Insurance Policy Guidelines
Important – This is only a brief summary; for further information please refer to your vehicle or finance consultant.
Mechanical Breakdown Insurance (MBI)
MBI Insurance is a policy that provides cover for the reasonable cost of repair due to the actual failure of mechanical and electrical parts as a result of sudden and unforeseen breakdowns that occur during normal vehicle use.
There are many different cover options, excesses, claim limits and benefits that are specific to different categories of vehicles, for example petrol and diesel powered, Japanese or European made vehides.
Policies available provide additional benefits:
- AA Roadservice covering towing and assistance with flat batteries, lockouts, lost keys, flat tyres and out of fuel 24 hours a day, 7 days a week – with up to 2 call outs per year.
- Reimbursement of part or all costs associated with accommodation or rental car hire or return home costs or vehicle repatriation where you have a valid claim and the repairs will take longer than 24 hours and you are more than 100kms from home.
There are exclusions, limits and conditions which apply to both repair costs and the additional benefits which are set out in the policy. There are also servicing requirements which you are required to have evidence of. No repairs must be undertaken unless authorised by Claims Services.
Payment Protection Insurance (PPI)
PPI is a policy which may cover the policyholder’s monthly instalments on a Credit Contract if they suffer from an insured event . In the unfortunate event of death, long term injury or illness, PPI may cover the outstanding balance on the loan.
You can select between Single, Double and Joint Cover for your insurance type, for the meaning of these see the heading ‘Insurance type as shown on policy certificate’ in the policy.
The policy cover options and benefits are specific to the policyholder’s source of income at the time entering into a Credit Contract. The benefits are payable directly to the financier and the insured events are listed below.
WAGE & SALARY EARNER COVER
Insured Events: Death, Accident, Illness, Bankruptcy and Redundancy
SELF EMPLOYED COVER
Insured Events: Death, Accident, Illness, Business Interruption and Bankruptcy.
RETIREE BENEFICIARY OVER
Insured Events: Death, Permanent Total Disablement, Hospitalisation or Bed care and Bankruptcy.
The policy sets out the criteria to qualify for these benefits and the limits that apply, in the section applicable to each of the three different covers. The policy has an overriding maximum limit of $200,000. There are exclusions and conditions which apply to all three covers which are set out in the policy under those headings.
The policy will automatically cancel upon full prepayment of the credit contract, the policy shows this and the other circumstances in which you can cancel. There is also a cooling off period which is explained in the policy as well. The policy has a maximum period of cover of 60 months.