> _Markdown transcription of Zurich New Zealand Zurich NZ Motor Insurance policy wording, effective 2023-11-01. Source: https://edge.sitecorecloud.io/zurichinsur0b40-zwpaustrali7d46-prod0760-b10c/media/project/zurich-headless/shared/content/dam/nz-documents/motor-insurance/motor-insurance-policy.pdf_ --- Zurich Motor Insurance Policy Wording  Contents About our Motor Insurance About Zurich .......................................................................................................................................................................................... 2 Duty of Disclosure .............................................................................................................................................................................. 2 Non-disclosure or Misrepresentation ................................................................................................................................... 2 Our Contract .......................................................................................................................................................................................... 2 Insuring Clause .................................................................................................................................................................................... 2 Definitions ................................................................................................................................................................................................ 3 Scope of Cover .................................................................................................................................................................................... 5 Policy Exclusions ................................................................................................................................................................................ 6 General Exclusions ............................................................................................................................................................................ 7 Policy Extensions ................................................................................................................................................................................ 9 Optional Extensions .......................................................................................................................................................................... 16 Policy Conditions ................................................................................................................................................................................ 18 General Policy Conditions............................................................................................................................................................. 19 ZU24282 - V2 11/23 - ITRN-021563-2023 Page 1 of 20 About our Motor Insurance About Zurich The insurer of this product is Zurich Australian Insurance Limited (ZAIL incorporated in Australia), ABN 13 000 296 640, trading as Zurich New Zealand. In this policy wording, Zurich New Zealand may also be expressed as ‘Zurich’, ‘we’, ‘us’ or ‘our’. ZAIL is part of the Zurich Insurance Group, a leading multi-line insurer that serves its customers in global and local markets. Zurich provides a wide range of general insurance and life insurance products and services in more than 210 countries and territories. Zurich’s customers include individuals, small businesses, mid-sized and large companies, including multinational corporations. Duty of Disclosure Before you enter into a contract of general insurance with us, you have a duty at common law to disclose to us every matter you know, or could reasonably be expected to know, that a prudent insurer would want to take into account in deciding whether to insure you and, if so, on what terms. This applies to all persons to be covered under this contract of insurance. You have the same duty to disclose those matters to us before you renew, extend, vary or reinstate a contract of general insurance. This duty however, does not require disclosure of a matter that: s diminishes the risk to be insured; s is of common knowledge; s we know or in the ordinary course of our business we ought to know; s we indicate to you that we do not want to know. Non-disclosure or Misrepresentation If you make material misrepresentation to us, or if you do not comply with the duty of disclosure we may treat your policy as if it never existed. Our Contract This policy is a contract of insurance between you and Zurich and contains all the details of the cover that we provide. The policy is made up of: s the policy wording. This is common to all customers who buy our Zurich Motor Insurance product. It tells you what is covered, sets out the claims procedure, exclusions and other terms and conditions of cover; s the proposal, which is the information you provide to us when applying for insurance cover; s the most current policy schedule issued by us. The schedule is a separate document unique to you, which shows the insurance details relevant to you. It includes any changes, exclusions, terms and conditions made to suit your individual circumstances and may amend the policy; and s any other written changes otherwise advised by us in writing (such as an endorsement). These written changes vary or modify the above documents. This policy wording is used for any offer of renewal we may make, unless we tell you otherwise. Please keep your policy in a safe place. We reserve the right to change the terms of this policy wording where permitted to do so by law. Insuring Clause At your request and based upon the information provided to Zurich, we will provide the insurance terms referred to in this policy in respect of events happening during the period of insurance stated in the schedule. You in turn have accepted these terms and, in doing so, have accordingly agreed to pay the agreed premium to us. Page 2 of 20 Definitions Accident accident means an unforeseen and unintended happening or event occurring anywhere within New Zealand (or elsewhere when specified in the schedule). Accidental refers to accident as defined above. Act of terrorism act of terrorism means any act, or preparation in respect of action, or threat of action designed to influence the government de jure or de facto of any nation or any political division thereof, or in pursuit of political, religious, ideological or similar purposes to intimidate the public or a section of the public of any nation by any person or group(s) of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s) de jure or de facto, and which: (a) involves violence against one or more persons; (b) involves damage to property; (c) endangers life other than that of the person committing the action; (d) creates a risk to the health or safety of the public or a section of the public; or (e) is designed to interfere with or to disrupt an electronic system. Advanced Driver Assistance Systems (ADAS) advanced driver assistance systems means the electronic systems fitted to your vehicle that are designed to assist with the safety, control or driving of the vehicle. Battery electric vehicle (BEV) battery electric vehicle means a vehicle that solely uses one or more electric motors for propulsion that are powered by a self-contained battery which requires charging from an external power source. Cost price cost price means all costs incurred by you in obtaining your vehicle and preparing your vehicle for sale. Computer virus computer virus means an executable program or computer code segment that is self-replicating, requires a host program or executable segment in which it can be contained, and which destroys or alters the host, program or other computer code or data, causing undesired program or computer system operation. Cyber Act cyber act means any unauthorised, malicious or criminal acts, regardless of time and place, involving access to, processing, use or operation of any computer systems, computer software program, malicious code, computer virus or process or any other electronic system. Data Processing Media data processing media means any property in the vehicle on which electronic data can be stored but not the electronic data itself. Deductible deductible means the first amount of each and every claim for which you must pay when you make a claim under this policy, unless we state that a deductible does not apply. We will pay for covered amounts above any deductible amounts to be met by you. The amount of the deductible is shown in the schedule. The deductible will apply separately to each vehicle and each claim on that vehicle. Where more than one of your vehicles is involved in the same accident, only the higher deductible will apply. Page 3 of 20 Description of use description of use means while being driven by you, or anyone with your consent: (a) in the course of your business as disclosed to us; or (b) for private, social or domestic purposes; or (c) in the course of your business comparable, as declared to us, and having been temporarily lent out by you. Driven driven means the active driving of, or operation or use of your vehicle. Any reference to the driver will include the user or operator of any component of the vehicle, whether or not it is the driver. Electric Vehicle electric vehicle means a battery electric vehicle (BEV) or a plug-in hybrid electric vehicle (PHEV). Electric vehicle does not include micromobile vehicles (such as e-scooters and e-bikes) or light electric vehicles. Electronic Data electronic data means facts, concepts and information converted to a form usable for communications, interpretation or processing by electronic or electromechanical data processing or electronically controlled equipment and includes programs, software and other coded instructions for the processing and manipulation of data or the direction and manipulation of such equipment. Loss loss means sudden physical loss, damage or destruction to your vehicle caused by an accident. Market Value market value means the price for which you can purchase the same vehicle or a comparable one of similar pre-loss age and condition. Period of Insurance period of insurance means the period of time stated in the most recent schedule to which cover under this policy applies. Plug-in Hybrid Electric Vehicle (PHEV) plug-in hybrid electric vehicle means a vehicle that uses both an internal combustion engine and one or more electric motors for propulsion that are powered by a self-contained battery which requires charging from an external power source. Public relations expenses public relations expenses mean the reasonable fees and related expenses of a public relations firm or consultant, crisis management firm or law firm, which you may engage with our prior written consent to prevent or limit adverse effects or negative publicity in respect of a covered claim or loss. Public road public road means any place the public has access to and uses as an access way or thoroughfare, including roads, bridges, culverts, beaches, riverbeds, reserve lands, ferries, wharfs, tracks or any other passage way. Schedule schedule means the most current policy schedule and endorsements issued to you, and includes any subsequent policy schedules and endorsements which may be issued if this insurance is renewed. Page 4 of 20 Tool of trade tool of trade means the use or operation of a vehicle and/or any attachment, equipment, tool or apparatus which forms part of the vehicle, but only whilst engaged in and undertaking its designed purpose of digging, scraping, shovelling, grading, boring, drilling, compacting, harvesting, ploughing, shredding, lifting, clearing, levelling, hosing, vacuuming or suction activities, pumping, spraying or similar activities. Total loss total loss means where the vehicle is so damaged that the cost of repairs, plus the salvage value, exceeds the market value or the sum insured value of the vehicle (as specified in the schedule), taking into account relevant legislative requirements to this determination. Total loss includes a constructive total loss. Vehicle vehicle means any type of machine on wheels, tracks or rollers that is mechanically propelled by its own power and anything designed to be towed by such a machine. A vehicle includes an electric vehicle. Vehicle Accessories vehicle accessories mean such things as spare parts, on-board computers, telephone installations, load securing or protection equipment in or on your vehicle, but excluding any item of electrical or communication equipment not permanently affixed to the vehicle and wired into to the vehicle’s electrical system. Accessories refers to vehicle accessories as defined above. You, Your, Insured you, your, insured means the Insured named in the schedule, including any: (a) committee or boards established by you; (b) subsidiary company or subsidiary thereof; (c) associated managed company; (d) social and/or sporting club; (e) employee and/or elected member and/or official; (f) new entity formed or acquired by you through consolidation, merger, purchase or assumption of control or management during the period of insurance. Where there is more than one party named in the schedule this policy insures those parties jointly. Your Vehicle your vehicle means all vehicles and, where specified in the schedule, also includes vehicular equipment of every description, including mobile pIant and mobile equipment owned or used, which includes being leased, lent, borrowed, hired or under your care, custody and control for which you are responsible for, including their accessories. Scope of Cover Your Vehicle – Section 1 This Section covers loss by indemnifying you for the lesser of: (a) paying for the cost of repair; (b) paying the amount equal to the reasonable cost of repair; (c) paying any amount equal to its market value at the time of loss; (d) replacing your vehicle; or (e) where your business is specified in the schedule as a motor vehicle dealer, cost price at the time of loss in respect of stock vehicles Our liability shall not exceed the market value for your vehicle. Page 5 of 20 However, where you have not complied with General Policy Condition 8. ‘Sums Insured’, our liability shall be either the market value or the Sum Insured, as shown in the schedule, whichever is the lesser. We shall not be liable for that portion of any repair or replacement, which improves the condition of your vehicle beyond its condition before the loss. Also, if any part or component of your vehicle is no longer manufactured, we shall not be liable for more than the supplier’s or manufacturer’s last list price. Your Legal Liability – Section 2 This Section covers your liability at law to indemnify third parties for their loss or injury in the event of accident, caused by, or in connection with your vehicle, including any person in or on, or getting in or on, or getting out of or off, your vehicle and while it is being loaded or unloaded. Our total liability shall not exceed the limit specified in the schedule in respect of any one claim or claims arising from any one accident. In addition to the limit specified in the schedule we will pay all reasonable costs and legal expenses in defending any claim arising out of an accident and for which we have accepted indemnity under this Section. Policy Exclusions Exclusions – Section 1 Section 1 does not cover: 1. consequential loss, inconvenience, or any other resulting detriment of any kind. 2. depreciation or loss of value. 3. wear and tear, rust, corrosion, deterioration. 4. mechanical, electrical or electronic breakdown, failure or breakages. 5. loss to any part or component of the engine, hydraulic or transmission systems resulting from the causes set out in Exclusions 3 and 4. above (e.g. incorrect gear change other than a genuine attempt to prevent collision or impact, servicing or error in lubricant). 6. loss to tyres or tracks by application of brakes or by punctures, tears or rips, cuts, splits or bursts unless caused at the same time as other loss for which a claim is payable. 7. loss arising from ingestion or entry of any foreign object into any agricultural implement or machine (e.g. tractor or hay bailer). 8. loss arising from failure of, or defect or fault in the design or specification. 9. loss and any distortion, erasure, corruption or alteration of or loss of use of electronic data. This Exclusion shall not apply to any loss to data processing media except to the extent cover is provided by Automatic Extension 10. Data and Processing Media. Exclusions – Section 2 Section 2 does not cover liability: 1. in connection with the bringing of a load to your vehicle or the taking away of a load from it. 2. for any property (including any road or land) arising from vibration caused by your vehicle or from the weight of the load carried by your vehicle, or from the weight of your vehicle or from the combined weight of the load and your vehicle. 3. directly or indirectly caused while any component of your vehicle is being used or operated as a tool of trade; however this does not apply while your vehicle is in transit or being used for transport or haulage. Page 6 of 20 4. in respect of any property which belongs to you, or is in your care, custody or control, other than: (a) personal baggage and wearing apparel of any passenger; (b) a buiIding leased or rented by you; (c) a vehicle (not being your property or insured under Section 1 of the policy) which is being towed by your vehicle, however this does not apply to vehicles which are towed or recovered for reward where your business includes a vehicle recovery service; (d) a battery that is leased or hired by you for use in your electric vehicle. 5. in respect of property, or death or injury to any person, who at the time of the accident, was in charge of your vehicle. 6. arising as a result of a judgment or order of any court outside New Zealand, or for any debt based on such judgment or order. 7. for any deductible applicable to your claim. General Exclusions This policy does not cover any loss or liability: 1. while your vehicle is: (a) being driven outside of the description of use. (b) being driven in connection with: (i) racing, pacemaking, reliability trial, hill climbing or speed tests, or in preparation for any one of these activities (such as pacemaking); or participating in any directly associated activity (such as safety vehicle duties) where the vehicle is required to be on the track or trackside; or (ii) advanced or high performance driver training events; or (iii) any stunt, film, video or audio recording including the preparation thereof; or (iv) any experiment; or (v) recreational offloading which is not on a public road. (c) being driven: (i) to run on railway or tramway lines, tracks or cable; or (ii) in any underground mine, quarry, tunnel (excluding public roads), excavation or cavity. (d) being driven in any condition: (i) where your vehicle has been maintained contrary to the manufacturer’s servicing recommendations for that vehicle; or (ii) as a result of which the vehicle is not fit to deal with any peril likely to be encountered during the course of its normal operation. Provided this General Exclusion will only apply if you were, or the person in charge of your vehicle was, aware, or with reasonable diligence ought to have been aware, of the unsafe condition. General Exclusions 1(a) to 1(d) above shall not apply in respect of loss which results from theft or conversion. (e) being driven by any person who is not the holder of a licence for the appropriate class and use applicable to the operation of your vehicle or its components, or who is breaching any condition of their licence. Provided this Exclusion shall not apply if the driver had held, and is not disqualified from holding or obtaining, and actually obtains a licence, nor if your vehicle is being used for the purpose of teaching a learner to drive if all requirements of the law are being complied with. Page 7 of 20  (f) being driven by any person, who: (i) is under the influence of any intoxicating substance or drug; or (ii) has a proportion of alcohol in the blood which exceeds the legal limit (this Exclusion shall apply notwithstanding the driver may have died as a result of the accident); or (iii) has a proportion of alcohol in the breath which exceeds the legal limit; or (iv) fails to supply a blood or breath sample as required by law; or (v) fails to stop, or remain at the scene, following an accident as required by law, provided: A. a certificate of conviction of the driver may be used by us as sufficient evidence for these Exclusions to apply where the offence was committed at the time of or following the accident. B. a certificate of analysis of the driver’s blood or a reading from an evidential breath testing device of the driver’s breath may be used by us as sufficient evidence of the driver’s minimum blood or breath alcohol level at the time of the accident. 2. incurred by you by virtue of an agreement and which would not have attached in the absence of such agreement. 3. to your vehicle caused by lawful seizure, confiscation, repossession or acquisition. 4. for death or injury which is recoverable or would have been recoverable under any statute or policy of insurance in substitution thereof. 5. which is directly or indirectly caused by: (a) war, invasion, act of foreign enemy, war-like operations (whether war be declared or not), civil war, rebellion, revolution, insurrection, or military or usurped power; or (b) confiscation, nationalisation or destruction or damage to property by order of government, public or local authority; or (c) nuclear weapons material; or (d) ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel. Solely for the purpose of this Exclusion, combustion will include any self-sustaining process of nuclear fission. 6. deliberately brought about by you. 7. for any exemplary damages. (Please refer to Policy Extension 17. ‘Exemplary Damages’). 8. for death, injury, illness, or any other form of cover otherwise available under this policy of whatsoever nature directly or indirectly caused by, resulting from or in connection with any: (a) act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to such loss, damage, liability, death, injury, illness, cost or expense; or (b) action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism. notwithstanding any provision to the contrary within this policy or any endorsement thereto. 9. arising out of or in connection with a cyber act. Page 8 of 20 Policy Extensions Automatic Extensions 1. Additions and Deletions All of your vehicles disposed of during the period of insurance of this policy shall be treated as deleted from the date of their disposal and any vehicle acquired by you shall be covered by this policy from the date of its acquisition. For declaration purposes, you shall declare the vehicle’s market value and for each deletion the value shown on the latest schedule of vehicles as supplied by you. The premium for all additions and deletions shall be adjusted at the end of each year based on 50% of the difference in value of all new additions, less deletions on the premium rate agreed at the beginning of that period of insurance, provided our liability shall not exceed the limit specified in the schedule in respect of each new addition not already advised to us. 2. Battery Damage for Electric Vehicles Section 1 is extended to cover the costs or repairing or replacing the battery of your electric vehicle where damage to the battery is caused as a result of it being charged and regardless of whether any other loss has occurred to your electric vehicle. This Extension does not cover the costs of repairing or replacing a battery where any damage or loss is caused by a defect in the design, manufacture or installation of the battery. 3. Battery Coverage (leased or hired) Section 2 is extended to cover your liability to the owner or lessor of a battery that is leased or hired by you if a loss occurs to your electric vehicle. 4. Breach of Condition Cover provided by this policy will not be invalidated by any breach of condition, where the breach occurs without your knowledge, provided you notify us as soon as reasonably practicable upon becoming aware of such breach. . 5. Car Pooling and Sharing Payment made by passengers as part of a car sharing / pooling agreement does not constitute the conveyance of passengers for hire or reward. 6. Claim Preparation Costs Section 1 is extended to cover reasonable costs incurred by you for preparing a claim for loss which is payable under Section 1 or proving that the loss is claimable under Section 1. Our total liability shall not exceed the limit specified in the schedule, in respect of any one claim, nor begin unless such costs exceed $500 in respect of any one claim. 7. Cleaning up Costs Section 2 is extended to cover costs involved in cleaning or restoring the site of an accident following loss, which is a claim payable under Section 1, to as practically the same condition which existed immediately prior to the accident, charged by any entity. Our total liability shall not exceed the limit specified in the schedule, subject always to a deductible of $500 each and every claim. 8. Crisis Coverage The policy is extended to cover you, up to the sublimit as specified on the schedule to pay public relations expenses, incurred with our prior written consent, following any loss during the period of insurance. When your vehicle is stolen and not recovered, this Extension will have no application. Page 9 of 20 10. Data Processing Media Section 1 of this policy is extended to cover loss to data processing media in your electric vehicl, plus the costs of copying electronic data from back-up or from originals of a previous generation. Any costs incurred from research and engineering or recreating, gathering or assembling such electronic data shall be excluded. If such media is not repaired, replaced or restored then the basis of valuation shall be the cost of blank data processing media. 11. Defence Costs If you or one of your employees is: (a) charged with manslaughter or reckless or dangerous or careless driving causing death; or (b) legally represented at any enquiry or coroner’s inquest in connection with such death, and such death arises from loss, which is a claim payable under Section 1, this Extension covers the reasonable costs of legal representation. Our total liability shall not exceed the limit specified in the schedule in respect of any one accident, which is in addition to any amount payable under this policy. 12. Difference in Excess / Hired-in or Rental Vehicles Where you hire in or rent a vehicle in connection with your business and the hire agreement deems the owner of the vehicle responsible for insurance, your policy extends to cover any difference in the basic deductible level between your policy and the deductible level under the insurance coverage provided by the owner of the vehicle. 13. Disability Modifications If you or one of your employees is injured as a direct result of loss covered under Section 1 resulting in permanent disability which necessitates vehicle modifications (such as hand controls), either to your vehicle or to your employees’ private vehicle, Section 1 is extended to cover the reasonable cost of these modifications. We are only liable in excess of any amount payable by the Accident Compensation Corporation, and our total liability will not exceed $10,000 for any one accident. 14. Electric Vehicle Accessories Section 1 of this policy is extended to cover damage to and theft of electric vehicle charging cables and adaptors owned by you while they are being stored in, or being used to charge your electric vehicle, up to a limit of $5,000. 15. Electric Vehicle Charging Liability Section 2 of this policy is extended to cover your liability to indemnify third parties for loss or injury caused by or arising out of the charging of your electric vehicle. 16. Employees Vehicles This policy is extended to cover your employee’s vehicles or any other vehicle used by an employee, not being the property of their family residing with them, provided: (a) any claim for loss, damage or liability arises solely while the vehicle is being used on your business; or (b) the business use of the vehicle results in the employee’s personal motor vehicle insurance no longer applying. Our total liability shall not exceed the limit specified in the schedule in respect of any one accident. Page 10 of 20 17. Exemplary Damages In the event of an accident giving rise to a claim payable under of this policy, Section 2 is extended to cover your legal liability for exemplary damages in respect of death or bodily injury awarded by a New Zealand court, provided: (a) our total liability shall not exceed the limit specified in the schedule in respect of any one claim and in the aggregate for all claims during any one period of insurance; and (b) each and every claim under this Extension is subject to an additional deductible of $5,000. There is no indemnity under this Extension: (i) if the claimant was involved either directly or indirectly in driving, operating, directing or controlling your vehicle at the time of the accident; or (ii) for exemplary damages arising from any dishonest, fraudulent or malicious act or omission by you or anyone acting on your behalf or from any claim first notified to you but not notified to us within six (6) months of that date. Notwithstanding Policy Condition 7. ‘Other Insurance’, if at the time of the accident there is any other valid and collectable insurance covering all or part of the same claim, this policy will apply only to the amount of the claim over that recoverable under the other insurance. 18. Fire Service Charges The policy is extended to cover you for any charge the New Zealand Fire Service is authorised to make against you, under the Fire Services Act in connection with an accident involving your vehicle. Our total liability shall not exceed $50,000 in respect of any one accident. 19. First Aid Kits In the event of an accident giving rise to a claim payable under this policy, we will pay up to a maximum of $2,500 per claim to replace or restock any first aid kits or equipment in your vehicle damaged or used as a result of that accident. 20. Funeral Expenses If you or one of your employees dies as a direct result of loss covered under Section 1, 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 person, in excess of any amount payable by the Accident Compensation Corporation or another Insurance Provider. Cover includes any travel costs within New Zealand of the deceased person or any member of his or her immediate family (e.g. spouse, de-facto partner, parent, sibling or child). Our total liability will not exceed $10,000 in respect of any one accident. 21. Goods and Services Tax Policy sub limits and deductibles are GST inclusive, whereas market value is exclusive of GST (a claim for total loss will be settled up to the maximum amount insured by this policy plus GST). 22. Goods in Transit If there is a fire, or collision or impact to your vehicle with any object, or an overturning of your vehicle, or your vehicle is stolen, for which a claim is payable under Section 1 of this policy, this Extension covers loss or damage to your property which was being carried by the vehicle. Our total liability shall not exceed the limit specified in the schedule, in respect of any one accident, subject always to a deductible of $50. 23. Hoists This Extension covers mechanical breakdown or failure of hoists, permanently attached to the your vehicle, which is not due to wear and tear. Our total liability shall not exceed the limit specified in the schedule in respect of any one accident, subject always to a deductible of $500, or such other deductible amount specified on the schedule, whichever is the greater. Page 11 of 20 24. Ingestion of Foreign Object Notwithstanding Section 1 – Exclusion 7 this Extension covers loss or damage resulting from ingestion or entry of any foreign object into any agricultural implement or machine, provided this occurs whilst your vehicle is operated for the purpose for which it has been designed. Our total liability shall not exceed $10,000 in respect of any one accident. 25. Invalidation We shall indemnify you, where you have not waived any right of recovery against the driver or any other person(s) who has caused the loss or damage, in respect of loss or damage to your vehicle, whilst your vehicle is being driven without your knowledge and consent, in a manner which would fall within a policy Exclusion, should a claim arise under Section 1 of this policy. This Condition also extends to indemnify you for any Section 2 liability which may arise from such loss or damage. For the purposes of this Extension only, you shall mean any person you employed with your delegated authority, to control the conduct of the driver or, if the driver is of such senior capacity that his / her knowledge and consent is effectively your knowledge and consent, the driver himself / herself. 26. Joint Insured Where there is more than one insured named in the schedule, Section 2 is to apply separately to each insured, in the same manner and to the same extent as if a separate policy had been issued to each party. Our total aggregate liability, for all insureds, shall not exceed the limit of liability under Section 2. 27. Keys and Locks In the event that your vehicle’s keys are damaged, lost or stolen, this Extension will pay for the reasonable costs of their replacement and the recoding of electronic locks and ignitions where required. Our total liability shall not exceed the limits specified in the schedule both in respect of any one loss and in the aggregate for all claims in any one policy period. A deductible of $250 shall apply to each and every claim (including claims pertaining to theft). 28. Lease Value If your vehicle suffers a total or constructive total loss, settlement under Section 1 in respect of cars, station wagons, vans and utilities only, shall be on the basis of market value or Lease Value whichever is the greater at the time of loss. Lease Value shall mean the residual value of your vehicle which the lease company expects to realise at the termination of the contract. However, no settlement under this Extension shall include any: (a) penalties for early termination; or (b) penalties for any additional distances travelled; or (c) unpaid outstandings; or (d) penalties resulting from lack of or poor servicing or maintenance; or (e) balloon payments; or (f) payment on a lease where there is a guarantee buy back where the residual value exceeds more than 20% of your vehicle resale value. Our total liability shall not exceed 20% of the market value of your vehicle in respect of any one loss. 29. Load Recovery Provided that your vehicle is designed to do so, Section 1 is extended to cover the reasonable costs incurred in salvaging any load carried by your vehicle which following loss, for which a claim is payable under Section 1 of this policy, has spilled onto a road, carriageway or parking area, including the costs of reloading or trans-shipping the load to the nearest place of safe storage. Our total liability shall not exceed the limit specified in the schedule in respect of any one accident. Page 12 of 20 30. Marine Liability If your vehicle is transported by sea or air between places in New Zealand, Section 2 is extended to cover General Average and Salvage Charges, adjusted according to the contract of affreightment and or the governing law and practice, and covers you against such proportion of liability under the ‘Both to Blame Collision’ clause contained in any Contract of affreightment. For example, if the vessel carrying your vehicle is involved in a casualty or if cargo is jettisoned to save the voyage because the vessel is at peril, we shall cover contributory costs, regardless of whether or not your vehicle was damaged. 31. Movement of Other Vehicles Notwithstanding Section 2 – Exclusion 4., this Extension covers liability arising out of the movement by you of any vehicle, which was parked in a position which prevented or impeded you from attending any emergency, or legitimate passage of your vehicle or during loading or unloading of your vehicle. 32. New Replacement Vehicle In respect of any car, station wagon, utility, van or four wheel drive passenger vehicle, if there is a total or constructive total loss, for which a claim is payable under Section 1, occurring within twelve (12) months of your vehicle being first registered as a new vehicle, we shall at our option either provide you with or reimburse you the actual price paid for a new replacement vehicle of similar make and model, whichever is the lesser. 33. No Fault Deductible Waiver Where there is loss, which is payable under Section 1 of this policy, and the third party or the driver of the other vehicle is deemed 100% at fault for the accident, and: (a) the identity of the third party or the driver of the other vehicle is established; and (b) the amount of your claim exceeds the applicable deductible under the policy, then you will not have to pay any deductible towards the claim. Where the third party or the driver of the other vehicle disputes who was at fault, the applicable deductible will then become payable, but will be refunded if we are successful in establishing that the third party driver or driver of the other vehicle was 100% at fault. The deductible is payable if it is determined by a Court that the third party driver or other driver was not 100% at fault. Our total liability shall not exceed $10,000, or the limit specified in the schedule, in respect of any one accident. 34. Non-owned Trailers Liability Section 2 is extended to cover your liability where you may be held legally liable to pay, for actual physical damage to any trailer being towed by your vehicle, caused by or arising out of the use of your vehicle. However: (a) this Extension only applies if the trailer is not owned, rented, hired or leased by you, and at the time of the accident, the trailer is being towed in the course of your business; and (b) the cover provided does not extend to the contents of any non-owned trailer, nor clean-up costs associated with the contents of any non-owned trailer. When cover is provided by this Extension, Section 2 – Exclusion 4. does not apply. Our total liability shall not exceed: (i) the market value of the trailer just before the actual physical damage, based on its age and condition at that time; or (ii) $10,000, whichever is the lesser. Any cover provided by this Extension is subject to an additional deductible of $2,500 per non-owned trailer. Page 13 of 20 35. Other Interested Parties If there is any person or party who has a financial interest in your vehicle, which has been notified to us, the proceeds of any claim under Section 1 of this policy will be payable to such person or party in the order of their legal priority and the receipt of proceeds shall be sufficient discharge. Our total liability shall be limited to such amount as would have been payable to you in the absence of this Extension. 36. Portable Electronic Vehicle Accessories Section 1 of this policy is extended to cover damage to and theft of Radar Detectors and GPS navigation systems (such as ‘Navmans’) whilst in or attached to your vehicle at the time of the loss. Our total liability shall not exceed the limits specified in the schedule in respect of both any one loss and in aggregate for any one policy period. A deductible of $250 shall apply to each and every claim (including claims pertaining to theft). 37. Principals Indemnity In respect of any construction or works project, Section 2 of this policy is extended to indemnify the Principal of such project, but only in respect of their legal liability in terms of cover afforded by Section 2 of this policy arising from accidents in connection with your vehicle, used or operated in connection with such projects. 38. Progress Payments In the event of loss, for which we accept liability under Section 1, we shall make progress payments, provided you have supplied an interim statement of such loss which is approved by our assessor. 39. Rental Vehicles If you do not accept the vehicle owner’s statutory offer of insurance, this Extension covers hired vehicles, as if they were your vehicle, for your liability; (a) to the owner of the vehicle, against: (i) loss under Section 1 of this policy, subject to the limit specified in the schedule in respect of any one vehicle; or (ii) consequential losses caused by a loss for which a claim is payable under (i) above, subject the limit specified in the schedule in respect of any one claim, (b) under Section 2 of this policy. 40. Retrieval Costs In the event of your vehicle becoming unintentionally immobilised in any situation, other than as a result of mechanical, electrical, electronic failure, impact or accident related damage, we will pay you for the necessarily incurred costs of recovery and/or retrieval of your vehicle. However: (a) our liability in respect of such cost will not exceed $50,000 during the period of insurance; or (b) where you provide your own equipment, for the purpose of recovery, settlement shall be at cost, without allowance for profit. Nil deductible will apply if no other loss has occurred to your vehicle. 40. Sign Writing Section 1 of this policy is extended to pay reasonable replacement cost to any sign writing or artwork (including advertising signs) affixed to your vehicle at the time of the accident. Page 14 of 20 41. Subrogation Waiver (Group Companies) Where you have a parent or subsidiary in a group of related companies, this policy will not be invalidated by you waiving or having waived any right of recovery we may have against any other company in the same group, which is covered by this policy. For the purposes of this Extension, a subsidiary company means a company where more than half the nominal value of whose equity share capital is owned by a parent company either directly or through other subsidiaries; and a group of related companies means a group of companies related to one another by virtue of such ownership. 42. Theft Costs If loss results from theft of your vehicle in its entirety, which is payable under Section 1 of this policy, this Extension covers reasonable costs incurred by you for: (a) the protection and recovery or attempted recovery of your vehicle; or (b) any reward offered, with our prior approval, for the return of your vehicle; or (c) hiring another vehicle of similar make and model subject to a: (i) maximum weekly limit as specified in the schedule; or (ii) maximum limit for any one claim as specified in the schedule; or (iii) deductible of seven (7) days. Our total liability for (c) above shall not exceed the limits specified in the schedule in respect of any one claim. 43. Travel Costs If as a result of loss which is payable under Section 1 of this policy, you cannot complete your journey, Section 1 is extended to cover reasonable costs incurred in: (a) hiring another similar vehicle to either continue the journey, until your vehicle has been returned from the repairer, or to return to where the journey first commenced; and (b) returning your vehicle to you, in order to continue their journey, or to where your vehicle is normally based, following its repair. Our total liability shall not exceed the limit specified in the schedule in respect of any one accident and in the aggregate for all accidents in any one period of insurance. For the purposes of this Extension a journey is any travel where the destination is outside of the city or town limits from where travel commenced. 44. Treads and Tracks Damage The policy is extended to cover damage to tyres (including its inner tube) or metal tracks fitted to your vehicle, other than a vehicle principally used for road transport (e.g. van or truck). Our total liability shall not exceed the current replacement cost of the damaged tyre or track at the time of loss, less a reasonable deduction for its use, subject to the limit specified in the schedule in respect of any one tyre of and a deductible of $50 for each and every claim. 45. Vehicle Salvage and Safety Section 1 of this policy is extended to cover reasonable costs incurred in salvaging or recovering your vehicle, including the costs of ensuring its safety and delivery to a place of suitable repair or inspection, following loss for which a claim is payable under Section 1 of this policy. Page 15 of 20 46. Weight Damage Notwithstanding Section 2 – Exclusion 2, Section 2 is extended to cover liability caused by either the: (a) weight of the load carried by your vehicle; or (b) weight of your vehicle; or (c) combined weight of the load and your vehicle. Our total liability shall not exceed the limit specified in the schedule for any one accident and is subject to a deductible of $2,000 for each and every claim. 47. Windscreens and Windowglass If loss occurs solely to any windscreen or window glass (or any scratching or damage to body work resulting solely and directly from such breakage), this Extension covers the cost of either repairing or replacing them. Any payment by us will not be subject to any deductible, provided the deductibles listed in the schedule list windscreens and window glass as a deductible proviso, nor prejudice your premium rating. 48. Preferred repairer Where the vehicle requires repairs, you may select your preferred repairer to undertake repairs on the vehicle up to a maximum of $2,000, provided that we (or our assessor) have had the opportunity to examine the repairs. 49. Expediting expenses Following an accident to your vehicle, we will pay you for the reasonable additional costs necessary to effect immediate temporary repairs or to expedite permanent repairs for the loss to your vehicle. Provided such cost per accident does not exceed 50% of the repair costs, based on our assessment of those costs, or $5,000, whichever is the lesser. Optional Extensions The following optional Extensions only apply when stated in the schedule. 1. Burning Cost At the inception of the period of insurance, you will pay a deposit premium as shown in the schedule to us. At the expiry of the period of insurance, we will adjust the premium in accordance with the ’Sum Insured’ clause contained in the General Policy Conditions. Any additional premium owing to us, or rebate we owe you, will be added to, or subtracted from the deposit premium. The minimum and maximum premiums noted in the schedule, will at the same time be adjusted by applying the percentage factor by which the deposit premium has been so adjusted. Your ‘Burning cost’ premium will then be calculated by us as follows: Total incurred claims for the period of insurance, multiplied by the agreed adjustment factor as shown in the schedule. Subject to the adjusted minimum and maximum premiums, you must pay us, or we will rebate to you, the difference between the amount calculated by the adjusted premium and the deposit premium you have already paid. ’incurred claims‘ means total claims paid by us, less any recoveries received by us, during the period of insurance plus an amount for outstanding claims, including an allowance for claims incurred but not yet reported to us. We shall also retain the right to: (a) carry out a premium adjustment once incurred claims exceed 80% of the deposit premium and call up any additional premium which is in excess of the deposit premium; and (b) carry out a further adjustment at expiry of the current period of insurance; and/or (c) carry out a final premium adjustment dependent upon any subsequent claim movements relating to the period of insurance in respect of which the previous adjustment(s) occurred. Such adjustment is to occur within 12 months of the prior adjustment. Page 16 of 20 2. Profit Share At the end of each period of insurance, the Deposit Premium shall be adjusted on the Loss Ratio actually achieved. If the Loss Ratio is more than 60% then no refund of premium is due. However if the Loss Ratio is equal to or less than 60%, you shall be entitled to a refund by applying one of the following Profit Share Percentages against the Deposit Premium, less Losses: Loss Ratio Profit Share Percentage Less than 40%: 20% Between 41% and 50%: 15% Between 51% and 60%: 10% Over 60%: NIL Upon renewal of this policy for a further year, it is conditional that any Profit Share refund shall only be credited against the following year’s renewal premium. For the purposes of this Extension only: (a) Deposit Premium shall mean the amount of all gross premiums charged to you less any returns made during the year, but not including any previously earned Profit Share credit. (b) Loss Ratio shall mean the percentage derived by dividing Losses by the Deposit Premium. (c) Losses shall mean the total amount of claims paid and reasonable estimates of claims yet to be paid, including fees and net of actual and estimated recoveries as a result of accidents during the period of insurance. 3. Loss of Use (Replacement Vehicle Costs) If loss prevents you from using your vehicle, this Extension covers the reasonable cost of hiring a substitute vehicle, provided: (a) this Extension will apply to your vehicles specified in the schedule which are designated as subject to this Extension; (b) if you have suffered a loss for which a claim is payable under Section 1 in excess of the policy deductible; (c) the cover under this Extension is in addition to the cover for loss and is subject to the deductible for this Extension specified in the schedule; (d) compensation will begin when your vehicle is delivered to the repairer to start the repair or from the date of accident if your vehicle was totally disabled or lost at that date subject to the excess period specified in the schedule; (e) compensation will cease when the repairs are completed and you have taken delivery of the your vehicle or has returned the substitute hire vehicle (whichever occurs first). In the case of total loss, compensation will cease from the date when you receive payment for the total loss; (f) the substitute vehicle is of a similar specification to your vehicle; (g) no compensation will be paid if you have available a free replacement vehicle or purchased an additional or replacement vehicle; (h) the repair or replacement of your vehicle is carried out with reasonable dispatch. Any delay beyond the reasonable control of you will not be considered as a breach of this provision. Our total liability under this Extension will not exceed the limits specified on the policy schedule. For the purposes of this Extension only, your vehicle means only those vehicle(s) specified on the schedule as having elected this Extension. Page 17 of 20 Policy Conditions Claims Conditions 1. Section 1 If there is a claim under Section 1, you: (a) must take prompt steps to prevent and minimise loss; and (i) where the vehicle can be driven safely and without causing further loss, take it to a repairer or otherwise have it towed to the nearest suitable repairer or tow-yard; and (ii) as soon as possible, inform our nearest office and complete a claim form and deliver it to us. (b) Note: No repairs should be carried out until our surveyor / assessor has examined the vehicle and approved any repair work, unless this requirement is specifically waived by us prior to the commencement of the repair; and (c) is responsible for the payment of the deductible to the repairer. 2. Section 2 If there is a claim, or possible claim, under Section 2: (a) you must as soon as possible, complete and provide back to us, a claim form and must not, without our written consent: (i) incur any expenses in making good any loss to the property of others or incur any legal expense; (ii) make any statement or take action which may be considered to be an admission of liability; (iii) negotiate, pay, settle, admit or repudiate any claim made by another person, but must refer that person to us to handle the claim on your behalf. (b) we may pay to you , once incurred, the full amount of our liability for a claim under Section 2 and relinquish the conduct of any claim, defence or proceedings. We will not be liable for any costs or expenses whatsoever incurred by you or any other person after we have paid such amount and relinquished such conduct. 3. Additional Information We may require you, or any other person, to co-operate with us and supply any information or documentation or declaration we may reasonably require. 4. Notification to Authorities You will notify the police as soon as reasonably practicable in respect of loss or liability as a result of theft, conversion, arson, malicious damage; or death or bodily injury to any person; including the names and identities of any suspect or offender. Where an offender is positively identified and it is reasonable to do so, we may require you to lay a formal complaint with the police and request that charges be brought against the person or party responsible. 5. Total Loss If there is any payment by us in respect of the total loss (or constructive total loss) of your vehicle, the cover granted by this insurance on your vehicle ceases entirely from the date of such loss and no premium will be refundable for the unexpired period of insurance in respect of that vehicle. Your vehicle then becomes our property. 6. Subrogation If we indemnify you for any loss or liability, we shall be entitled to instigate, take over or defend any legal proceeding in your name, including any claim or counterclaim, and shall have full discretion to conduct or settle such proceedings including any recovery action. You shall render to us all reasonable assistance. Page 18 of 20 General Policy Conditions 1. Cancellation You may cancel this policy at any time by giving notice to us. We shall refund to you any unexpired premium already paid on a pro rata basis, however we may charge a cancellation fee. We may cancel this policy, by written notice to you, either delivered personally, posted, facsimiled or emailed to the address last known to us. Cancellation shall be effective from 4.00 pm on the 30th day after delivery. 2. Change of Exposure This policy was arranged on the basis of the information supplied to us from you or on your behalf. If any circumstances, with regard to the nature of the risk being insured, change during the currency of the policy, you will notify us as soon as you become aware of such change, for example: (a) modifications made to your vehicle (excluding conversion to LPG or CNG); (b) change in the use of your vehicle; (c) change in the physical ability of any driver. 3. Reasonable Care and Due Diligence You must exercise all reasonable care, precautions and use all due diligence to prevent loss to insured vehicles and prevent any liability and comply with all statutory obligations and by-laws or regulations imposed by any public authority for the safety of vehicles and for the carriage of passengers, goods or merchandise. 4. Fraud If any fraudulent means or devices are used by you, or anyone acting on your behalf, when entering into this insurance or to obtain any benefit under this policy, all benefits under this policy are forfeited. 5. Instalment Premiums If you elect to pay the premium by instalments then: (a) the instalment payment plan must first be approved by us; and (b) if paying quarterly then, notwithstanding the period of insurance stated in the schedule, the period of insurance is for three months only. However it will be continuously renewed thereafter for a further period of insurance of three months by payment of the next instalment due at the end of the previous period of insurance, until such time as this insurance is cancelled; and (c) if paying monthly, notwithstanding the period of insurance stated in the schedule, the period of insurance is for two months only. However it will be continuously renewed thereafter for a further period of one month by payment of next instalment premium due at the end of the previous period of insurance, until such time as this insurance is cancelled; and (d) where there is total or constructive total loss which is covered by this policy, we shall be entitled to deduct from any payment made to you or on your behalf or anyone entitled to indemnity under this policy, an amount equivalent to the annual premium otherwise payable by you if the decision had not been made to pay the premium by instalments. 6. Observance The due observance and fulfilment of the terms, provisions, conditions and endorsements of this policy in so far as they relate to anything to be done or complied with by you, and the correctness of the statements and answers in the proposal or supporting statements, or in any claim form, or in any statement in support of a claim, whether made by you or by others on your behalf, will be conditions precedent to our liability to make any payment under this policy. Page 19 of 20 7. Other insurance If at the time any claim arises under this policy, there is any other existing insurance covering the loss or liability, this policy will only apply in excess of the other insurance, even if there is a similar ‘Other Insurance’ condition in the other insurance policy. 8. Sums insured The values submitted to us for all your vehicles must represent, as nearly as possible, their current market value. Values such as book value, depreciated cost, written down value and residual value will not be sufficient to comply with this policy condition. In the event of a claim we may require you to provide schedules of your vehicles showing their book value, depreciated cost, written down value or residual value in your business records. 9. Sanctions regulation Notwithstanding any other terms or conditions under this policy, we shall not be deemed to provide coverage and will not make any payments nor provide any service or benefit to you or any other party to the extent that such cover, payment, service, benefit and/or any business or activity would violate any applicable trade or economic sanctions, law or regulation. 10. Proper law and jurisdiction The construction, interpretation and meaning of the provisions of this policy shall be determined in accordance with New Zealand law. In the event of any dispute arising under this policy including, but not limited to, its construction, validity, performance or interpretation, you will submit to the exclusive jurisdiction of any competent Court in New Zealand. A reference to any statute, regulation or subordinate legislation includes any amendment, replacement, successor or equivalent to or of that statute, regulation or subordinate legislation. Page 20 of 20 Zurich Australian Insurance Limited (incorporated in Australia) Trading as Zurich New Zealand ABN 13 000 296 640, AFS Licence No: 232507 Level 9, 29 Customs Street West, Auckland Central 1010 Client Enquiries Telephone: 0508 987 424 www.zurich.co.nz ZU24282 - V2 11/23 - ITRN-021563-2023