> _Markdown transcription of Initio Initio — Car Insurance policy wording, effective 2021-05-01. Source: https://initio.co.nz/policy-wording/initio_motor_vehicle_insurance_policy_NZ2105.pdf_ --- Initio motor vehicle insurance policy Policy Wording  Introduction About this policy Your policy consists of: 1. this policy wording, and 2. the schedule, and 3. any addendum, endorsement or warranty that we apply. Your duty of disclosure When you apply for insurance, you have a legal duty of disclosure. This means you 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. whether to accept or decline your insurance, 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. If you breach this duty, we may treat your policy as being of no effect and to have never existed. Please ask us if you are not sure whether you need to tell us about something. Changing your mind If you are not happy with this policy, you are welcome to change your mind, provided you tell us within 15 days of the date this policy started. We will treat your policy as being of no effect and to have never existed and refund in full any premium you have paid. This does not apply if you have made a claim on your policy. Reading this policy Some of the words in this policy are in bold. This is because they have a special meaning. There is a list of these words and what they mean at the back of this policy in the section ‘Definitions’. To make it easy for you to understand this policy we have included some examples or comments in italics. The words in italics do not affect or limit the meaning of the section they refer to. Please also note that the headings in this policy are designed to help you find your way around. They should not be used when interpreting this policy wording. Our agreement We have an agreement with you. You agree to pay us the premium. In exchange, and in reliance on the information provided in the application, we agree to cover you as set out in this policy wording. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 1  Use of the vehicle When cover applies: This policy applies only when any vehicle is being used in New Zealand (including in transit between places in New Zealand) during the period of cover for any personal or business purposes other than those excluded below. When cover does not There is no cover for any period that a vehicle is being used: apply: 1. to carry fare-paying passengers, e.g. as a taxi (other than private, not-for-profit car pooling), 2. for: (a) a courier or delivery business, (b) a servicing business that involves any installation, maintenance or repairs on or at homes or businesses, including, but not limited to, appliances, electrics, plumbing, glazing or commercial cleaning, (c) the motor trade or a driving educator profession, 3. to carry any goods or samples for financial gain or reward in connection with any trade or business other than farming, 4. for hire, including through a peer-to-peer arrangement, 5. in any type of motor sport, race, competitive trial or speed test, 6. on any racetrack, e.g. in driver training or track days, 7. to tow for financial gain or reward, 8. outside New Zealand. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 2  Type of cover that applies Type of cover options: The type of cover that you have is shown in the schedule. Full cover 1. If the schedule shows: ‘Type of cover: Full cover’, then you are covered under: (a) ‘Section one - loss to your vehicle’, and (b) ‘Section one - automatic additional benefits’, and (c) ‘Section two - your legal liability’, and (d) ‘Section two - automatic additional benefits’. Third party, fire & theft 2. If the schedule shows: ‘Type of cover: Third party, fire & theft’, then you: (a) have limited cover under ‘Section one – loss to your vehicle’. It only covers sudden and accidental loss to the car caused by: (i) fire, or (ii) theft or attempted theft, conversion, or (iii) natural disaster, and (b) are covered under the following ‘Section one – automatic additional benefits’: (i) ‘Child car seats’, and (ii) ‘Electrical or electronic hardware or system’, and (iii) ‘Methamphetamine contamination’, and (iv) ‘Protection against uninsured drivers’, and (v) ‘Temporary repairs’, and (vi) ‘Towing costs’, and (vii) ‘Transport costs’, and (c) are covered under ‘Section two - your legal liability’, and (d) are covered under ‘Section two - automatic additional benefits’. Third party only 3. If the schedule shows: ‘Type of cover: Third party only’, then you: (a) have no cover under ‘Section one – loss to your vehicle’, and (b) are covered under the following ‘Section one - automatic additional benefit’: (i) ‘Protection against uninsured drivers’, and (c) are covered under ‘Section two - your legal liability’, and (d) are covered under ‘Section two - automatic additional benefits’. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 3  Section one – loss to your vehicle What you are covered for: You are covered for sudden and accidental loss to the car that occurs during the period of cover in New Zealand (including in transit between places in New Zealand). What you are not covered for: Types of loss not covered You are not covered for: 1. depreciation, or 2. wear and tear, or rust or corrosion, or 3. loss of use, or 4. rot, mould or gradual deterioration, or 5. consequential loss, unless provided for under an additional benefit. For example, you are not covered for any loss in value of the vehicle following an accident. Breakdown or failure not You are not covered for damage or failure that is: covered 1. mechanical, or 2. electrical, or 3. electronic. However, this exclusion does not apply: (a) where the damage or failure results in or from fire, collision, overturning, immersion in water, flood, intentional damage (by someone other than you or anyone else covered by this policy), theft or conversion, or natural disaster, or (b) to the extent that cover is provided by the ‘Electrical or electronic hardware or system’ automatic additional benefit or the ‘NZI Roadside Assist’ optional additional benefit. You are not covered for damage or failure caused by the use of the incorrect fuel or additive, except to the extent that cover is provided by the ‘Incorrect fuel or additive’ automatic additional benefit. Tyres You are not covered for: 1. damage to tyres caused by braking, or 2. punctures, cuts or bursts to your tyres. However, this does not apply to punctures, cuts or bursts that result in or from: (a) fire, (b) collision, (c) overturning, (d) intentional damage (by someone other than you or anyone else covered by this policy), (e) theft or conversion, or (f) natural disaster. IMPORTANT: Please also read ‘Policy exclusions that apply to all parts of this policy’. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 4  What we will pay: Repairable damage If we consider the car is economic to repair, we have the option to: 1. arrange to repair the car, as near as reasonably possible, to the same condition it was in before the loss occurred, or 2. pay you the cost of repairs as estimated by our assessor. Quality guarantee We will give you a quality guarantee on all repairs to the car undertaken through our Approved Repairer Network following loss covered by this policy while you own the car. Availability of parts If any new parts, accessories or tools are unobtainable in New Zealand, we will pay up to the last known selling or list price in New Zealand plus the reasonable cost of fitting. Your contribution to If repairs put the car in a better condition than it was in just before the loss, you may be required by us improvements to make an appropriate contribution to the cost. We will get your agreement to this before starting the repairs. If you do not agree to pay the contribution we request, then we may pay you the cost of repairs as estimated by our assessor, excluding costs that improve the condition of the car before the loss. Total loss If we consider the car is a total loss, we will at our option: 1. pay you the sum insured if the schedule shows you have an agreed value policy, or 2. pay you the lesser of the market value or the sum insured if the schedule shows you have a market value policy, or 3. replace the car with a new vehicle of the same model and specification, provided: (a) the schedule shows ‘Type of cover: Full cover’, and (b) the loss occurred within 12 months of you purchasing the car new, and (c) the model and specification is available in New Zealand. The applicable excess will be deducted before we make any claim payment. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 5  Section one – automatic additional benefits These benefits are subject to the terms of this policy, except where the terms are varied in the benefit. The amount payable under each benefit is included in the sum insured, unless expressly stated that it is an additional payment. Accommodation costs We will pay for reasonable costs of accommodation for you, your passengers and domestic pets in the car if the car cannot be driven following loss covered by this policy. The most we will pay is $750 for any event. This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. Alternative transport We will contribute towards the reasonable hire costs incurred if you require a rental vehicle following loss covered by this policy while the car is: 1. being repaired, or 2. not fit to drive while awaiting repair, or 3. awaiting settlement of a total loss claim. Provided: (a) we have arranged the rental vehicle through our approved supplier, and (b) you contribute $20 per day (paid to our supplier when the rental vehicle is obtained), and (c) you pay any bond or deposit, and (d) you pay for all running costs. We will contribute towards these costs for a maximum of 14 days. The rental vehicle will be a passenger vehicle up to 2000cc. You do not have this cover if the car is a mobile home, motorcycle, caravan or trailer. This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. Child car seats If the car suffers loss covered by this policy and as a result of that loss: 1. there is loss to a child car seat or baby capsule in or on the car, or 2. in our opinion the safety of a child car seat or baby capsule in or on the car is compromised, we will pay the reasonable cost to replace the item. This is in addition to any payment under ‘What we will pay’ of ‘Section one - loss to your vehicle’. Electrical or electronic Where any electrical or electronic hardware component or system (excluding electronic data) of the car hardware or system has suffered loss covered by this policy, we will pay for the necessary and reasonable cost of restoring, re-setting or re-programming: 1. software, programs and other coded instructions to restore manufacturer’s settings, and 2. where work is required on any hardware component or system as part of repairing loss to other parts of the car. We will not pay any cost or expense incurred for any data stored on any hardware component or system (this includes data affected as part of any repair to the car). If the electrical or electronic hardware or system is a key or a lock, the most we will pay is $1,000 as per the ‘Keys and locks’ automatic additional benefit. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 6  Excess and no claims If the car suffers loss covered by this policy caused by a driver of another vehicle, we will not deduct the discount protection excess or adjust your no claims discount, provided you give us: 1. enough information to establish to our satisfaction that the driver of the other vehicle was completely at fault, and 2. the correct registration number of the other vehicle or information we need to positively identify the at-fault driver (including name and address), and 3. reasonable help to recover costs incurred through your claim. If the vehicle is a caravan Contents of the caravan If the car shown in the schedule is a caravan, this policy is extended to cover any: 1. fixture, fitting or furnishing that would normally be expected to be sold with the caravan, and 2. utensils, supplies, appliances and personal effects in the caravan belonging to you, your partner or any member of your family. The most we will pay is $1,000 for any event. Incorrect fuel or additive If the car suffers loss caused by the accidental use of: 1. the incorrect fuel type in the fuel tank of the car, or 2. an engine additive or a vehicle liquid in the fuel tank of the car, we will pay the reasonable cost of removing the fuel, engine additive or vehicle liquid and repairing the car, provided action is taken to prevent further loss as soon as reasonably possible after the mistake is realised. There is no cover for: (a) replacing the fuel, engine additive or vehicle liquid, or (b) loss caused by using contaminated fuel or using a contaminated engine additive or vehicle liquid, or (c) intentionally using the incorrect fuel, or (d) loss caused by using the incorrect octane level fuel over time, or (e) loss caused by not using an additive when this is required for the type of engine. Examples of using the incorrect fuel type or using an engine additive incorrectly include putting petrol in a diesel engine, diesel in a petrol engine or an exhaust emissions additive in a fuel tank. Keys and locks If any of the keys to the car are lost, stolen or believed on reasonable grounds to have been duplicated without your permission during the period of cover, we will pay the reasonable cost of replacing the keys and the locks. The most we will pay during the period of cover is $1,000. This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. A $100 excess applies to this automatic additional benefit. The loss of no claims discount does not apply to this automatic additional benefit. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 7  Methamphetamine This policy is extended to cover contamination damage to the car, provided such contamination damage contamination occurred in connection with the theft or conversion of the car during the period of cover. There is no cover for any contamination damage that is caused or contributed to, directly or indirectly, by or in connection with you or your partner, or any member of your or their family (including the theft or conversion by any of them). For the purposes of this exclusion, you includes any trustee or beneficiary of the trust if the car is owned by the trust, or any director or shareholder of the company if the car is owned by the company. We will at our option: 1. arrange to remediate the car, or 2. pay you the reasonable costs to remediate the car as estimated by our assessor. The most we will pay is the sum insured for any event. If the cost of remediation will put the car in a substantially better condition, you may be required to make an appropriate contribution towards this cost if we ask you to. Protection against If the schedule shows that you have ‘Third party, fire & theft’ cover or ‘Third party only’ cover, then this uninsured drivers policy is extended to cover sudden and accidental loss to the car during the period of cover caused by an uninsured driver of another vehicle you do not own, provided you give us: 1. enough information to show to our satisfaction that the driver of the other vehicle was completely at fault, and 2. the correct registration number of the other vehicle or information we need to identify the at-fault driver (including name and address), and 3. reasonable help to recover costs incurred through your claim. If the car cannot be driven, this includes the reasonable cost of moving it from the place where the loss occurred to the nearest repairer or place of security or storage, or to one near your home, including moving it between those places and the cost of storage. If we consider the car is economic to repair, we will at our option: (a) arrange to repair the car, as near as reasonably possible, to the same condition it was in before the loss occurred, or (b) pay you the cost of repairs as estimated by our assessor. If we consider the car is a total loss, we will pay you the lesser of the market value or the sum insured. The most we will pay for any event is $3,000. We will not deduct the excess or adjust your no claims discount. Replacement vehicle When you buy a replacement car for the car, we will automatically provide cover for that replacement car under this policy from the date of purchase, provided: 1. you notify us within 30 days of the date of purchase, and 2. the purchase price does not exceed $100,000, and 3. the purchase price will be the sum insured, and 4. you pay any additional premium that is required. Road clearing costs We will pay the reasonable costs incurred for removing debris from any road or adjacent area, following loss covered by this policy. This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 8  Temporary repairs We will pay the reasonable cost of temporary repairs to the car needed to make it roadworthy, to enable you to get to your destination or to a repairer following loss covered by this policy. This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. Towing costs We will pay the necessary and reasonable towing and rescue costs to move the car to the nearest repairer or place of security if the car can no longer be driven following loss covered by this policy. This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. Trailer cover This policy is extended to cover sudden and accidental loss to any trailer during the period of cover. We will at our option pay: 1. the cost of repairs, or 2. the market value. The most we will pay during the period of cover is $1,000. This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. A $100 excess applies to this automatic additional benefit. The loss of no claims discount does not apply to this automatic additional benefit. Transport costs We will pay the reasonable costs of: 1. transport for you, your passengers and domestic pets in the car, from the place where the loss occurred to your home or to your nearest immediate destination, and 2. returning the car to your home or to another place you and we agree, after the car has been repaired, if the car cannot be driven following loss covered by this policy. If the car is recovered following theft or conversion, we will pay the reasonable costs incurred to return the car to the place from where it was stolen or to another place that you and we agree. This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. Windows The excess and loss of no claims discount do not apply to a claim that is solely for sudden and accidental damage to windscreens, windows, sun-roofs, or driving lights of the car. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 9  Section one – optional additional benefit The following benefit is an optional additional benefit. Cover applies only if you have purchased the benefit and it is shown in the schedule. This benefit is subject to the terms of this policy, except where the terms are varied in the benefit. NZI Roadside Assist This policy is extended to provide NZI Roadside Assist for the car during the annual period. 1. NZI Roadside Assist will: (a) fit the car’s spare tyre if it has a flat tyre, and (b) access the car if its keys are locked inside, and (c) provide 5 litres of fuel if the car is out of fuel, and (d) jump-start the car if it has a flat battery. 2. NZI Roadside Assist will arrange to tow the car to the nearest approved repairer or place of safety if the car suffers mechanical or electrical damage or failure and: (a) cannot be easily mobilised at the roadside, or (b) requires replacement parts. 3. NZI Roadside Assist will not assist where the car: (a) has been left unattended, or (b) requires specialised salvage equipment, or (c) is not within easy access of a public road that is negotiable by a two-wheel drive vehicle, or (d) cannot be accessed due to extreme conditions such as snow, ice, flooding, road slips or the like, or (e) was being used for competitions or off-road activity, or (f) was involved in an accident or collision, or (g) was being misused. 4. NZI Roadside Assist will not assist: (a) towed vehicles such as boats, trailers and caravans, or (b) cars exceeding 3,000 kg. You are entitled to six call outs during the annual period. Extra call outs can be made, however, these will be charged to you at NZI Roadside Assist’s standard fee, and further assistance is at your expense. The excess and loss of no claims discount do not apply to this optional additional benefit. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 10  Section two – your legal liability What you are covered for: Your legal liability You are covered for: 1. your legal liability and defence costs, caused by your use of a vehicle in New Zealand (including in transit between places in New Zealand) occurring during the period of cover, arising from: (a) accidental loss to anyone else’s property (including loss of use), or (b) bodily injury to anyone else. 2. General Average or salvage charges that you are legally required to pay as a result of the car being carried by ship between places in New Zealand during the period of cover. Reparation You are covered for your legal liability to pay reparation to a victim who has suffered accidental loss of property or bodily injury as a result of your committing an offence during the period of cover in connection with your use of a vehicle in New Zealand (including in transit between places in New Zealand) provided: 1. you, or any other person entitled to cover under this clause, tell us immediately if you or they are charged with any offence in connection with the use of the car or a vehicle, that resulted in loss of property or bodily injury to another person, and 2. we give our written approval before any offer of reparation is made. There is no cover for any amounts that are covered under the Accident Compensation Act 2001 (the Act), or would be covered but for: (a) a failure by the victim to correctly notify a claim to the Accident Compensation Corporation within the time required under the Act, or (b) the victim’s decision, for whatever reason, not to claim any amount they would be entitled to claim under the Act, or (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. Nothing in this clause should be taken as providing cover for any defence costs, court costs, levies or costs awarded for any offence. Other person’s liability We will cover the legal liability, including legal liability to pay reparation, of any other person caused by or through or in connection with their use of the car, occurring during the period of cover, in the same manner as we cover you, provided: 1. such use has your permission, and 2. their liability is not covered by any other insurance, and 3. they meet the terms of this policy. Vicarious liability This policy is extended to cover your employer’s vicarious liability while the car is being used for the business of your employer by you, or by any other employee who has your permission, provided: 1. the liability is not covered by any other insurance, and 2. they meet the terms of this policy, and 3. the use of the car meets all the same terms of this policy that you must meet. Vicarious liability means that your employer may be held responsible for injury or damage, even if they were not actively involved in the incident. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 11  What you are not covered for: You are not covered for: 1. liability for loss to any property: (a) owned by or in the care of you or anyone we cover under this policy, other than for: (i) a disabled vehicle being towed without charge by the vehicle, or (ii) personal effects being carried by and belonging to any passenger in the vehicle, or (b) being carried by or loaded into or unloaded from the vehicle or a caravan or trailer attached to the vehicle, other than specified under (a) (ii) above. 2. liability connected in any way with any contract or agreement, unless you would have been liable even without the contract or agreement. 3. any fine, penalty, or punitive or exemplary damages. 4. legal defence costs or court costs arising from the prosecution of any offence under any Act of Parliament including any regulations, rules or bylaws made under any Act of Parliament. 5. liability connected in any way with any seepage, pollution or contamination (including the cost of removing, nullifying or cleaning up), unless the seepage, pollution or contamination occurs during the period of cover and is caused by a sudden and accidental event that occurs during the period of cover. IMPORTANT: Please also read ‘Policy exclusions that apply to all parts of this policy’. What we will pay: Amount payable for We will pay for: property damage 1. liability, including liability for reparation, for loss to property, and 2. reasonable legal costs and expenses incurred with our approval, and 3. costs awarded against you by a court. The most we will pay is $20,000,000 for any event. This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. Amount payable for bodily We will pay for: injury 1. liability, including liability for reparation, for bodily injury, and 2. reasonable legal costs and expenses incurred with our approval, and 3. costs awarded against you by a court. The most we will pay is $1,000,000 for any event. This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. Amount payable for a The most we will pay for property damage and bodily injury resulting from one event is $20,000,000. claim for bodily injury and property damage This is in addition to any payment under ‘What we will pay’ of ‘Section one – loss to your vehicle’. Settlement of any claim We may pay the full amount under this part of this policy, or any lesser amount for which the liability can be settled plus defence costs incurred, and this will meet all our obligations under this part of this policy. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 12  Section two – automatic additional benefits These benefits are subject to the terms of this policy, except where the terms are varied in the benefit. Manslaughter defence We will pay for: costs 1. legal defence costs and expenses necessarily and reasonably incurred, to defend a charge of manslaughter, or dangerous driving causing death or careless driving causing death, and 2. costs necessarily and reasonably incurred for legal representation at any inquiry or coroner’s inquest in connection with a death, resulting from: (a) you or your partner driving the car, or (b) any member of your family driving the car with your permission, or (c) you or your partner driving any vehicle that you or your partner do not own and are not purchasing, provided you or your partner has the owner’s permission to drive the vehicle, during the period of cover. ‘Section two – your legal liability’ – ‘What you are not covered for’ – Clause 4 (defence costs) does not apply to this automatic additional benefit. The most we will pay is $10,000 during the period of cover. The excess does not apply to this automatic additional benefit. Towing We will cover you while the car is being used for towing, provided such towing is not for financial gain or reward (financial gain does not include the reimbursement of normal running costs of the car). Initio motor vehicle insurance policy NZ21/05 initio.co.nz 13  Policy exclusions that apply to all parts of this policy Alcohol, drugs and other There is no cover under this policy if the driver of, or the person using the vehicle: intoxicating substances 1. has a breath alcohol or blood alcohol concentration that exceeds the legal limit, or 2. refuses to undergo a breath or blood test after an accident, when legally required to do so, or 3. is under the influence of a drug or any other intoxicating substance to such an extent as to be incapable of having proper control of the vehicle, or 4. fails or refuses to stop, or remain at the scene, following an accident (as required by law). This exclusion does not apply if the driver of the vehicle has stolen or converted it, provided you lay a complaint with the police. Confiscation You are not covered for any loss, damage, cost, expense, prosecution or liability connected in any way with confiscation, nationalisation, requisition, acquisition, or destruction of or damage to property by order of government, public or local authority or under any Act or Regulation, unless such order is required to prevent or control loss that would otherwise have been covered by this policy. Electronic data and You are not covered for any loss, damage, cost, expense, prosecution or liability connected in any way programs with electronic data arising from any cause whatsoever including, but not limited to, a computer virus. This includes loss of use, reduction in functionality or any other associated loss or expense in connection with electronic data. However, this exclusion does not apply to: 1. physical damage to other covered property that results from that loss of or damage to electronic data, and which is not otherwise excluded, and 2. any loss covered by the ‘Electrical or electronic hardware or system’ or ‘Keys and locks’ automatic additional benefits. Excess For each incident, the relevant excess will be deducted from the amount of your claim unless stated otherwise under an additional benefit. If you have more than one car covered under this policy, the excess applies individually to each vehicle. If a single incident results in more than one claim under any private motor vehicle, home, contents or pleasurecraft policy you have with us of the same brand and at the same address, we will only apply one excess. This will be the highest excess of the policies being claimed under, except where the claims relate to a collision between your insured motor vehicles, in which case we will apply the excess of the vehicle driven by the person most at fault. The excess is deducted after any policy limits have been applied. For example, if a limit of $1,000 applies and an excess of $400 is payable by you, the amount we will pay is $600. Intentional or reckless acts You are not covered for any loss, damage, cost, expense, prosecution or liability arising from any intentional or reckless act or omission by you or anyone else covered by this policy. Modified vehicle There is no cover under this policy if the car has been modified, unless details of all the modifications have been given to us and we have agreed to those modifications in writing. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 14  Nuclear You are not covered for any loss, damage, cost, expense, prosecution or liability of any type in connection with: 1. ionising radiation or contamination by radioactivity from: (a) any nuclear fuel, or (b) any nuclear waste from the combustion or fission of nuclear fuel. 2. nuclear weapons material. Other use of the vehicle You are not covered for any loss, damage, cost, expense, prosecution or liability where the vehicle or anything attached to the vehicle is not being used in accordance with the description in ‘Use of the vehicle’. Sanctions You are not covered for any loss, damage, cost, expense, prosecution or liability to the extent that the provision of such cover or the payment of such claim would contravene any: 1. sanction, prohibition or restriction under any United Nations resolution, or 2. trade or economic sanctions, laws or regulations of New Zealand, Australia, the United Kingdom, the United States of America or the European Union. Terrorism You are not covered for any loss, damage, cost, expense, prosecution, death or liability of any type in connection with an act of terrorism, including in connection with controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism. Unlawful substances You are not covered for any loss, damage, cost, expense, prosecution or liability connected in any way with contamination from any ‘controlled drug’ as defined in the Misuse of Drugs Act 1975. However, this exclusion does not apply to loss covered by the ‘Methamphetamine contamination’ automatic additional benefit. Unlicensed drivers There is no cover under this policy if the driver of any vehicle: 1. does not comply with all the conditions of their driver licence, or 2. is not legally allowed to drive in New Zealand. This exclusion does not apply if the driver of the vehicle has stolen or converted it, provided you lay a complaint with the police. Unsafe or unroadworthy You are not covered if the vehicle is being used in an unsafe or unroadworthy condition, and: 1. the condition of the vehicle contributed to loss or liability, and 2. the driver should have been aware of that condition and that the condition could result in loss or liability. War You are not covered for any loss, damage, cost, expense, prosecution, death or liability of any type in connection with any of the following, including controlling, preventing or suppressing any of the following: war, invasion, act of foreign enemy, hostilities (whether war is declared or not), civil war, insurrection, rebellion, revolution, or military or usurped power. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 15  How to claim What you must do If anything occurs that may lead to a claim under this policy, you must: 1. do what you can to take care of the car 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 you think any loss was caused by an illegal act, and 4. allow us to examine the car before any permanent repairs are started, and 5. send to us as soon as possible anything you receive from anyone about a claim or possible claim against you, 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. not destroy or dispose of anything that is or could be part of a claim, and 9. tell us immediately if you are charged with any offence in connection with the use of the car or a vehicle which resulted in loss of property or bodily injury to another person. What you must obtain our You must obtain our agreement before you: agreement to do 1. incur any expenses in connection with any claim under this policy, or 2. negotiate, pay, settle, admit or deny any claim against you, or 3. negotiate, offer to pay or pay any reparation, including, but not limited to, offers made as part of any case management conference or sentencing hearing, or 4. do anything that may prejudice our rights of recovery. Actions we may take We may take action in your name to: 1. negotiate, defend or settle any claim against you covered by this policy, and 2. recover from any other person anything covered by this policy. You must assist us with these actions. We will be responsible for the reasonable legal costs of these actions. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 16  Policy conditions Breach of any condition If you, any other person covered under this policy or anyone acting on your behalf breaches any of the conditions of this policy, we may decline: 1. your claim, either in whole or in part, 2. any claim in connection with the same event that you make on any other policies you have with us. Dishonest or fraudulent If you, any other person covered under this policy or anyone acting on your behalf commits a dishonest or fraudulent act or omission, we may treat either this policy or all insurance you have with us as if it no longer exists from the date of the dishonest or fraudulent act, or breach. True statements and True statements and answers must be given (whether by you or any other person) in all communications answers with us, including, but not limited to, when: 1. this insurance is applied for and renewed, and 2. we are notified about any change in circumstances, and 3. you make any claim under this policy. Cancellation By you You may cancel this policy at any time by notifying us or your broker. If you do, we will refund any premium that is due to you based on the unused portion of the period of cover. You must pay any outstanding premium due for the used portion of the period of cover. By us We may cancel this policy at any time by giving you or your broker notice in writing or by electronic means at your or your broker’s last known address. Unless otherwise specified in this policy, cancellation will take effect from the 30th day after the date of the notice. We will refund you any premium that is due to you based on the unused portion of the period of cover. Change of terms We may change the terms of this policy (including the excess) at any time by giving you or your broker notice in writing or by electronic means at your or your broker’s last known address. Unless otherwise specified in this policy, the change in terms will take effect from the 30th day after the date of the notice. Changes in circumstances You must tell us or your broker immediately if, after we have accepted your application for this policy, there are any: 1. modifications to the car, or 2. material changes that might alter the nature of the risk covered or increase the chance of a claim under this policy. We may change the terms of this policy in response to any material change in circumstances you or anyone else advises us of. The change in terms will be effective from the date of the change in circumstances. Information is ‘material’ where we would have made different decisions about either: (a) accepting your insurance, or (b) setting the terms of your insurance, if we had known that information. If in any doubt, notify us anyway. The ‘risk covered’ refers to both: (a) the actual property or liabilities insured (known as physical hazard), and (b) you or other persons covered by this policy (known as moral hazard). Currency Any amounts shown in this policy and in the schedule are in New Zealand dollars. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 17  Goods and services tax All amounts shown in this policy and in the schedule include GST. (GST) Governing law and The law of New Zealand applies to this policy and the New Zealand courts have exclusive jurisdiction. jurisdiction Joint insurance If this policy covers more than one person, then all persons are jointly covered. This means that a breach of this policy by any one person affects everyone’s ability to claim under this policy. Legislation changes Any reference to any Act of Parliament or subordinate regulations or rules referred to in this policy includes any amendments made or substitutions to that law. Other insurance You must tell us if the car is or becomes covered under any other insurance. This policy does not cover your 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. Other parties with a If we know of any financial interest over the car, we may: financial interest 1. pay part or all of any claim settlement to that other party and this will go towards meeting the obligations we have under this policy for the loss, and 2. disclose information about the claim to that other party if required. Any other party who has a financial interest under this policy is not covered by this policy and does not have rights to claim under this policy. Reasonable care You, and anyone driving the car with your permission, must take reasonable care at all times to avoid circumstances that could result in a claim. Your claim will not be covered if it is the result of you or anyone else covered by this policy being reckless or grossly irresponsible. Salvage You must not abandon the car to us. However, after the car is declared a total loss, we may keep the car and retain the salvage. Total loss If we have paid your claim for a car that is a total loss: 1. this policy is automatically cancelled, and 2. the car and any salvage will become our property (including any refunds, such as unused registration or road user charges), and 3. we will credit any unused premium towards insurance arranged with us on a replacement car. If you do not arrange insurance for a replacement car with us, we will not refund any premium. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 18  Definitions The definitions apply to the plural and any derivatives of the words. For example, the definition of ‘accidental’ also applies to the words ‘accident’, ‘accidents’ and ‘accidentally’. accessory a part of the car that is fitted to it, usually fitted to it or permanently stored in it, that is not directly related to its function as a vehicle, including, but not limited to, any: • audio, multimedia, communication or navigation equipment, • roof racks, • child car seats, • tools and breakdown equipment permanently kept with the car and purchased to repair the car, • first aid kit, torch, fire extinguisher and map, • car seat covers or floor mats. It does not include any mobile phone, laptop computer or tablet computer. accidental unexpected and unintended by you and anyone using the car or any vehicle. act of terrorism an act, or preparation in respect of action, or threat of action designed to influence or coerce 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 that: • involves violence against one or more persons, or • involves damage to property, or • endangers life other than that of the person committing the action, or • creates a risk to health or safety of the public or a section of the public, or • is designed to interfere with or disrupt an electronic system. annual period the period of cover. However, if: • your premium is paid monthly or quarterly, or • the period of cover is for more than 12 months, the annual period is the current 12-month period calculated consecutively from the date this policy first started. application the information provided by you to us when you purchased this insurance or requested a quotation for this insurance from us. bodily injury the accidental death of, or accidental bodily injury to any person, including sickness, disease, disability, shock, fright, mental anguish or mental injury. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 19  car the vehicle described in the schedule, and including any: • standard tool supplied by the vehicle’s manufacturer or a similar substitute tool, and • accessory or spare part whilst in or on the vehicle, and • accessory that has been temporarily removed from the vehicle for security purposes, cleaning or servicing. computer virus a set of corrupting, harmful or otherwise unauthorised instructions or code, including a set of maliciously introduced unauthorised instructions or code, programmatic or otherwise, which propagate themselves through a computer system or network of whatsoever nature. This includes, but is not limited to, ‘Trojan horses’, ‘Worms’ and ‘Time or logic bombs’. contamination damage loss caused by methamphetamine contamination that exceeds the contamination level. contamination level the relevant guideline value for indoor surface contamination as set out in the most recent version of the New Zealand Standard NZS 8510. electronic data facts, concepts and information converted to a form usable for communications interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment. It includes programs, software and other coded instructions for the processing and manipulation of data or the direction and manipulation of such equipment. event any one event or series of events arising from one source or original cause. excess the first amount of the claim that you must pay, which is shown in either the schedule or in this policy wording. family any member of your family who permanently resides with you. incident something that occurs at a particular point in time, at a particular place and in a particular way. loss physical loss or physical damage. market value the reasonable cost of replacing the car with one of the same make, model, year, specification and condition at the time of the loss. methamphetamine the Class A controlled drug Methamphetamine or Class B controlled drug Amphetamine as defined by the Misuse of Drugs Act 1975 or any precursor chemicals and by-products. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 20  modification any change to the car, that is different to the manufacturer’s original specification or recommendations, which enhances the performance, or alters the appearance, safety or handling of the car. Examples include: • changes to the engine, steering, performance, suspension or chassis, or • body kits, paintwork or interior modifications, or • changes to the tyres or wheels. We do not consider a conversion of the car to run on CNG, LPG or Bio Gas is a modification, provided the car has a current Warrant of Fitness and a current Alternative Fuel Inspection Certificate. natural disaster an earthquake, natural landslip, volcanic eruption, hydrothermal activity, tsunami or natural disaster fire, as described in the definition of ‘natural disaster’ in the Earthquake Commission Act 1993 or any Act in substitution of that Act. partner your husband or wife or person with whom you are living in the nature of a marriage. period of cover the Period of Cover shown in the schedule. remediate to reduce the level of methamphetamine contamination to below the contamination level. Please note, the definition of remediate means that we will not pay to remove all traces of methamphetamine contamination and will not restore the car to its condition when it was new. 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. schedule the latest version of the Schedule we issued to you for this policy. sum insured the Sum Insured shown in the schedule. total loss the car is: • uneconomic or unsafe to repair, or remediate, or • stolen and not recovered. trailer any general-use trailer: • owned by you or in your care, and • that is not covered by any other insurance, and • used in accordance with ‘Use of the vehicle’. It does not include: • a caravan, boat trailer, camper trailer or horse float, or • the contents, equipment or accessories of any trailer. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 21  use includes the driving, parking, garaging or storing of the vehicle. vehicle • the car or trailer when being used by you or anyone else with your permission, and • any other motorcar that is not owned by you, being used by you provided: you have the owner’s permission to use it, and the liability is not covered by any other insurance. we, us, our NZI, a business division of IAG New Zealand Limited. you the person(s) or entity shown as the Insured in the schedule. Initio motor vehicle insurance policy NZ21/05 initio.co.nz 22 Initio motor vehicle insurance policy NZ2105 initio.co.nz