> _Markdown transcription of State Insurance State — Car Insurance policy wording, effective 2024-11-01. Source: https://www.state.co.nz/content/dam/insurance-brands-nz/state/nz/en/documents/car/state-vehicle-car-insurance-policy-wording-si6737-5-1124.pdf_ --- Car Insurance Policy Wording Page a of 43 Welcome to your policy Thank you for choosing State Insurance This policy wording, along with your policy schedule, contains all the information you need to know about your insurance cover. Please read these carefully and keep them on hand as you will find them useful if you need to make a claim. How to contact us In New Zealand, just call 0800 80 24 24. If you have any questions, need help, or want to make a claim, our contact centres are available 7 days a week or visit state.co.nz Call us free from Australia 1 800 887 863 United States 1 800 593 9482 United Kingdom 0800 096 5308 Call us direct from Somewhere else overseas 64 9 969 1150 Our promise to customers includes communicating clearly. This document meets the WriteMark quality award, independent proof we have achieved a high standard of plain language. Policy wording SI6737/5 11/24 Contents Your cover at a glance3 Important information about your policy5 What we mean by ‘your vehicle’, ‘accessory’ and ‘modification’9 Vehicle use we cover and do not cover11 Levels of cover we have12 Section one − cover for your vehicle13 Section one − automatic benefits16 Section one − optional benefits22 Section two − legal liability24 Section two − automatic benefit26 Exclusions − what we do not cover27 Claims − what you need to do35 Conditions of your cover36 Definitions39 How we pay claims − some examples40 Page 2 of 43 Your cover at a glance Your policy schedule shows your cover level. This table summarises the cover and does not form part of your policy. Your policy sets out full details about your cover and the limits, exclusions and conditions that apply. Third Party, Third Party Comprehensive Fire and Theft Only What we cover Fire, theft and attempted theft ‘Uninsured Sudden and accidental loss of or damage and ‘Uninsured motorist to your vehicle motorist damage’ damage’ benefit benefit only only Legal liability Repair guarantee on repairs by our preferred repairers as part of your claim, while you own your vehicle Automatic benefits Baby capsules and child car seats (replacement) Completion of journey Excess protection (if the identified driver of another vehicle causes damage and we establish they were completely at fault) Fire extinguisher replacement or refilling Incorrect fuel Methamphetamine contamination Replacement of keys and locks (excess-free for claims up to $500) Storage of your vehicle Temporary cover for additional or replacement vehicles Towing Page 3 of 43  Third Party, Third Party Comprehensive Fire and Theft Only Automatic benefits (continued) Uninsured motorist damage (up to $5,000 if the uninsured driver of another vehicle Not applicable (policy limit causes damage and we establish they were applies) completely at fault) Optional benefits Available to Available to Available to Excess-free glass purchase purchase purchase Hire vehicle or alternative transport after Available to Available to an incident purchase purchase Available to Trailer purchase Available to purchase. Roadside Rescue For details, go to state.co.nz/roadside-rescue Page 4 of 43 Important information about your policy ‘You’ and ‘your’ mean any person or entity shown as the Insured in your policy schedule. ‘We’, ‘us’ and ‘our’ mean IAG New Zealand Limited. What your policy is Your policy is a contract between you and us, and has three parts: • This policy wording. It explains what we cover and do not cover, your responsibilities, how to contact us and how to make a claim. • Your policy schedule. This contains information specific to you, such as the type of insurance and cover level you have, who and what is insured, your sum insured, the period of insurance and the premium that applies. • Any addendum, endorsement or warranty that we apply. This may add special terms and conditions to your policy. It may be a separate document or printed in your policy schedule. Receiving your policy documents You may choose to receive your policy documents by email or post: • If we send your policy documents to you by email, we will send them to the person and email address you nominated for receiving policy documents. Any policy documents we send to this email address will be considered to have been received by you 24 hours after we send them. • If we send your policy documents to you by post, we will send them to the person and mailing address you nominated for receiving policy documents. You are responsible for making sure the person and email or mailing address we have for your policy documents are correct. If any of these contact details change, you must let us know as soon as possible. We will consider you have received all policy documents we send to the person and email or mailing address you nominated, even if those details are no longer correct. How to read your policy Words in bold have a special meaning. These words and what they mean are listed in the section ‘Definitions’. Headings, examples and comments are a guide only. They do not change the meaning of your policy. The headings help you find your way around this policy wording. The examples and comments in boxes help you understand how your policy works. What you must let us know about as soon as possible You must let us know as soon as possible if any of the following applies: • your circumstances change, and the change may affect the chance of a claim or the amount of a claim under your policy • information in your policy schedule needs to be amended • your vehicle has a modification listed in your policy schedule under ‘Your vehicle details’, which you have not already told us about • other insurance covers your vehicle Page 5 of 43 • your vehicle will be used in any of the circumstances that are not covered, as listed below in the section ‘Vehicle use we cover and do not cover’ • something happens that could lead to a claim under your policy. Examples of what you must let us know about as soon as possible: • a new person starts driving your vehicle regularly • you change the address where you usually keep your vehicle • you modify your vehicle's engine • you start a new job as a rideshare driver using your vehicle • you have a car accident. See also: • ‘Vehicle use we cover and do not cover’ that explains uses we do not cover • ‘Modified vehicle’ in the section ‘Exclusions’ − ‘General exclusions’ • ‘Change in circumstances’ and ‘Duplicate insurance’ in the section ‘Conditions of your cover’ • ‘Claims − what you need to do’ that explains what else you need to do for a claim. If you are not sure whether we need to know about something, it is important that you check with us. 15-day cooling-off period for your new, renewed or amended policy You have a 15-day cooling-off period when any of the following happens: • You take out your new policy. The cooling-off period begins on the date your policy starts. • Your policy renews. The cooling-off period begins on the renewal date. • You amend your policy part way through the period of insurance. For example, you change the cover level, add an optional benefit or increase your sum insured. The cooling-off period begins on the date your policy amendment takes effect and only applies to the amendment. If, for any reason, you change your mind about your policy or the amendment to your policy, we will refund the applicable premium you have paid if both the following apply: • you let us know within the 15 days • you have not made a claim under the cover that you have changed your mind about. We then treat your policy or the amendment to your policy as if it never existed. You pay the excess The excess is the first amount of your claim that you must pay. The excess is deducted from your claim settlement or from the policy limit if that is less. Your policy schedule or this policy wording shows the different excesses that apply. For each incident the vehicle excess and any other applicable excess applies, unless stated otherwise. If you insure more than one vehicle with us, the excess applies individually to each vehicle. If one incident results in a claim under more than one section, benefit, or sub-section of a benefit, we deduct only the highest applicable excess. Page 6 of 43 If one incident results in more than one claim under certain personal property policies you hold with us at the same address, we deduct only the highest excess of the policies you are claiming under. This applies to a boat, car, caravan, contents, home, landlord’s, motorcycle, motorhome, residential contract works or trailer policy. Examples of how we deduct the excess from a claim or the policy limit Situation: We accept your claim under a benefit that has a limit of $5,000. Your claim is $2,500. A $500 excess applies. Since your claim is less than the benefit limit, we deduct the excess from your claim. Cover: We pay you $2,000. Situation: We accept your claim under a benefit that has a limit of $2,000. Your claim is $2,500. A $500 excess applies. Since the benefit limit is less than your claim, we deduct the excess from the benefit limit. Cover: We pay you $1,500. We provide cover if you pay the premium When you take out your policy, you agree to pay us the premium. In return for paying the premium, we provide the cover you have chosen. You may pay the premium in either: • one lump sum each year • instalments by direct debit from an account or credit card you nominate, if we offer you the option of instalments. Your policy schedule shows the amount you need to pay and the due date for the annual premium or each instalment. What happens if you do not pay on time If any premium is not paid by the due date, we will send you a notice. The notice will outline the overdue amount and when it needs to be paid to keep your policy active. If the premium remains unpaid after the date specified in our notice, we will cancel your policy for non-payment. If you choose to pay the premium in instalments, cancellation will take effect from the date your policy was paid up to. If you choose to pay the premium in one lump sum each year but do not pay in full, cancellation will take effect from the date your new policy started or your existing policy renewed. We will refund any partial premium paid. We will not pay any claim for anything that happens after the cancellation takes effect. You may need to make a claim when the premium is overdue but before we cancel your policy for non-payment. If this happens, you must pay the overdue amount as part of the claim settlement process. Page 7 of 43 What happens when your policy is about to renew We will write to you at least 14 days before your policy expires. We will let you know the date and time of expiry and advise you if we are prepared to renew your policy. If we offer to renew your policy, we will send you an updated policy schedule and quote a renewal premium. You should review any offer of renewal to ensure the insurance cover is still appropriate for you. If you paid the last premium by direct debit, we continue to deduct the renewal premium in the same way from the same account or credit card. This means your policy will automatically renew if we offer you a renewal. We do this whether you pay in one lump sum each year or in instalments. If you do not want us to continue to deduct these payments and automatically renew your policy, please contact us before your current policy expires. If you have Comprehensive or Third Party, Fire and Theft On renewal, we may change your vehicle sum insured to account for general factors that affect vehicle value changes from our external provider. In our offer of renewal, we show you the sum insured that will apply during the next period of insurance. You are responsible for checking that the sum insured is enough to cover loss to your vehicle, including its accessories and modifications. If you do not agree with the sum insured in your offer of renewal, please contact us. How we collect and use your personal details We collect and hold the personal information you gave us when you applied for your policy, and any further information you give us while insured with us, including when you make a claim. We use this information to decide whether and on what terms to provide you with insurance cover, and to administer your policy and any claims. To do these things, we may share your personal information with our service providers and other parties that have a financial interest in the covered property. You have the right to access and correct any information that we hold about you by contacting us. You can make a complaint Sometimes things do not go to plan and at times you may feel we have let you down. If this happens, please let us know. We will do our best to put things right or explain something we could have made clearer. If you are still not satisfied, you can make a complaint by contacting us. We will take you through the steps of the complaints process and continue to work with you to try and find a resolution. Page 8 of 43 What we mean by ‘your vehicle’, ‘accessory’ and ‘modification’ ‘Your vehicle’, ‘accessory’ and ‘modification’ have special meanings. Your vehicle ‘Your vehicle’ means your insured vehicle described in your policy schedule. ‘Your vehicle’ includes its: • standard tools supplied by your vehicle’s manufacturer or similar substitute tools • accessories or spare parts in or on your vehicle • accessories that have been temporarily removed from your vehicle for security purposes, cleaning or servicing • modifications. ‘Your vehicle’ does not include: • fuel • additives, lubricants or other fluids • spare parts not in or on your vehicle. Accessory ‘Accessory’ means a part of your vehicle that is both: • fitted to, usually fitted to, or permanently stored in or on your vehicle • not directly related to the function of your vehicle. ‘Accessory’ does not include mobile phones, laptop computers or tablet computers. Examples of items we cover and do not cover as accessories Item: Child car seats, navigation and multimedia equipment, roof racks, bike racks, rooftop tents, fire extinguishers, seat covers and floor mats. Cover: Yes, if these are usually fitted to or stored in your vehicle. Item: A GPS unit borrowed from your passenger’s vehicle. Cover: No. Modification ‘Modification’ means any: • change to your vehicle from the manufacturer’s original specification or recommendations • performance enhancement to your vehicle • change to the appearance, safety or handling of your vehicle. Page 9 of 43 We need to know about certain modifications. The modifications we asked about when you applied for your policy and the answers you gave us are listed in your policy schedule under ‘Your vehicle details’. Check this list and let us know as soon as possible if you need to update any of your answers. We do not cover anything under this policy if you have a modification in this list but have not told us about it, even if you got the modification after you applied for your policy. For details, see ‘Modified vehicle’ in the section ‘Exclusions’. The only modifications you need to tell us about are those in this list. It is important that your sum insured is enough to cover the value of all modifications, including those you do not need to tell us about. Examples of modifications you need to tell us about: • changes to the engine, suspension, or chassis • aftermarket custom paintwork. This is not a complete list. For further details, see the list in your policy schedule under ‘Your vehicle details’. Examples of modifications you do not need to tell us about: • changes to the stereo • aftermarket changes to wheels, such as ‘mags’ or ‘alloys’. Your vehicle Accessories Modifications Your sum insured Page 10 of 43 Vehicle use we cover and do not cover Cover applies while any vehicle or trailer is being used for any personal or business purposes, except in the circumstances listed below. Cover is suspended while any vehicle or trailer is being used in any of the following circumstances: • to carry fare-paying passengers such as a taxi, except for private not-for-profit carpooling • for courier or delivery work • for a servicing business that involves installation, maintenance or repairs, such as an appliance, electrical, plumbing, glazing or commercial cleaning business • for the motor trade or a driving instructor profession • for hire, including through an arrangement between private individuals • in any type of motor sport, race, or pace making, including any speed test, reliability or other trial • on any racetrack, including for driver training or track days • to tow for financial gain or reward, except for being paid back for the normal running costs of the vehicle. You must let us know as soon as possible if your vehicle will be used in any of the above circumstances. We do not provide any cover if an incident happens while your vehicle, or another vehicle you are driving, is used in the circumstances above. Example of being paid back for the normal running costs of the vehicle Situation: You help a friend by towing their vehicle. They pay you back for the petrol you used. Cover: Yes. Page 11 of 43 Levels of cover we have We have three levels of cover you can choose from. C   Comprehensive. TPFT   Third Party, Fire and Theft. TPO   Third Party Only. Your policy schedule shows your cover level. We use the symbols above throughout this policy wording to help you see the cover you have. C Comprehensive includes: • cover under ‘Section one − cover for your vehicle’ • cover under ‘Section two − legal liability’ • automatic benefits that apply to Comprehensive • any optional benefit you purchase. TPFT Third Party, Fire and Theft includes: • cover under ‘Section one − cover for your vehicle’, but only for fire, theft and attempted theft or as provided under the ‘Uninsured motorist damage’ automatic benefit • cover under ‘Section two − legal liability’ • automatic benefits that apply to Third Party, Fire and Theft • any optional benefit you purchase. TPO Third Party Only includes: • cover under ‘Section one − cover for your vehicle’, but only as provided under the ‘Uninsured motorist damage’ automatic benefit • cover under ‘Section two − legal liability’ • automatic benefits that apply to Third Party Only • any optional benefit you purchase. Page 12 of 43 Section one − cover for your vehicle In this section we explain how we cover your vehicle. We also set out what happens and what we pay following loss to your vehicle. What we cover If you have Comprehensive, we cover sudden and accidental loss to your vehicle that happens during the period of insurance in New Zealand. If you have Third Party, Fire and Theft, we cover sudden and accidental loss to your vehicle caused by fire, theft and attempted theft that happens during the period of insurance in New Zealand. What we pay for repairable damage If we decide the loss to your vehicle is economic to repair, at our option we either: • Arrange to repair the loss to your vehicle by a repairer of our choice. Your vehicle will be repaired as near as reasonably possible to the condition it was in just before the loss. • Pay you the cost of repairs, and you can arrange a repairer of your choice to repair your vehicle. The most we pay is our estimate of the reasonable cost to repair your vehicle as near as reasonably possible to the condition it was in just before the loss. For an accessory, the most we pay is its market value unless stated otherwise in a benefit. Examples of a repair we arrange as part of your claim and a repair you arrange using your choice of repairer Situation: You want us to arrange repairs. Cover: A repairer of our choice repairs your vehicle as part of your claim. You pay the applicable excesses to our repairer. ‘Repair guarantee while you own your vehicle’ applies. Situation: You want to choose the repairer. Cover: We pay you our estimate of the reasonable cost of repairs, less the applicable excesses, and you arrange for your chosen repairer to do the work. ‘Repair guarantee while you own your vehicle’ applies if you use one of our preferred repairers. Repair guarantee while you own your vehicle If your vehicle is repaired by one of our preferred repairers as part of your claim, we give you a quality guarantee on the repairs while you own your vehicle. When making a claim under this guarantee, you must first let us assess your vehicle. If we accept your claim under this guarantee, at our option we either: • arrange to fix the repairs to your vehicle, using a repairer of our choice • pay you our estimate of the reasonable cost to fix the repairs. We do not cover wear and tear. Page 13 of 43  Examples of what we cover and do not cover under ‘Repair guarantee while you own your vehicle’ Situation: Three years after we arranged repairs to your vehicle, the paint starts to flake off because the painter did not use the correct undercoat. Cover: Yes. Situation: Three years after we arranged repairs to your vehicle, the paint starts to fade as would be expected in normal conditions. Cover: No. We may pay for aftermarket or used parts At our option we may pay for comparable reconditioned or recycled used parts, or aftermarket new parts, instead of original equipment manufacturer new parts. ‘Repair guarantee while you own your vehicle’ applies if your vehicle is repaired using one of our preferred repairers as part of your claim. A reconditioned or recycled part is a used part that has been restored to a condition equal to or better than the part you had before. An aftermarket part is a new part that may not be produced by your vehicle’s manufacturer and does not have your vehicle’s branding. When a part is not available If any part or tool is unavailable in New Zealand, the most we pay is its last known selling or list price in New Zealand plus the reasonable cost of fitting. Your contribution to improvements or repairs for damage not covered under your policy We may ask you to pay the difference or contribute to the cost before starting repairs if either: • the repairs put your vehicle in a better condition than it was in just before the loss • our assessor identifies damage to your vehicle that is not covered under your policy but needs to be repaired to make your vehicle roadworthy. If you do not agree to pay, we pay you our estimate of the reasonable cost of repairs, excluding the cost of the improvements or repairs for damage not covered under your policy. Examples of repairs that may put your vehicle in a better condition: • replacement of wheels or tyres • new paintwork. Examples of damage not covered under your policy: • bald tyres caused by wear and tear • rust damage. For details of other damage not covered under your policy, see ‘Vehicle exclusions’ in the section ‘Exclusions’. Page 14 of 43  If your vehicle has other damage covered under your policy but not caused by the same incident as your current claim, you may make a separate claim for the other damage. We must accept this separate claim before repairing the other damage. A separate excess may apply to each claim. What we pay for a total loss If we decide your vehicle is a total loss, at our option we do one of the following: • pay you your sum insured if you have an agreed value policy • pay you the market value, or your sum insured if that is less, if you have a market value policy • replace your vehicle with a new vehicle of the same model and specification, including on-road costs, if all the following apply: - you have Comprehensive - the loss happened within 12 months of you purchasing your vehicle new - the specific model is available in New Zealand. If you pay the premium by instalments, we deduct any premium you owe us up to the end of the period of insurance before we settle your claim. We deduct the excess and any premium owing from any claim payment. Your policy schedule shows whether you have an agreed value or market value policy. After we settle a total loss claim After we settle a total loss claim, all the following apply: • your vehicle and any salvage become our property • we cancel your policy with effect from the end of the day of the loss • we do not refund or credit any premium. If the claim was for your stolen vehicle and the vehicle is later recovered, you must let us know as soon as possible. As we own the vehicle after a total loss, we keep any salvage as well as any refunds, such as for the unused portion of the vehicle licence (registration). For examples of how a claim payment might be calculated, see ‘How we pay claims − some examples’ at the end of this document. Page 15 of 43 Section one − automatic benefits You automatically get the following benefits if they apply to your cover level. The terms and conditions of your policy apply. The amounts we pay under these benefits are included in the amounts payable under ‘Section one − cover for your vehicle’, unless stated otherwise in a benefit. Baby capsules and child car seats C TPFT This benefit only applies to Comprehensive, and Third Party, Fire and Theft. We pay the reasonable cost to replace with new any baby capsule or child car seat in the following circumstances: • The baby capsule or child car seat is stolen or damaged during attempted theft. The theft or attempted theft must be either from your vehicle, or while temporarily removed from your vehicle if the loss is not insured elsewhere. • The baby capsule or child car seat is visibly damaged, or in our opinion its safety is compromised, either: - Following loss to your vehicle for which we accept a claim. However, this benefit does not apply if your claim is under the ‘Uninsured motorist damage’ automatic benefit. - Following loss to another vehicle in which your baby capsule or child car seat was being temporarily used at the time of the loss. However, this benefit only applies if your policy would cover the loss to the vehicle in the same situation and the loss to the baby capsule or child car seat is not insured elsewhere. The amount we pay is in addition to any payment under ‘Section one − cover for your vehicle’. If a baby capsule or child car seat sustains loss from a different type of incident, the most we pay is its market value. Examples of use in another vehicle Situation: Your parents use your child car seat in their vehicle over the weekend. Their vehicle is hit by another vehicle and your child car seat is visibly damaged. Cover: Yes, cover for replacement if you have Comprehensive. Situation: Your sister uses your child car seat in her vehicle permanently. Your child car seat is stolen from her vehicle. Cover: No. Example of a type of incident we do not cover under this benefit Situation: Your dog chews the straps of your child car seat while the seat is in your vehicle. Cover: The most we pay is the market value of your child car seat if you have Comprehensive. Page 16 of 43 Completion of journey C TPFT This benefit only applies to Comprehensive, and Third Party, Fire and Theft. If we accept a claim for loss to your vehicle that leaves it undriveable, we pay the reasonable costs you incur for the following: • To move your vehicle from where the loss happened to the nearest repairer, place of storage or safe place on your journey. We also pay the reasonable costs of the following if we approve them first to: - move your vehicle to a repairer or place of storage near your home if repairs cannot be completed during your journey - return your vehicle to your home after repairs are complete - return your vehicle to your home, or a repairer or place of storage near your home, if it is stolen and recovered before a total loss claim is settled. If your trailer is covered under the ‘Trailer’ optional benefit, cover extends to your trailer. • For temporary repairs to make your vehicle roadworthy so you can get to your destination or to a repairer. The temporary repairs must be both: - necessary to keep your vehicle secure or to get back on the road safely - directly related to the incident that caused the loss. • To transport you, your passengers and domestic pets in your vehicle, from the place where the loss happened, to your home or to your nearest immediate destination if closer. • For one night’s accommodation for you, your passengers and domestic pets in your vehicle, up to $750 for an event. If someone else drives your vehicle with your permission, we cover them under this benefit as if they were you. The amount we pay is in addition to any payment under ‘Section one − cover for your vehicle’. If you have other cover for ‘Completion of journey’ with us, we only pay one benefit under all policies in total for an event, being the benefit most favourable to you. This benefit does not apply if your claim is under the ‘Uninsured motorist damage’ automatic benefit. Excess protection C This benefit only applies to Comprehensive. If we accept a claim for loss to your vehicle caused by the driver of another vehicle, we refund your excess if all the following apply: • you give us the correct registration number of the other vehicle and other information we need to contact the driver and confirm their involvement, including their name and phone number • the driver of the other vehicle acknowledges to us, or we can establish, that they were completely at fault • you give us reasonable help to recover costs incurred through your claim. Page 17 of 43 Fire extinguisher replacement or refilling C TPFT This benefit only applies to Comprehensive, and Third Party, Fire and Theft. If a fire extinguisher accessory of your vehicle is used in an attempt to put out a fire or rescue someone, we pay the reasonable cost to replace or refill it. If your claim is only to replace or refill the fire extinguisher, you do not pay an excess. You may claim under this benefit only once and for only one fire extinguisher during the period of insurance. The amount we pay is in addition to any payment under ‘Section one − cover for your vehicle’. If you have other fire extinguisher replacement or refilling cover with us, we only pay one benefit under all policies in total for an event, being the benefit most favourable to you. We do not cover a fire extinguisher that has expired or that is of a commercial grade. If your claim is for a different type of incident, the most we pay for a fire extinguisher accessory of your vehicle is its market value. Incorrect fuel C This benefit only applies to Comprehensive. We cover loss to your vehicle caused by the accidental use of: • the incorrect fuel type in its fuel tank • any engine additive or vehicle liquid in its fuel tank. We pay the reasonable cost to remove the fuel, engine additive or vehicle liquid and repair your vehicle. You or the driver must take action to prevent further loss as soon as reasonably possible after you or they realise the mistake. We do not cover replacement of the fuel, engine additive or vehicle liquid, or loss caused by any of the following: • using any contaminated fuel, contaminated engine additive or contaminated vehicle liquid • intentionally using the incorrect fuel • driving your vehicle using the incorrect fuel if you or the driver do not stop when safe to do so once you or they realise the mistake • using the incorrect octane level fuel over time • 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: • you put petrol in a diesel engine • you put diesel in a petrol engine • you put an exhaust emissions additive in a fuel tank. Page 18 of 43 Methamphetamine contamination C TPFT This benefit only applies to Comprehensive, and Third Party, Fire and Theft. If your vehicle sustains contamination damage connected to it being stolen, at our option we do one of the following: • Arrange to remediate your vehicle. • Pay you the reasonable cost to remediate your vehicle. The most we pay is our estimate of the reasonable cost of remediation. • Decide your vehicle is a total loss. For details, see ‘What we pay for a total loss’ and ‘After we settle a total loss claim’ in ‘Section one − cover for your vehicle’. We do not cover contamination damage caused by, or connected to, any of the following: • you or a member of your family • your partner or a member of their family • a person who has your permission to use your vehicle • a trustee or beneficiary of a trust that owns your vehicle • a director or shareholder of a company that owns your vehicle. In this benefit, some words have specific meanings: • ‘Contamination damage’ means damage caused by methamphetamine contamination that exceeds the contamination level. • ‘Contamination level’ means the applicable guideline value for indoor surface contamination as set out in the most recent version of guidelines followed by the Ministry of Health. • ‘Methamphetamine’ means the Class A controlled drug Methamphetamine or Class B controlled drug Amphetamine as defined by the Misuse of Drugs Act 1975. ‘Methamphetamine’ includes any of their precursor chemicals and by-products. • ‘Remediate’ means to reduce the level of methamphetamine contamination to below the contamination level. Replacement of keys and locks C This benefit only applies to Comprehensive. We pay the reasonable cost to replace keys and locks if your claim is only for keys to your vehicle that are: • lost • stolen • believed on reasonable grounds to have been duplicated without your permission. For a claim of $500 or less, you do not pay an excess. The excess applies to any additional cost above $500. However, if your keys sustain sudden and accidental damage, we settle your claim in accordance with the terms and conditions under ‘Section one − cover for your vehicle’. We deduct the applicable excess from your claim settlement. Page 19 of 43  Example of how the excess applies to an additional cost above $500 under this benefit Situation: Your vehicle keys have been stolen. Total claim amount: $800. Cover: We pay the first $500 of the claim. The additional cost is $300. Your excess is $500. The additional cost is less than your excess, so we pay you $500. You pay the additional cost of $300. Restricted and excluded drivers C TPFT TPO This benefit applies to Comprehensive, Third Party, Fire and Theft, and Third Party Only. If your policy schedule shows that you only have cover for drivers who are specifically named or that drivers under 25 years of age are excluded, these driver restrictions do not apply in certain circumstances. These driver restrictions do not apply if we would otherwise pay a claim for loss caused by any of the following: • fire • theft or attempted theft • another person using your vehicle in any of the following circumstances: - to repair or service your vehicle in their professional capacity as a member or employee of the motor trade - to provide a ‘Dial a driver’ or similar commercial service to you or any other person covered under your policy - to provide a valet parking service to you or any other person covered under your policy - for a medical emergency. Storage of your vehicle C TPFT This benefit only applies to Comprehensive, and Third Party, Fire and Theft. If we accept a claim for loss to your vehicle, we pay the necessary and reasonable cost to store it at a location we agree until one of the following happens: • your vehicle can be repaired • we settle your claim. This includes the cost to transport your vehicle to and from a repairer. If we decide the storage is no longer necessary, we may move your vehicle or ask you to move it to another location we agree. Any further costs, or parking or other requirements, are your responsibility. The amount we pay is in addition to any payment under ‘Section one − cover for your vehicle’. Temporary cover for additional or replacement vehicles C TPFT TPO This benefit applies to Comprehensive, Third Party, Fire and Theft, and Third Party Only. If you purchase an additional vehicle or a replacement vehicle for your vehicle, we cover that vehicle under your policy in the same way as we cover your vehicle if all the following apply: • the other vehicle is involved in an incident within 14 days of the purchase • the other vehicle is not yet insured Page 20 of 43 • the other vehicle is one we would cover under your policy • you apply to insure the other vehicle with us within 14 days of the purchase • the purchase price of the other vehicle is the sum insured, if your vehicle has a sum insured • you accept any special terms and conditions we apply • you pay any additional premium we require. We set up a new policy for the other vehicle. The start date of the new policy is the date you purchased the other vehicle. Example of what we would cover under this benefit Situation: You purchase a second vehicle. It is damaged in an accident one week later, before you insure it. Cover: We set up a new policy for your second vehicle. As your insured vehicle has Comprehensive, your second vehicle is covered for the damage as if it was insured with Comprehensive. Towing C TPFT This benefit only applies to Comprehensive, and Third Party, Fire and Theft. If we accept a claim for loss to your vehicle that leaves it undriveable, we pay towing and rescue costs incurred. We only pay the necessary and reasonable cost to move your vehicle to the nearest repairer or secure place. The amount we pay is in addition to any payment under ‘Section one − cover for your vehicle’. Uninsured motorist damage TPFT TPO This benefit only applies to Third Party, Fire and Theft, and Third Party Only. We cover sudden and accidental loss to your vehicle caused by an uninsured driver of a vehicle you do not own, if all the following apply: • you give us the correct registration number of the other vehicle and information we need to contact the driver and confirm their involvement, including their name and phone number • the driver of the other vehicle acknowledges to us, or we can establish, that they are completely at fault • you give us reasonable help to recover costs incurred through your claim. This benefit includes: • Cover under ‘Section one − cover for your vehicle’. For Third Party Only, your vehicle is covered for its market value. • The ‘Towing’ automatic benefit. • The ‘Storage of your vehicle’ automatic benefit. The most we pay for an event in total, including cover for your vehicle, towing and storage costs, is $5,000. You do not pay an excess. Except where the terms and conditions of this benefit differ, your claim is settled in accordance with the applicable terms and conditions under ‘Section one − cover for your vehicle’ and the ‘Towing’ and ‘Storage of your vehicle’ automatic benefits. Page 21 of 43 Section one − optional benefits The following benefits are optional benefits. Cover only applies if your policy schedule shows that you have purchased the benefit. The terms and conditions of your policy apply. The amounts we pay under these benefits are included in the amounts payable under ‘Section one − cover for your vehicle’, unless stated otherwise in a benefit. Excess-free glass C TPFT TPO This benefit is available under Comprehensive, Third Party, Fire and Theft, and Third Party Only. If your claim is only for sudden and accidental loss to the windscreen or window glass of your vehicle, you do not pay an excess. If you have Third Party, Fire and Theft, or Third Party Only, for the purpose of this benefit we cover sudden and accidental loss to the windscreen or window glass of your vehicle. We cover this glass in the same way as we would if you had Comprehensive. Cover includes parts of the windscreen or window glass such as tinting, demisters, rain sensors and the necessary recalibration of sensors associated with the glass. However, this benefit does not apply to claims involving any: • glass in sunroofs or moonroofs • repairs to your vehicle that are necessary for the glass to be fitted. If your claim involves any of these, we may accept your claim under ‘What we cover’ in ‘Section one − cover for your vehicle’ (and an excess may apply). We may also accept your claim under the ‘Uninsured motorist damage’ automatic benefit. If we settle your claim by paying you the cost of repairs, the most we pay is our estimate of the reasonable cost of repairs. We may pay for reconditioned, recycled or aftermarket windscreen or window glass. For details, see ‘What we pay for repairable damage’ and ‘We may pay for aftermarket or used parts’ in ‘Section one − cover for your vehicle’. Example of repairs necessary for the glass to be fitted Situation: Your windscreen needs to be replaced after an accident. Damage around the windscreen caused by the accident needs to be repaired before the new windscreen can be fitted. Cover: The ‘Excess-free glass’ optional benefit does not apply. You pay an excess if we accept your claim under ‘What we cover’ in ‘Section one − cover for your vehicle’. Hire vehicle or alternative transport after an incident C TPFT This benefit is only available under Comprehensive, and Third Party, Fire and Theft. If we accept a claim for loss to your vehicle, we arrange a hire car or contribute to the reasonable cost incurred of alternative transport while any of the following applies: • your vehicle is being repaired • your vehicle is undriveable while awaiting repair • you are waiting for a total loss claim to be settled. Page 22 of 43 We pay for one or any combination of the following: • a taxi, alternative rideshare or public transport reimbursement, of up to $40 per day for up to 21 days for an event • a hire car for a single hire period of up to 21 days for an event, if all the following apply: - the hire car is a passenger vehicle - we arrange the hire car through a supplier of our choice - you pay for all running costs, supplementary costs and add-ons, such as petrol, tolls and GPS hire. If loss happens to the hire car while in your care, you pay the excess that applies to your vehicle. This excess is in addition to any other excess that applies to your current claim. If the loss is not covered under the hire car company’s insurance, we cover the hire car under your policy as if it was your vehicle. If we cannot arrange a hire car, we contribute to the reasonable cost incurred for a hire car you arrange, of up to $40 per day for up to 21 days for an event. We do not cover loss to a hire car you arrange. The most we pay in total for an event is 21 day’s car hire or alternative transport, in any combination. The amount we pay is in addition to any payment under ‘Section one − cover for your vehicle’. We do not pay anything under this benefit after your repaired vehicle is returned to you, or a total loss claim is settled. Trailer C This benefit is only available under Comprehensive. We cover sudden and accidental loss to your trailer. At our option, we pay you either: • our estimate of the reasonable cost to repair your trailer as near as reasonably possible to the condition it was in just before the loss • the estimated reasonable cost to replace your trailer with one of the same make, model, year, specification and condition just before the loss. The most we pay for an event is $750. The amount we pay is in addition to any payment under ‘Section one − cover for your vehicle’. You pay an excess of $100. Your trailer is also covered as if it was your vehicle under: • The ‘Excess protection’ automatic benefit. • The ‘Towing’ automatic benefit. • The ‘Storage of your vehicle’ automatic benefit. • ‘Section two − legal liability’. Cover for legal liability applies whether or not your trailer is attached to any vehicle. We do not cover legal liability for loss to property being carried by or loaded into or unloaded from your trailer. In this benefit, ‘trailer’ means any general-use trailer that is all the following: • owned by you or in your care • not covered under any other insurance • used in accordance with ‘Vehicle use we cover and do not cover’. ‘Trailer’ does not include any: • caravan, boat trailer, camper trailer or horse float • contents, equipment or accessories of any trailer. Page 23 of 43 Section two − legal liability In this section, we explain how we cover your legal liability and the legal liability of another person. We also set out the most we pay for legal liability. What we cover We cover your legal liability for loss to another person’s property or injury to another person through the use of a vehicle, including towing a trailer or caravan attached to that vehicle. Cover includes your legal liability for general average or salvage charges following your vehicle being carried by ship. Your legal liability when you use your vehicle We cover your legal liability resulting from: • accidental loss to another person’s property, including loss of use and the cost to remove debris from a road or adjacent area • injury to another person. Cover applies if the loss or injury is caused by your use of your vehicle, including towing a trailer or caravan attached to your vehicle, during the period of insurance in New Zealand. Cover includes: • defence and other legal costs and expenses incurred, that we approve first • costs that a court orders you to pay • reparation. Your legal liability when you use another person’s vehicle We cover your legal liability caused by your use of a vehicle that another person owns, including towing a trailer or caravan attached to that vehicle. We cover this in the same way as we cover you when you use your vehicle. Both the following must apply: • you have the owner’s permission to use the vehicle, or to tow the trailer or caravan • the liability is not covered under any other insurance. The terms and conditions of your policy apply, including ‘Vehicle use we cover and do not cover’. We do not cover loss to the vehicle, or trailer or caravan attached to the vehicle, that you are using. We do not cover the excess under any other insurance, unless we arrange a hire vehicle for you under the ‘Hire vehicle or alternative transport after an incident’ optional benefit. We do not cover your legal liability if you hire the vehicle but do not take out legal liability insurance that is available through the hire company. Another person’s legal liability when they use your vehicle We cover another person’s legal liability caused by their use of your vehicle, including towing a trailer or caravan attached to your vehicle. We cover their legal liability in the same way as we cover your legal liability. Both the following must apply: • the other person has your permission to use the vehicle, or to tow the trailer or caravan • the liability is not covered under any other insurance. The terms and conditions of your policy apply, including ‘Vehicle use we cover and do not cover’. Page 24 of 43 Your employer’s legal liability when your vehicle is used for work We cover your employer’s vicarious liability caused by your use of your vehicle for your employer’s business, including towing a trailer or caravan attached to your vehicle. We cover their vicarious liability in the same way as we cover your legal liability. The same cover applies when another employee uses your vehicle, or tows a trailer or caravan attached to your vehicle, with your permission. We do not cover: • liability that is covered under any other insurance • liability to your employer • loss or damage to your employer’s property in your care. The terms and conditions of your policy apply, including ‘Vehicle use we cover and do not cover’. Vicarious liability means that your employer may be held responsible for injury or damage, even if they were not actively involved in the incident. General average or salvage charges for vehicles on a ship We cover general average or salvage charges for which you are legally responsible as a result of your vehicle being carried by ship between places in New Zealand. Cover extends to your trailer, but only if your trailer is covered under the ‘Trailer’ optional benefit. ‘General average’ is a marine term that describes how the cost of losses will be shared between people with property on the ship. What we pay Limits apply to what we pay for legal liability. The most we pay for legal liability The most we pay for an event, including all legal liability, costs, expenses and reparation, is: • $20,000,000 for liability for loss to property, including loss of use and removal of debris • $1,000,000 for liability for injury. However, the most we pay in total for an event involving both loss to property and injury is $20,000,000. If you have Comprehensive and your claim is only for legal liability, you do not pay an excess. If you have Third Party, Fire and Theft, or Third Party Only, the vehicle excess and any other applicable excess applies. The amount we pay is in addition to any other payment under your policy. Full and final settlement for legal liability We may pay the full amount under this part of your policy, or any lesser amount for which the legal liability can be settled. This payment will meet all our obligations under this part of your policy. Page 25 of 43 Section two − automatic benefit The terms and conditions of your policy apply to this automatic benefit. Careless driving defence costs C TPFT TPO This benefit applies to Comprehensive, Third Party, Fire and Theft, and Third Party Only. We pay the following reasonable legal costs for careless driving causing death, if we approve the costs first: • legal defence costs and expenses to defend a charge of careless driving causing death • costs for legal representation at any inquiry or coroner’s inquest connected to a death caused by careless driving. We cover: • you or your partner driving your vehicle • your family member permanently living with you, driving your vehicle with your permission • you or your partner driving a vehicle neither of you own, if the owner has given their permission for it to be driven and the costs are not insured elsewhere. The most we pay during the period of insurance is $10,000. The amount we pay is in addition to any other payment under your policy. You do not pay an excess. Page 26 of 43 Exclusions − what we do not cover This section explains what we do not cover. It is divided into three sub-sections − vehicle exclusions, liability exclusions and general exclusions. See also ‘Vehicle use we cover and do not cover’, which sets out the circumstances and vehicle use that will suspend all cover under your policy. Vehicle exclusions The following exclusions apply to your vehicle. Types of loss We do not cover any: • depreciation • wear and tear, rust or corrosion • rot, mould or mildew, or gradual deterioration • loss of use • consequential loss. However, this exclusion does not apply to the extent cover is provided under ‘Section two − legal liability’ or an automatic or optional benefit. Examples of consequential loss we do not cover Situation: We accept a claim for your stolen vehicle. You need to take time off work to purchase a new vehicle. Cover: We do not cover your lost wages from taking time off work. Situation: Your vehicle is damaged in an accident and we accept your claim. Cover: We pay to repair the damage, but do not cover any loss in value of your vehicle following the accident. Breakdown or failure We do not cover any mechanical, electrical or electronic breakdown, wearing out or failure (including where this is a result of an external source). However, this exclusion does not apply: • to breakdown or failure that is a direct result of loss from an external source that is covered under ‘Section one − cover for your vehicle’ • to the extent cover is provided under the ‘Incorrect fuel’ automatic benefit. Example of what we cover and do not cover Situation: A fault in your vehicle’s electronic system causes a collision. Cover: We do not cover the fault. We cover the cost to repair the damage caused by the collision. Page 27 of 43 Defects and faults We do not cover any loss caused by, or connected to, any: • defect, including a structural defect • faulty design • faulty work, except as provided under ‘Repair guarantee while you own your vehicle’ in ‘Section one − Cover for your vehicle’. This exclusion only applies to the property directly affected and not to resultant sudden and accidental loss to other parts of your vehicle. Example of resultant sudden and accidental loss to other parts of your vehicle Situation: A defect in your windscreen wipers causes scratches across your windscreen. Cover: We do not cover the defective windscreen wipers. We cover the cost to repair the damage to the windscreen. Incorrect fuel or additive We do not cover any loss caused by, or connected to, any of the following: • using the incorrect fuel type or octane level • using an engine additive or vehicle liquid incorrectly • using any contaminated fuel, contaminated engine additive or contaminated vehicle liquid. However, this exclusion does not apply to the extent cover is provided under the ‘Incorrect fuel’ automatic benefit. Pre-existing damage We do not cover any: • damage to your vehicle that existed at the time you took out your policy • damage to your vehicle that was left unrepaired from a previous claim • damage as part of a claim if the damage to your vehicle was caused by a different incident to the one related to your current claim. Example of pre-existing damage caused by a different incident Situation: We accept a claim for damage to a door of your vehicle. Your vehicle’s bonnet was damaged in a different incident the year before. Cover: We do not cover the bonnet as part of the current claim. You may make a separate claim for the bonnet. A separate excess may apply to each claim. Tyres We do not cover tyres for any: • damage caused by braking • wear and tear • punctures, cuts or bursts, unless these result from either: - loss for which we accept a claim - malicious damage. Page 28 of 43 This exclusion also applies if a tyre needs to be repaired or replaced so your vehicle can be released to you as part of a claim. Examples of what we cover and do not cover Situation: You are driving your vehicle and are involved in a nose-to-tail crash. Your tyre is damaged as a result of this crash. Cover: We cover the cost to repair or replace the damaged tyre as part of the cost of repairing your vehicle. Situation: Your tyre has a puncture and deflates. As a result of the flat tyre, you crash your vehicle. Cover: We do not cover the tyre puncture. We cover the cost to repair the damage to your vehicle caused by the crash. Undamaged parts We do not cover costs relating to any undamaged part of your vehicle, unless we decide this is necessary to repair the loss covered. Example of what we do not cover Repainting an undamaged panel to match the paint on a repaired panel. Liability exclusions We do not cover any liability for loss to property that you own, or that is in your care or in the care of any other person covered under your policy. However, this exclusion does not apply if the property is any of the following: • a disabled vehicle being towed by any vehicle in accordance with your policy terms and conditions • personal effects belonging to a passenger in any vehicle, and the effects are in the vehicle at the time of the incident • a hire vehicle covered under the ‘Hire vehicle or alternative transport after an incident’ optional benefit. We do not cover any liability connected to any of the following: • Loss to property being carried by or loaded into or unloaded from, any vehicle, or a trailer or caravan attached to it. However, this exclusion does not apply if the property is personal effects belonging to a passenger in the vehicle, and the effects are in the vehicle at the time of the incident. • The ownership, use or maintenance of any vehicle within the restricted area of an airport. • Any contract or agreement, unless you would have been liable even without the contract or agreement. • Costs resulting from the prosecution of any offence under any Act of Parliament including any regulations, except as provided under the ‘Careless driving defence costs’ automatic benefit. • Personal injury if cover is available under the Accident Compensation Act 2001. We also do not cover the injury if the Accident Compensation Corporation (ACC) would have covered a claim if one had been lodged or lodged on time. We do not cover a claim that ACC has rejected. Page 29 of 43 General exclusions We do not provide any cover, including for loss, damage or liability, in any of the following circumstances. Alcohol, drugs or other intoxicating substances We do not cover anything if any of the following applies to the person using the vehicle: • they have a breath or blood alcohol level over the legal limit • they refuse to take a breath or blood alcohol test following an accident, as required by law • they are affected by a drug or other intoxicating substance, including alcohol, to such an extent that they cannot properly control the vehicle • they do not stop or stay at the scene following an accident, as required by law. However, this exclusion does not apply if your vehicle was stolen or subject to attempted theft when the incident happened, and a police report has been filed for the theft or attempted theft. Communicable disease We do not cover anything connected to, or contributed to by, any: • communicable disease contamination • loss of value or loss of use of your vehicle resulting directly or indirectly from communicable disease contamination • actual or alleged transmission of any communicable disease or the threat or fear of such transmission. In this exclusion, some words have specific meanings: • ‘Communicable disease’ means any: - disease stated to be a quarantinable disease under the Health Act 1956 - disease in respect of which a state of emergency has been declared under the Civil Defence Emergency Management Act 2002 - disease in respect of which a pandemic or epidemic has been declared by the World Health Organization or the New Zealand government or any New Zealand government agency or lawful authority - disease declared by the World Health Organization to be a Public Health Emergency of International Concern. • ‘Communicable disease contamination’ means the actual, suspected or potential presence, or the threat or fear of such presence, of any communicable disease at, in or on your vehicle. Computer systems We do not cover anything caused by, or connected to, the unavailability or corruption of, or failure to access, process, use or operate, any computer or electronic system that forms part of your vehicle. It does not matter how the unavailability, corruption or failure happened. For example, the unavailability, corruption or failure may be connected to a breakdown, fault or defect, or an external source. An external source may be a computer virus or someone accessing any of your vehicle’s computer or electronic systems without your permission. However, this exclusion does not apply to any: • unavailability, corruption or failure that is a direct result of accidental loss caused by non-electronic means that is otherwise covered under ‘Section one − cover for your vehicle’ • resultant sudden and accidental loss to other parts of your vehicle or to other property, if the loss and property are covered under your policy. Page 30 of 43  Example of sudden and accidental loss to other property because a computer system is unavailable Situation: Your vehicle’s computer system is hacked and your brakes stop working. You crash into another vehicle because your brakes did not work. Cover: We do not cover your brakes. We cover the cost to repair the damage to your vehicle caused by the crash and your legal liability for damage to the other vehicle. Confiscation We do not cover anything caused by, or connected to, any: • confiscation, nationalisation, requisition or acquisition under an order • destruction of or damage to property under an order. By ‘order’, we mean a government order, public or local authority order, or an order under an Act of Parliament or Regulation. However, this exclusion does not apply if that order is required to prevent or control loss that would otherwise have been covered under your policy. Electronic data We do not cover lost electronic data, or anything caused by, or connected to, lost electronic data. However, this exclusion does not apply to any: • Sudden and accidental loss to other property directly resulting from lost electronic data, if the loss and property are covered under your policy. • Cover provided under the ‘Replacement of keys and locks’ automatic benefit. • Claim covered under ‘Section one − cover for your vehicle’ for any electrical or electronic hardware component or system of your vehicle. In this case, we pay the reasonable cost to restore, reset or reprogramme any: - software, programs or other coded instructions to restore manufacturer’s settings - hardware components or systems that need work as part of repairing damage to other parts of your vehicle. In this exclusion, ‘electronic data’ means information changed to a form usable for communications, processing or controlling. This includes, for example, software, programs and other coded instructions for data processing or controlling electronic equipment. Fines and damages We do not cover any fine, penalty, or punitive or exemplary damages. Illegal, unsafe or unroadworthy We do not cover anything caused by, or connected to, any vehicle being used in any of the following circumstances: • for an illegal purpose • in an illegal or unsafe way • in a condition that is unroadworthy or would not meet the Warrant of Fitness standard just before the loss, and the driver should have known that this use or condition could result in a claim. Page 31 of 43 This exclusion only applies if the excluded use or condition of the vehicle contributed to the incident. However, this exclusion does not apply if your vehicle was stolen or subject to attempted theft when the incident happened, and a police report has been filed for the theft or attempted theft. Example of an incident caused by the condition of your vehicle Situation: Your vehicle fails a Warrant of Fitness check due to worn brakes. Your vehicle is then damaged in an accident, colliding with another vehicle, partly because the worn brakes meant you could not stop in time. Cover: No. We do not cover the damage to your vehicle or your liability for damage to the other vehicle. Incidents outside New Zealand We do not cover anything that happens outside New Zealand. Incidents outside the period of insurance We do not cover anything that happens outside the period of insurance. Intentional or reckless acts We do not cover anything caused by, or connected to, any intentional or reckless act or failure to act. This exclusion applies whether the action or inaction was by you, by any other person covered under your policy or by any person who has your consent or implied consent to use the vehicle. Modified vehicle We do not cover anything if your vehicle has any of the modifications listed in your policy schedule under ‘Your vehicle details’, unless your policy schedule shows you have told us about it. You must let us know as soon as possible if you need to amend any modification details in your policy schedule. We may cancel or change the terms of your policy as a result of any new information. For details, see ‘Change in circumstances’ in the section ‘Conditions of your cover’. Nuclear contamination and activity We do not cover anything caused by, or connected to, any: • ionising radiation or contamination by radioactivity from any nuclear fuel • ionising radiation or contamination by radioactivity from any nuclear waste from the combustion or fission of nuclear fuel • nuclear weapons material • nuclear power plants, including the use or escape of any nuclear fuel, material or waste. Page 32 of 43 Sanctions We do not provide any cover or benefit, or pay anything in connection with your policy, including any premium refund, if doing so may breach or risk exposure to any: • sanctions, prohibitions or restrictions under United Nations resolutions • trade or economic sanctions, laws or regulations of New Zealand, Australia, Singapore, the United Kingdom, the United States of America or the European Union. Seepage, pollution or contamination We do not cover anything caused by, or connected to, seepage, pollution or contamination, including the cost to clean up. However, this exclusion does not apply if either: • the incident is caused by a sudden and accidental event, if the incident is otherwise covered under your policy • the loss is covered under the ‘Methamphetamine contamination’ automatic benefit. Terrorism We do not cover anything connected to, or contributed to by, any: • terrorism that involves any biological, electromagnetic, chemical, radioactive or nuclear pollution, contamination or explosion • controlling, preventing, suppressing, retaliating against or responding to terrorism as described in the point above. In this exclusion, ‘terrorism’ includes any act, threat of action or preparation for action, by a person or group acting alone or in connection with any organisation or government, which is any of the following: • designed to influence any rightful or actual government or intimidate the public • in pursuit of political, religious, ideological, or similar purposes. The act, threat or preparation involves any of the following: • violence against any person • damage to property • endangering of life, except that of the person committing the action • risk to the health or safety of any person • anything designed to interfere with or disrupt an electronic system. Unlawful substances We do not cover anything caused by, or connected to, contamination from any ‘controlled drug’ as defined in the Misuse of Drugs Act 1975, except as provided under the ‘Methamphetamine contamination’ automatic benefit. Unlicensed drivers We do not cover anything if any of the following circumstances apply: • you or the driver of your vehicle does not meet the conditions of your or their driver licence • you or the driver of your vehicle does not hold a driver licence appropriate for the class of the vehicle • you or the driver of your vehicle is not legally allowed to drive in New Zealand. Page 33 of 43 This exclusion also applies when you drive another person’s vehicle. However, this exclusion does not apply if your vehicle was stolen or subject to attempted theft when the incident happened, and a police report has been filed for the theft or attempted theft. War We do not cover anything caused by, or connected to (including controlling, preventing or suppressing), any: • war • invasion • act of foreign enemy • hostilities (whether war is declared or not) • civil war • insurrection • rebellion • revolution • military or usurped power. Weapons We do not cover anything caused by, or connected to, any chemical, biological, biochemical or electromagnetic weapon. Page 34 of 43 Claims − what you need to do This section explains your responsibilities, what you must get our agreement to first and what we may do as part of a claim. What you must do If anything happens that may lead to a claim, you must take all the following steps: • do what you can to take care of the covered property and prevent any further loss, expense or liability • let us know as soon as possible • file a police report as soon as possible if you think an illegal act is involved • keep anything that is or could be part of a claim • let us or anyone acting on our behalf assess the covered property before any repairs are started, except for temporary repairs provided under the ‘Completion of journey’ automatic benefit • send us as soon as possible anything you receive from another person about a claim or possible claim against you • let us know as soon as possible if you are charged with any offence connected to the use of any vehicle that resulted in loss to another person’s property or injury to another person • provide any information or documents we require as soon as possible • attend any meetings, or court hearings to give evidence, if we require this • give us any help we ask for. What you must get our agreement to first As part of a claim, you must get our agreement before you do any of the following: • incur any expenses connected to a claim under your policy, except for expenses provided under the ‘Completion of journey’ automatic benefit • remove anything that is fixed to your vehicle • negotiate, pay, settle, admit or deny a claim against you • do anything that may affect our rights of recovery • negotiate, offer to pay, or pay any reparation, such as make an offer as part of a pre-trial conference or sentencing hearing. What we may do As part of a claim, we may decide to act on your behalf to do any of the following: • Negotiate, defend or settle a claim against you that is covered under your policy. We cover the reasonable legal costs of these actions. • Recover anything covered under your policy from another person. If we do this, we may also recover any uninsured loss you sustain in the same event. We deduct the recovery costs we incurred from any amount recovered and share the remaining amount with you on a proportional basis. You must co-operate fully with any action we take on your behalf. See also ‘How we pay claims − some examples’ at the end of this document. Page 35 of 43 Conditions of your cover This section explains the conditions you must meet to have cover under your policy. Some of these conditions also apply to any other person covered under your policy. Breach of any condition If you or any other person covered under your policy, or anyone acting on your or their behalf, breaches any of the conditions of your policy, we may do one or both of the following: • decline your claim, either in whole or in part • decline any claim connected to the same event that you make on any other policies you have with us. Dishonest or fraudulent act or omission If you commit a dishonest or fraudulent act or omission, we may avoid your policy and any other policy you have with us. This means we treat your policy or all insurance you have with us as if it no longer exists. The avoidance will take effect from the date of the dishonest or fraudulent act or omission. This condition also applies to: • anyone acting on your behalf • anyone covered under your policy and anyone acting on their behalf. True statements and answers You must give true statements and answers in all communications with us, and so must any other person covered under your policy. Giving true statements and answers includes being truthful when you: • apply for your policy • make a change to your policy • make a claim • let us know about any change in circumstances. Cancelling your policy Your policy can be cancelled in several ways. By you You may cancel your policy at any time by letting us know. Cancellation will take effect once you tell us, or from another date we both agree on. We refund any premium paid for the period you have no cover. You pay any premium owing for the period you had cover. By us We may cancel your policy at any time by sending you notice in writing or electronically at your last known address. Unless stated otherwise in your policy, cancellation will take effect from the 14th day after the date of the notice. We refund any premium paid for the period you have no cover. Page 36 of 43 Automatically Your policy will be automatically cancelled once we settle a total loss claim. The cancellation will take effect from the end of the day of the loss. For details, see ‘After we settle a total loss claim’ in ‘Section one − cover for your vehicle’. We do not refund or credit any premium paid. Once we settle a total loss claim, you will need to make new insurance arrangements on any replacement vehicle, as your policy will be automatically cancelled. Change in circumstances You must let us know as soon as possible if your circumstances change, and the change may affect any of the following: • the chance of a claim under your policy • the amount of a claim under your policy • the information in your policy schedule. If the change in circumstances affects any of these, we may cancel or change the terms of your policy. Any cancellation or change of terms will take effect from the date of the change in circumstances. Examples of a change in circumstances that you need to let us know about: • you change the address where you usually keep your vehicle • you are convicted of a criminal offence • you modify your vehicle's engine • you start a new job as a rideshare driver using your vehicle. If you are not sure whether we need to know about something, it is important that you check with us. Change of terms We may change the terms of your policy (including the excess) at any time by sending you notice in writing or electronically at your last known address. Unless stated otherwise in your policy, the change in terms will take effect on the 14th day after the date of the notice. Changes to Crown entities Any reference to any Crown entity includes any new name given to that entity, and any replacement entity that is responsible for the same or similar functions. Changes to legislation Any reference to any Act of Parliament or related regulations or rules your policy refers to includes any amendments made or replacements to that law. Currency All amounts shown in your policy are in New Zealand dollars. Page 37 of 43 Duplicate insurance You must let us know as soon as possible if any other insurance covers you for any risks covered under your policy. We do not cover loss or liability that is insured to any extent under any other insurance. We also do not contribute towards any claim under any other insurance. Goods and Services Tax (GST) All amounts shown in your policy include Goods and Services Tax. Governing law and jurisdiction The law of New Zealand applies to your policy and the New Zealand courts have sole jurisdiction. Insurance Claims Register We may put details of any claims you make on the Insurance Claims Register. This is a database of insurance claims that participating insurers can access. We may get personal information and details of insurance claims you have made from the Insurance Claims Register. Joint insurance If your policy covers more than one person, everyone is jointly covered and must meet your policy terms and conditions. If any person does not meet your policy terms and conditions, we may decline a claim or treat your policy as if it never existed. Example of joint cover when making a claim Situation: Your vehicle is damaged while being driven by another person who is covered under your policy. The driver was over the legal alcohol limit at the time. You make a claim for the damage. Cover: No. Other parties with a financial interest If any other party has a financial interest over the covered property, we may do any of the following: • Pay part or all of any claim settlement to that other party. This payment will go towards meeting the obligations we have under your policy. • Give information about your policy and any claim to that other party. Any other party who has a financial interest over the covered property is not covered under and cannot claim under your policy. Reasonable care You must take reasonable care to avoid situations that could result in a claim. We will not accept a claim resulting from you or any other person covered under your policy being reckless or grossly irresponsible. Page 38 of 43 Definitions The definitions apply to the plural and any other form of the words. For example, the definition of ‘accidental’ also applies to the words ‘accident’, ‘accidents’ and ‘accidentally’. accidental means unexpected and unintended by you or any other person covered under your policy who is using your vehicle or any other vehicle or trailer. event means any one or more occurrences of covered loss or liability during the period of insurance arising from one source or original cause or related causes. incident means something that happens at a particular point in time, at a particular place and in a particular way. injury means the accidental death of or accidental bodily injury to any person, including sickness, disease, disability, shock, fright, mental anguish or mental injury. loss means physical loss or physical damage. market value means the estimated reasonable cost to replace your vehicle, accessory or modification with one of the same make, model, year, specification and condition just before the loss. partner means your husband or wife, or the person living with you in the nature of marriage. period of insurance means the period of insurance shown in your policy schedule that specifies the start and end dates of your policy. policy schedule means the latest version of your policy schedule outlining the details of your cover. reparation means 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. sum insured means the sum insured for your vehicle, including its accessories and any modifications, shown in your policy schedule. total loss means your vehicle is either: • uneconomic or unsafe to repair • stolen and not recovered. Example of when we may decide your vehicle is a total loss We may decide your vehicle is a total loss if the expected cost of the repair is uneconomic compared to either: • your sum insured − if you have an agreed value policy • the market value of your vehicle just before the loss, or your sum insured if that is less − if you have a market value policy. You are responsible for checking that your sum insured is enough to cover the value of your vehicle, including its accessories and modifications. use means: • driving, parking, garaging or storing any vehicle or trailer • getting in, on, off or out of, or being in or on, any vehicle or trailer. Page 39 of 43 How we pay claims − some examples The following examples show how a claim payment might be calculated and what amount you may be required to pay. These examples do not cover all scenarios or benefits and do not form part of your policy. Claim example 1 − repairing your vehicle While driving your vehicle, you have a crash with another vehicle where you are at fault. The other vehicle is not damaged, but your vehicle is undriveable. Cover level Comprehensive Sum insured Agreed value $25,000 Optional benefits None Vehicle excess $500 You make a claim and we arrange for your vehicle to be towed from the location of the accident to a repairer. You take your valuables from your vehicle with you. We accept your claim. What the costs are The towing cost is $350. We estimate the cost to repair your vehicle to be $2,250. You want to hire a car for 6 days while your vehicle is being repaired, at a cost of $60 per day. How we settle your claim We pay the towing company $350 and pay the repairer $1,750 (being the cost of repairs of $2,250 less the $500 vehicle excess). You pay the repairer the vehicle excess of $500. We do not arrange or pay for a hire car, as you had not purchased the ‘Hire vehicle or alternative transport after an incident’ optional benefit. Claim example 2 − total loss Your 22-year-old son is a driver listed on your policy. While driving your vehicle, he has a crash with another vehicle where he is at fault. The other vehicle is not damaged, but your vehicle is undriveable. Cover level Comprehensive Sum insured Agreed value $34,700 Vehicle excess $1,000 Additional excesses Driver excess for your son $500 Premium payment Monthly instalments frequency You make a claim and we arrange for your vehicle to be towed from the location of the accident to a repairer. You take your valuables from your vehicle with you. We accept your claim. Page 40 of 43 What the costs are The towing cost is $300. We decide your vehicle is a total loss. How we settle your claim We pay the towing company $300 and pay you $32,980, calculated as: Agreed value $34,700 Less the vehicle excess – $1,000 Less the driver excess – $500 Less the remaining unpaid monthly – $220 instalments (since you pay the premium in instalments, we deduct any premium you owe us up to the end of the period of insurance before we settle a total loss claim) TOTAL $32,980 What happens next After we settle your total loss claim, your vehicle and any salvage become our property. We deregister the vehicle and keep any refund for the unused portion of the vehicle licence. You remove and keep your personal belongings that are not permanently attached to the vehicle. Your policy is automatically cancelled from the end of the day of the loss. You want us to cover a new vehicle, so you apply for a new policy. Claim example 3 − vehicle stolen and recovered Your vehicle is stolen and you report this to the police. A few days later, your vehicle is found damaged and with missing accessories, including your tyre jack, spare wheel, fire extinguisher and first aid kit. Cover level Third Party, Fire and Theft Sum insured Agreed value $4,000 Optional benefits ‘Hire vehicle or alternative transport after an incident’ Vehicle excess $500 You make a claim. We accept your claim. We arrange a hire car for you until we settle your claim, up to a maximum of 21 days under the ‘Hire vehicle or alternative transport after an incident’ optional benefit. What the costs are We estimate the cost to repair your vehicle to be $2,000. The market value of the missing accessories is $750. The cost of the hire car is $600. Page 41 of 43 How we settle your claim We pay the repairer $2,000 and pay you $250 for the missing accessories (being the market value of the accessories of $750 less the $500 vehicle excess). We pay the hire car company $600 for the hire car. You pay for the hire car running costs, such as fuel. Claim example 4 − liability claim for damage to someone else’s property While driving your vehicle, you lose control and crash it into someone else’s front fence and garden. Cover level Third Party Only Liability limit $20,000,000 Vehicle excess $500 The homeowner makes a claim against you for the damage to their fence and garden. You make a claim for legal liability. We agree you are liable for the claim made against you and accept your claim. What the costs are The homeowner’s insurer assesses that you are liable to pay $8,000. How we settle your claim We act on your behalf. You pay us the vehicle excess of $500, which we include in the settlement we pay to the homeowner's insurer. We pay the homeowner's insurer $8,000, the cost we agree is reasonable for the repair. As your cover is Third Party Only, we do not repair the damage to your vehicle. You pay for this. Claim example 5 − crash caused by an uninsured driver While driving your vehicle, you have a crash with another vehicle. The other vehicle and its driver are uninsured. Cover level Third Party Only Vehicle excess $700 Premium payment Annual premium, paid in full details You make a claim and give us the registration details of the other vehicle and the driver’s name and phone number. The driver of the other vehicle acknowledges to us that they are completely at fault for the crash. We accept your claim under the ‘Uninsured motorist damage’ automatic benefit. Under this benefit, your vehicle is covered for its market value, based on its condition just before it was damaged. The most we pay under this benefit is $5,000, including towing and storage costs. We arrange for your vehicle to be towed from the location of the accident to a storage location. You take your valuables from your vehicle with you. Page 42 of 43 What the costs are The towing cost is $500. We decide your vehicle is a total loss. The market value of your vehicle just before it was damaged was $3,000. How we settle your claim We pay the towing company $500 and pay you $3,000. You do not pay an excess. What happens next After we settle your total loss claim, your vehicle and any salvage become our property. We deregister the vehicle and keep any refund for the unused portion of the vehicle licence. Your policy is automatically cancelled from the end of the day of the loss. We do not refund or credit any premium. You want us to cover a new vehicle, so you apply for a new policy. Claim example 6 − excess greater than repair cost You accidentally reverse your vehicle into a fence at your home and damage the rear of your vehicle. The fence is not damaged. Cover level Comprehensive Sum insured Agreed value $55,000 Vehicle excess $1,000 You make a claim. What the costs are Our repairer assesses the cost to repair your vehicle to be $800. What happens next You do not go ahead with your claim, as the vehicle excess is more than the repair cost. You arrange and pay for the repairs to your vehicle. Page 43 of 43 Car Insurance Copyright (2024) IAG New Zealand Limited state.co.nz State has relationships with insurance intermediaries who issue our policies. State is a business division of IAG New Zealand Limited. IAG New Zealand Limited pays remuneration to insurance intermediaries when they issue State policies, and when these policies are renewed or varied. This policy document is subject to copyright. Form no: SI6737/5 Issued: November 2024 Page 44 of 43