> _Markdown transcription of QBE Insurance NZ QBE Steadfast Commercial Motor Vehicle policy wording, effective 2019-01-01. Source: https://baileysinsurance.co.nz/wp-content/uploads/2025/07/QBE-Steadfast-Commercial-Motor-Vehicle-Wording-QBE-STFTQMV0119.pdf_ --- TABLE OF CONTENTS INTRODUCTION 3 INSURANCE AGREEMENT 4 POLICY COVER OPTIONS 4 WHEN COVER APPLIES 5 SECTION 1: COVER FOR THE INSURED VEHICLE 5 SECTION 1: AUTOMATIC POLICY EXTENSIONS 5 SECTION 1: OPTIONAL POLICY EXTENSIONS 12 SECTION 1: EXCLUSIONS 14 SECTION 1: BASIS OF SETTLEMENT 15 SECTION 2: LIABILITY TO THIRD PARTIES 16 SECTION 2: AUTOMATIC POLICY EXTENSIONS 17 SECTION 2: EXCLUSIONS 20 SECTION 2: BASIS OF SETTLEMENT 22 GENERAL POLICY EXTENSIONS APPLICABLE TO SECTIONS 1 AND 2 AUTOMATIC EXTENSIONS 22 OPTIONAL POLICY EXTENSIONS 24 GENERAL POLICY EXCLUSIONS 26 HOW TO CLAIM 28 GENERAL CONDITIONS 30 DEFINITIONS 33 2 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 INTRODUCTION WELCOME Welcome to QBE. Thank you for selecting us as your insurer. ABOUT THIS POLICY Your Commercial Motor Vehicle Policy consists of: 1. this policy document, and 2. the schedule, and 3. any endorsements or warranties that we apply, and 4. the information you have provided in the application for insurance to us. ABOUT STEADFAST Steadfast NZ Ltd (Steadfast) is part of Steadfast Group Ltd, an Australian Stock Exchange listed company. It includes a network of insurance brokerages who operate in New Zealand as Steadfast Brokers. This policy is available exclusively to you through a Steadfast broker. Steadfast does not issue, guarantee or underwrite this policy. YOUR DUTY OF DISCLOSURE When you apply for insurance, you have a legal duty of disclosure. This means you or anyone acting on your behalf must tell us everything you know (or could be reasonably expected to know) that a prudent insurer would want to take into account in deciding: 1. to accept or decline your insurance, and/or 2. the cost or terms of the insurance, including the excess. You also have this duty every time your insurance renews and when you make any changes to it. Information you will need to disclose includes: » circumstances which could increase the risk of an insurance claim; » any criminal offences or convictions; » any cancellation, refusal to renew insurance or imposing of special terms by another insurer; » insurance claims you have made in the past. Information you do NOT need to disclose includes: » circumstances which would diminish the risk of an insurance claim; » anything that we know or would be expected to know in the ordinary course of our business; » anything that we advise you do not need to disclose. Examples of relevant facts for Motor Vehicle insurance may include: a. any previous traffic violations including speeding, reckless driving, drink-driving or drug driving. b. any non-factory modifications (whether structural, performance or cosmetic) to an insured motor vehicle. c. any change of use of an insured motor vehicle (for example a private car now used for business use) d. any previous accidents, or history of your losses, whether you were insured at the time or not. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 3 If you or anyone acting on your behalf breaches this duty, we may treat this policy as being of no effect and to have never existed. EXAMPLES We have used examples and comments to make parts of this policy document easier to understand. These examples and comments are printed in italics and do not affect or limit the meaning of the section they refer to. HEADINGS The headings in this policy document are for reference only and do not form part of it. They must not be used when interpreting the policy document. DEFINED WORDS If a word is shown in bold, it has a specific meaning. There is a list of these words and what they mean in this policy in the section ‘DEFINITIONS’. INSURANCE AGREEMENT OUR AGREEMENT You agree to pay us the premium and comply with this policy. In exchange, we agree to insure you as set out in this policy. POLICY COVER OPTIONS Your vehicles will be insured under one of the following Cover Options. The option that applies will be shown on the schedule. Comprehensive Cover Provides: 1. Full cover under Section 1 – Cover for the Insured Vehicle, and 2. Full cover under Section 2 – Liability to third parties Third Party, Fire and Theft Provides: 1. Limited cover under Section 1 – Cover for the Insured Vehicle only covering accidental loss to the insured vehicle caused by: fire, lightning, explosion, theft (including attempted theft), and 2. Loss covered in Section 1 – Automatic Extensions- Uninsured Third Party Protection, and 3. Full cover under Section 2 – Liability to third parties. Third Party Only Provides: 1. Loss covered in Section 1 – Automatic Extensions- Uninsured Third Party Protection, and 2. Full cover under Section 2 – Liability to third parties. 4 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 WHEN COVER APPLIES There is only cover under this policy when any vehicle insured under this policy is being used by any driver with your consent: 1. for your business or occupation as advised to us prior to inception of this policy or any renewal, or 2. for your private, social or domestic purposes. SECTION 1: COVER FOR THE INSURED VEHICLE Cover We will insure you for accidental loss to an insured vehicle occurring anywhere in New Zealand, including transit between islands of New Zealand, during the period of insurance. SECTION 1: AUTOMATIC POLICY EXTENSIONS In addition to the cover under ’Section 1: Cover for the Insured Vehicle’, we also provide the following Automatic Policy Extensions. These extensions apply automatically where you have: 1. Comprehensive cover option shown in the schedule; or 2. Third Party Fire and Theft cover option shown in the schedule and there is a claim under Section 1 of this policy for fire or theft of the insured vehicle; and 3. There is a valid claim under ’Section 1: Cover for the Insured Vehicle’, unless specified otherwise. These extensions are otherwise subject to the terms and exclusions of the policy. Except as otherwise stated, where a limit is specified in the extension, this is in addition to the maximum liability under ‘Section 1: Basis of Settlement’. Otherwise, any payment under an extension is subject to the maximum amount payable under ‘Section 1: Basis of settlement’. Accessories and spare parts away from the vehicle You are insured for any insured vehicle accessories, ancillary equipment including buckets, hose, drill bits, and spare parts while not fitted to the insured vehicle and stored at: a. your office or depot, b. your home, or c. any secured worksite. The most we will pay under this extension is $5,000 for any one event unless a different amount is specified in the schedule. Our liability will be within the maximum liability under ‘Section 1: Basis of Settlement’. Appreciation - Mechanical Plant Section 1 is extended to cover you for appreciation of the market value of the mechanical plant specified in the vehicle declaration as a result of loss covered under Section 1, subject to the following: a. The specified market value of the mechanical plant was accurate at the time of inception or renewal of this policy, and b. The appreciation shall be of no greater than 25% of the value specified in the vehicle declaration. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 5 Car pooling agreement Payment made by passengers as part of a car pooling agreement does not constitute the conveyance of passengers for hire or reward. A car pooling agreement is where you share a vehicle journey to a common destination with another passenger to reduce both person’s travel costs. Claim preparation costs We shall be liable for costs and expenses as may be reasonably incurred by you for the preparation, presentation, negotiation, certification and/or justification of claims made under this policy (but not costs incurred in disputing a claim). Salaries, wages and overheads of your employees and consultants shall be deemed to be part of such costs and expenses. There shall be no liability under this clause for such costs and expenses for any one claim unless it exceeds $100 in total nor shall there be any liability if any claim is not admissible under this policy. The most we will pay under this extension is $5,000 for any one event, unless a different amount is shown in the schedule. Completion of journey costs and Emergency Accommodation When, as a result of a loss covered under Section 1, your journey cannot be continued, this policy covers your reasonable costs not covered by any other insurance, warranty program, driver or vehicle assist program incurred in: a. hiring another vehicle of similar make and model to complete the journey, or to return you or your driver to where the journey first commenced; and b. returning the insured vehicle to the premises where it is normally based following its repair, or the cost of recovering it in the event of theft; and c. Emergency accommodation The most we will pay under this extension is $10,000 for any one event, unless a different amount is shown in the schedule. Condemned buildings and carparks If as a result of a natural disaster, you are unable to recover the insured vehicle from a building or carpark due solely to the denial of access to that building or carpark we will pay for the reasonable costs of hiring a similar replacement vehicle subject to: a. a maximum cost of $200 per vehicle per day, and b. $15,000 in total; for any one event. There is no cover for this extension for the first 7 days for any one event. Death by Accident If the driver or non-fare paying passengers of the insured vehicle dies as a result of an accident covered by this policy, whether or not death occurs at the time of the accident, we will pay $10,000 to you, regardless of any other insurance. 6 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 Disability Modifications If you or one of your employees operating an insured vehicle (including riding as a passenger) are injured as a direct result of an accident covered under Section 1, and this results in permanent disability which necessitates vehicle modifications (e.g. hand controls), Section 1 covers the reasonable cost of these modifications to any one vehicle. However, we are only liable for the amount in excess of any amount payable by the Accident Compensation Corporation, or any other insurer and the most we will pay under this extension is $10,000 for any one event, unless a different amount is shown in the schedule. Employees’ Vehicles Section 1 is extended to cover vehicles (including vehicle accessories and spare parts normally carried on or used in connection with any such vehicles) owned by your employees that are used in the course of your business, provided: a. your employee has personal vehicle insurance for the vehicle but that policy does not respond because of this business use; b. the vehicle is not ordinarily and normally used in the course of your business, and is used in the course of your business for no more than 10 days during the 12 months prior to the loss. Expediting Expenses This policy is extended to cover you for the reasonable costs of express freight including airfreight and overtime to expedite repairs to the insured vehicle as a result of loss covered under Section 1 of this policy. First Aid Kits In the event of an accident covered under Section 1 of this policy, we will pay to replace or restock any first aid kits or equipment in the vehicle damaged or used as a result of that accident. Fitout removal and reinstallation If the insured vehicle has undergone customised fitout which is included in the sum insured (for the purpose of conducting your business, such as custom interiors, shelving and cabinetry, permanently affixed plant and equipment) and following accidental loss, is a total loss, should you wish to retain the fitout we will pay for the removal and reinstallation of the fitout from the vehicle. The value of any fitout removed will be deducted from the final settlement of the vehicle. The most we will pay under this extension is $10,000 for any one event unless a different amount is specified in the schedule. Funeral Expenses If a driver and/or passenger/s dies as the direct result of an accident covered by this policy, whether or not death occurs at the time of the loss, this policy covers all funeral expenses associated with the burial or cremation of the deceased, in addition to any amount payable by the Accident Compensation Corporation or any other insurer. This policy also covers any travel costs within New Zealand of the deceased’s immediate family (e.g. parents, spouse or partner, children, or siblings) necessarily incurred as a result of attending the funeral. The most we will pay under this extension is $10,000 for any one event, unless a different amount is shown in the schedule. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 7 Goods in Transit If an insured vehicle suffers loss caused by an event covered under Section 1, this extension covers loss directly caused by the same event to goods owned by you carried on or in the insured vehicle at the time of the loss for the specific purpose of a single relocation (such as a delivery to customer’s premises or to a warehouse). The most we will pay under this extension is $10,000 for any one event, unless a different amount is shown in the schedule. Hoists, hydraulic lifts and rams Section 1 covers mechanical breakdown or mechanical failure of any hoists or hydraulic rams permanently attached to the insured vehicle, where such failure or breakdown is not due to wear and tear or lack of regular maintenance. Section 1: Exclusions - Vehicle Parts, does not apply to this extension. The most we will pay under this extension is $10,000 for any one event unless a different amount is shown in the schedule. An excess of $500 applies for any claim under this extension. Ingestion or Entanglement of Foreign Objects We will cover you for accidental loss resulting from entry, entanglement or ingestion of any foreign object into any mulching, chipping or agricultural implement or machine, provided this occurs whilst the insured vehicle is being operated for the purpose for which it was designed. The most we will pay under this extension is $50,000 for any one event unless a different amount is shown in the schedule. Our liability will be within the maximum liability under ‘Section 1: Basis of Settlement’. Keys and Locks Where any keys giving access to the insured vehicle are lost, stolen or believed on reasonable grounds to have been duplicated without your permission during the period of insurance, we will cover the costs reasonably incurred in digital recoding, replacing the keys and altering or replacing the locking mechanism. The most we will pay under this extension is $5,000 for any one claim to one insured vehicle or $20,000 any one event, unless a different amount is shown in the schedule. Our liability will be within the maximum liability under ‘Section 1: Basis of Settlement’. An excess of $250 applies for any one claim under this extension. Lease Value If the insured vehicle is leased and becomes a total loss as a result of an event covered under Section 1 of this policy, we will pay the greater of the reasonable market value or residual value of the insured vehicle. This does not include: a. penalties for early termination, or b. penalties for any additional distance travelled, or unpaid obligations under the lease at the time of the loss, or c. penalties resulting from lack of servicing or poor maintenance, or d. ‘balloon’ payments, or e. the amount by which the residual value of the insured vehicle exceeds 120% of its market value. 8 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 Load Recovery and Debris Removal costs Section 1 of this policy is extended to cover the reasonable costs incurred in salvaging and debris removal of any load carried by an insured vehicle. This includes the reasonable costs of reloading or trans-shipping the load to the nearest place of safe storage and necessary disposal costs. The most we will pay under this extension is $25,000 for any one event, unless a different amount is shown in the schedule. Misfuelling You are insured for accidental loss directly caused by operation of the insured vehicle with the incorrect fuel type (diesel into a petrol vehicle or petrol into a diesel vehicle), if you have taken reasonable care to avoid the loss. The most we will pay under this extension is $10,000 for any one event unless a different amount is specified in the schedule. Our liability will be within the maximum liability under ‘Section 1: Basis of Settlement’. The exclusion “Vehicle Parts” does not apply to this extension. Mutually Acceptable Assessors An assessor mutually agreed upon by us and you will assess any loss under this policy. New Replacement Vehicle If a car, station wagon, utility, van or four-wheel drive vehicle under 3,500kgs suffers a total loss in terms of the basis of settlement under Section 1 of the policy within 12 months of it being first registered as a new vehicle in New Zealand, we will either: a. provide a new replacement vehicle of the same make, model and specification, or b. if a new replacement is not available, pay the price for which such a vehicle was last available. Off Road Tyre/Track Damage Section 1 of this policy is extended to cover loss during the period of insurance to any tyre (including its inner tube) or tracks fitted to an insured vehicle not principally used for driving on public roads, regardless of whether there has been loss to any other part of the insured vehicle or not. We will indemnify you by either: a. Repairing the damage; or b. Paying an amount equal to the reasonable cost of repair; or c. Replacing the tyre or tracks; or d. Paying an amount equal to the cost of the tyre or tracks. The most we will pay under this extension is the purchase price of a new replacement tyre or tracks, less a reasonable deduction for the damaged tyre’s or track’s wear and tear, but in all cases not exceeding $5,000, during any one period of insurance. No excess applies to this extension. Section 1: Exclusions – Tyres, does not apply to this extension. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 9 Personal effects We will extend this insurance to cover accidental loss to the driver and non-fare paying passengers’ personal effects as a direct result of accidental loss to the insured vehicle that is covered under this policy. For the purpose of this extension ‘personal effects’ means any item of clothing (including reading and sunglasses) or any personal item normally carried (such as a handbag, wallet, personal music device or mobile phone) but excluding any laptop or item of luggage. The personal effects are insured for their market value. The most we will pay for under this extension is $3,000 for any one event unless a different amount is specified in the schedule. An excess of $500 applies to this extension. Portable Electronic Equipment When the insured vehicle suffers loss covered by Section 1 of this policy we will cover you for accidental loss to portable electronic equipment. We will pay the reasonable replacement cost of the property up to $1,000 for any one item and $5,000 in total. An excess of $250 applies to any claim under this extension including where the cause of loss is theft. Where the insured vehicle suffers a total loss, the amount payable under this extension is in addition to the basis of settlement of the loss of the insured vehicle itself. Re-installation Costs When an insured vehicle is a total loss as a result of an event covered under Section 1, we will contribute to the de-installation/re-installation costs associated with loss to LPG, CNG units, in-vehicle cameras, meters and the like. The value of any item that is de-installed/re-installed will be deducted from the final settlement of the vehicle. The most we will pay under this extension is $2,500 per event, unless a different amount is shown in the schedule. Reinstatement of Amount of Insurance Where loss is covered under Section 1, the amount by which that cover reduces the sum insured, is automatically reinstated after the repair of the vehicle loss and prior to any additional premium required for such reinstatement. Relief Driver Costs If as the result of an accident involving an insured vehicle primarily used for the purpose of transporting goods for reward or fare-paying passengers following loss covered under Section 1 of this policy, your driver is a. injured and unable to return to work; or b. temporarily stood down for counselling purposes (such as for counselling following a fatal accident), you are covered for the reasonable and necessarily incurred costs of employing a relief driver to continue your business. The most we will pay under this extension: 1. for any single day is $250, and 2. in total for any one event is $5,000, unless a different amount is specified in the schedule. 10 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 Repair Authorisation You may authorise any reasonable repairs for accidental loss to an insured vehicle up to a maximum of $1500 without prior notice to us. If the estimated repair costs exceed this amount, repairs must not be commenced without our consent or our assessor’s consent. We or our assessor must be given the opportunity of examining the loss to the insured vehicle prior to repair. Our liability will be within the maximum liability under ‘Section 1: Basis of Settlement’. Rewards This extension covers any reward offered with our prior approval, to secure the return of an insured vehicle that has been stolen if the theft is covered under Section 1 of this policy. The most we will pay under this extension is $5,000 for any one event, unless a different amount is shown in the schedule. Salvage, Safety and Security This extension covers the reasonable costs incurred in salvaging or recovering the insured vehicle, including the costs of ensuring its safety, security and delivery to a place of suitable repair or inspection, as a result of loss covered under section 1 of this policy. We will also cover the reasonable costs of storage of the insured vehicle after a claim for loss has been lodged and which has been accepted by us. Sets (wheel rims) Where accidental loss to an insured vehicle includes damage to a wheel rim that is part of a set and is unable to be repaired or replaced we will: a. replace the set with a set that is equivalent in style, quality, and pre-damage condition, or b. pay you an amount equal to the cost of replacing the set that is equivalent in style, quality, and pre-damage condition. The most we will pay under this extension is $10,000 for any one event. Our liability will be within the maximum liability under ‘Section 1: Basis of Settlement’. Signwriting When the insured vehicle suffers loss covered by Section 1 of this policy, we will pay the reasonable cost of repair or replacement of signwriting, artwork, wraps and or graphics existing at the time of loss, provided that: a. The market value plus the value of the replacement signwriting does not exceed the insured vehicle’s value as provided in the vehicle declaration; and b. The value of the signwriting does not exceed $2,500 per insured vehicle. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 11 Theft Costs If a loss caused by theft of the insured vehicle is covered under Section 1, this extension covers the necessary and reasonable costs incurred by you of hiring another vehicle of a similar make and model provided that: a. you make all reasonable efforts to purchase a replacement vehicle as soon as possible; and b. the period of cover for the extension begins at the date the insured vehicle is stolen and ends when we have settled the claim in full or the insured vehicle is recovered and is not a total loss, and; c. the cost of the first 7 days of hire is not covered; and d. This extension does not cover costs charged by the hire company for insurance, petrol or normal running costs. The most we will pay under this extension is $5,000 for any one event, unless a different amount is shown in the schedule. Uninsured Third Party Protection You are covered for any uninsured accidental losses (including any excess) caused by an identifiable and uninsured driver of another vehicle occurring in New Zealand during the period of insurance, provided that: a. full liability is admitted by that third party, or you have provided us with evidence establishing full liability of that third party; b. And that you did not cause or contribute to the loss; and c. you supply us with enough information to identify the third party (such as the correct registration, their name and address). The most we will pay under this extension for any one insured vehicle for any one event is $5,000. Unspecified Trailers You are covered for any unspecified trailer you own, hire or borrow for accidental loss or damage, or stolen, not otherwise insured. We will pay at our option either: a. The market value b. The cost to repair the trailer The most we will pay for under this extension is $2,000 for any one event unless a different amount is specified in the schedule. Windscreens and Window Glass Unless otherwise noted in the schedule, you are insured for accidental loss to windscreens, sunroof, headlights, tail lights, indicator light glass, mirror glass or window glass (including scratching or damage to bodywork resulting solely from broken glass). Where there was tinting or signwriting affixed to any of the above, we will also pay to have the tinting or signwriting reinstated on that part that suffered the loss, however we will not pay for any costs associated with joining or associated tinting or signwriting on other parts of the insured vehicle under this extension. No excess applies to this extension, unless otherwise shown in the schedule. 12 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 SECTION 1: OPTIONAL POLICY EXTENSIONS These optional extensions only apply where specified in the schedule. They are subject to the terms and exclusions of the policy. Agreed Value In the event of a total loss covered under Section 1, we will pay the amount specified in the schedule. Loss of Use If loss to an insured vehicle covered under Section 1 prevents you from using it, this extension covers the reasonable cost of you hiring a substitute vehicle of a similar make, model and specification that is capable of carrying out the activities of the insured vehicle during the Period of Cover (as defined below) subject to the following: a. It only applies to the insured vehicle(s) stated in the schedule as being subject to this extension; b. The extension does not apply if you have available a free substitute vehicle or once you purchase an additional vehicle; c. The repair of the insured vehicle must be carried out as soon as reasonably practicable; d. This extension does not cover costs charged by the hire company for insurance, petrol or normal running costs; and e. This extension does not apply if you have made a claim under Section 1: Automatic Policy Extensions - Theft Costs. If no vehicle of a similar make, model and specification is available for hire (you having consulted with us as to availability of such a vehicle), subject to the application of all other terms of this extension, we will pay to you the daily rate shown in the schedule for the Period of Cover subject to the following terms. The most we will pay under this extension for any one insured vehicle is the limit stated in the schedule. The maximum Period of Cover for any one insured vehicle is 90 days. An excess equal to the cost of the first 7 days hire applies to all claims under this extension. In this extension, ‘Period of Cover’ means the period: a. Beginning: i. When the insured vehicle is delivered to a repairer agreed to by us to start the repair; or ii. The date of the loss, if the insured vehicle cannot be driven, or is deemed a total loss at that date; and b. Ending: i. in the case of repair, when the repairs are completed and the insured vehicle is available to be collected or delivered, or ii. in the case of a total loss, when we have settled your claim under Section 1 in full, or iii. when you have returned the substitute hire vehicle, whichever occurs first. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 13 SECTION 1: EXCLUSIONS The following exclusions apply only to Section 1. The General Policy Exclusions also apply to Section 1 of this policy. Consequential Loss This policy does not insure: a. loss of use of any kind whatsoever, or costs or expenses that result from that loss of use, unless expressly insured under Section 1, or the Automatic or Optional Extensions applicable to Section 1; or b. depreciation or reduction in value. Drilling Equipment This policy does not insure loss to any drill shaft or bit of any type of drilling rig or machinery whilst being used for the purpose of drilling below ground or surface level. Faulty Design This policy does not insure loss caused by or in connection with the insured vehicle’s faulty or defective design, specification or materials. However, this exclusion is limited to the part immediately affected and does not apply to any resultant loss to any other part of the insured vehicle. Tyres This policy does not insure damage to or destruction of tyres. However, this exclusion will not apply if the damage or destruction results from separate loss that is covered by this policy. Vehicle Parts 1. This policy does not insure loss to the following parts of an insured vehicle: a. engine and all engine parts, b. cooling systems, including but not limited to radiators, heat exchangers, cooling fans, pressure caps, water pumps, thermostats and hoses, c. hydraulic system, including but not limited to shock absorbers and suspension systems, d. transmission system, including but not limited to gearbox, drive shafts, axles, differentials, clutches, and wheel hubs, e. fuel systems, f. braking systems, g. electrical/electronic systems, computer systems, and mechanical systems, h. pumping and vacuuming systems, i. any fixed plant machinery (including but not limited to food /drink preparation equipment), j. underground exploratory devices. 2. However, this exclusion does not apply to loss that is the direct result of: a. fire, b. the insured vehicle or a conveying vehicle overturning, c. the insured vehicle suffering an impact or collision with an external object, d. the insured vehicle being partly or fully immersed in a body of water, e. the insured vehicle being stolen or converted, 14 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119  f. the insured vehicle being maliciously damaged, g. hail, snow, storm or lightning, h. natural disaster, i. impact or damage by animals. Wear and Tear This policy does not insure loss caused by or in connection with: 1. wear and tear; or 2. rust or corrosion; or 3. action of light and fading. SECTION 1: BASIS OF SETTLEMENT Basis of Settlement 1. We will, at our option, settle your claim for loss in one of the following ways: a. pay the reasonable cost of repairs carried out to the insured vehicle; or b. pay the cash equivalent of the reasonable cost of repairs to the insured vehicle; or c. replace the insured vehicle; or d. pay the market value of the insured vehicle or the value stated in the vehicle declaration, whichever is the lesser; or e. if any insured vehicle is subject to the Agreed Value option shown in the schedule then in the event of a total loss, we will pay the Agreed Value sum shown in the schedule, or f. if the insured vehicle is hired, rented, or borrowed or loaned we will pay the market value of that vehicle to a maximum of $250,000. g. indemnify you in accordance with the terms of the Automatic Extension - New Replacement Vehicle. 2. We are not liable for that portion of any repair or replacement that improves the condition of the insured vehicle beyond its condition before the loss. 3. If any part or component of the insured vehicle is no longer manufactured, we are not liable for more than the supplier’s or manufacturer’s list price. Where no such list price applies, the most we will pay will be the lesser of: a. the price of the part’s closest New Zealand equivalent; or b. the last known list price in New Zealand; or c. the cost of making a new part. 4. The excess shown in the schedule and any excess payable under any extension in Section 1: Automatic Policy Extensions or Section 1: Optional Policy Extensions will be deducted from the amount of the loss for each event. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 15  Where the cause of loss is theft or fire (fire not resulting from impact) to the insured vehicle, no excess will apply to the Section 1 claim unless stated in the schedule or payable under any Section 1: Automatic Policy Extension or Section 1: Optional Policy Extension. If more than one insured vehicle suffers loss from a single event, only one excess shown in the schedule will apply, being the highest excess, together with any excess payable under any extension in Section 1: Automatic Policy Extensions or Section 1: Optional Policy Extensions. SECTION 2: LIABILITY TO THIRD PARTIES Cover We will insure you against your liability to pay damages for: 1. accidental bodily injury to any person; or 2. accidental loss to any property, occurring in New Zealand during the period of insurance and arising from the use of an insured vehicle (including whilst being loaded or unloaded). Provided all criteria above are met, this cover extends to your liability: 1. in connection with the lawful movement by you of any vehicle which: a. is parked in a position which prevents or impedes the loading or unloading of the insured vehicle; or b. prevents or impedes the legitimate passage of the insured vehicle. Section 2: Exclusion - Property in Care, Custody or Control will not apply to the vehicle being moved; and 2. in connection with the insured vehicle being used in accordance with the permitted use, for the purpose of towing any one trailer or caravan, or any one incapacitated vehicle, while attached to the insured vehicle. However, the towing must not be for hire or reward. We will insure you for your legal defense costs and expenses reasonably and necessarily incurred, provided that they are incurred: a. with our consent, b. to defend any civil proceeding (or threat of a civil proceeding) brought against you. We will meet these costs even if the civil proceeding seems groundless. The most we will pay for legal defense costs and expenses is $1,000,000 for any event. We will not pay for legal defense costs and expenses in connection with any criminal proceeding, whether actual or threatened, including where a victim is seeking reparation. The legal defense costs and expenses cover is additional to the Section 2: Basis of Settlement liability limit. 16 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 SECTION 2: AUTOMATIC POLICY EXTENSIONS In addition to the cover under ‘Section 2: Liability to third parties’, we also provide the following Automatic Policy Extensions. All amounts in the Extensions are subject to and not additional to the limits of our liability shown on the schedule for Section 2 in respect of any one claim or claims arising directly or indirectly from any one loss. They are subject to the terms and exclusions of the policy. Airside Liability Section 2 is extended to cover your liability arising out of the ownership, operation or maintenance of any vehicles within the restricted area of any airport used for scheduled commercial flights. The most we will pay under this automatic extension for any event is $2,000,000, unless a different amount is shown in the schedule. Section 2: Exclusions – Airside Liability’ does not apply to claims under this extension. Cleaning up Costs Section 2 is extended to cover all costs lawfully charged by any government body or authority or any other entity for cleaning or restoring the site of an accident following loss, which is covered under Section 1 of this policy. The most we will pay under this extension is $50,000 for any one event, unless a different amount is shown in the schedule. A minimum excess of $500 for each event applies to claims under this extension. Criminal Court Action/Inquiries/Inquests Section 2 is extended to cover legal costs and expenses necessarily and reasonably incurred to: a. defend a charge of manslaughter, or dangerous driving causing death or careless driving causing death, and b. for legal representation at any inquiry or coroner’s inquest in connection with the death; resulting from any person covered under Section 2 of this policy using a vehicle insured under this policy. The most we will pay under this automatic extension for any event is $10,000. Section 2: Exclusions – Criminal Offences does not apply to claims under this extension. Driver’s Indemnity Section 2 is extended to cover the legal liability and legal costs and expenses of any other person caused by or through or in connection with their use of an insured vehicle or a vehicle covered under Section 1: Automatic Extensions – Employee’s Vehicles’, in the same manner as we cover you, provided: a. such use has your permission, and b. their liability is not covered by any other insurance, and c. the person using the insured vehicle meets all the same terms of this policy that you must meet. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 17 Exemplary Damages Section 2 is extended to indemnify you and any driver who is in charge of the insured vehicle with your consent against liability for punitive or exemplary damages for: a. accidental bodily injury, or b. accidental loss to any property arising from an accident in connection with the insured vehicle (including whilst being loaded or unloaded) which occurs in New Zealand during the period of insurance. The most we will pay under this extension is $500,000 for any one claim, or series of claims arising from one accident, and $1,000,000 in the aggregate for all claims during the period of insurance, unless different amounts are shown in the schedule. In addition to any other policy excess, each claim under this extension will be subject to an excess of 10% of any sum for which you or the driver is found legally liable. However, a minimum excess of $5,000 applies to each claim. There is no indemnity under this extension: i. arising from any dishonest, fraudulent or malicious act or omission by you or anyone acting on your behalf; or ii. arising from any claim first notified to you but not notified to us within six months of that date. Section 2: Exclusions – Exemplary Damages does not apply to claims under this extension. Financial Charge Section 2 covers the balance of any outstanding charge on an insured vehicle where: a. the insured vehicle is purchased during the period of insurance; and b. the insured vehicle suffers loss which is covered under Section 1 of the policy; and c. you have made proper enquires in relation to the existence of any charge before making the purchase; and d. you are liable to pay the outstanding charge. The most we will pay under this extension is $5,000 for any one insured vehicle, unless a different amount is shown in the schedule. Hazardous Substance Emergency Section 2 extends to cover all costs lawfully charged by any government body or authority or any other entity , for their attendance at a hazardous substance emergency arising from the use of an insured vehicle. The indemnity will be payable regardless of whether the insured vehicle has sustained loss. The most we will pay under this extension for any event is $50,000. Hired In Vehicle – Consequential Loss If you hire or rent a vehicle during the period of insurance and reject the owner’s statutory offer of insurance, this extension covers your liability to the owner of that vehicle for consequential losses caused by loss covered under Section 1. The most we will pay under this extension for any one event $25,000 unless a different amount is shown on the schedule. This cover is conditional on the rental vehicle being a similar substitute vehicle as set out in the definition of insured vehicle. This extension prevails over ‘Section 2: Exclusions, Property in Care, Custody or Control’. 18 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 Marine Liability If an insured vehicle is transported by sea or air between places in New Zealand during the period of insurance, Section 2 covers your liability for any resulting General Average and salvage charges recoverable from it at law. This applies regardless of whether or not the insured vehicle suffers loss. General Average means the general average and salvage charges incurred to avoid a loss covered under this policy that are determined by the contract of carriage, and/or governing law and practice of carriage. Passenger Liability Section 2 is extended to cover the legal liability of any person in connection with their being a passenger in or getting into or out of any insured vehicle. Provided that the person’s liability is not covered under any other insurance or under any other clause in this policy. Principal’s Indemnity Section 2 is extended to indemnify the principal of any construction or works project for their vicarious liability: a. where the liability arises in connection with the use by you of an insured vehicle on that project, and b. the liability is for accidental loss to property or accidental bodily injury occurring in New Zealand during the period of insurance. Reparations You are insured for any reparation you become legally liable to pay arising from accidental bodily injury or accidental loss to property happening during the period of insurance as a result of an accident caused by or in connection with any insured vehicle, including while it is being loaded or unloaded. Amounts payable under this extension are included in, and not additional to, the limits of our liability shown on the schedule for Section 2: Liability to third parties, in respect of any one claim or claims arising directly or indirectly from any one loss. Our liability for Sentencing Act Reparation claims is limited to the limit of indemnity shown on the schedule or $10,000,000, whichever is the lesser. Cover for defense costs do not apply to a claim under this extension. We will not pay defense costs in relation to an offence or where your liability is to pay reparation. This extension does not cover reparation arising from prosecution of an offence under the Health and Safety in Employment Act 1992 and/or the Health and Safety at Work Act 2015 (or any replacement Act) and any subsequent amendments. Vibration or Weight Damage We will indemnify you and any driver who is in charge of the insured vehicle with your consent against liability for accidental loss to any property (including roads) during the period of insurance caused by: a. vibration caused by the insured vehicle, or b. the weight of the load carried by the insured vehicle, or c. the weight of the insured vehicle, or d. the combined weight of the load and the insured vehicle. The most we will pay under this extension is $500,000 for each claim or series of claims arising from one event, unless a different amount is shown in the schedule. An excess of $2,000 will apply to each event. Section 2: Exclusions - Vibration or Weight does not apply to claims under this extension. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 19 Vicarious liability You are insured for your legal liability under Section 2 of this policy while: a. any vehicle not belonging to you and not provided by you is being used for your business by any person in your employment, or b. any vehicle hired in by you is being used for your business by any hired-in or temporary driver. We will not cover you for: a. loss to that vehicle or to property being transported by it, or contained in it; b. any part of the liability which is also covered under any other existing insurance. SECTION 2: EXCLUSIONS The following exclusions apply only to Section 2. The General Exclusions also apply to Section 2 of this policy. This policy does not insure: Airside Liability Liability arising out of the ownership, operation or maintenance of any vehicle within the restricted area of any airport used for scheduled commercial flights. Note: Please see Section 2: Automatic Extensions, ‘A. – Airside Liability’. Contractual Liability Liability arising out of a contract or agreement unless you would have been liable even without such contract or agreement. Criminal Offences Any legal defense costs, fines or court costs arising from the prosecution of any offence under any Act of Parliament including any Regulations, Rules or By- Laws made under any Act of Parliament. Note: Please see Section 2: Automatic Extensions, ‘Criminal Court Action/Inquiries/Inquests’. Drivers Liability of any driver, including the insured, for or arising from: a. bodily injury to, or b. loss to any property owned by, that driver, who claims under Section 2 of this policy. Exemplary Damages Liability for punitive or exemplary damages. Note: Please see Section 2: Automatic Extensions – Exemplary Damages. Liability Outside New Zealand Liability determined by any court outside New Zealand. 20 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 Operation of Plant or Machinery Liability arising directly or indirectly out of the use of any mechanical plant component while it is being used or operated for the purpose for which it was designed (e.g. the operation of a crane or back hoe); however, this exclusion does not apply to the operation of any vehicle mounted crane whilst being used to load or unload from that vehicle, or of any fork hoist. Property in Care, Custody or Control Liability for loss to any property that belongs to, or is/was in your care, custody or control, other than: a. personal baggage and wearing apparel of any passenger; or b. a building leased or rented by you; or c. a vehicle (which is not insured under Section 1 of the policy or owned by you), which is being towed by an insured vehicle. However, this does not apply to vehicles which are towed or recovered for reward where your business includes a vehicle recovery service. Transporting of a Load Liability in connection with the transporting of a load to, or away from, the insured vehicle. However, this Exclusion does not apply to the actual loading or unloading of the insured vehicle. Vehicles Liability for loss to any vehicle that is insured under this policy. Vibration or Weight Liability for loss to property (including a road) arising from: a. vibration caused by the insured vehicle, or b. the weight of the load carried by the insured vehicle, or c. the weight of the insured vehicle, or d. the combined weight of the load and the insured vehicle. Note: Please see Section 2: Automatic Extensions - Vibration or Weight Damage. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 21 SECTION 2: BASIS OF SETTLEMENT Basis of Settlement 1. The most we will pay for any event under Section 2: a. for legal liability is $10,000,000 unless otherwise stated in the schedule b. for legal defense costs and expenses is $1,000,000 unless otherwise stated in the schedule. 2. If our maximum liability is insufficient to cover both the insured in the schedule and any other party entitled to cover under Section 2, it will apply first to the insured in the schedule. 3. We are not liable for any excess shown in the policy or schedule. 4. The most we will pay under each automatic or optional extension will be the higher of: a. the amount specified in the policy; or b. the amount specified in the schedule. 22 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 GENERAL POLICY EXTENSIONS APPLICABLE TO SECTIONS 1 AND 2 AUTOMATIC EXTENSIONS These extensions automatically apply. They are subject to the terms of the policy. Additions and Deletions 1. Additions Any similar vehicle purchased or leased by you during the period of insurance is an insured vehicle under this policy from the date of purchase or commencement of the lease. The maximum amount we will pay under ‘Section 1: Basis of Settlement’ for each purchased or leased vehicle covered under this extension is $300,000. 2. Deletions If an insured vehicle is sold or the lease ends during the period of insurance, it ceases to be an insured vehicle under this policy from the date of sale or the date the lease ends. 3. Premium adjustment a. If there are 14 or less vehicles noted on the schedule at policy inception you must advise of all acquisitions within 30 days, and an additional premium is paid. b. For 15 or greater vehicles, the premium payable by you under this policy will be adjusted at the end of the period of insurance to reflect insured vehicles added or deleted under this extension during the period of insurance. c. We will apply the additions and deletions premium rate as agreed, to 50% of the difference in value between all additions and deletions, to calculate any additional premium to be paid to us by you, or any refund of premium we are to pay to you for that period of insurance, and you will pay any additional premium, or we will refund such sum. Breach of Condition This policy will not be invalidated by any breach of condition, where the breach occurs prior to the loss and without your knowledge or consent, provided that we are advised immediately after you become aware of the breach and you pay us any additional premium we may require. Counselling If an accident involving an insured vehicle that is covered under section 1 of this policy involves a fatality, we will cover you for the reasonable costs incurred in your driver obtaining professional counselling in excess of any entitlement under Accident Compensation Corporation. The most we will pay under this extension is $5,000 for any one event, unless a different amount is shown in the schedule. No excess applies to this extension. Emergency Public Relations You are insured for the reasonable costs of public relations expenses incurred with our prior written consent, as a result of a claim payable under this policy. The most we will pay under this extension for any one event is $25,000 unless a different amount is shown in the schedule. An excess of $2,500 applies to this extension. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 23 Invalidation This policy covers you for loss or liability that arises when an insured vehicle is being used in the circumstances excluded in: 1. General Exclusions ‘Alcohol, Drugs and Other Intoxicating Substances’, 2. General Exclusions ‘Overloaded Vehicles, 3. General Exclusions ‘Intentional or Reckless Acts’, 4. General Exclusions ‘Unlicensed Drivers’, 5. General Exclusions ‘Unsafe Vehicles’, 6. General Exclusions ‘Work Time Rules’, provided that: a. the driving in those excluded circumstances was without your knowledge or consent; and b. you have not waived any right of recovery against the driver, and, c. you cooperate fully with us and the police in pursuit of compensation from the driver. The liability of the driver or person responsible for the loss or liability is not insured under this extension. For the purposes of this extension only, your knowledge is deemed to include the knowledge of: a. any person employed by you with your delegated authority to control the conduct of the driver; or b. the driver, if the driver is of such senior position within your business that his/her knowledge or consent is by law deemed to be your knowledge or consent. Release of Liability Where you are required by legislation or by contractual agreement to release any of: a. Any fire protection equipment suppliers; b. New Zealand Government trading as Kiwi Rail; c. Any oil company; or d. Any other party to an agreement which has been declared to and accepted by us, from liability arising from loss insured by this policy, the release is allowed without prejudice to this insurance. 24 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 OPTIONAL POLICY EXTENSIONS These extensions are optional and only apply when stated in the schedule. They are subject to the terms and exclusions of the policy. Burning Cost The premium payable under this policy shall be adjusted on claim costs incurred (claim costs paid plus outstanding estimates) during the period of insurance. This will be calculated as follows: a. 30 days after the end of the period of insurance the Total Premium shall be adjusted by dividing the Incurred Claims cost by the multiplier as agreed in the schedule. b. If the premium produced is greater than the Total Premium paid, you shall pay the difference but not exceeding the percentage of the deposit premium as agreed in the schedule. c. If the premium produced is less than the Total Premium paid, we shall refund the difference to a minimum retained premium of the agreed percentage in the schedule of the deposit premium. For the purposes of this extension: Total Premium shall mean deposit premium plus any additional or return premium adjustments processed during the period of insurance. Incurred Claim costs will mean the total amount of claims paid and reasonable estimates of claims yet to be paid, including fees, net of actual and estimated recoveries. Hired In Vehicles If you hire in or rent in a vehicle during the period of insurance and do not accept the rental owner’s statutory offer of insurance, this extension covers: 1. the hired vehicle as an insured vehicle, whether or not it is a similar substitute vehicle as set out in the definition of insured vehicle; 2. covers your liability to the owner of that vehicle for consequential losses caused by loss covered under Section 1. The most we will pay under this extension for any one event $50,000 unless a different amount is shown on the schedule. This extension prevails over ‘Section 2: Exclusions, Property in Care, Custody or Control’. If you hire in or rent in a vehicle during the period of insurance and accept the rental owner’s statutory offer of insurance, this extension covers: 1. liability to third parties as provided under “Section 2; Liability Cover’ and ‘Section 2; Automatic Extensions‘ but only for the difference between the amount payable for liability under the statutory offer of insurance had you accepted the offer of such cover, and the maximum amount payable under “Section 2: Legal Liability Cover’, and 2. the difference between the Section 1 excess under this policy and any deductible that would have been applicable under the rental vehicle owner’s insurance had you accepted the offer of such cover, for any event. For the sake of clarity, this includes non-owned trailers. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 25 Hired Out Vehicle If you hire out or rent out an insured vehicle during the period of insurance, this extension provides cover: 1. for loss to the insured vehicle under Section 1; 2. for the liability of the hirer under Section 2; provided that: a. the hirer does not breach any express or implied term of the agreement to hire or rent the insured vehicle; b. there is no other insurance which covers the loss; and c. use by the hirer is comparable with your business or occupation. This extension prevails over ‘General Exclusions, Vehicle Use (a)’. ‘Automatic Extension, Invalidation’ does not apply to any claim under this extension. Profit Share If, at the end of the period of insurance, you agree to renew the insurance with us, we will adjust the premium paid for that period of insurance as follows: 1. 30 days after the end of the period of insurance the Net Premium will be totalled together with Incurred Claims costs as a result of accidents during the period of insurance, and 2. A loss ratio will be calculated by comparing the Net Premium to the total Incurred Claims costs, and 3. If this loss ratio is more than 60%, no profit share refund is payable. If the loss ratio is 60% or less, the amount of profit share refund will be calculated by using one of the following profit share percentages. Profit Share Percentage a. If the loss ratio is 40% or less = 20% profit share refund b. If the loss ratio is between 41% and 50% = 15% profit share refund c. If the loss ratio is 51% or more but not greater than 60% =10% profit share refund If a profit share is payable, then it will be calculated by multiplying the profit share percentage against the sum of Net Premium less Incurred Claim costs. This adjustment is processed net of commission. For the purposes of this extension: ‘Net Premium’ will mean gross premium and any additional or return premium adjustment, less commission if applicable ‘Incurred Claim costs’ will mean the total amount of claims paid and reasonable estimates of claims yet to be paid for claims arising in the period of insurance, including fees, net of actual and estimated recoveries. 26 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 GENERAL POLICY EXCLUSIONS These exclusions apply to all parts of this policy. Accident Compensation Act This policy does not insure: 1. liability for bodily injury which is covered by the Accident Compensation Act 2001 (‘Act’), and 2. in particular, liability for bodily injury payable as reparation for any amounts which are covered by the Act, or would be covered but for: a. a failure by the victim of offending to correctly notify a claim to the Accident Compensation Corporation within the time required under the Act, b. the victim’s decision, for whatever reason, not to claim any amount he or she would be entitled to claim under the Act, c. a decision by the Accident Compensation Corporation to decline a claim or limit its liability in whole or in part and for any reason whatsoever. Alcohol, Drugs and Other Intoxicating Substances This policy does not insure loss or liability when a vehicle is being driven by any person, including you, who: 1. has a proportion of alcohol in their breath or blood that exceeds the legal limit, or 2. is under the influence of alcohol or any other intoxicating substance or drug, or 3. fails or refuses to supply a breath or blood sample as required by law, or 4. fails or refuses to stop, or remain at the scene, following an accident (as required by law). This exclusion does not apply to any claim for loss arising from theft of an insured vehicle. It will be assumed that for 1. above that at the time of the loss or when liability arose the proportion of alcohol was no less than the proportion of alcohol in any subsequent blood sample or breath test subsequently carried out. Confiscation This policy does not insure loss or liability in connection with confiscation, nationalisation, requisition, destruction of, or damage to property by order of any Government, Public or Local Authority unless the order is given to prevent or control any accidental loss or damage that would otherwise have been covered by this policy. Electronic Data This policy does not insure loss or liability of any type in connection with: 1. loss of, alteration of, or damage to, or 2. reduction in functionality, availability or operation of, a computer system, hardware, programme, software, data, information repository, microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the insured’s property or not, that do not in and of themselves constitute an event unless arising out of one or more of the following events: a. fire, lightning, explosion, or b. aircraft or vehicle impact, falling objects, or c. windstorm, hail, tornado, cyclone, hurricane, earthquake, volcano, tsunami, flood, freeze, weight of snow, provided that this exclusion will not apply where such loss occurs as a direct result of physical damage which is otherwise covered by this policy and any such loss will be settled in accordance with the policy conditions and sum insured limits. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 27 Intentional or reckless acts This policy does not insure loss or liability arising from any intentional or reckless act or omission. Nuclear This policy does not insure loss or liability of any type in connection with nuclear weapons material, ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion (including self-sustaining process of nuclear fission) of nuclear fuel. Overloaded vehicles This policy does not insure loss or liability if the vehicle is loaded or operated contrary to the manufacturer’s recommended specifications or loaded or operated contrary to regulations or statute. This exclusion does not apply to any claim for loss arising from theft. Sanctions This policy does not insure any loss or provide any benefit under any section of this policy where a claim payment would breach any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of New Zealand, Australia, the European Union, United Kingdom or United States of America, or any local autonomous sanctions. Seepage, Pollution and Contamination This policy does not insure loss or liability of any type in connection with seepage, pollution or contamination, unless sudden, unintended and unexpected, occurring during the period of insurance. The coverage under this policy is limited to costs and expenses reasonably and necessarily incurred to: 1. remove, store and/or dispose of debris or the decontamination, demolish, dismantle, dewater, shore up, prop, underpin or carry out other temporary repairs consequent upon damage which is covered by the policy and caused by an insured event. 2. demolish and remove any property belonging to the insured which is no longer useful for the purpose it was intended for, provided such demolition and removal is necessary for the purpose of the reinstatement or replacement. 3. clean up and remove pollutants from land confined to insured premises if the discharge, dispersal, seepage, migration, release or escape of the pollutants is caused by an insured event. Terrorism Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed that this insurance excludes loss, damage, death, injury, illness, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss. This insurance also excludes loss, damage, death, injury, illness, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism Unlawful to Insure This policy does not insure loss or liability of any type in connection with any activity, event or occurrence deemed to be unlawful to insure against. Unlicensed drivers This policy does not insure loss or liability if the insured vehicle is being used or driven by any person who: 1. does not have a licence that is in full force and effect to drive the insured vehicle at the time and place of the loss; or 28 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 2. is not complying with the conditions of their licence. This exclusion will not apply if: i. prior to the loss, the driver had held the appropriate licence, is not disqualified from holding or obtaining the appropriate licence, and actually obtains the appropriate licence without carrying out a further test; or ii. the vehicle is being used for the purpose of teaching a learner to drive, if all requirements of the law are being complied with. Unsafe vehicles This policy does not insure loss or liability if the vehicle is being used in an unsafe condition. This includes any condition: 1. which is contrary to any recommendation by the manufacturer of the vehicle, or 2. as a result of which the vehicle is not fit to deal with any peril likely to be encountered during the course of its operation, when you, or any driver was (or should have been) aware of that condition. This exclusion does not apply to any claim for loss arising from theft of the vehicle. Vehicle use This policy does not insure loss or liability arising from use or driving of any vehicle insured under this policy: a. hired out or leased out to a third party for reward; or b. on a race track, or for pace making, reliability trials, hill climbs or speed tests, or while being used in preparation for any one of these activities. War This policy does not insure loss or liability of any type in connection with controlling, preventing or suppressing any of the following: war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, civil commotion assuming the proportions of or amounting to a popular rising, military rising, mutiny, rebellion, revolution, insurrection, military or usurped power. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 29 HOW TO CLAIM What You Must Do If anything happens that may lead to a claim under this policy, you must: 1. do what you can to take care of the vehicle and to prevent any further loss, expense or liability, and 2. tell us as soon as possible, and 3. notify the police as soon as possible if it is believed any loss was caused by an illegal act of a person other than a person covered by this policy, and 4. allow us to examine the vehicle before any permanent repairs are started, and 5. send to us as soon as possible, anything received from anyone about a claim or possible claim against you, or anyone else entitled to cover under this policy, and 6. give us any information or help that we ask for, and 7. consent to your personal information in connection with the claim being: a. disclosed to us, and b. transferred to Insurance Claims Register Limited, and 8. tell us immediately if you, or anyone else entitled to cover under this policy, are charged with any offence in connection with the use of an insured vehicle which resulted in loss of property or bodily injury to another person. 30 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 What You Must Obtain Our Agreement To Do You, and anyone else entitled to cover under this policy, must obtain our agreement before you: 1. incur any expenses in connection with any claim under this policy, or 2. negotiate, pay, settle, admit or deny any claim or reparation order made against you, or anyone else entitled to cover under this policy, or 3. negotiate, make or agree any offer of amends to a victim of offending by any person covered by this policy, or 4. do anything that may prejudice our rights of recovery. Things You Must Do After We Pay A Claim You, and anyone else entitled to cover under this policy, must: 1. tell us if any lost or stolen property which was part of the claim is found or recovered, and hand it over to us if we request it. 2. tell us if any person is ordered to make reparation to you for any loss or cost which is part of the claim, and reimburse us for that payment as soon as any reparation is received. Actions We May Take 1. SUBROGATION Once we have accepted any part of a claim under this policy, we may assume your, or any other person entitled to cover under this policy’s, legal right of recovery. If we initiate a recovery, we will include any excess, and any other uninsured losses suffered. Where we do this, you (or other person entitled to cover) agree to pay your or their proportional share of the recovery costs, and subsequently the proceeds of the recovery will be shared on the same proportional basis, except that we will reimburse the excess first. You, or any other person entitled to cover, must fully co-operate with any recovery process. If you don’t, we may recover from you the amount paid in relation to the claim. 2. CONDUCT OF DEFENSE We have the sole right to act in your name, or in the name of any other person entitled to cover under this policy, and on your or their behalf to defend, negotiate or settle any liability covered under ‘Section 2: Liability to third parties’ as we see fit (this will be done at our expense). We may elect at any time to pay the maximum amount payable under this policy, or any lesser sum that the liability can be settled for. Once we have paid this (plus any defense costs and expenses covered by this policy and already incurred, but less any applicable excess) our responsibility to you or any other person covered under this policy is met in full. The lawyers we instruct to act on your behalf or on the behalf of any other person entitled to cover, are authorised by you or such other person, to disclose to us any information the lawyers receive in that capacity, including information they receive from you or any other person. 3. WAIVER OF SUBROGATION (GROUP OF RELATED COMPANIES) Where you are a parent or subsidiary in a group of related companies, we waive any right of recovery you may have against any other company in the same group. A ‘group of related companies’ means a group of companies related to one another by virtue of such ownership. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 31 4. RECOVERIES If an insured vehicle or any property we have paid a claim for is later found or recovered, you must tell us immediately and hand it over to us if we request it. We have the right to keep the insured vehicle and any property that we have paid a claim for under this policy, including any proceeds if it is sold. 5. REPARATION If any person is ordered to make reparation to you for loss to an insured vehicle that we have paid a claim for under this policy, then you must tell us. Any payments received must first reimburse our claims payment up to the amount of any reparation received. GENERAL CONDITIONS YOUR OBLIGATIONS 1. BREACH OF ANY CONDITION If: a. you, or b. any other person we insure under this policy, or c. anyone acting on your behalf, breaches any of the conditions of this policy, we may: i. decline the claim either in whole or in part, and/or ii. declare either this policy or all insurance you have with us to be unenforceable. This is at our sole discretion. 2. TRUE STATEMENTS AND ANSWERS The application is the basis of this policy. Complete and correct statements and answers must be given (whether by you or any other person) when you: a. apply for this insurance, and/or b. notify us regarding any change in circumstances, and/or c. make a claim under this policy. 3. REASONABLE CARE You, and anyone using an insured vehicle, must take reasonable care at all times to avoid circumstances that could result in a claim. There is no cover if you are reckless or grossly negligent. 4. COMPLYING WITH THIS POLICY We will not pay any claim unless you, or any person who acts on your behalf, complies with this policy. This also applies to any other person who can claim under the policy. 5. CHANGES IN CIRCUMSTANCES You must tell us immediately if there are any: a. modifications to an insured vehicle, or b. change in the use of an insured vehicle, or c. material changes that might alter the nature of the risk insured or increase the chance of a claim under this policy. 32 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119  Information is ‘material’ where we would have made different decisions about either: i. accepting your insurance, or ii. setting the terms of your insurance, if we had known that information. If in any doubt, notify us anyway. The ‘risk insured’ refers to both: i. the actual property or liabilities covered (known as physical hazard), and ii. you or other persons covered by this policy (known as moral hazard). 6. VEHICLE VALUES All values of insured vehicles stated in the vehicle declaration must represent, as nearly as possible, their market value. Values such as book value, depreciated cost, written down value and residual value are not sufficient to comply with this policy condition. We may require you to provide vehicle declarations showing their book value, depreciated cost, written down value or residual value in your business records. 7. PRIORITY OF CLAUSES If there is any conflict or inconsistency between an extension and any other terms of this policy (other than the Policy Exclusions or Conditions), then the terms most favourable to you prevail. 8. PRIORITY LIMITS OF INDEMNITY Should the indemnity provided under this policy be insufficient to indemnify both you and any other person indemnified herein, it shall apply in priority to you as named in the schedule. CANCELLATION BY THE INSURED You may cancel this policy at any time. If you do, we will refund any premium that is due based on the unused portion of the period of insurance. BY US We may cancel this policy by giving you notice in writing or by electronic means at your last known address. The policy will be cancelled from 4pm on the 30th day after the date of the notice. We will refund you any premium that is due based on the unused portion of the period of insurance. HOW WE ADMINISTER THIS POLICY Change of Terms We may change the terms of this policy (including the excess) by giving you notice in writing or by electronic means at the last known address we have for you. The policy will be changed from 4pm on the 30th day after the date of the notice. Other Insurance You must tell us as soon as you know about any other insurance which covers an insured vehicle. This policy does not cover loss or liability at all if it is insured to any extent under any other insurance policy. We will not contribute towards any claim under any other insurance policy. Joint Insurance If this policy insures more than one person, then all persons are jointly insured. This means that a breach of this policy by any one person affects everyone’s ability to claim under this policy. We may choose to pay any claim in full to the person who is named first in the schedule, and this will meet all our obligations under this policy for that claim. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 33 Interests of Other Parties If we know of anyone who has a financial interest over an insured vehicle, we can pay them part or all of any claim proceeds. This payment goes towards meeting our obligations under the policy. However, anyone recorded as having a financial interest under this policy is not covered by it and has no right to make a claim. We are also authorised by you to disclose personal information about you to anyone who holds a financial interest in an insured vehicle. Total loss If we pay a claim for an insured vehicle that we determine is a total loss: 1. that insured vehicle will become our property, and 2. that vehicle is no longer an insured vehicle under this policy, and 3. we will not give any refund of premium, and 4. in the event premium for the period of insurance is paid in instalments, any unpaid premium for the balance of the period of insurance is due immediately and may be deducted from any payment made by us. LAWS AND ACTS THAT GOVERN THIS POLICY Governing Law and Jurisdiction The law of New Zealand applies to this policy and the New Zealand Courts have exclusive jurisdiction. Legislation Changes Where this policy refers to any Act of Parliament, it also includes any sub-ordinate legislation made under it, and any subsequent Acts or Regulations. Insurance Law Reform Acts The exclusions and conditions in this policy are subject to your rights under the Insurance Law Reform Acts 1977 and 1985. Currency Any amount shown in this policy or the schedule is in New Zealand dollars. Goods and Services Tax Where GST is recoverable by us under the Goods and Services Tax Act 1985: 1. all vehicle values specified in the vehicle declaration exclude GST, and 2. all limits and sub limits exclude GST, and 3. all excesses include GST, and GST will be added, where applicable, to claim payments. 34 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 DEFINITIONS The definitions apply to the plural and any derivatives of the bolded words. For example, the definition of ‘accident’ also applies to the words ‘accidentally’, ‘accidental’ and ‘accidents’. accessories A fitting or attachment that alters the performance, characteristics of, or is designed for use in, a vehicle to which it is attached but without which the vehicle would still operate, car tools, spare parts, and emergency aids, used exclusively for the insured vehicle (including when temporarily removed from the insured vehicle), for example but not limited to: on board computers, telephone installations, satellite navigation devices, remote controls for attached plant, load securing or protection equipment in, on or in connection with the insured vehicle, ropes, tarpaulins and racking installed in tradesmen’s vehicles, but not any mobile telephone or personal audio equipment unless permanently attached to the vehicle. accident An event occurring in New Zealand that is unintended, unexpected and unforeseen by you. act of terrorism An act of terrorism means an act, including but not limited to the use of force or violence and/or threat thereof, by any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation (s) or government(s) which from its nature or context is done for, or in connection with, political, religious, ideological, ethnic or similar purposes or reasons, including the intention to influence any government and/or to put the public, or any section of the public, in fear. application The information provided to us by you or on your behalf when you purchased this insurance or requested a quotation for this insurance from us. It also includes any subsequent information you provide us with. bodily injury The accidental death of or the accidental bodily injury to any person during the period of insurance, including sickness, disease, disability, shock, fright, mental anguish or mental injury. driver The person driving or operating any component of the insured vehicle (for example a crane or hoist). electronic data Facts, concepts and information converted to a form useable for communications, display, distribution, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment and includes programs, software and other coded instructions for such equipment. QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 35 excess The first amount of any claim that you must pay for an event, specified in the schedule or in this policy. event An event or series of events, arising from one source or original cause. insured vehicle 1. All vehicles listed in the vehicle declaration provided to us; and 2. Any other vehicle not owned by you that is a. hired in or rented in (and do not accept the rental owner’s statutory offer of insurance), or b. borrowed or loaned (for example a motor mechanic’s or panel beater’s loan vehicle) as a substitute of similar make, model and specification and capable of carrying out the activities of a vehicle fitting the description in 1. above, during the period of insurance. For the sake of clarity, this includes non-owned trailers. Note additional vehicles that you purchase or lease during the period of insurance are covered under the General Extensions - Additions and Deletions automatic extension. lease/leased A contract between you and someone else under which you have the right to use a vehicle for a term not less than one year in return for payment of money. loss Physical loss or physical damage. market value The reasonable sale price of the same or a comparable vehicle of similar pre-loss age, condition and specification, including the value of any accessories but excluding the value of any sign-writing. mechanical plant A vehicle, that has either plant or machinery attached to it, or is primarily designed as mobile plant or mobile machinery. natural disaster Earthquake, tsunami, volcanic activity, hydrothermal activity, geothermal activity, or subterranean fire, or fire following any of these. period of insurance The period of time stated in the schedule that specifies the start and end dates of this insurance contract. permitted use Used by you or anyone with your consent: 1. for your business or occupation; or 2. for your private, social or domestic purposes; or 3. for a business or occupation comparable with your business or occupation, when temporarily lent out by you. 36 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 reparation An amount ordered by a New Zealand Court to be paid to the victim of an offence under Section 32 of the Sentencing Act 2002. residual value The residual value of a leased insured vehicle calculated in accordance with the lease agreement relating to that insured vehicle. schedule The latest document issued to you which specifies limits and or sub limits and any applicable excesses under individual parts of the policy wording. This document forms part of your policy wording. subsidiary A company with more than half the nominal value of its equity share capital owned by a parent company, either directly or through other subsidiaries. total loss Actual total loss, or if we determine the insured vehicle is uneconomic to repair. vehicle Any type of motor vehicle, machine on wheels, tracks or rollers (but not rails) that is propelled by its own power, and anything designed to be towed by such motor vehicle, or machine, including any accessories and fit out of such a machine. vehicle declaration The list of insured vehicles stating their values (including the value for any signwriting) provided by you at the inception of this policy, and any subsequent endorsement or renewal. we QBE Insurance (Australia) Ltd. We may also use the words ‘us’ ‘our’ or ‘company’ to describe QBE. you The person(s) or entity named in the schedule as ‘Insured’ including any: 1. subsidiary, or 2. Associated management company, or 3. Associated social or sporting club, or 4. New organisation or company formed or acquired by you during the period of insurance; 5. driver with your consent. We may also use the word ‘Insured’ to describe you. Underwritten by QBE Insurance (Australia) Limited ABN 78 003 191 035, Incorporated in Australia As a member of the Insurance Council of NZ, QBE is committed to complying with the Fair Insurance Code. A copy of the Code can be found at www.icnz.org.nz QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119 37 38 QBE – Steadfast Commercial Motor Vehicle Wording (012019) STFTQMV0119