What you are not covered for – Issue 1

One of the things we get asked all the time at Club meets, shows, on the phone and online is, “What am I not covered for?” Over the next few weeks, we will be compiling a series of short articles to help you understand a bit more about the exclusions in your PDS. Importantly, these articles focus on the major pieces and should not be viewed as a substitute for appropriately looking through your PDS before deciding to take up coverage with Club 4X4.

This time around we will focus on Legal Use of your 4WD. What we talk about in this article can be referenced back to page 16 of our PDS.

The first thing to point out here is that the exclusions are focused on the driver of the fourby, not the owner (if they’re different people at the time). This makes it incredibly important to have complete trust in any person who you authorise to drive your vehicle. Lending it to a mate to go down the shops? Have a club member jumping in to help with a recovery? In all of these instances the person behind the wheel is who will be exposed to these exclusions!

So here’s a few points you should take note of:

  • Licensing – whilst most restrictions on younger drivers are around power to weight ratio around the country, it’s still important to make sure that the person driving is authorised to do so. This may also be relevant for some of our customers who may own a truck that does move into a medium rigid classification. This is usually dictated by the GVM of the vehicle (read Unimogs, converted 4X4 Canters and Fuso’s), which will require you to have a different kind of license. Make sure you take the time to understand the limitations in detail.
  • Drugs and Alcohol – Driving drunk is pretty well known as a restricting factor around your insurance coverage, but there is an increasing level of vigilance with law enforcement around drug testing. It should be a known fact that any accident involving a collision with a human will result in the driver of the vehicle being taken to hospital for mandatory blood testing. But what if the driver of your rig was tested roadside for drugs? There’s no nice way to say it, but sometimes we don’t know if a person has a drug addiction and put simply the stats are mind-boggling. If someone drove your car and was involved in an incident with an illicit substance in their bloodstream, the damage to your vehicle and other property may not be covered.
  • Driving – It’s important to understand that where someone has taken your vehicle without your permission, any damage that is caused in a claimable event is not covered. This of course is not the case if you’ve reported the theft of the vehicle as soon as you’ve become aware of the vehicle being missing. Theft of a vehicle is handled separately and more information can be found in the PDS. Further to this, if the vehicle is being driven with more occupants than it is rated to carry, your coverage will come into question.
  • Excluded drivers – This should be pretty clear, but it’s important to understand how it works. We don’t offer what the industry calls a “named driver” policy, but there will be times where we may preclude a specific driver from driving the vehicle. With us, you also have the opportunity to exclude certain age groups from being covered on your policy; this is a great way to reduce your premium and the overwhelming majority of our policyholders take this option up. Any driver exclusions will be noted on your Certificate Of Insurance (COI), which we email or mail to you when you take up or renew your policy. It’s important to review your COI to make sure you understand the driver limitations.
  • Leaving the scene of an accident – this is again an illegal act in most states across the country. If you leave the scene of an accident without rendering assistance if required, or swapping details with other involved parties not only will you be up for a fine from the police, you will not be covered for damage sustained to your vehicle and or other’s property. As always, at the scene of an accident make sure you get the other party’s registration number, license details, phone number and address details from their license. It also helps to note who they’re insured with to ensure your claim gets processed as quickly as possible.

The overarching caveat on this is that Club 4X4 does reserve the right to pay a claim should the owner be able to satisfy us that they wouldn’t have known that the driver of the vehicle falls into the above categories. This is just a sensibility clause and can be observed in more detail in the PDS

So there you have, issue one of our series of articles.


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Comments 24

  1. I like the article but not the spelling of ‘license’.
    I Australia, it is spelt ‘licence’.
    I look forward to the ensuing articles.

  2. love it give us the entire PDS is little bits explain each part. like who reads all the PDS anyway this is so much better

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      That’s the plan Keith. But its important to point out that the articles are not a substitute for you doing your own research and reading through the PDS before you decide to buy the policy.

  3. Good to see this article unwrapping the PDS a little. What is the insurance cover situation for someone who is a full time Grey Nomad towing a caravan.

    1. Post

      G’day Chris,

      It’s best you give us a call to talk through that as there are a couple of factors that come into it.


    1. Post
  4. What if the other party refuses to
    a. provide those details
    b. provide false details

    There have been instances where some parties fail to provide (accurate) details, or don’t have their licence with them (yes its an offence).

    One civilian can not force another to provider any identity details. Your policy suggests that you will penalise your client if the other party refuses to co operate?
    This suggests that your policy provides authority to gain those details from the other party without retribution of any type (civil or criminal). If so under which Act in each state?

    Very interested in your response, as I’m considering your motor vehicle policy for my cruiser.

    1. Post

      Hi Andrew,

      The responsibility lands on you to identify the other party in an accident. Unfortunately, as the person on the scene, that’s what needs to happen. If the party at fault cannot be identified, then your claim to fix your vehicle would be no different to you lodging a claim for a single vehicle accident – an excess will be charged and it will be lodged as an at fault single vehicle accident.

      If someone doesn’t want to give you their details, then our advice is to call the police to attend. Remembering that anyone who leaves the scene of an accident is committing a criminal act, at the very least write down or take a photo of the other vehicle including its number plates. If you do find yourself in a situation where someone drives off and you’ve recorded the number plate we recommend you call the police helpline and lodge an incident report immediately. It will then be followed up by the police as a criminal matter.

      It sounds to me like you are holding this as a decision making point to switch to us. I would recommend you take a look at your current PDS and speak to your current insurer to gain their stance on this also – this is not something we have developed or have a differing point on, this is quite a common concept when it comes to motor insurance in Australia.

      Thanks Andrew

  5. I believe it is not a legal requirement to produce your licence to a third party. Therefore getting someones details may not be that straight forward if they wish not to co-operate.

  6. Good article thankyou but in Victoria a person is unable to obtain a phone number from a driver’s licence and if it was asked could initiate a serious confrontation to the wrong person.
    If you ask them to produce a drivers licence to ascertain there details, has false registration or no number plates what is your ruling then please? Will a police reort suffice ?
    I believe that in Victoria it is an offence against the Road Traffic Regulations not to give your details in an accident as opppsed to fail to exchange details.
    Please correct me if I am wrong. Thankyou veru much. Neil

    1. Post

      G’day Neil,

      Thanks for the comment – We have to say, we’ve been really surprised with the responses to this component of the article. We will need to look at things in greater detail and understand exactly what the intricacies are.

      At the end of the day, the majority of the time you will gain the details that you need to lodge a claim with your insurer.

      The simple reality is that where you cannot identify the 3rd party for us to contact them then the claim will be classified as a single vehicle at fault one.

      Stay tuned, we will come back with more detailed response and article for this issue


  7. Are you going to do one on the issue of being ‘out there somewhere’ and even with the $15-30000 recovery option there is no-one who will come to get you – so you aren’t covered “anywhere in Australia”?

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      You are talking about the Off Road Recovery Cover product. This product covers you for the cost of arranging a recovery; ie – arranging the recovery is totally up to you. Remembering also that this is an additional coverage, designed to cover you for recovery if you break down or get stuck somewhere remote where a traditional roadside assistance type service will not come too.

      We still get many questions around this, it seems it needs more clarification – here’s an article that breaks it down a little more https://www.club4x4.com.au/off-road-recovery-cover-no-insurer-doesnt-offer/

      With Club 4X4, you ARE “Covered anywhere in Australia”. Our core offering is a Motor Insurance product. If you were to have a claimable event, ANYWHERE in Australia, you WILL be covered. Mud, Rocks, Snow and water – as long as you aren’t trespassing or doing something illegal at the time of the claimable event.

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