is an excess free claim. 2. Under 25 age excess (nominated)
3. Under 25 age excess (not nominated) 4. Theft or attempted theft excess 5. Club racing excess
Further information about any excess that may apply to this policy is on page 40.
Cooling off period
You may cancel the insurance contract up to 14 days after you receive it by calling us or writing to us at one of the addresses listed on the back page and telling us that you want to cancel it. If you cancel it in this time, and you have not made any claims, we will return to you all of the premium you have paid us. (To cancel at other times, please see “Cancellation by you” on page 48.)
Taxation implications
Generally, your premium is usually not tax deductible unless you purchase this policy for business purposes. This is a general statement only. You should consult your tax adviser for information about the precise taxation implications applicable to your personal circumstances. The GST consequences of this insurance policy may differ depending upon whether or not you are registered or required to be registered for GST purposes. All individuals and entities taking out or considering taking out a policy of insurance through Shannons are encouraged to obtain their own independent taxation advice (including GST) as to the implications of such policy.
How to make a claim
WHAT IS COVERED
In this policy:
1. “You” or “Your” means the people, company or business named as the insured in your schedule.
•We will treat a statement or claim, or an act or omission by any one of those persons as a statement or claim, or an act or omission by all of those persons.
•Where we talk about paying you, “you” includes any person we pay to fix the loss or damage (for example, a car repairer or finance company).
2. “We” or “Our” or “Us” means Shannons Limited (Shannons) on behalf of Australian Alliance Insurance Company Limited. 3. “Policy” means your contract of insurance with us and includes
the Product Disclosure Statement, the policy wording, your
schedule and any endorsements.
4. “Agreed value” means the amount we agree to insure your
vehicle for. This amount is shown in your schedule.
5. “Business use” means your vehicle is used by you or your spouse in connection with your occupation or business.
6. “Emergency repairs” means minor repairs which are essential for you to be able to drive/ride your vehicle safely from the accident or event causing the damage.
7. “Excess” means the amount you are required to contribute to each claim, as stated in your schedule.
Your policy excess will not be payable if we agree that the accident or loss is an excess free claim.
Definitions applicable to your policy
WHAT IS NOT COVERED
5. Business use does not include the following occupations or businesses:
• courier;
• collector or deliverer of goods or articles for reward; • driving/riding instructor;
• taxi or carrying passengers for hire or reward;
• testing, trialling or demonstration in connection with the motor trade; • towing for reward.
WHAT IS COVERED
8. “Excess free claim” means that we agree that the incident is not your fault and you can provide us with sufficient information to identify and locate the party at fault. You must provide us with the name, address and licence details of the driver/rider and the vehicle details including the registration number.
9. “Modified” means that your vehicle has alterations to the manufacturer’s specifications which may affect its value, safety, performance and/or alter its theft risk. We reserve the right to determine whether an alteration constitutes a modification. 10. “Motorcycle” means either a mechanically-propelled
two-wheeled vehicle that may have a sidecar or trailer attached, or a three-wheeled vehicle which has two wheels on one axle. 11. “Motor Enthusiast Club” is an organisation for vehicle
enthusiasts who are interested in a particular vehicle type or motoring activity.
12. “Negotiable instrument” means a legal document that represents money and that can be legally transferred in title from one person to another.
13. “Older classic” means a vehicle that has a year of manufacture 35 years or more before the date of the latest policy anniversary. 14. “Partial loss” means that we decide, at our option, to repair
your vehicle, replace any part of it or reimburse you for the loss
or damage to it. In this case we will not treat your vehicle as a
total loss.
15. “Period of insurance” means the period stated in your
schedule.
16. “Premium” means the amount you must pay us for the insurance you select.
Definitions applicable to your policy
(continued)
WHAT IS NOT COVERED
9. We will not cover any modification that is: • not legal;
• not approved by the transport department in your state.
11. Motor Enthusiast Club does not include general motorist organisations such as Incorporated Companies.
WHAT IS COVERED
17. “Private use” means your vehicle can be used: • for social, domestic and leisure purposes; • in connection with repair or servicing; • for unpaid learner-driver/rider instruction; • for test driving/riding or demonstration for sale; • for a private car-pool arrangement;
• to drive/ride to and from work;
• for business use up to 20% of the vehicle’s usage. 18. “Race track or testing ground” means:
• a road or other surface which is used as a race track or
testing ground;
• a public road (whether made or unmade) that, for the purpose of a race, rally, club day or like event, has temporarily been closed for use by the public generally.
19. “Replacement vehicle” means the vehicle that you have bought to replace your vehicle that you have sold. 20. “Restricted Driver/Rider” means the persons listed as
nominated in your policy schedule.
21. “Riding Apparel” means items of clothing worn specifically for the riding of a motorcycle. These include: helmet (including visor and/or radio communications); gloves; leather jacket and leather pants designed for motorcycle riding; riding boots and any other motorcycle riding specific gear, such as rib braces, spine guards and kneeguards.
22. “Schedule” means your most recent policy schedule document. We will give you a schedule when you:
• first buy an insurance policy from us;
• change any part of any policy or any personal details relevant to it; or • renew any policy with us.
23. “Specified accessories and optional extras” means those accessories and optional extras which:
• are not supplied by the manufacturer as original equipment; and • you tell us about and are listed in your schedule.
Definitions applicable to your policy
(continued)
WHAT IS NOT COVERED
21. We will not cover:
• generic items of clothing;
• items of clothing not exclusive to the riding of your motorcycle.
Definitions applicable to your policy
(continued)
WHAT IS COVERED
24. “Substitute vehicle” means a vehicle which does not belong to you and which you, your spouse or an employee are using while your vehicle is not in use because your vehicle is unroadworthy or undergoing repair as a result of a claimable event (eg. hire or courtesy car).
25. “Total loss” means your vehicle is stolen and not recovered, or is damaged so badly we determine it would be uneconomical to repair. 26. “Your vehicle” means a motor vehicle that is shown in your
schedule, and includes:
• any factory installed accessories and spare parts;
• any specified accessories and optional extras that are in or on that vehicle or in your private garage; or
• your replacement vehicle.
If your vehicle is classified as modified then your vehicle also includes any modifications to that vehicle.
WHAT IS NOT COVERED
26. Your vehicle does not include modifications to the vehicle shown in the schedule, other than specified accessories and
optional extras unless your schedule states that your vehicle
Section One - Damage to your vehicle
WHAT IS NOT COVERED
We will not pay you for:
• repairs that are done without first getting our written consent other than emergency repairs (see page 47); or
• the cost of repairing damage not caused by the accident or event you are claiming for; or
• the cost of fixing faulty repairs or faulty workmanship other than repairs covered under Shannons Lifetime Guarantee (see page 27); or
• wear and tear, gradual deterioration, corrosion, rusting or depreciation; or
• mechanical, structural, electrical or electronic breakdown, failure or breakage; or
• tyre damage caused by punctures, bursts, road cuts or applying brakes; or
• loss or damage as a result of you failing to protect your
vehicle after:
• it breaks down; or
• it is damaged in an accident; or
• you have been notified that your stolen vehicle has been found.
WHAT IS COVERED
Types of loss or damage you can claim for
You can only claim for loss or damage to your vehicle if: 1. that loss or damage is caused by:
• accident; • theft;
• any other event not otherwise excluded.
For example, we will cover damage from hail or fire and malicious damage; and
2. that loss or damage is not excluded by: • the “What is not covered” sections;
• the “We may refuse a claim” section (see pages 44 to 46); or • the “General exclusions to your policy” section
on page 43;
3. the accident or event occurs during the period of insurance; and 4. we show in your schedule that this section applies.
Please check carefully that your claim satisfies all of these requirements.
WHAT IS COVERED
We will either pay you for partial loss or total loss. This is determined by the loss or damage, the cost of repair and the agreed
value of your vehicle.
Total loss
If we agree to pay your claim and we determine that your vehicle is a total loss we will pay you the agreed value of your vehicle minus any excess that may apply.
If we pay a claim for total loss:
• we will first pay out any finance which we have noted as owing on your vehicle, and then pay you the balance; • your insurance policy with us ends and because we have
carried out our part of the insurance contract, you are not entitled to a refund of any premium.
If the salvage rights endorsement is not shown in your schedule we will give you the first option to buy the wreck of your vehicle at its market price.
Section One - Damage to your vehicle
(continued)
WHAT IS NOT COVERED
We will not cover under total loss or partial loss:
• loss that occurs because you cannot use your vehicle; • the cost of hiring a vehicle, except where your vehicle is stolen
(see ‘Hire vehicle following theft’ on page 31); • vehicle accessories other than those:
• supplied by the manufacturer of your vehicle as original equipment; or
• declared to us and listed in your schedule;
• any additional benefit unless a claim is payable for loss or damage to your vehicle under this policy;
• more than $1,000 for the cost of replacing, recoding and/or rekeying locks following damage to, or loss or theft of, your keys; • loss or damage in excess of the agreed value of your vehicle; • the costs of air freight for replacement parts.
If we agree to pay your claim under this policy we will not pay you more than:
• the quote from the repairer you choose as adjusted by our assessor; or
• the agreed value of your vehicle; whichever is the lesser.
WHAT IS COVERED
We will replace your vehicle with a new vehicle if:
• the total loss occurs within 1 year of the date your vehicle was first registered; and
• you purchased the vehicle new; and • you are the first registered owner; and • you want us to replace the vehicle; and
• any finance company with an interest in your vehicle gives its consent.
We will replace your vehicle with a new vehicle of the same make, model, and series including similar accessories, tools and spare parts (all subject to local availability).
We will also pay for all on road costs.
Section One - Damage to your vehicle
(continued)
WHAT IS COVERED
Partial loss
If we agree to pay your claim for partial loss or damage we may choose to:
• repair your vehicle, or any part of it; or • replace any part of your vehicle; or
• pay you the costs of repairing or replacing your vehicle, or any part of it.
Should we decide to repair your vehicle or replace any part of it, the choice of repairer is yours. We reserve the right to determine the method of repair that your repairer shall use. We may decide to replace damaged parts with new parts or used parts of a similar condition to those being replaced.
For parts or accessories that we agree to replace that are not readily available in Australia, we will only pay the cost of the parts and cost of shipping the parts. We will also pay the reasonable cost of fitting the parts. If we pay you any claim for partial loss or legal liability, your insurance under this policy remains at the same amount as it was before you made your claim.
Before we pay you for partial loss or damage: If your vehicle can still be driven/ridden:
• you must get at least one quote for repairs from a repairer of your choice.
If your vehicle cannot be driven/ridden you can either:
• call us and we will arrange for your vehicle to be towed from the accident; or
• allow us to tow your vehicle from the place it was taken to after the accident so that quotes can be obtained for repairs. We will pay for this.
Damaged or stolen property
You must keep any: • damaged property; or • stolen property;
that you recover, and let us inspect it if we need to.
Section One - Damage to your vehicle
(continued)
WHAT IS COVERED
1. Windscreen or Window Glass Replacement You can claim one windscreen or window glass breakage replacement during the period of insurance without your basic
excess or no claim bonus being affected.
2. Towing and storage
If we agree to pay a claim under this policy and the loss or damage to your vehicle means that it cannot be driven/ridden, we will pay the reasonable cost of towing and storage.
3. Returning your vehicle to you after repair
If we agree to pay a claim under this policy we may choose to: • pay you the reasonable cost of travel to the repairer’s
premises to collect your vehicle; or • deliver your vehicle to you. 4. Emergency repairs
If we agree to pay a claim under this policy and the loss or damage means that your vehicle cannot be driven/ridden without
emergency repairs, we will pay for those emergency repairs
(eg. replacing a smashed headlight at night). You do not need our consent to have this done. 5. 14 days free cover for change of vehicle
If you sell your vehicle and buy another vehicle, we will insure the
replacement vehicle under this policy for 14 days from the date
you bought the replacement vehicle.
We will continue to insure your replacement vehicle if: • you give us the details about the vehicle;
• we agree to insure it; and
• you pay any extra premium that we ask you to. A higher excess may also apply.
Please remember, the replacement vehicle is only covered when the vehicle it is replacing has been sold.
Section One – Additional Benefits
WHAT IS NOT COVERED
1. Windscreen or Window Glass Replacement We will not pay for:
• airfreight;
• replacement of rubber or sealant due to wear and tear or deterioration;
• chips or scratches that do not extend through the entire thickness or affect the integrity of the glass.
3. Returning your vehicle to you after repair
We will not pay if the repairer’s premises are less than 100 kilometres away from your home or place of work.
4. Emergency repairs
We will not pay more than $500 for emergency repairs.
5. 14 days free cover for change of vehicle We will not pay more than:
• the market value of the replacement vehicle; • the current agreed value on your policy schedule; • the amount you paid for the replacement vehicle; or • $300,000;
WHAT IS COVERED
6. Emergency accommodation after breakdown in Motor
Enthusiast Club rally
If you are more than 100 kilometres away from your home and
your vehicle breaks down while participating in an organised Motor Enthusiast Club rally and is unable to be driven/ridden,
we will pay the reasonable costs of accommodation for you and your passengers.
7. Emergency accommodation after accident or theft If you are more than 100 kilometres away from your home and your vehicle is stolen or in an accident and cannot be driven/ridden, we will pay the reasonable costs of accommodation for you and your passengers.
8. Lifetime guarantee on repairs
The quality of the workmanship and the materials authorised by Shannons in the repair of the vehicle will be guaranteed for the life of the vehicle.
9. Tools and personal items in your vehicle
We will pay you for loss or damage to your tools and personal items in your vehicle caused by:
• an accident involving your vehicle; or • fire; or
• theft by forcible and violent entry to your vehicle.
An entry is forcible and violent when there is physical evidence that a person has used something other than a key or remote control device to get into your vehicle.
Section One – Additional Benefits
(continued)
WHAT IS NOT COVERED
6. Emergency accommodation after breakdown in Motor
Enthusiast Club rally
We will not pay:
• any accommodation costs incurred in the first 24 hours after the breakdown;
• more than $500 in total for accommodation.
7. Emergency accommodation after accident or theft We will not pay more than $500 in total for accommodation.
8. Lifetime guarantee on repairs
We will not pay for any rectification work that we have not authorised.
9. Tools and personal items in your vehicle We will not pay:
• more than $500 for loss or damage to tools and personal items; • for loss of cash or negotiable instruments;
• for loss or damage to tools of trade if you are a business or company.
WHAT IS COVERED
10. Specified accessories and optional extras
If you want to insure an accessory or optional extra which was not supplied by the manufacturer of your vehicle as standard equipment you must specify it.
We will cover you for:
• Repair - If we agree to pay a claim for loss or damage to
specified accessories and optional extras, we will pay the
cost of repairing those items that can be repaired.
• Replacement - If the specified accessories and optional
extras cannot be economically repaired, we may choose to
either:
• get you a replacement item consistent with the age of the stolen or damaged item; or
• pay you the amount it would cost us to replace that item as depreciated.
We will try to match materials or items used in repairing or replacing the original item. But if this is not possible, we reserve the right to use nearest equivalent or similar materials or items. 11. Trailer cover
We will pay you for loss of or damage to your trailer when it is being towed by your vehicle.
12. Riding Apparel Cover
In addition to the benefits already outlined, motorcycles are entitled to an additional benefit of riding apparel cover. Under this section items of riding apparel are automatically covered in the event of an associated motorcycle claim under Section One. In addition, cover is provided for the riding apparel of a pillion passenger, where a pillion passenger is involved in the accident. Automatic salvage is granted to items indemnified under this section.
Section One – Additional Benefits
(continued)
WHAT IS NOT COVERED
10. Specified accessories and optional extras
We will not pay for accessories and optional extras unless specified to us and listed in your schedule at the time of loss or damage.
11. Trailer cover We will not pay:
• for loss or damage to a caravan or horsefloat;
• more than $750 or the market value of the trailer, whichever is the lesser;
• for loss of or damage to any contents of the trailer or for any fixtures or equipment attached to it or on it.
12. Riding Apparel Cover We will not pay:
• more than $3,000 for the rider in total;
• more than $1,500 for a pillion passenger in total;
• more than $1,000 for any individual item, unless specified in your schedule.
WHAT IS COVERED
13. Training CoursesWe will provide you with full cover during your participation in any professional driving/riding course designed to improve your skills on the road whether such course is conducted on a public road or private specialist venue, provided an instructor is present.
14. Older Classic
If your vehicle is an older classic:
• under 25 year old drivers/riders will not be subject to an age
excess;
• salvage rights will automatically apply. 15. Hire vehicle following theft
If your vehicle is stolen and you have a claim under Section One, we will provide you with a hire vehicle of our choice for a period of 14 days or until the earlier recovery of your vehicle in a roadworthy condition. We will also pay any insurance charges by the hirer. 16. Learner Drivers
Persons driving the vehicle on a learners permit whilst under instruction from an experienced, fully licenced driver are automatically covered to drive the vehicle. In these instances, any age excess applicable will be based on the age of the experienced, fully licenced driver. In the case of riding a motorcycle, the age
excess will be determined upon the age of the learner rider.
Section One – Additional Benefits
(continued)
WHAT IS NOT COVERED
13. Training CoursesCover will not be provided if such a course comes under the jurisdiction of Confederation of Australian Motor Sport (CAMS) or any other motorsport governing body, or where there are no designated instructors in attendance, except where this is covered by the Club Racing optional endorsement.
15. Hire vehicle following theft We will not pay:
• more than $1,500 for the cost of the hire vehicle; • any deposit on the hire vehicle;
WHAT IS COVERED
1. Laid Up CoverIf you choose this endorsement and it is shown in your schedule, we will only pay for loss or damage to your vehicle or for your legal liability if at the time of the loss, damage or accident (as the case may be) your vehicle is:
• at a private residence; • at a garage or workshop;
• at a sanctioned Motor Enthusiast Club event; • at a Shannons Auction event;
• being transported, eg. when you transport your vehicle on a trailer to a Motor Enthusiast Club event;
• being restored;
• being loaded/unloaded for transport. 2. Wedding or chauffeur driven/ridden hire
If you choose this endorsement and it is shown in your schedule, we will also pay for loss or damage to your vehicle or for your legal liability if at the time of the loss, damage or accident you are using your vehicle for carrying passengers for hire or reward in connection with a wedding or other chauffeur driven/ridden hire. 3. Total Loss Salvage Rights
If we show in your schedule that you have salvage rights, and your vehicle is a total loss you will keep the wreck of
your vehicle at no cost to you.
4. Protected No Claim Bonus
If we show in your schedule that a no claim bonus for a vehicle is protected, this no claim bonus will not be penalised even if you are at fault.
5. Club Plates
Cover will only be provided when your vehicle is being driven/ridden in accordance with the government Department of Transport’s rules and regulations for Club registration.
Section One – Endorsements
WHAT IS NOT COVERED
1. Laid Up CoverWe will not pay if your vehicle is being driven/ridden under its own power.
3. Total Loss Salvage Rights
Salvage rights will not apply if your vehicle is stolen and we pay you for a total loss.
WHAT IS COVERED
6. Club RacingIf this benefit is shown in your schedule, we will pay for loss or damage to your vehicle if at the time of loss or damage you are driving/riding or using your vehicle:
• in any race, pacemaking, reliability trial, speed or hill climbing test but only if such an event is an event licensed by the Confederation of Australian Motor Sport or other body as approved by us in writing;
• on a racetrack or testing ground or land immediately adjacent to a racetrack or testing ground if such driving/riding or use is carried out under licence from the Confederation of Australian Motor Sport or other body as approved by us in writing.
Additional Excess
We will apply an additional excess of $500 to all claims under this endorsement.
7. Restricted driver/rider
If this endorsement is shown in your schedule, then the cover is restricted to those drivers or riders nominated in your schedule. The only exceptions are:
• a mechanic in the course of regular servicing or maintenance; • a repairer in the course of repairing accident damage; • a valet in the course of parking your vehicle; • during an extreme medical emergency.
Section One – Endorsements
(continued)
WHAT IS NOT COVERED
6. Club RacingFor loss or damage to your vehicle, we will not pay any amount in excess of:
• the agreed value; or • $20,000;
whichever is the lesser.
We will not pay a claim for legal liability under Section Two of the
policy if the event giving rise to your legal liability occurs when
you are using your vehicle:
• in any race, pacemaking, reliability trial, speed or hill climbing test whether or not licensed by the Confederation of Australian Motor Sport.
WHAT IS COVERED
Legal Liability to third parties for property damage
We will cover you for your legal liability for accidental damage to someone else’s property covered during the period of insurance by:
• the use of your vehicle or a substitute vehicle;
• another vehicle that has broken down that is being towed by
your vehicle or a substitute vehicle;
• goods falling accidentally from such vehicles or from a trailer or caravan being towed by your vehicle or a substitute vehicle; • the operation of loading such vehicles, trailer or caravan.
Legal Liability to third parties for death or bodily injury
We will cover you if you become legally liable for death or bodily injury directly caused by an accident involving your vehicle where you are entitled to be indemnified under a statutory compulsory insurance or motor vehicle accident compensation scheme but which does not cover the full extent of your liability. This is generally known as “gap cover”.
Legal costs
We will pay all legal costs which you incur with our written consent in defending any legal action brought against you.
In this section cover is extended to:
• any person who, with your consent and within the category of persons shown in your schedule, was driving/riding
your vehicle at the time of the accident;
• any passenger in your vehicle;
• your employer, principal or partner (otherwise than under contract).
Section Two – Legal Liability
WHAT IS NOT COVERED
• An amount in excess of $20,000,000 (exclusive of legal costs) for legal liability under this policy or any other policy issued to you by us.
• Loss or damage to a substitute vehicle.
• Liability arising out of the use of a substitute vehicle if the claim is covered by another insurance.
• Liability for death or bodily injury to the extent that you are entitled to be wholly indemnified under any statutory
compulsory insurance or motor accident compensation scheme. • Liability incurred in circumstances where the driver/rider of
your vehicle has been refused motor vehicle insurance during
the previous five years.
• Liability for death or bodily injury to you, your spouse or de facto or any person who ordinarily resides with you. • Any penalties or fines or any punitive, aggravated or
WHAT IS COVERED
Accident caused by an uninsured driver/rider (applicable to Third Party Only cover)
This additional benefit is relevant to you if you have purchased a Third Party Only policy (Section Two of this policy). If you have purchased Agreed Value Cover (Section One), then you do not need this additional benefit.
We will pay for loss or damage to your vehicle caused in an accident with another vehicle, including the reasonable costs of towing and storage, if:
• we agree that the accident was an excess free claim; • you prove that the other driver/rider was completely responsible; • you tell us the name, address and licence details of the other
driver/rider and the vehicle details including the owner and registration number;
• you give us written evidence that the other driver/rider and the owner of the vehicle were not insured or that their insurance company refused to pay the claim; and
• you have reported the accident to the police.
Section Three – Uninsured Third Party
WHAT IS NOT COVERED
Accident caused by an uninsured driver/rider (applicable to Third Party Only cover)
We will not pay for loss or damage to your vehicle if the driver/rider or owner of the other vehicle was:
• you;
• your spouse or de facto partner; • any member of your immediate family; or • any person who usually lives with you.
The most we will pay is $5,000 including reasonable towing and storage costs.
There are 5 types of excess that may apply to your claim. They are: 1. Basic excess
This amount will be shown in your schedule and will apply to every claim unless it is an excess free claim.
2. Under 25 age excess (nominated)
In addition to the basic excess, a $400 excess will apply to every claim where the driver/rider is under 25 years of age and you have them listed in your schedule as a nominated driver/rider.
3. Under 25 age excess (not nominated)
In addition to the basic excess, a $1,500 excess will apply to every claim where the driver/rider is under 25 years of age and you do not have them listed in your schedule as a nominated driver/rider.
An excess for under 25 year old drivers/riders will not apply to: • excess free claims;
• damage caused by hail, flood, storm or other natural disasters; • windscreen claims;
• damage caused by an employee of a hotel, restaurant, service station or garage using your vehicle for the purpose of parking, overhaul, upkeep or repair;
• damage if your vehicle is being used by a driver/rider in the case of an extreme medical emergency;
• learner drivers who are accompanied by a fully licenced driver 25 years of age or more.
4. Theft or attempted theft excess
This amount will be shown in your schedule and is in addition to the basic excess. We will apply this excess if the loss or damage is caused by theft or attempted theft.
5. Club racing excess
This $500 excess applies only if your schedule shows you have the endorsement club racing extension and is in addition to all other applicable excesses.
Excesses
No Claim Bonus
We offer our no claim bonus to customers who have a good insurance record.
A no claim bonus entitles you to a reduced premium. This is based on the number of years you have been insured without making a claim. If you insure with us, you may be entitled to the maximum no claim bonus in just 4 years.
If an accident you claim for is an excess free claim, then we will not reduce your no claim bonus.
For example, say you have stopped at a red light and a driver/rider in another vehicle does not stop in time and runs into the back of your
vehicle. In this situation we do not apply an excess to your claim
or reduce your no claim bonus if you provide us with the name and current address of the driver/rider at fault and registration number of the vehicle they were driving/riding. But if, for example, you are driving/riding at night and hit a kangaroo, then there is no other person who is at fault. In this situation we apply an excess to your claim and reduce your no claim bonus.
Windscreen claims
We will not reduce your no claim bonus for any windscreen or window glass claim you make.
Other claims
When you renew your policy, we reduce your no claim bonus for each claim made during the period of insurance.
No Claim Bonus
(continued)
General Exclusions to your policy
We do not insure you for:• any loss, damage or legal liability incurred outside Australia; or • any loss, damage or legal liability intentionally caused by you
or a person acting with your consent.
We also do not insure you under this policy for loss or damage caused by, or legal liability arising from:
• any person or organisation who lawfully destroys or takes away
your vehicle; or
• any war, whether it has been formally declared or not, any hostilities, rebellion or revolution; or
• the use, misuse or existence of nuclear weapons or the use, misuse, escape or existence of nuclear fuel, waste or materials or ionising radiation or contamination from such fuels, waste or materials, or the combustion, detonation, fission and/or fusion of nuclear fuel or nuclear materials;
• the existence of, or operation of, or threatened existence or operation of chemical or biological weapon(s) or actual or threatened pollution or contamination from such weapons, or action taken by a public authority or anybody authorised by a public authority to prevent, limit, or remedy such pollution or contamination.
We may refuse to pay a claim under this policy for legal liability that arises because you:
• are only liable under a contract you have entered into; or • have accepted liability without us agreeing to it first.
No Claim Bonus Penalty
The amount we reduce your no claim bonus is set out below:
If your NCB or For one claim, For two claims,
rating is we reduce we reduce
your NCB on your NCB on
renewal to renewal to
Protected No change No change Rating One
65% or Rating 1 45% or Rating 3 Nil or Rating 5 55% or Rating 2 25% or Rating 4 Nil or Rating 5 45% or Rating 3 Nil or Rating 5 Nil or Rating 5 25% or Rating 4 Nil or Rating 5 Nil or Rating 5 0% or Rating 5 Nil or Rating 5 Nil or Rating 5
When we may refuse a claim
We may refuse a claim if:
1. you do not comply with, “What you must tell us” on page 4 of the Product Disclosure Statement.
2. when making a claim or in connection with either your application or the claim, you:
• are not truthful;
• have not given us full and complete details; or • have not told us something when you should have. 3. you do not at all times take all reasonable care to:
• protect your vehicle against any initial or further loss or damage; and
• obey any laws or regulations that safeguard people or their property.
4. you do not give us the documents and information we may need to help us decide on any amount we may pay you.
5. you do any of the following without us agreeing to it first: • make or accept any offer or payment, or in any other way
admit you are liable;
• settle, or attempt to settle any claim, or defend any claim. 6. you do not as soon as possible make a report to the police about:
• any accident involving your vehicle (if the law requires you to report the accident);
• any malicious damage to your vehicle; or • any theft or attempted theft of your vehicle.
We may require you to give us a written statement from the police saying that you reported the event to them.
We may refuse to pay a claim under this policy if, at the time of the accident or event which results in a claim:
7. your vehicle has the restricted driver/rider endorsement and you do not comply with the terms of this endorsement, as set out on page 34.
8. your vehicle is being driven/ridden or used other than for
private use (unless business use or wedding/chauffeur is
shown in your schedule).
We may refuse a claim
9. your vehicle is carrying or towing a load which is heavier than the law allows or the manufacturer specifies.
10. your vehicle is being driven/ridden or used by a person who: • is under the influence of alcohol or of any drug;
• has a blood alcohol level in excess of the legal limit prescribed by the law applying in the State or Territory where the accident or event occurs; or
• refuses to allow police to conduct a breath or blood test for determining the blood alcohol or drug content.
This exclusion will not apply:
• to the extent that there are any relevant laws which make it unenforcable;
• if you prove that you did not consent to your vehicle being driven/ridden or used by the person; or
• if you prove that you had no reason to suspect that the person driving/riding or using your vehicle with your consent was affected by alcohol or drugs.
11. your vehicle is being driven/ridden or used by any person: • who is not the holder of a current driver/rider’s licence that
allows the person to drive/ride a vehicle for the purpose for which it is being used; or
• who does not comply with all conditions imposed on their licence.
This exclusion will not apply:
• if you prove that you did not consent to your vehicle being driven/ridden or used by the person; or
• if you prove that you had no reason to suspect that the person driving/riding or using your vehicle with your consent was unlicensed.
12. your vehicle is being used for an unlawful purpose by you or by someone with your permission.
13. your vehicle is being driven/ridden or used while in an unroadworthy or unsafe condition.
This exclusion will not apply if you prove that:
• you could not reasonably have detected the unsafe or unroadworthy condition; or
• the loss, damage or legal liability was not caused or contributed to by the unsafe or unroadworthy condition. 14. your vehicle is being driven/ridden while unregistered. 15. your vehicle is being used for carrying of passengers for hire,
fare or reward (unless the wedding or chauffeur driven/ridden hire endorsement is shown in your schedule).
16. your vehicle is being driven/ridden or used in racing, pacemaking, a reliability trial, a speed or hill climbing test or while being used in preparation, practice or familiarisation for any of these (unless cover has been provided under the Club Racing endorsement - and then only in respect of damage to your vehicle subject to the limit referred to under ‘Club Racing’ on page 34).
17. your vehicle is present at or upon a race track or testing
ground, or at or upon land immediately adjacent to a race track or testing ground, unless:
• you prove that your vehicle is there for the purpose of a driver/rider education course being conducted under the tutorage of a professional instructor;
• you prove that your vehicle is there solely for a purpose other than driving/riding or use in an event to be conducted, being conducted at or upon the race track or testing ground; or • cover has been provided under the Club Racing endorsement,
which will be subject to the limitations set out under ‘Club Racing’ on page 34.
18. your vehicle is being used to carry flammable substances, chemicals (other than for normal domestic purposes) or explosives.
1. Drivers/riders particulars You must give us prompt notice of:
• any addition to or change in regular drivers/riders of your vehicle; • any vehicle accidents in which you or any regular driver/rider
of your vehicle are involved;
• any driving offences of which you or any regular driver/rider of your vehicle are convicted.
2. Protection of your vehicle
You must take all reasonable steps to safeguard your vehicle from damage ensuring that you obey any laws or regulations that safeguard people or their property.
3. Inspection
We shall at all reasonable times have free access to examine
your vehicle.
4. Hazardous goods
If you are carrying or using hazardous goods or substances with
your vehicle, you must do so in such quantities and in such
manner as is permitted by any applicable law, by-law or statutory regulation.
5. Unauthorised repairs in relation to a claim
You must not replace or carry out or authorise any repairs to
your vehicle (other than emergency repairs up to $500)
without our prior written consent.
6. Proving evidence of the value and ownership of
your vehicle
When you make a claim, we are entitled to ask you to provide us with evidence of ownership and value of your vehicle. Evidence includes:
• registration of the vehicle; • valuations;
• receipts.
7. Other person bound by this policy
Any person entitled to cover under this policy is bound by its terms and conditions.
We may refuse a claim
(continued)
8.Total loss
If we agree to pay your claim and your vehicle is a total loss, we will pay you the agreed value of your vehicle minus any
excess that may apply. If you pay your premium annually to us,
you will not receive a refund of premium. If you pay your premium by instalments, we will deduct any remaining premium due from the amount of the claim before we pay you. This is because all of our obligations under this policy will have been discharged. 9. Breach of policy
If you breach or fail to comply with this policy and your breach or failure prejudices our interests, we may, subject to the Insurance Contracts Act (1984), refuse to pay any claim under this policy either in whole or, at our option, in part.
10. Fraudulent claims
If any application for insurance or claim made under this policy is made fraudulently, we may, subject to the Insurance Contracts Act (1984), refuse payment of the claim.
11. Assistance
If, after payment of a claim, we wish to recover the amount we have paid from another person then, subject to the Insurance Contracts Act (1984), we can do so and you must give us any information and help that we may reasonably require. We will be entitled to deal with any legal action taken by us as we see fit. We may refuse a claim if you do not give us the documents and information we may need to help us decide on any amount we may pay you.
12. Legal representation
We may represent or defend you or any person entitled to cover under this policy in respect of legal liability as we see fit at any inquest or inquiry or in any action or proceedings.
13. Cancellation by you
You may cancel a policy at any time by telling us that you want to cancel it. We subtract from any premium you have paid us an amount to cover the period that we have already insured you for. We then return the rest of the premium to you.
14. (a) Cancellation by us
We may only cancel a policy when the law says we can. We cancel your policy by telling you so in writing. We give you this notice of cancellation in person or send it to your most recent address you have given us. We subtract from any
premium you have paid us an amount to cover the period that
we have already insured you for. We then return the rest of the
premium to you.
14. (b) Important information for customers paying by
instalments
If you are paying the premium for this policy by more than one instalment each year, you should be aware that if any instalment is not paid on time and remains overdue for:
• 14 days (or more) we will not pay claims that occur on or after that 14th day;
• a month (or more) we will cancel this policy from when the instalment was due for payment.
Conditions applicable to your policy
Our goal is to have you as a happy, long-term customer. We want you to be completely satisfied in all your dealings with us.
Shannons Limited (Shannons) is committed to dealing with our customers by:
• listening carefully to what you tell us;
• being accurate and honest in telling you about our products and services;
• communicating with you professionally and in plain language; and • resolving any complaints or concerns you have with us. So if you think we have let you down in any way, or our service is not what you expect please let us know so we can help.
How to tell us when you are not happy (or even if you just want to clarify something)...
You can tell us:
By phone
If you have a complaint please phone 13 46 46. If we are unable to resolve the matter over the phone we will ask you to put it in writing.
In writing
Send us the full details of your complaint, including any supporting documents and evidence, and explain what you would like us to do. Please address this information to your nearest Shannons branch. These are listed on the back of this Product Disclosure Statement and Policy Wording.
In person
Come in and talk to us, face to face at your local Shannons branch.
Rest assured... This is what we will do...
If you phone, you will be told the name of the most appropriate person to deal with the matter. If you write to us, your letter will be directed to the correct person.
In either case:
• your complaint will be handled by the person who has authority to deal with it; and
• this person will consider the facts and contact you to resolve your complaint as soon as possible, usually within 24 hours of receipt. If this person is not able to resolve the matter to your satisfaction, then it
If this person is not able to resolve the matter to your satisfaction, then it will be referred to the Chief Executive. You will be sent our final decision in writing within 15 business days from the date you first made your complaint.
And if your complaint remains unresolved...
We expect our procedures will deal fairly and promptly with your complaint. However, if you remain dissatisfied you also have external dispute resolution options such as mediation, arbitration or legal action. You can also raise certain complaints directly with the Insurance Ombudsman Service (Service). This is an independent body and its service is free to you. We agree to accept the Service’s decision. Again, you have the right to take legal action if you don’t accept the Service’s decision.
You can write to them at:
Insurance Ombudsman Service Limited PO Box 561
Collins Street West Melbourne VIC 8007
or phone:
1300 78 08 08
for the cost of a local call anywhere in Australia.
Having your vehicle stolen or being involved in a motor accident can be a very traumatic experience so this section has been designed to help you stay calm and gives you a step-by-step guide to follow.
Stay calm, and check if anyone is injured
• If you have been involved in an accident, remain calm and check whether others need assistance.
• Move to the side of the road or somewhere safe, but do not leave the scene.
• Use headlights or hazard lights to alert other drivers/riders and prevent further damage.
• If the accident involves injury, or the vehicles are not able to be driven/ridden, call the police immediately. When the police arrive, give them full details of the accident. Remember, that to arrange your claim we may require a written statement from the police to confirm that you have reported the incident to them.
You should also report the following to the police: • any malicious damage to your vehicle; • any theft or attempted theft of your vehicle.
Collect information
Write down as much information about the other driver/rider as you can, including:
• name and address; • telephone number; • licence number; • registration number; • their insurance company.
Also, collect any names, addresses and numbers of independent witnesses.
If you can, take photographs before the vehicles or other items are moved. You could keep a disposable camera in the vehicle or use a camera on a mobile phone. You can also make a sketch plan of the accident while the details are fresh in your mind.
Do not:
• discuss who is at fault. This will be determined by the police, or between the other person and Shannons. There are often cases when a person believes that they are responsible, but according to the law, it is the other driver/rider;
• make or accept any offer of payment, or in any other way admit you are liable;
• settle or attempt to settle any claim; • defend any claim.
It’s best just to collect all the necessary information and present an accurate description of the accident to the police (if attending) and to Shannons.
If you have agreed not to seek compensation from another person who is liable to compensate you for any loss, damage or liability which is covered by this policy, we will not cover you under this policy for that loss, damage or liability.
Call Shannons on 13 46 46
It’s important that you call Shannons as soon as possible after an accident.
• We can arrange a tow of your vehicle to your chosen repairer or your home.
• Shannons can help you get the repairer process started and get your pride and joy back on the road.
When you call Shannons we will:
• check you have all the necessary information; • answer any questions you may have; • help you obtain a quote;
• find you a repairer;
• provide advice on securing your vehicle after the accident.
In order for us to process your claim efficiently and effectively you should:
• take steps at your own expense to minimise the damage;
• keep any damaged property or any stolen property that you recover and let us inspect it if we need to;
• make your vehicle available for inspection by us or our representative and, if we require, deliver it to us;
• notify us of any loss or event and of any claim made against you. You must also promptly forward to us any writ, summons or proceedings which you receive relating to any prosecution, inquest or hearing and all other information relevant to those matters where any liability under this policy may arise;
• when requested, provide us with all proofs, information, co-operation and assistance in relation to a claim (including giving evidence in court) as we may reasonably require. Remember, you can contact us at any time:
• National claims phone 13 46 46 • National claims fax 1300 794 662
What to do if you have an accident
(continued)
