This. PDS is important. not insured for. 2 What you are 2 What we pay. 2 Who we pay. 2 How to make. a claim 2 Claim recovery.

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1 eed Buyback Insurer: Swann (Aust) Pty Ltd ABN AFS Licence No Product Disclosure Statement and insurance policy Preparation date: 20 March 2012 Table contents This PDS is important Introduction Who is the insurer Who is insured The purpose this PDS How apply for insurance General Code Practice Your duty disclosure What you need tell us What you do not need tell us What will happen if you do not tell us If you do not understand Important information Before you apply for insurance About this insurance The way we handle your personal information What you are required do for us Authority act Your cooling-f period Costs 1 Previously declined cover 2 Words that have a special meaning 2 What you are insured for 2 What we pay 2 Additional benefit 2 Who we pay 2 What you are not insured for 2 How make a claim 2 Claim recovery 2 When this insurance ends 2 Cancelling this insurance 2 Cancellation by you 2 Cancellation by us 2 Complaint and dispute handling process 2 The process 2 Financial Claims Schemee How contact us 4 4 Welcome the security Swann This PDS is important This Product Disclosure Statement and Policy (PDS) contains important information required under the Corporations Act Pleasee read this PDS before you apply for insurance. This PDS sets out the terms, conditions and limits that apply for the insurance we fer you. If you have paid the Premium and we accept your application for insurance, you will receive a Policy schedule that sets out details the insurance you have taken out. It is your responsibility make sure that all details contained on the Policy schedulee are correct. Our agreement with you is made up : your application, this PDS, the Policy schedules, and endorsements we send you. Endorsements are notices we send confirm any change your insurance. Together thesee set out the terms, conditions and limits your insurance. Keep this PDS in a safe place. You may want refer it from time time. If you need more information about this insurance, please contact us. The information in this PDS was current at the time preparation. However, some information may change from time time. If a change is significant, we will issue a supplementary PDS or replacement PDS. If a change is not significant, you can obtain a copy the updated information free charge by contacting us. Page 1

2 Introduction Who is the insurer Swannn (Aust) Pty Ltd is the insurer, Australian Business Number , Australian Financial Services Licence Number In this PDS the insurer is called we, us, our, or Swannn. Who is insured The person named as the insured when you applied for this insurance and named on the Policy schedule. In this PDS this person is called you or your. The purpose this PDS This PDS has been prepared assist you in understanding this insurance and making an informed choice about your insurance requirements. How apply for insurance Complete our application. If you apply for this insurance and your answers our questions are entered in our Internet based system, you will be provided with a copy the questions we have asked and the answers you provided relating the assessment your particular risk. General Code Practice Swannn has adopted the General Code Practice. The purpose the code is raise the standards practice and servicee in the general insurance industry. The objectives the code are: promote better, more informed relations between insurers and their cusmers, improve consumer confidence in the general insurance industry, provide better mechanisms for the resolution complaints and disputes between insurers and their cusmers, and commit insurers and the pressionalss they rely upon higher standards cusmer service. If you would like more information about the code, please contact us. Your duty disclosure What you need tell us You must tell us anything that you know, or should know, which could affect our decision insure you and/or the terms on which insure you. You must do this when you apply for insurance, renew your insurance or when you change or reinstatee your insurance. When we ask you specific questions, you must answer these questions truthfully and in a way that a reasonable person in the circumstances would answer them. It is important that every person who will be insured by this insurance answers all questions in this way. These are requirements the Contracts Act What you do not need tell us You do not need tell us anything that: reduces our risk, is common knowledge, we know, or as an insurer should know, or we indicate that we do not want know. What will happen if you do not tell us If you withhold relevant information or you do not answer our questions in the way we have described, we can reduce the amount we pay you for your claim, or we can cancel your insurance. If your failure tell us is fraudulent, or your answers are untruthful, we can treat your insurance as if it never existed. If you do not understandd If you do not understand your duty, please contact us. Importantt information Before you apply for insurance You are not obliged purchase this insurance and insurance can be arranged through a different insurer. We will not cover leases over $110,000 (including balloon or residual amounts). We issue your insurance relying on the information you provide in answer our questions when you apply for insurance. About this insurance This insurance has been designed for vehicles that travel up 0,000 kilometres on average per year over the period your Novated lease agreement. We guarantee you will receive, at the end your Novated leasee agreement, the lesser : an amount equal the minimum residual value your Vehicle by using the Australian Taxation Office minimum residual value the Purchase price, and the Residual value as stated in your Novated lease agreement, having regard the kilometres your Vehicle has travelled. The way we handle your personal information We collect personal information from you for the purpose providing you with insurance products, services, and processing and assessing claims. You can choose not provide this information, however, we may not be able process your requests. We may disclose information we hold about you : other insurers, an insurance reference service, our servicee providers and/or advisers, any third party with whom you have been dealing in respect this insurance and who referred you Swann, and any other third party as permitted or required by law. In the event a claim, we may disclose information and/or collect additional information about you from investigars or legal advisers. When you apply for insurance you can select receive fers products and services which may be benefit you. During the Period insurance we may, or any other organisation we authorise may, provide these fers. You may be contacted in writing, by phone or other electronic means. If you do not wish receive these fers you can select not receive them when you apply for this insurance, or you can contact us at any other time. Page 2

3 If you wish update or access any information, please contact us. What you are required do for us You must: tell us as soon as possible any changes your address. comply with the conditions this insurance. have the Vehicle serviced in accordance with your Vehicle manufacturer s service requirements. have all repairs for any damage your Vehicle completed before you make a claim. Authority act Swannn has relationships with authorised representatives and other licensees who sell Swann policies. Swannn may pay remuneration authorised representatives and other licensees when they sell Swann policies. Your cooling-f period If you decide that you do not wish continue with this insurance, you have 21 days after the Commencement date this insurance request cancellation. To do this, you must advise us in writing. We will provide you with a full refund Premiumm paid, providing you have not made a claim under this insurance. Costs The Premium payable by you will be shown on your Policy schedule. The key facrs that influence the Premium calculations are reflected in the questions asked, and information sought, at the time your enquiry or application for insurance. These include facrs relating : the frequency with which claims occur, the changing values vehicles, the term a lease, and the amount a lease. Premiums are subject Commonwealth and State taxes and/or charges. These include the Goods and Services Tax and stamp duty. The amount these taxes and/or charges will be shown on your Policy schedule. If we are unable issue your insurance when we receive your application, we are required hold your Premium in a trustt account on your behalf until your insurance can be issued. We will retain any interest payable by our bank meet, among other things, bank fees and other bank costs we incur in operating the account. Previously declined cover You do not need tell us about an insurer who refused cover you or renew your policy, if the insurerr informed you that refusal was not due an assessment your particular risk. This includes where the insurer no longer issues that type insurance. Words that have a special meaning Some the words in this PDS have special meanings. These words and their meanings are listed below. Commencement date The later the date the first loan monies are advanced (the settlement date your Novated lease agreement) or the date we accepted you for insurance. Disposal fee This includes: costs we incur in selling the Vehicle, and an administration cost for our services, and an administration fee we pay the organisationn who arranged your Novated lease agreement. Finance company The provider that has financed the purchase the Vehicle listed on the Novated lease agreement. Finance repayment The regular monthly finance repayment amount thatt you, or any other person, entity or company has agreed pay under the terms your Novated lease agreement. This does not include any operating or running costs, or any residual or any balloon payments. Guaranteed buyback value The lesser the percentagee the Purchase price used calculate the minimum residual value your Vehicle as set by the Australian Taxation Office or the Residual value as stated in your Novated lease agreement. The following table shows the percentages that are set by the Australian Taxation Office. Term lease Year 2 Year Year 4 Year Where the term your lease is not equal one the terms shown in the table above, the percentage the Purchase price will be calculated by using the number full years in the lease period at % for each additional full month. The Guaranteed buyback value will be reduced if your Vehicle travels between 0, 001 kilometres and 0,0000 kilometres on average per year over the period your Novated lease agreement. This reduction is shown in the Kilometre allowance below. Kilometre allowance Percentage Purchase price.2% 4.88% 7.0% 28.1% If your Vehicle travels up 0,000 kilometres on average per year over the period your Novated lease agreement, we will not reduce the Guaranteed buyback value your Vehicle. If your Vehicle travels between 0,001 kilometres and 40,000 kilometres on average per year over the period your Novated lease agreement, the percentage the Purchase price used calculate the Guaranteed buyback value your Vehicle will be reduced by 10%. If your Vehicle travels between 40,001 kilometres and 0,000 kilometres on average per year over the period your Novated lease agreement, the percentage the Purchase price used calculate the Guaranteed buyback value your Vehicle will be reduced by 1%. Page

4 If your Vehicle travels 0,000 kilometres or more on average per year over the period your Novated lease agreement you will not be able claim under this policy. For example, if the term your lease is 4 years and you travel,000 kilometres on average, then the percentagee your purchase price will be 27.0%. Lease company The provider you have entered in a Novated lease agreement with lease a vehicle detailed in that Novated lease agreement. Likely market value The average value that a franchised mor vehicle dealer would pay for your Vehicle at auction or when traded in on a similar new vehicle taking in consideration the kilometres the Vehicle has travelled and the condition the Vehicle. This value includes GST and is described in the publication Glass ss Guide Aucomplete by Glass s Information Services Pty Ltd. ABN Maximum benefit The Maximum benefit we will pay under this insurance is $2,000. Novated lease agreement The agreement between you and the Lease company thatt is providing the lease. This agreement must be in writing and state: the name and address the Lease company, and the term the agreement, and the Residual value, and the amount you agree pay your Leasee company. Period insurance The period cover shown on the Policy schedule. Policy schedule The most recent schedule we give you describing the terms and conditions thatt are specific your insurance. This also includes any amendments we send you in writing. Premium The amount you pay for the insurance. Purchase price The tal cost acquire your Vehicle. The Purchase price includes registration costs, stamp duty and delivery charges but does not include GST. Residual value The value (including GST) calculated by your Finance company when your Novated lease agreement ends. Terrorism Any act which may, or may not, involve the use, or threatt, force or violence where the purpose the act is further a political, religious, ideological aim or intimidate or influence a government (whether lawfully constituted or not) or any section the public. Vehicle The vehicle that you have leased under a Novated lease agreement with your Lease company. War or warlike activities War (including war service), an act a foreign enemy, hostilities or war like operation (whether war is declared or not), civil commotion, civil war or rebellion. What you are insured for Provided you have paid the Premium and we have accepted your application, we agree insure you during the Period insurance, subject the terms, conditions and limits this PDS. The cover provided by this insurance may vary from the prescribed standard cover. It is thereforee important that you read, retain and understand this PDS. What we pay When your Novated lease agreement ends and the Likely market value your Vehicle is less than the calculated Guaranteed buyback value your Vehicle, we guarantee that you will receive an amount equal the Guaranteed buyback value your Vehicle by using the Australian Taxation Office minimum residual value the Purchase price having regard the kilometres your Vehicle has travelled. You may be entitled make a claim: at any time after your policy has been in place for at least 2 years, if you terminate your Novated leasee agreement earlier than the period you agreed when you completed your Novated lease agreement ; or at the end your Novated lease agreement. 120 days before your Novated lease agreement ends, we will send you advice : the Residual value (including GST) your Vehicle which we will obtain from your Lease company, and the Guaranteed buyback value ( including GST) your Vehicle, and the Likely market value (including GST). If your Novated lease agreement is terminated earlierr than the period you agreed when you first entered in your Novated lease agreement, we will use the termination date calculate the average kilometres travelled per year. When you make a valid claim, we will: take possession the Vehicle, and pay your Finance company the Guaranteed buyback value, and dispose the Vehicle For example, if the value your Vehicle, not including GST, was $40,,000 when you purchased it, and your Novated leasee agreement was for a period 4 years and you have travelled less than 0,0000 kilometres on average per year, the minimum residual rate as set by the Australian Taxation Office for 4 years is 7.%. The calculated Guaranteed buyback value is $1,00, including GST. If the Likely market value your Vehicle is $12,000, including GST, you are eligible make a claim. We will pay the Guaranteed buyback value $1,00 including GST your Finance company and take possession your Vehicle. Page 4

5 Additional benefit If you are not eligible make a claim, as the Likely market value your Vehicle is higher than the calculated Guaranteed buyback value your Vehicle, you can elect for us sell your Vehicle on your behalf. Your Lease company will collect a disposal fee, from you, for this service. The amount the Disposal fee may change over time. This Disposal fee will be shown on the documentation we provide you when you elect use this additional benefit. If we do dispose your Vehicle for you, we will set a minimum sale price equal the Guaranteed buyback value. If you do this and the vehicle is sold, we will forward the Guaranteed buyback value your Finance company and the remaining sales proceeds you. In the event that the Residual value your Vehicle is greater than the Guaranteed buyback your Vehicle, you will be required pay the difference your Finance company. For example, if the value your Vehicle was $40,000, not including GST, when you purchased it, and your Novated leasee agreement was for a period 4 years and you have travelled less than 0,000 kilometres on average per year, the minimum residual rate as set by the Australian Taxation Office for 4 years is 7.%. The calculated Guaranteed buyback value is $1,00 including GST. If the Likely market value your Vehicle is $18,000 including GST, you are not eligible make a claim and you can elect for us sell your Vehicle. If the Residual value owing your Finance company is $1,00 including GST and if we achieve a sale value $18,000 including GST, we will pay your Finance company the Residual value and we will pay you the difference. Who we pay In the event a claim, payment will be made your Finance company, or as directedd by your Lease company. What you are not insured for We will not pay if your Vehicle travels 0,0000 kilometres or more on average per year over the period your Novated lease agreement. The benefits provided by this policy will not apply you when: you are no longer an Australian resident, or your Novated lease agreement is terminated, or you do not have a current Novated leasee agreement, or you sell your Vehicle. If your Vehicle is outside the fair wear and tear guide, as defined by your Lease company, or if this is not defined by your Lease company, it will be determined by the Fair Wear & Tear Guide issued by the Australian Fleet Lessorss Association Incorporated ABN , when you surrender your Vehicle, you will be responsible for any costs in rectifying your Vehicle. For a copy the Australian Fleet Lessors Association Fair Wear & Tear Guide go the website. How make a claim Contact us on within 0 days an event occurring that may give rise a claim. You must complete a claim form and return it us immediately following an incident occurring that may result in a claim on this insurance. If we do not receive your completed claim form within 14 days such an incident, we may refuse a claim or reduce the amount we pay for a claim. For your claim be processed we will require: a vehicle assessment form be completed. a minimumm six digital phographs your Vehicle. These phographs are include the front, rear and each side the Vehicle, and at least one the console the Vehicle and one the interior the Vehicle. you surrender the Vehicle us, or an organisation we will nominate. You will need do this by the date we advise you. If you are unable surrender the Vehicle we can arrange for your Vehicle be collected from a mutually convenient location. If you want us arrange the collection, you may be responsible for the cost doing so. you accept our fer settle your claim by the date we advise you. In the event that the Residual value your Vehicle is greater than the Guaranteed buyback your Vehicle, you will be required pay the difference your Finance company. We may make any reasonable enquiries about the claim. Claim recovery If for any reason we pay benefits which you or your Finance company is not entitled, we shall have a right recover those benefits. When this insurance ends The policy ends on the day that any the following occur: the policy is cancelled, or the Period insurance shown in your Policy schedule ends, or at the expiry the period your Novated lease, or the Maximum benefit limit has been reached, or your Novated lease agreement ends or was due end, or is discharged or is refinanced, or your final Finance repayment is made, or years have elapsed after you have signed your Novated lease agreement, or you are no longer an Australian resident, or you default on your Finance repayment. your lease is changed from being a Novated leasee agreement, or you do not respond our fer settle your claim by the date we advise you. Cancelling this insurance Cancellation by you You may cancel this insurance at any time by requesting us do so in writing. Page

6 If we receive your cancellation request within 21 days from the Commencement date, we will refund your Premium in full. If we receive your cancellation request after 21 days from the Commencement date and within 2 years after the Commencement date, we will refund the Premium you have paid less our cancellation fee $7. If we receive your cancellation request after 2 years the Commencement date, we will not refund the Premium. You must notify us immediately if your Novated lease agreement ends earlier than the term in the Period insurance shown on your Policy schedule. Cancellation by us We may cancel this insurance where circumstances described in insurance legislation allow us do so. If we cancel this insurance, we will retain an amount from the Premium that you have paid cover the time that the insurance has been in force. We will refund the balance you. Complaint and dispute handling process Swannn has a well-deserved reputation for providing quality products, good cusmer service and settling claims promptly and equitably. However, if you are not satisfied with: one our products, our service, our sales and marketing, changes made your Premium, declined insurance, the service our representatives or service providers, your claim, our handling your personal information, or any other matter, we have a process help if you wish make a complaint. The process The first thing you should do is call us on If the staff member you speak cannot help, your complaint will be aumatically referred a manager who will review it and respond you. The response will usually be provided within 1 days from when you made your complaint the Manager. If the manager cannot resolve your complaint you can request the complaint be referred an internal Dispute Resolution Officer (DRO). The DRO will treat your complaint as a dispute. They will conduct a review your dispute and provide you with a decision usually within 1 business days. Our Dispute Resolution Procedure is completely free charge all our cusmers. If you do not agreee with the DRO s decision, you may wish seek an external review the decision. The DRO s letter outlining their decision will provide you with informationn on external review option(s), including, if appropriate, referring you the dispute resolution scheme run by the Financial Ombudsman Service (FOS). The FOS is administered by the Financial Ombudsman Service Limited ABN The FOS is an external body that is independent Swann. Your complaint should be put in writing and addressedd : Financial Ombudsman Service GPO Box Melbourne VIC 001 Telephone: info@fos.org.au It will deal with all enquiries and disputes and make its decision at no cost you. If your dispute is about our collection, use, disclosure, or access your personal information, you may refer the matter the Australian Privacy Commissioner who will investigate your concerns and make a decision at no cost you. Contact us if you need any help in understanding how our complaint and dispute handling procedure operates. Swann also has brochures available explaining the dispute resolution process in more detail. Financial Claims Scheme This Policy may be a 'protected policy' for the purposes the Federal Government s Financial Claims Scheme (FCS), which is administered by the Australian Prudential Regulation Authority (APRA). The FCS entitles certain persons, who have valid claims in connection with protected policies, be paid certain amounts by APRA in the event that an insurer becomes insolvent. Information about the FCS can be obtained from APRA at v.au or by calling APRA on How contact us Swann (Aust) Pty Ltd ABN Mailing address: PO Box 1449 Melbournee VIC 8001 Phone numbers: Claims: Policy enquiries: Fax numbers: Claims: Policy enquiries: Claims: Internet: nsurance.com.au Page