When am I not covered – Issue 3
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 …
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.
Please be aware, these articles focus on the major issues 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 non-compliance to the terms and conditions of the policy. What we discuss in this article can be referenced back to page 18 and 19 of our PDS.
Here are a few of the important points:
- Vehicle Usage – When you get a quote with us, one of the questions that we ask is how you plan to use your vehicle or van. The options available are Business or Private use and each will have a slightly different risk rating and premium. Why are they different you ask? Well, the answer isn’t simple, but in general a vehicle being used for business sees more road use and at times will not have a defined driver, unlike private insurance customers. Both of these factors contribute to a higher risk. So make sure you answer correctly and as always, if your circumstances change, let us know.
- Business Usages – When you declare that your vehicle is being used for business, it’s important to understand that there are certain business uses that aren’t covered. For example, if you’re hiring your rig or van out for rewards, you won’t be covered. There are certain insurers out there that will cover your van or camper trailer or even your vehicle for hire. This is pertinent as the concept of peer-to-peer business grows nationally. We are focused in our intent; we are here for the enthusiast and the enthusiast only. Other usages that are not covered are delivery type vehicles, couriers and the like. Where you have any doubt, please give us a call to discuss how you use your rig – it pays to be sure.
- Duty of Disclosure – This is a very important piece that we have written a blog about in the past. All motor insurers (and general insurers in fact) in Australia operate under the Duty of Disclosure, a document that outlines what an insurance provider expects of you. The Duty of Disclosure is an extension of the Insurance Contracts Act 1984. The core of this requires anyone applying for insurance to disclose to the insurer every matter they know or could reasonably be expected to know to be relevant to the insurer’s decision to accept their application for insurance. In layman’s terms, read or listen and understand the questions you are being asked when being quoted and please, answer them accurately. Being a specialist insurer, we have more questions than normal and every single one of them may be a determining factor around whether we choose to accept your risk and offer you insurance. Remember, if it’s found that the information you provided when we decided to accept your risk and offer you a policy was not complete and correct, you will have issues lodging a claim. If it’s found that we would have offered you coverage at a higher price, we may charge you the extra premium before accepting your claim. If however as a result of your information we wouldn’t have offered you insurance in the first place, you will not be covered for your claim.
- Racing and Time Trials – Just typing that was amusing, although I’m sure not everyone reading this is blessed (Ha!) with a ZD backed by a slushbox! Like the overwhelming majority of Motor Insurers in the Australian market, you will not be covered whilst participating any form of motorsport, including Rallies, Speed Trials (still laughing) or other types of timed contests.
- Keeping it legal – The final exclusion in this area relates to using your vehicle for illegal purposes. This can include various scenarios, but in general using the vehicle in the process of committing a criminal act is the most relevant when reading this exclusion.
So there you have it – please feel free to ask questions or make comments below!