> _Markdown transcription of NZI NZI — Distinction Motor Vehicle policy wording, effective 2015-12-01. Source: https://www.lanterninsurance.co.nz/content/dam/insurance-brands-nz/lantern/nz/en/documents/car/nzi-car-distinction-motor-vehicle-insurance-pw-nz1009-6-1215.pdf_ --- Distinction MOTOR VEHICLE INSURANCE P OLICY WORDING Distinction / M OTOR VEH I C L E I N SUR AN CE P O L ICY CONTENTS INTRODUCTION 2 INSURANCE AGREEMENT 2 USE OF YOUR VEHICLE 2 SECTION ONE COVER FOR YOUR VEHICLE 3 AUTOMATIC ADDITIONAL BENEFITS 4 SECTION TWO YOUR LEGAL LIABILITY 6 AUTOMATIC ADDITIONAL BENEFITS 8 POLICY EXCLUSIONS THAT APPLY TO ALL PARTS OF THIS POLICY 9 HOW TO CLAIM 10 POLICY CONDITIONS 10 DEFINITIONS 12 PAGE 1 Distinction M OTO R V EH I C L E I N S U R A N CE P O L I CY INTRODUCTION WELCOME Welcome to NZI. Thank you for selecting us as your insurer. ABOUT THIS POLICY Your Motor Vehicle policy consists of: 1. this policy document, and 2. the schedule, and 3. the information you have provided in the application. 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. 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, your Motor Vehicle Policy cover will be cancelled as if it had 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 Motor Vehicle Policy, you can change your mind, provided you tell us within 30 days of the date your Motor Vehicle Policy started. We will cancel your Motor Vehicle Policy as if it had never existed and refund in full any premium you have paid. This does not apply if a claim has been made. EXAMPLES We have sometimes used examples and comments to make the parts of this policy document easier to understand. These examples and comments, which are printed in italics, do not affect or limit the meaning of the section they refer to. HEADINGS The headings in this policy document are for reference only and do not form part of it. They must not be used when interpreting the policy document. DEFINED WORDS If a word is shown in bold, it has a special meaning. There is a list of these words and what they mean at the back of this policy in the section ‘DEFINITIONS’. INSURANCE AGREEMENT OUR PROMISE You agree to pay us the premium. In exchange, we promise to insure you as set out in this policy document. USE OF YOUR VEHICLE WHEN COVER APPLIES This Motor Vehicle Policy applies only when any vehicle is being used: 1. for private, domestic, social or pleasure purposes, including community work, or 2. in connection with any business, profession or occupation other than: (a) salesperson, commission agent, service person or commercial traveller, or (b) insurance representative, insurance agent or insurance broker, or (c) land or real estate agent, or (d) mortgage broker or mobile mortgage manager, or (e) stock or station agent, or (f) courier driver, delivery person or taxi driver, or (g) motor trade. WHEN COVER DOES NOT APPLY This Motor Vehicle Policy does not apply when any vehicle is being used: 1. to carry fare-paying passengers (other than car pooling or car sharing) or for hire, or 2. to carry, haul or tow any goods, plant, machinery or samples in connection with any trade or business other than farming, or 3. to practise for or take part in any race, rally, pace-making, reliability trial or speed test, or 4. on any racetrack. PAGE 2 Distinction / M OTOR VEH I C L E I N SUR AN CE P O L ICY SECTION ONE – COVER FOR YOUR VEHICLE LOSS TO YOUR VEHICLE WHAT YOU ARE COVERED FOR You are covered for: 1. sudden accidental loss to the car during the period of cover in New Zealand (including transit between places in New Zealand), and 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. 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 3. loss of use. BREAKDOWN OR FAILURE NOT COVERED You are not covered for damage or failure that is: 1. mechanical, or 2. electrical, or 3. electronic. However, this exclusion does not apply: (a) to the above types of loss to the car where it results in or from: fire, collision, impact, overturning, immersion in water, flood, malicious damage, theft or illegal conversion, earthquake, volcanic eruption, hydrothermal activity or tsunami, or (b) to the extent that cover is provided by NZI Roadside Assist Automatic Additional Benefit. TYRES You are not covered for damage to tyres caused by braking. You are not covered for punctures, cuts or bursts to your tyres. However, this does not apply to punctures, cuts or bursts that result in or from: fire, collision, impact, overturning, malicious damage, theft or illegal conversion, earthquake, volcanic eruption, hydrothermal activity or tsunami. IMPORTANT: Please also read POLICY EXCLUSIONS THAT APPLY TO ALL PARTS OF THIS POLICY on page 9. WHAT WE WILL PAY REPAIRABLE DAMAGE If we consider the car is economic to repair, we will at our option: 1. arrange to repair the car to substantially the same condition as it was in before the loss occurred, or 2. pay you the cost of repairs as estimated by our assessor. TOTAL LOSS If we consider the car is uneconomic to repair, we will: 1. pay you the market value, or 2. replace the car with a new vehicle of the same model and specification, provided that: (a) the loss occurred within 12 months of you purchasing the car new, and (b) the model / specification is available in New Zealand. If such a replacement is not available in New Zealand we will reimburse you the actual price you paid for the car. PARTS OBTAINED OVERSEAS We will pay the market value at the time of the loss for any new parts, accessories or tools that are unobtainable in New Zealand. The most we will pay is the last known selling or list price in New Zealand plus the estimated reasonable cost of fitting. PAGE 3  Distinction / M OTO R VEHICL E I N SUR AN CE P OLICY SECTION ONE – AUTOMATIC ADDITIONAL BENEFITS ACCIDENTAL DEATH AND If you, your partner or any member of your family suffer an injury following a loss covered PERMANENT DISABLEMENT by this Motor Vehicle Policy, during the period of cover, we will pay the Amounts below if you, your partner or any member of your family suffer any or a combination of the Events below within 90 days from the date of an injury. Event Amount 1. Death $10,000 2. Permanent total loss of sight of an eye $2,500 3. Permanent total loss of use of a hand $2,500 4. Permanent total loss of use of a foot $2,500 The most we will pay during the period of cover is the Death Amount. We will not pay for death resulting from suicide or any self inflicted injury. ACCOMMODATION COSTS We will pay for reasonable costs of accommodation for you, your partner, your family, other passengers and domestic pets in the car travelling with you, if the car can no longer be driven following a loss covered by this Motor Vehicle Policy. ADDITIONAL VEHICLE When you buy an additional vehicle for your use, we will automatically provide cover for that additional vehicle under this Motor Vehicle Policy from the date of purchase, provided that: 1. you notify us within 30 days of the date of purchase, and 2. the additional vehicle’s purchase price does not exceed $250,000, and 3. the additional vehicle’s purchase price will be the sum insured, and 4. you pay any additional premium that is required. ALTERNATIVE TRANSPORT When you use our Approved Repairer Network, we will pay the reasonable costs incurred if you require a rental vehicle following a loss covered by this Motor Vehicle Policy while your car is: 1. being repaired, or 2. missing after being stolen. Provided: (a) we have arranged the rental vehicle through our approved supplier, and (b) you pay for all running costs. We will automatically provide cover for this rental vehicle as if it were your car. A $500 excess will apply for any loss to the rental vehicle. We will also indemnify: (i) your liability to the rental vehicle supplier for consequential loss of revenue following loss to such rental vehicle. The most we will pay is $20,000. (ii) the liability of the rental vehicle supplier arising out of your use of the rental vehicle in the same manner that we indemnify your liability under ‘Section Two – Your Liability’. The rental vehicle will be a passenger vehicle up to 2000cc. If your car is uneconomic to repair, you must return the rental vehicle when we pay your claim. You do not have cover under this Automatic Additional Benefit if: 1. your car is a mobile home, or 2. your claim is solely for accidental damage to windscreens, windows, sun-roof, headlight glass or tail light glass of the car. EXCESS AND CLAIMS FREE 1. If the car suffers loss covered by this Private Motor Policy caused by an identifiable and DISCOUNT PROTECTION uninsured driver of another vehicle, we will not deduct the excess or adjust your claim-free discount provided you: (a) give us enough information to establish that the driver of the other vehicle was completely at fault, and (b) give us the correct registration number of the other vehicle and information we need to identify the driver (including name and address), and (c) give us reasonable help to recover your claim from the driver of the other vehicle, or from its owner. PAGE 4 Distinction / M OTOR VEH I C L E I N SUR AN CE P O L ICY 2. We will not deduct the excess if the loss to the car is from actual or attempted theft or illegal conversion while it was fitted with an activated electronic engine immobiliser approved by us. KEYS AND LOCKS If any of the keys to the car are lost or 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 they were for. The most we will pay for any event is the sum insured. A $100 excess applies to this Automatic Additional Benefit. The loss of claim-free discount does not apply to this Automatic Additional Benefit. MEDICAL EXPENSES We will pay the reasonable costs incurred by you, your partner, your family and other passengers in the car, for medical, surgical, therapeutic, dental and nursing treatment (including x-rays) as a result of an injury following a loss covered by this Motor Vehicle Policy. The most we will pay is $500 for any event. We will not pay for any expenses that can be claimed from any other source or for any self-inflicted injury. NZI ROADSIDE ASSIST This Motor Vehicle 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 car 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) for towed vehicles such as boats, trailers and caravans, or (b) for cars exceeding 3,000 kg. The excess and loss of claim-free discount do not apply to this Automatic Additional Benefit. REPAIR GUARANTEE We provide a quality guarantee on all repairs to the car undertaken through our Approved Repairer Network while you own the car. REPLACEMENT VEHICLE When you buy a replacement vehicle for your car, we will automatically provide cover for that replacement vehicle under this Motor Vehicle Policy from the date of purchase, provided that: 1. you notify us within 60 days of the date of purchase, and 2. the replacement vehicle’s purchase price does not exceed $250,000, and 3. the replacement vehicle’s purchase price will be the sum insured, and 4. you pay any additional premium that is required. ROAD CLEARING COSTS We will pay reasonable costs incurred for removing debris from any road or parking area, following a loss covered by this Motor Vehicle Policy. PAGE 5  Distinction / M OTO R VEHICL E I N SUR AN CE P OLICY SKILLED DRIVER QUALIFICATIONS If the car suffers sudden accidental loss when driven by an under 25 year old driver, we will not apply the Under Age excess provided the driver has successfully completed: 1. NZQA unit standard 3465: Core Driving Knowledge and Skills – Level 1, and 2. NZQA unit standard 3466: Core Driving Knowledge and Skills – Level 3. This Automatic Additional Benefit does not apply if the schedule shows we have applied a Special excess to the under 25 year old driver. TEMPORARY REPAIRS We will pay the reasonable cost of temporary repairs to the car that are essential to make it roadworthy, to enable you to get to your destination or to a repairer following a loss covered by this Motor Vehicle Policy. TOWING COSTS If the car can no longer be driven following a loss covered by this Motor Vehicle Policy, we will pay for necessary and reasonable towing and rescue costs to remove the car to the nearest repairers or place of security. TRAILER COVER  This Motor Vehicle Policy is extended to cover 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 for any event is the sum insured. A $100 excess applies to this Automatic Additional Benefit. The loss of claim-free discount does not apply to this Automatic Additional Benefit. TRANSPORT COSTS We will pay for reasonable costs of: 1. transport for you, your partner, your family, other 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 can no longer be driven following a loss covered by this Motor Vehicle 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. TRAUMA COVER We will pay the reasonable costs of professional counselling services for you, your partner, your family and other passengers in the car, as a result of an injury following a loss covered by this Motor Vehicle Policy. The most we will pay is $1,000 for any event. WINDOWS The excess and loss of claim free discount do not apply to a claim that is solely for accidental damage to windscreens, windows, sun-roof, headlight glass, headlight protectors, tail light glass or driving lights of the car. SECTION TWO – YOUR LEGAL LIABILITY WHAT YOU ARE COVERED FOR YOUR LEGAL LIABILITY You are covered for your legal liability and defence costs arising from: 1. accidental loss to anyone else’s property (including loss of use), or 2. accidental death or bodily injury to any person, occurring during the period of cover, caused by or through or in connection with your use of a vehicle in New Zealand (including transit between places in New Zealand). 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 transit between places in New Zealand). PAGE 6 Distinction / M OTOR VEH I C L E I N SUR AN CE P O L ICY Provided that: 1. you or any other person entitled to cover under this benefit must tell us immediately if you or they 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; and 2. we must give our written approval before any offer of reparation is made. There is no cover under this benefit for any amounts that are covered under the Accident Compensation Act 2001 (Act), or would be covered but for: 1. a failure by the victim to correctly notify a claim to the Accident Compensation Corporation within the time required under the Act, 2. the victim’s decision, for whatever reason, not to claim any amount he or she would be entitled to claim under the Act, 3. 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 benefit 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, 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. the person using the car meets all the same terms of this Motor Vehicle Policy that you must meet. VICARIOUS LIABILITY This Motor Vehicle Policy is extended to cover your employers vicarious liability while your 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. the person using the car meets all the same terms of this Motor Vehicle Policy that you must meet, and 3. the use of the car meets all the same terms of this Motor Vehicle 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. WHAT YOU ARE NOT COVERED FOR 1. You are not covered for liability, including liability for reparation, for loss to any property: (a) owned by you or anyone we cover and who claims under this Motor Vehicle Policy, or (b) in your care or in the care of anyone we insure under this Motor Vehicle Policy other than for: (i) a disabled vehicle being towed without charge by any vehicle, or (ii) clothing, personal effects and luggage being carried by and belonging to any passenger in any vehicle, or (c) being carried by or loaded into or unloaded from any vehicle or a caravan or trailer attached to any vehicle other than specified under (b)i. 2. You are not covered for liability arising out of a contract or agreement unless you would have been liable even without such contract or agreement. 3. You are not covered for: (a) any fine or penalty, or (b) any punitive or exemplary damages. 4. You are not covered for any legal defence costs or court costs arising from the prosecution of any offence under any Act of Parliament including any Regulations, Rules or By-Laws made under any Act of Parliament. PAGE 7  Distinction / M OTO R VEHICL E I N SUR AN CE P OLICY 5. You are not covered for liability, in any way connected with, any seepage, pollution or contamination (including the cost of removing, nullifying or cleaning up), unless the seepage, pollution or contamination happens during the period of cover and is caused by a sudden accidental event that happens during the period of cover. IMPORTANT: Please also read POLICY EXCLUSIONS THAT APPLY TO ALL PARTS OF THIS POLICY on page 9. WHAT WE WILL PAY AMOUNT PAYABLE FOR PROPERTY DAMAGE We will pay for: 1. liability, including liability for reparation, for loss to property, and 2. reasonable 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. AMOUNT PAYABLE FOR BODILY INJURY We will pay for: 1. liability, including liability for reparation, for bodily injury, and 2. reasonable costs and expenses incurred with our approval, and 3. costs awarded against you by a Court. The most we will pay is $2,000,000 for any event. SETTLEMENT OF ANY CLAIM We may pay the full amount under this part of your Motor Vehicle 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 your Motor Vehicle Policy. SECTION TWO – AUTOMATIC ADDITIONAL BENEFITS MANSLAUGHTER DEFENCE COSTS We will pay: 1. legal defence costs 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: 1. you or your partner driving the car, or 2. any member of your family driving the car with your permission, or 3. you or your partner driving any motorcar that you or your partner do not own and are not purchasing, provided that you or your partner has the owner’s permission to drive the vehicle, during the period of cover. Section Two ‘What You Are Not Covered For’ – Clause 4 (offences) 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. TEMPORARY VEHICLES This Motor Vehicle Policy is extended to cover your liability when you have a courtesy vehicle or rental vehicle following a loss covered by this policy, while your car is: 1. being repaired, or 2. not fit to drive, or 3. missing after being stolen. We will automatically provide cover for this rental vehicle or courtesy vehicle as if it were your car. An excess of $500 applies to this Automatic Additional Benefit. The ‘Other Insurance Policy Condition’ does not apply to this Automatic Additional Benefit. PAGE 8 Distinction / M OTOR VEH I C L E I N SUR AN CE P O L ICY POLICY EXCLUSIONS THAT APPLY TO ALL PARTS OF THIS POLICY ALCOHOL, DRUGS AND OTHER There is no cover under this Motor Vehicle Policy if the driver of the vehicle or the person using INTOXICATING SUBSTANCES the vehicle: 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 illegally converted it, provided you lay a complaint with the police. CONFISCATION You are not covered for loss connected in any way with confiscation, nationalisation, requisition, acquisition or destruction of or damage to property by order of government, public or local authority. EXCESS For each event, the excess will be deducted from the amount of your loss unless stated otherwise under an Additional Benefit. If you have multiple vehicles insured under this policy, the excess applies individually to each vehicle. INTENTIONAL OR RECKLESS ACTS You are not covered for any loss or liability arising from any intentional or reckless act or omission. LOSS OF ELECTRONIC DATA You are not covered for loss of electronic data and any liability arising from this, directly or indirectly caused by, or in connection with a computer virus. This includes loss of use, reduction in functionality or any other associated loss or expense in connection with the electronic data. MODIFIED VEHICLE There is no cover under this Motor Vehicle 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. NUCLEAR & WAR RISKS You are not covered for loss or liability and defence costs connected in any way with: 1. any operations employing the process of nuclear fission or fusion, or handling of radioactive material. This includes, but is not limited to: (a) the use of nuclear reactors such as atomic piles, particle accelerators or generators or similar devices, or (b) the use, handling or transportation of any radioactive material, or (c) the use, handling or transportation of any weapon or explosive device employing nuclear fission or fusion, or 2. war, invasion, act of foreign enemy, hostilities or war like operations (whether war is declared or not), civil war, mutiny, rebellion, revolution, or 3. civil commotion assuming the proportions of or amounting to an uprising, insurrection, military or usurped power. OTHER USE OF YOUR VEHICLE You are not covered for any loss or liability where the vehicle or anything attached to the vehicle is not being used in accordance with the description in Use of Your Vehicle (as described in Section One of this policy). TERRORISM You are not covered for loss, damage, death, injury, illness, liability, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with: 1. an act of terrorism, regardless of any other cause or event contributing concurrently or in any other sequence to the loss, damage, death, injury, illness, liability, cost or expense. 2. any action taken in controlling, preventing, suppressing or in any way relating to an act of terrorism. UNLICENSED DRIVERS There is no cover under this Motor Vehicle 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 illegally converted it, provided you lay a complaint with the police. PAGE 9  Distinction / M OTO R VEHICL E I N SUR AN CE P OLICY HOW TO CLAIM WHAT YOU MUST DO If anything happens that may lead to a claim under this Motor Vehicle Policy, you must: 1. do what you can to take care of the car and to prevent any further loss 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 have commenced, 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. 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 You must obtain our agreement before you: OUR AGREEMENT TO DO 1. incur any expenses in connection with any claim under this Motor Vehicle 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 At our expense, we may take action in your name: 1. to negotiate, defend or settle any claim against you covered by this Motor Vehicle Policy, and 2. to make a recovery from any other person for anything covered by this Motor Vehicle Policy, and you must co-operate with us. SALVAGE  You must not abandon the car to us. However, after the car is declared uneconomic to repair, we may keep the car and retain the salvage. DISHONESTY If your claim is dishonest or fraudulent in any way, we may: 1. decline your claim, either in whole or in part, and/or 2. declare either this Motor Vehicle Policy or all insurance you have with us to be unenforceable from the date of the dishonest or fraudulent act. This is at our sole discretion. POLICY CONDITIONS BREACH OF ANY CONDITION If: 1. you, or 2. any other person we insure under this Motor Vehicle Policy, or 3. anyone acting on your behalf, breaches any of the conditions of this Motor Vehicle Policy, we may: (a) decline your claim either in whole or in part, and/or (b) declare either this Motor Vehicle Policy or all insurance you have with us to be unenforceable. This is at our sole discretion. TRUE STATEMENTS The application is the basis of this Motor Vehicle Policy. True statements and answers must be given AND ANSWERS (whether by you or any other person) when you: 1. apply for this insurance, and/or 2. notify us regarding any change in circumstances, and/or 3. make any claim under this policy. PAGE 10 Distinction / M OTOR VEH I C L E I N SUR AN CE P O L ICY 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 you are reckless or grossly irresponsible. OTHER INSURANCE You must tell us if the car is or becomes insured under any other insurance. If you can claim under any other insurance, we will pay only the amount of any loss over and above the limit payable by the other insurance. This does not apply to Accidental Death and Permanent Disablement Additional Benefit (as described in Section One of this policy). CHANGES IN CIRCUMSTANCES You must tell us immediately if there are any: 1. modifications to the car, or 2. changes that might alter the nature of the risk or increase the chance of a claim under this Motor Vehicle Policy. 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 insured’ refers to both: (a) the actual property or liabilities covered (known as physical hazard), and (b) you or other persons covered by this Motor Vehicle Policy (known as moral hazard). CANCELLATION BY YOU You may cancel this Motor Vehicle Policy at any time. If you do, we will refund any premium that is due to you based on the unused portion of the period of cover. BY US We may cancel this Motor Vehicle Policy by giving you notice in writing or by electronic means at your last known address. The Motor Vehicle Policy will be cancelled from 4pm on the 30th day after the date of the notice. We will refund you any premium that is due to you based on the unused portion of the period of cover. CHANGE OF TERMS We may change the terms of this Motor Vehicle Policy (including the excess) by giving you notice in writing or by electronic means at your last known address. The Motor Vehicle Policy will be changed from 4pm on the 30th day after the date of the notice. UNECONOMIC TO REPAIR If we have paid your claim for a car that is uneconomic to repair: 1. this Motor Vehicle Policy is automatically cancelled, and 2. we will not give any refund of premium, and 3. your car will become our property. This means that you will need to make new insurance arrangements on any replacement car. GOODS AND SERVICES TAX All amounts shown in this Motor Vehicle Policy include GST. JOINT INSURANCE If this Motor Vehicle Policy insures more than one person, then all persons are jointly insured. This means that a breach of this Motor Vehicle Policy by any one person affects everyone’s ability to claim under this policy. OTHER PARTIES WITH If we know of any financial interest over your car, we may pay part or all of any claim proceeds to A FINANCIAL INTEREST the holder of that interest. This payment will meet all obligations we have under this policy for the loss. We are authorised by you to disclose personal information about you to any holder of a financial interest. Any party who is recorded as having a financial interest under this Motor Vehicle Policy, is not insured by this policy and does not have rights to claim under this policy. PAGE 11  Distinction / M OTO R VEHICL E I N SUR AN CE P OLICY DEFINITIONS The definitions apply to the plural and any derivatives of the words. For example, the definition of ‘accident’ also applies to the words ‘accidentally’, ‘accidental’ and ‘accidents’ accessory A part of the car not directly related to its function as a vehicle, including any: `` radio, audio equipment or other in-vehicle entertainment and communication equipment forming an integral part of the car, and `` portable telephone that connects to a power source in the car, and `` car seat covers, floor mats or child car seats. accident Unexpected and unintended by you and anyone using the car or any vehicle. act of terrorism An act, including but not limited to the use of force or violence and/or threat thereof, of any person or group(s), whether acting alone or on behalf of or in connection with any organisation(s) or government(s) that from its nature or context is done for, or in connection with, political, religious, ideological, ethnic or similar purposes or reasons, including the intention to influence any government and/or to put the public, or any section of the public, in fear. annual period The annual period is the period of cover. However, if: `` the premium is paid fortnightly, monthly or quarterly, or `` the period of cover is for more than 12 months, the annual period is any one 12 month period calculated from the date this policy first started, and consecutively thereafter. 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. 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 propagates itself through a computer system or network of whatsoever nature. This includes but is not limited to Trojan Horses, Worms and Time or Logic Bombs. 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 amount of your loss that you must pay. The amount of the excess is shown in either the schedule or in this policy wording. family Any family member who permanently resides with you. injury A bodily injury caused solely and directly by violent, accidental, external and visible means. loss Physical loss or physical damage. PAGE 12 Distinction / M OTOR VEH I C L E I N SUR AN CE P O L ICY market value The reasonable cost to buy, immediately before the loss and on the retail market, a vehicle of the same: `` year, `` make, model and specification, `` mileage/hours, `` general condition, as the car damaged, including the value of any fitted equipment covered by this Motor Vehicle Policy. modification Any change to your car, that is different to the manufacturer’s original specification or recommendations. Examples include: `` changes to the engine, steering, performance, suspension, chassis, or `` body kits, paintwork, interior modifications, or `` tyres or wheels of the car, or `` a changed sound system valued at over $1,000. We do not consider a conversion of your car to run on CNG, LPG or Bio Gas as a modification, provided your car has a current Warrant of Fitness and a current Alternative Fuel Inspection Certificate. 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. 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 Motor Vehicle Policy. sum insured The Sum Insured shown in the schedule. 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 the Description of Use (as described in this policy). It does not include: `` a caravan, a boat trailer, a camper trailer or a horse float; or `` the contents, equipment or accessories of any trailer. uneconomic to repair A total loss because the car is: `` uneconomic or unsafe to repair, or `` stolen and not recovered. use Includes driving, parking, garaging or storing of the car or trailer. 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 NZI, a business division of IAG New Zealand Limited. you The person(s) shown as the Insured in the schedule. PAGE 13 Distinction / M OTO R VEHICL E I N SUR AN CE P OLICY PAGE 14 NZI is a business division of IAG New Zealand Limited, a wholly owned subsidiary of Insurance Australia Group, Australasia’s largest general insurer. Established in 1859, it is today one of the country’s largest and longest-serving fire and general insurance brands, protecting tens of thousands of New Zealanders every year. Through our broad range of commercial, personal, marine, professional risks and rural insurance products, we pride ourselves on helping people to achieve the best protection for their assets. We partner with a network of skilled and experienced brokers and other insurance intermediaries who distribute our products. We pay remuneration to our brokers and intermediaries when they issue our policies, and when these policies are renewed or varied. To find out more about the advantages of choosing NZI, talk to your broker or visit nzi.co.nz. Printed using vegetable based mineral oil free inks on paper from an environmentally certified and responsibly managed forest and mill. nzi.co.nz form no: NZ1009/6 12/15 wording no: PECNZD2 issued: December 2015