Credit Contract Indemnity Insurance
In consideration the premium being paid and subject to the insured events, conditions and limitations and exclusions set out herein, Vero Insurance New Zealand Limited will indemnify the Dealer, Financier and Purchaser against financial loss in respect of any credit contract declared to the company where such loss is attributable to the occurrence of an event detailed below that occurs within New Zealand and which results in the Purchaser being unable to satisfy his/her obligations to the Dealer and/or Financier and will pay any amounts payable under the indemnity to the Financier to be received and set off against the Purchaser’s obligations to the Dealer and/or Financier.
A. Death of the Purchaser: Amount payable – outstanding instalments as at date of death excluding any arrears older than 3 months.
B. Accident: Total disablement of the Purchaser from attending to employment as a result of accidental bodily injury. Amount payable – instalments excluding arrears calculated on a daily basis provided that the company shall not be liable for the first 7 days of such disablement.
C. Illness: Any illness unless specifically excluded which causes total disablement of the Purchaser from attending to employment provided the illness does not become manifest within 28 days of the commencement of this cover. Amount payable – instalments excluding arrears calculated on a daily basis provided that the company shall not be liable for the first 7 days of such disablement.
D. Redundancy: Redundancy other than voluntary redundancy from full time employment resulting in unemployment for not less than seven days “Full time employment” shall mean working for salary or wages for a minimum of 30 hours a week. Such expression shall not apply to self employed persons or working directors. Redundancy shall mean an excess of manpower resulting from mechanisation, rationalisation, or from a decrease in business activity, including the closing down of an enterprise or changes of plant, methods, material or products, or reorganisation or like cause requiring a permanent reduction in the number of workers employed on other than a casual, temporary or seasonal basis. Self employed persons, seasonal workers and working directors are excluded from this indemnity. The Redundancy Benefit is available only if the Purchaser has been in continuous permanent full time employment prior to the date of redundancy and is conditional upon the Purchaser actively seeking alternative employment. Amount payable – instalments excluding arrears calculated on a daily basis, provided that the company shall not be liable for the first thirty days plus statutory holidays of any period of unemployment and compensation shall be limited to 185 days thereafter.
E. Business Interruption: Interruption to the business operated by the Purchaser as described in the Credit Contract resulting in the Purchaser being unable to carry on his/her normal business activity as a result of total physical loss or damage to the business premises, prevention of access to the business premises or failure of the essential services to the business premises required for its normal safe operation other than by natural disaster. The Business Interruption benefit is only available if the Purchaser has been operating in the same business for a period of 6 months prior to any claim being lodged. Amount Payable – instalments, excluding arrears, calculated on a daily basis provided that the company shall not be liable for the first thirty days of any period of business interruption and compensation shall be limited to 185 days thereafter.
F. Bankruptcy: Providing you are adjudged bankrupt by the High Court during the period of insurance pursuant to a Creditors’ Petition under the Insolvency Act 1967, you were self-employed and you have been trading in the same style and same business for not less than 3 years prior to the commencement of the loan agreement. Amount Payable – instalments excluding arrears calculated on a daily basis provided that the company shall not be liable for the first 30 days following you being adjudged bankrupt, until the earlier of; you being discharged from bankruptcy, the loan being repaid, the end of the period of indemnity is reached or a period of 185 days. The maximum amount payable is $10,000. In the event of a claim, you must provide any written evidence from a chartered accountant and related court documents together with any other information and documentation that we reasonably require.
G. Suspension: Suspension from permanent employment which is the direct result of a lawful strike, lock-out or strike related action which occurs during the term of the policy, outside your place of employment, providing that your employer is lawfully entitled to withhold your remuneration for the period of your suspension. Amount Payable – instalments calculated on a daily basis during the period of suspension provided that the company shall not be liable for the first 30 days following your suspension and cover shall cease when; the loan is repaid, the period of insurance ends or when you have been suspended for 185 days, whichever occurs first.
H. Hospitalisation: Hospitalisation of the Purchaser which causes total disablement of the Purchaser from attending to employment. Amount Payable – instalments excluding arrears calculated on a daily basis provided that the company shall not be liable for the first 7 days of hospitalisation.
Amounts payable under this indemnity are subject to a monthly limitation of $4,000 and a maximum total limitation of $200,000. With respect to variable payment and balloon payment finance contracts, the basis of payment under insured events B, C, D, E, F, G & H shall be calculated on the amount required to be paid on at least 50% of the monthly payments specified in the credit contract.
No amount shall be payable in respect of:
1. Any medical condition existing prior to the inception date of this indemnity.
2. Any occurrence consequent upon:
a. War, terrorism and related risks;
b. Earthquake, volcanism, tsunami or other seismic event;
c. Redundancy due to cessation of work where the work is of a seasonal, contractual, self-employed or temporary nature or where the Purchaser is employed for a specified period or by reference to specified work and becomes unemployed at the expiration of the period or on completion of the work;
d. Redundancy, Business Interruption, Bankruptcy, Suspension or Hospitalisation that the Purchaser or Financier know or ought to have known was possible, probable, or likely at the commencement of cover.
3. Any occurrence happening to the Purchaser whilst:
a. Engaging in air travel other than as a passenger or air crew in an aircraft fully licensed for the carriage of passengers;
b. Insane or suffering from mental illness;
c. Engaging in a criminal act;
d. Engaging in motor racing of any kind, parachuting, hang-gliding or professional sporting activities;
e. Driving a vehicle under the influence of intoxicating liquor, narcotics or drugs.
4. Any occurrence attributable either wholly or in part to:
a. Infection by the Human Immunodeficiency Virus, AIDS or by any sexually transmitted disease;
b. Pregnancy, childbirth or menopause;
c. Medical or surgical treatment including cosmetic surgery (except where such treatment is rendered necessary by a covered occurrence);
d. Suicide or intentional self injury or deliberate exposure to exceptional danger (except in an attempt to save human life);
e. Mental fatigue or burnout, stress related illness or depression;
f. Ionising radiations or contamination by radioactivity from any nuclear fuel;
g. Alcoholism, chemical or drug dependency;
h. Redundancy which is notified or occurs within 60 days of commencement of this indemnity
In the event of a happening that constitutes a claim please adhere to the following procedure.
1. Contact Claim Services on 0800 809 700 and request a claim form.
2. On receipt of the claim form complete all sections and return to us with all relevant information and documentation that is requested.
3. Authorise the release of all relevant documentation and information that is required.
4. Notice must be given as soon as possible following the event that has resulted in a claim but in any case within 28 days to Claim Services, PO Box 331 248, Takapuna, Auckland, 0740.
CHANGE IN CIRCUMSTANCES
The Purchaser/s must inform us immediately if:
- The Purchaser/s change their name or address
- The Loan Contract is varied in any way.
DUTY OF DISCLOSURE
Subject to the rights set out in the Criminal Records (Clean Slate) Act 2004 (“Clean Slate Act”), you are under a duty to disclose all material information to us whether the information is asked for or not. Material information is information that might influence our decision to insure you and if so on what terms and /or premium. All information given must be complete and correct. If you have any doubt as to whether a fact is material then it should be disclosed. The duty to disclose all material information occurs prior to the commencement of cover and if the contract is varied. Failure to disclose all material information may result in us avoiding your insurance policy. This means your policy would be deemed never to have existed and any claims would not be payable.
PRIVACY ACT 1993
This Proposal Certificate collects personal information in order to evaluate your proposal for insurance cover for the purpose of deciding whether to issue insurance cover and if so on what terms. The information collected will be held by Autosure New Zealand, 12 – 14 Northcroft Street, Takapuna and by Vero Insurance New Zealand Limited, 48 Shortland Street, Auckland. Failure to provide any personal information requested may result in cover being declined or the policy being avoided. Individuals have a right to request access to and correction of their personal information subject to the Privacy Act 1993.