Car insurance terms and conditions

Transcription

1 Car insurance terms and conditions We want our Car Insurance to be of benefit to you and give you peace of mind in unexpected turn of events.

2 Car insurance terms and conditions No. AUTO 0311 Approved by Resolution of the Board of Swedbank P&C Insurance AS In force from 1 March 2010 You can choose between two our Car Insurance products: Standard Car Insurance or Extra Car Insurance. The selected insurance product is shown on the Insurance Policy. Please carefully read the Car Insurance Terms and Conditions in order to better understand the rights and obligations arising out of Insurance Contract. Contact details: Telephone: Sale, consultations: apdrosinasana@swedbank.lv; fax: Claims handling: atlidziba@swedbank.lv; fax: Address: Balasta dambis 1a, Riga, LV This is translation. In case of dispute the Latvian language terms and conditions are valid.

3 Table of 1. Definitions Entry into Force and Termination of Insurance Contract Insurance Premium Duties of Policyholder and the Insured Safety Requirements Rights and Duties of the Insurer Insured Item and Its Value Insurance Types and Insured Risks Estimation of Loss and Insurance Indemnity Payout Excess Implications of Incompliance with Duties and/or Safety Requirements Exceptions Exchange of Information between Parties Personal Data Processing Amendment of Insurance Contract Dispute Settlement Procedure... 29

4 1. Definitions Policyholder means the person stated on the Insurance Policy. Insurer means Swedbank P&C Insurance AS represented by Swedbank P&C Insurance AS Latvian branch. Insured means the person stated on the Insurance Policy, who has the covered interest not to suffer loss and who will be paid Insurance Indemnity upon occurrence of Insured Event. Insurance Contract means the contract between the Policyholder and the Insurer, whereby the Insurer undertakes to pay out Insurance Indemnity upon occurrence of Insured Event, while the Policyholder undertakes to pay the Insurance Premium. The Insurance Contract consists of Insurance Policy, Insurance Terms and Conditions, insurance application, and other annexes or amendments, if any, to the Insurance Contract. Insurance Policy means the document issued by the Insurer as a proof of entry into the Insurance Contract. Insurance Terms and Conditions means the Car Insurance Terms and Conditions No. AUTO 0311 which form an integral part of the Insurance Contract. Insured Risk means a possible future event which stands beyond the control of the Insured. Period of Insurance Contract means a period of time stated on the Insurance Policy, during which the Insurer will become liable to pay out the Insurance Indemnity under the Insurance Contract upon occurrence of an Insured Event. Insurance Premium means the payment for insurance as fixed in the Insurance Contract. Accessories Limit means the amount specified on the Insurance Policy up to which Accessories are covered. Insured Event means an event provided for in the Insurance Contract that stands beyond control of the Insured and is an unexpected, sudden and unforeseen event, which directly impacts the Insured Item, or any parts thereof, and results in the Insured Item, or any parts thereof, being damaged, damaged beyond repair, stolen or otherwise removed without consent, and for which the Insurer pays Insurance Indemnity according to the procedure laid down in the Insurance Contract. 4

5 Sum Insured means the amount of money stated on the Insurance Policy, at which the Insured Item is covered and up to which the Insurer will indemnify for damage caused to the Insured Item. The Sum Insured will not be decreased by reason of payment of Insurance Indemnity during the Period of Insurance Contract. Insurance Indemnity means a sum of money, which the Insurer pays out to the Insured, or the services, which the Insurer provides the Insured with in case of Insured Event. Excess means the part of loss, expressed as a percentage or a sum of money, which, upon occurrence of Insured Event, will not be reimbursed for by the Insurer but instead be covered by the Insured. If expressed as a percentage, the Excess is calculated from the amount of loss. Complete ruination means condition of the Insured Item following Insured Event when the Insurer, or experts engaged by the Insurer, have found that repairing is technically impossible or economically unsound i.e. in cases when the expected cost of repairing the Insured Item exceeds 70% of the value of the Insured Item at the time of occurrence of the Insured Event. Authorized user of the Insured Item means the person using the Insured Item with the Policyholder s and/or Insured s permission on the basis of a contract or other legal arrangement. Unlawful act by third party means an act committed by an individual who is not the owner, holder or authorized user of the Insured Item and aimed at deliberate damaging and/or destruction of the Insured Item or any part thereof. Purpose means the intended use of the Insured Item as specified in the Insurance Policy. A vehicle is considered as being in normal use if it is not used as a taxi or a public transport vehicle, a short-term rental vehicle (the term of the rental agreement is less than 6 (six) months), an emergency vehicle, a vehicle for driving practice, a courier vehicle or an emergency vehicle of a security company. Insurance Territory means the geographic area specified on the Insurance Policy in which the Insurance Contract is valid: European countries mean, for the purposes of these Terms and Conditions, Latvia, Lithuania, Estonia, Albania, Austria, Andorra, Belgium, Bosnia and Herzegovina, Bulgaria, Czech Republic, Denmark, France, Greece, Croatia, Italy, Ireland, Iceland, the United Kingdom of Great Britain and Northern Ireland, Liechtenstein, Luxembourg, Macedonia, Malta, Monaco, the Netherlands, Norway, Poland, Portugal, Romania, Spain, Finland, Slovakia, Slovenia, Serbia, Montenegro, San Marino, Switzerland, Hungary, Germany, Vatican, Sweden. 5

6 CIS countries mean, for the purposes of these Terms and Conditions, the European part of Russia, Belarus, Moldova, Ukraine. Agreed statement of facts means the approved standard form completed by drivers of vehicles involved in a road traffic accident at the location of accident thus certifying, by their signatures, the circumstances, facts and sketch of the accident. 2. Entry into Force and Termination of Insurance Contract 2.1. The Insurance Contract comes into force on the first date of the Period of Insurance Contract specified in the Insurance Policy. The Insurance Contract continues in force until 24:00 hours on the end date of the Period of Insurance Contract specified in the Insurance Policy In case of change in ownership or possession of the Insured Item and unless agreed otherwise with the Insurer, the Insurance Contract ends when all the Insured Item ownership transfer documents come into force The Insurer has the right to terminate the Insurance Contract before its expiration in cases and subject to the procedure stipulated in the Law on Insurance Contract, including: when the Policyholder has failed to pay the Insurance Premium, in whole or in part, in compliance with the terms of Insurance Contract; when Insured Risk occurs due to malice of the Insured or the Policyholder (in such an event the Insurance Contract will be considered null and void as from the aforesaid facts being established and the Insurance Premium will be not be refunded by the Insurer); when Insurance Indemnity is paid out The Insurance Contract terminates upon complete performance of the Insurer s obligations under the Insurance Contract In case of complete destruction or theft/robbery of the Insured Item, the Insurer is entitled to deduct from the Insurance Indemnity any outstanding Insurance Premium payments for the entire Period of Insurance Contract specified in the Insurance Policy The Policyholder is entitled to terminate the Insurance Contract at any time, subject to delivery of a written application for early termination of the Insurance Contract to the Insurer. 6

7 In case of early termination of the Insurance Contract, the Insurer will refund the Policyholder the portion of Insurance Premium paid but not utilized, if any, on pro rata basis to the number of days remaining in the Period of Insurance Contract Where the Insurance Contract is entered into via means of distance communication, the Policyholder is entitled to rescind the Insurance Contract within 14 (fourteen) days of entry into force of the Insurance Contract. The Policyholder expresses their consent to formation of the Insurance Contract by paying the Insurance Premium in the form, within period and in the amount stipulated in the Insurance Policy. Following payment of the Insurance Premium, or the first part thereof, within the period required in the Insurance Policy, the Insurance Contract will come into force as from the date stated on the Insurance Policy. To exercise their right of refusal, the Policyholder must notify the Insurer of exercising their right of refusal in writing by delivering an application to the Insurer or by using the Internet Banking site of Swedbank AS if the Policyholder has the Remote Banking Services Agreement in force with Swedbank AS. The 14-day time-limit for exercising the right of refusal will be considered as having been complied with if the notice of refusal has been sent to the Insurer before expiration of that period. The Insurance Contract will be considered terminated as from the date of receiving the notice of exercising the right of refusal. If the right of refusal is exercised by the Policyholder, the Insurer will be under an obligation to refund the paid Insurance Premium to the Policyholder within a maximum of 30 (thirty) days after the day of receiving the Policyholder s notice of exercising the right of refusal. 3. Insurance Premium 3.1. The Policyholder has a duty to pay the Insurance Premium, or a part thereof, in compliance with the procedure, within the period and in the amount stipulated in the Insurance Policy Current Insurance Premium payments specified in the Insurance Policy are payable by the Policyholder on a regular basis and in compliance with the time limits specified in the Insurance Policy, irrespective of whether or not the Insurer has sent the Policyholder a relevant written reminder or notification or invoice. Insurer s invoices are in electronic form and are valid without signature or stamp. Invoices may be sent to the Policyholder by post, or, if the Insurer has provided such an option and the Policyholder has the Remote Banking Services Agreement in force with Swedbank AS, the invoices will be made available in 7

8 electronic form on the Internet Banking site of Swedbank AS, where the Policyholder will have a chance to view, print, or save the Insurer s invoices on other data media, using the means of identification (such as username, password, code) issued under the Remote Banking Services Agreement Where Insurance Premium is paid by bank transfer, it will be considered paid on the date when the money enters the current account of the Insurer or of an insurance agent authorized to collect Insurance Premiums on behalf of the Insurer and through whom the respective Insurance Contract is entered into. 4. Duties of Policyholder and the Insured 4.1. The duties and liability set forth in the Insurance Contract apply equally to the Policyholder, the Insured, and the authorized user of the Insured Item Policyholder s duties upon entering into the Insurance Contract are: to provide the Insurer with truthful and accurate information, including about the value of the Insured Item. If malice (Section 1641 of the Civil Law) or gross negligence (Section 1645 of the Civil Law) by the Policyholder or the Insured has resulted in misleading the Insurer about the conditions the Insurer needs to know in order to evaluate the probability of occurrence of Insured Risk, the Insurance Contract will be considered null and void as from the moment of formation thereof. The Insurance Premium will not be refunded by the Insurer neither in whole, nor in part; to notify the Insurer if the Insured Item is also insured with other insurance company; upon the Insurer s request, to provide the Insurer with a possibility to inspect the Insured Item or to deliver photos of the Insured Item to the Insurer; to disclose any encumbrances on the Insured Item; to notify of circumstances, which are material in the Insurer s assessment of probability of occurrence of Insured Risk. If the Policyholder is in doubt as to the materiality of the effect of a circumstance on Insured Risk, the Policyholder must consult the Insurer; to inform the Insured and persons using the Insured Item with the permission from the Policyholder or the Insured on the basis of a contract or other legal arrangement, about the terms of Insurance Contract and to explain their rights and obligations under the Insurance Contract. 8

9 4.3. Duties of the Policyholder, the Insured and authorized user of the Insured Item during the Period of Insurance Contract are: to comply with all laws and regulations in force in the Republic of Latvia, including fire safety and technical maintenance rules set forth in laws and regulations, and with the terms of Insurance Contract, including safety requirements; to notify the Insurer of any changes in the contact details of the Policyholder or the Insured with such changes being enclosed to Insurance Contract data; to notify of any change in the owner or authorized user of the Insured Item; without delay and as soon as possible, to notify the Insurer of loss or theft or other unlawful removal of keys to or alarm remote control(s) of the Insured Item and to comply with the safety requirements laid down in these Terms and Conditions; to use the Insured Item for its purpose, with due care, without causing loss or danger to other persons, to comply with laws and regulations in force in the Republic of Latvia, to comply with the duties of the Insured laid down in the Insurance Contract, as well as not to increase the probability of occurrence of the covered risks through any act or failure to act; to cause each authorized user of the Insured Item to comply with their respective duties stipulated for the Insured in the Insurance Contract, including the safety requirements laid down in the Insurance Terms and Conditions Duties of the Insured and authorized user of the Insured Item in case of an Insured Event are: to immediately take the following steps and measures: call the police on 112 or 02; if, in the traffic accident, people have been injured, third-party property has been damaged, or any vehicle has suffered a damage due to which it is prohibited by traffic laws from being driven; if more than two vehicles are involved in the traffic accident or the drivers are unable to agree on all the material circumstances of the accident in the agreed statement of facts; in case of theft or robbery of the Insured Item or any part thereof. 9

10 or fill out the agreed statement of facts: if, in the traffic accident, two vehicles are involved, no people have been injured, no third-party property has been damaged, and no vehicle has suffered any damage due to which it is prohibited by traffic laws from being driven call the State Fire Safety and Rescue Service on 112 or 01: in case of fire, explosion or possible pollution of the environment without delay and as soon as possible, to notify the Insurer about occurrence of the Insured Event by calling the Insurer s Claims Handling on ; Claims Handling contact details: Phone: Fax: atlidziba@swedbank.lv without delay and as soon as possible, to deliver the claim application in the required form to the Insurer. The claim application may be delivered to the Insurer in writing in person, by mail or electronically on the Internet Banking site of Swedbank AS using the provided claim application form (if such online form is provided by the Insurer); to provide the Insurer with documents requested by the Insurer in relation to occurrence of Insured Event and losses thereby caused, including documents containing sensitive personal data and/or commercial secret, as well as information related to the Insured Event about civil, administrative and criminal proceedings in the case; to provide the Insurer with complete and truthful information about the circumstances of occurrence of the Insured Event, the amount of loss, the person responsible for causing damage and witnesses, as well as with other proof of entitlement to Insurance Indemnity; to preserve the damaged Insured Item in the condition, in which it was immediately after occurrence of the Insured Event, until a person designated by the Insurer has inspected it, unless the actions set forth in paragraph of the Insurance Terms and Conditions need to be performed; 10

11 to give the Insurer the opportunity to examine the Insured Item and carry out inspections for establishing and assessing loss; to take steps and action necessary for preventing imminent loss and/or further loss, avoiding an increase in the scope of loss already sustained and/or where it is necessary in the interest of society; to preserve the damaged Insured Item, or any part or the remains thereof, and, where requested so by the Insurer, to transfer thereof into the Insurer s possession for the time of expert evaluation; not to commence the restoration of the Insured Item or the writing-off or deregistration of the Insured Item in the vehicle registry maintained by the State Traffic Safety Directorate (VAS Ceļu Satiksmes Drošības Direkcija) or the State Technical Supervision Inspectorate (Valsts Tehniskās Uzraudzības Inspekcija) without the Insurer s consent; to promptly notify the Insurer of recovery of lost Insured Item, or any part or remains thereof, or notify to the Insurer the location of Insured Item, or any part or remains thereof; in the event of theft or robbery of the Insured Item, to hand over to the Insurer the registration documents of the Insured Item, all keys and alarm remote controls of the Insured Item as specified by the manufacturer or the installer, if any such alarms or anti-theft devices have been installed, including any duplicates thereof. An acceptance and transfer certificate will be executed for such handing over; in the event of theft of audio equipment from the Insured Item, to hand over the removable front panel and/or code card to the Insurer; prior to receiving the Insurance Indemnity and if so requested, to transfer to the Insurer the ownership of any parts of the Insured Item damaged in the Insured Event and replaced during repairs; if the traffic accident happened in a country which is a member of the Green Card system and a third party is at fault in the traffic accident, to report the accident to the insurance company which insured the third-party liability of the owner of the vehicle at fault in the accident or to the Green Card office. 11

12 5. Safety Requirements 5.1. The Policyholder, the Insured and the authorized user of Insured Item must comply with the following safety requirements: The Insured Item must be used in compliance with the road traffic rules and other statutes that govern the use of motors vehicles and are in force in the territory of the country where the Insured Item is used; the Insured Item must be used in compliance with the manufacturer s operating instructions; the Insured Item must pass the roadworthiness tests as and when required under applicable laws and regulations; the Insured Item must be equipped with anti-theft devices (alarm, immobilizer, etc) compliant with the minimum requirements laid down by the Insurer for security systems. Anti-theft devices compliant with the minimum requirements on security systems are specified in the Insurance Policy; in cases when the Insured Item is left unattended, its doors, windows, roof hatch and other openings must be locked or closed and may not be damaged; anti-theft devices (alarm, immobilizer, etc) must be switched on; in cases of loss or theft or other unlawful removal of keys to or alarm remote control(s) of the Insured Item, to promptly replace the locks or recode the anti-theft devices or, if that is not possible, to keep the Insured Item in a guarded parking lot or locked garage until the locks are replaced or anti-theft devices are recoded; in cases when the Insured Item is left unattended, the audio equipment s removable front panel and/or code card must be removed from the audio equipment and may not be left inside the Insured Item; in cases when the Insured Item is left unattended, any personal belongings must be kept where not visible to unauthorized persons in the passenger area or the luggage compartment of the Insured Item; in transporting cargo or certain other items, they must be adequately fastened and the weight of the cargo or items must be considered so as to avoid the Insured Item being overloaded as defined in road traffic rules and other applicable laws or regulations. 12

13 6. Rights and Duties of the Insurer 6.1. The Insurer, upon entry into Insurance Contract, introduces to the terms of the Insurance Contract, and the rights and obligations of the Policyholder and the Insured Should the Insurer change its legal name or registered office during the Period of Insurance Contract, the Insurer will inform the Policyholder thereof by publishing such information on the website of Swedbank AS or in mass media The Insurer reserves the right, during the Period of Insurance Contract, to inspect the Insured Item and, where necessary, to set, in writing, additional security requirements for reduction of potential risks, which will be binding on the Policyholder, the Insurer and all authorized users of the Insured Item Upon receipt of claim application, the Insurer or its authorized representative has the right to carry out expert assessment of the Insured Item in order to establish and assess the reasons and scope of damage Upon receipt of claim application and all necessary documents relating to occurrence of Insured Event, the Insurer will, according to the procedure laid down in the Insurance Contract, decide on approval, reduction or denial of Insurance Indemnity and notify the Insured thereof, specifying the reasons and basis for reduction or denial of Insurance Indemnity The Insurer has the right to offer services to the Policyholder according to the Insurer s procedures via mail, telephone, facsimile, , or other means of communication. The Policyholder has the right to refuse from commercial information being sent to them. 7. Insured Item and Its Value 7.1. The following constitutes an Insured Item: any mechanical land (except railway) vehicle which participates, or is capable of participating, in road traffic and registered, or subject to registration, with the Road Traffic Safety Directorate or State Technical Supervision Inspectorate and is stated on the Insurance Policy, as well as items (audio equipment, wheel rims, additional lights) permanently installed, attached or build into the interior or exterior of the vehicle; 13

14 accessories which, for the purposes of these Terms and Conditions, mean a light trailer, bicycle rack, roof rack, roof box (for skis, surfboard etc), child s seat (cradle, chair), winch and portable GPS devices installed on the insured vehicle at the time of Insured Event. The accessories are insured only if stated so in the Insurance Policy. The upper limit of cover for accessories is specified in the Insurance Policy personal belongings which, for the purposes of these Terms and Conditions, mean the personal belongings of the Policyholder, Insured or authorized user of the Insured Item which at the time of the Insured Event were inside the Insured Item but are not treated as accessories for the purposes of these Terms and Conditions. Personal belongings are covered only if the Policyholder has selected the Extra Car Insurance product as specified in the Insurance Policy The value of Insured Item in case complete destruction or theft/robbery of the Insured Item equals the highest of the following values: the Sum Insured specified in the Insurance Policy which decreases by 1% each month starting with the first day in the Period of Insurance Contract. If the Insured Item has the New Car Cover, then according to the Insurance Terms and Conditions the value of the Insured Item will not decrease during the period of New Car Cover; or the market value of the Insured Item which is the amount of money necessary for acquiring an equivalent vehicle as a replacement of the Insured Item that, in terms of its functionality and uses, would be as similar as possible to the lost Insured Item and would belong to the same price group, however not exceeding the Sum Insured. The value of accessories but not that of the personal belongings will be taken into account in determining the market value of the Insured Item Over-insurance means a situation when the Sum Insured of the Insured Item exceeds the value of the Insured Item under one or several valid Insurance Contracts. In case of over-insurance, upon occurrence of Insured Event the Insurance Indemnity payable may not exceed the Value of Insured Item Under-insurance means a situation when the Sum Insured is lower than the Value of Insured Item. In case of under-insurance, the Insurer will reimburse for loss in proportion to the relation of the Sum Insured to the Value of Insured Item, less the Excess. 14

15 8. Insurance Types and Insured Risks 8.1. A choice of two types of insurance is available: Standard Car Insurance where the Insured Item is insured against damage, fire, theft and robbery. Additionally, the 24-Hour Technical Assistance service is provided Extra Car Insurance which is inclusive of the Standard Car Insurance and additionally covers the following risks: trip interruption, loss of keys, damage to personal belongings, plus the Vehicle Transfer to Repair Shop service. The insurance products selected by the Policyholder are shown on the Insurance Policy Standard Car Insurance The Insurer indemnifies for loss which arises in the Insurance Territory specified in the Insurance Policy during the Period of Insurance Contract as a result of the following events: damage, fire, theft or robbery. Additionally, the 24-Hour Technical Assistance service is provided Insured Risks: Damage damage to the Insured Item arising as a result of an unexpected, sudden and unforeseen event which stands beyond control of the Insured and was caused by external circumstances (e.g. road traffic accident, natural calamity, havoc, impact of falling items, unlawful acts by third party) Fire damage or complete destruction of Insured Item as a result of fire, smoke, soot or fire-fighting operations. Loss due to damage to the Insured Item s parts or equipment (e.g. electrical engine, generator, battery, wiring, other electrical devices, tyres) which caused the ignition will not be indemnified Theft unlawful driving off with the Insured Item or unlawful removal of any parts thereof. Defraudation, misappropriation and blackmailing do not constitute theft Robbery unlawful driving off with the Insured Item or unlawful removal of any parts thereof if it involves violence or threat to use violence Additional service: Hour Technical Assistance as an extra for passenger cars and vans (up to 3.5 t), the service is provided in case of damage to the Insured Item, 15

16 negligence by the driver of the Insured Item or loss / theft of keys of the Insured Item if driving the Insured Item is impossible and it involves: starting up the vehicle in case of depletion of the battery; delivery of fuel to reach the nearest filling station and towage of the vehicle to the nearest filling station in case of running out of fuel; reimbursement for expenses associated with restoring pressure in tyres in case of no or insufficient pressure, with installation of a new tyre if the vehicle s tyre is damaged or assistance is necessary to replace it or if there is no spare wheel (the value of the tyre or spare wheel will not be reimbursed if the damage results from an insured event); reimbursement for expenses associated with towing the vehicle on the road; reimbursement for expenses of towing the vehicle to the nearest repair shop or to repair shop specified by the Insurer or to a guarded car park, as well as the relevant parking expenses if the damage cannot be repaired on the spot or the vehicle cannot participate in road traffic due to Insured Event; reimbursement for expenses of transporting the vehicle to Latvia if damage occurs outside Latvia, the vehicle cannot participate in road traffic and the Insurer does not agree to have it repaired outside Latvia. The 24-Hour Technical Assistance expenses will be reimbursed only if the service was ordered by calling the Insurer s Claims Handling on Exception: Where the Insurer is unable to provide 24-Hour Technical Assistance (for instance, the Insured Event occurs in a CIS country), the 24-Hour Technical Assistance expenses will be compensated on the basis of proof of such expenses. The maximum amount per one Insured Event reimbursed for 24-Hour Technical Assistance is stated in the Insurance Policy Extra Car Insurance In addition to the Insured Risks and services covered by Standard Car Insurance, the Extra Car Insurance covers the following risks: trip interruption, loss of keys, damage to personal belongings. Additionally, the Vehicle Transfer to Repair Shop service is provided. If the Insured Item is covered by Extra Car Insurance only if stated so on the Insurance Policy Additionally Insured Risks: Trip interruption 16

17 If the trip cannot be continued due to technical damage to the Insured Item, loss of keys or theft/robbery, then the driver and passengers of the Insured Item will be reimbursed for the following expenses: documented, reasonable expenses of accommodation if more than 100 km away from home when immediate returning is not possible; documented, reasonable expenses of returning home using other vehicle. The maximum amount per one Insured Event reimbursed for trip interruption is stated in the Insurance Policy Loss of keys In cases of loss or theft or other unlawful removal of keys to or alarm remote control(s) of the Insured Item, compensation will be paid to reimburse expenses of keys and alarm remote control recoding or, if that is impossible, for replacing locks of the Insured Item. The Excess payable in case of loss of keys is specified in the Insurance Policy Damage to personal belongings Indemnity will be paid to reimburse for reacquisition of equivalent personal belongings or for repairing the personal belongings if: they were located in the passenger area or the luggage compartment of the Insured Item and were damaged as a result of the Insured Event; in case of leaving the Insured Item attended, they were kept where not visible to unauthorized persons in the passenger area or the luggage compartment of the Insured Item and were stolen from the Insured Item. Theft of personal belongings must be reported to the police. The maximum amount per one Insured Event reimbursed for damage to personal belongings is stated in the Insurance Policy Additional service: Vehicle Transfer to Repair Shop. The Insurer will take the Insured Item to a repair shop at the agreed time for evaluation of the consequences of the Insured Event and for repair of the Insured Item and will take it back to the Insured or to an authorized user of the Insured Item. The service is provided only in the largest cities of Latvia (Riga, Daugavpils, Jelgava, Liepaja, Ventspils, Valmiera) and within 20 km of the borders of the said cities; the service is not available in the rest of the territory of Latvia. The service includes transportation of the Insured Item to a repair shop in the city where the Insured Item is located. In order to use this service, the Insured or the authorized user of the Insured Item must issue an authorization to the Insurer s representative to use the Insured Item. 17

18 8.4. Additional services for both insurance products Vehicle renting expenses Indemnity will be paid to reimburse for the expenses of renting a vehicle to replace the Insured Item during the period of time when the Insured Item cannot be used due to occurrence of the Insured Event. The vehicle rental expenses will be indemnified for the period of time from leaving the Insured Item at the repair shop to its restoration, however for a maximum of 30 (thirty) days per one Insured Event. In case of theft, robbery or destruction, the vehicle rental expenses will be indemnified for a period of up to 14 (fourteen) days as from the moment of occurrence of Insured Event. The maximum amount indemnified per one day is stated in the Insurance Policy. The vehicle renting expenses will be reimbursed if stated so on the Insurance Policy. These expenses will not be reimbursed in case of the Insurer s decision to deny the Insurance Indemnity The Insurer will not indemnify for the following: expenses of fuel and other running costs of the replacement vehicle (parking, windshield washer fluid, etc.); damage caused by and/or to the replacement vehicle; expenses incurred during the period of time when repairing of the Insured Item was not possible through the fault of the Policyholder, Insured or authorized user of the Insured Item New Car Cover The Insured Item will have the New Car Cover and the Sum Insured will not decrease during the Period of Insurance Contract if the Insured Item satisfies the following conditions: less than one year has passed since the first registration of the Insured Item; the Insured Item has travelled less than kilometres; there has been only one owner, or authorized user if the Insured Item was purchased through lease, of the Insured Item since the first registration of the Insured Item. The New Car Cover will be terminated as from when the Insured Item no longer satisfies any of the above conditions. The New Car Cover will be in force if stated so on the Insurance Policy. 18

19 9. Estimation of Loss and Insurance Indemnity Payout 9.1. Upon detecting occurrence of a potential Insured Event, the Insurer or its authorized representative has the right to carry out expert assessment of the Insured Item in order to appraise the reasons and scope of damage The Insurer will decide to pay out or deny the Insurance Indemnity within 30 (thirty) days of receiving all the necessary documents. The Insurer may, for valid reasons, extend this period by a maximum of 6 (six) months of the day of receipt of application for payout of Insurance Indemnity Where performance of the Insurer s obligations, or scope of performance thereof, depends on circumstances, which are ascertained in legal proceedings of criminal or administrative case or administrative rights offence case, the Insurer is entitled to decide on payout or denial of Insurance Indemnity after suspension or termination of legal proceedings, or coming into force of court s or relevant official s decision Where a dispute arises between the Insured and the Insurer regarding the size of Insurance Indemnity, the Insurer may, prior to final calculation of damages, pay out the Insurance Indemnity in the amount not contested by neither the Insurer, nor the Insured The decision to pay out or deny Insurance Indemnity will be notified by the Insurer to the Insured within 10 (ten) days of the date of decision The Insurer must pay out Insurance Indemnity within 15 (fifteen) days of the date of decision to pay out the Insurance Indemnity unless the Insurance Indemnity payout is planned in the form of periodic payments or provision of services or the Insurer and the recipient of Insurance Indemnity have, after the decision to pay out Insurance Indemnity, agreed on other procedure of payout of Insurance Indemnity. Where payout of Insurance Indemnity is not made within the aforesaid period of time, the Insurer will pay a penalty at the rate of 0.1 % of the payable Insurance Indemnity for each day of delay. No penalty will be applied if the Insurance Indemnity payout is planned in the form of periodic payments or provision of services, or the Insurer and the recipient of Insurance Indemnity have, after the decision to pay out Insurance Indemnity, agreed on other procedure of payout of Insurance Indemnity The Insurer may suspend payout of Insurance Indemnity until and unless the remains of the Insured Item, separate parts thereof, or title to the Insured Item are transferred to the Insurer. If the Insured or the authorized user of Insured Item fails to comply with the said requirement within 30 (thirty) days of receipt of a respective notice from the Insurer, the Insurer is entitled to reduce the payable Insurance Indemnity by the value of the remains of the respective Insured Item. 19

20 9.8. If the Insured Item has been lost as a result of theft or robbery and, following payout of Insurance Indemnity, the Insured Item has been found or the Insured or the authorized user of the Insured Item has become aware of its location, the Insured or the authorized user of the Insured Item has a duty to promptly notify the Insurer thereof. If the Insured wishes to keep the recovered Insured Item or any part thereof, the Insured has a duty to return the Insurance Indemnity received for loss of the Insured Item or any parts thereof to the Insurer without undue delay If following theft or robbery, the Insured Item is found and the Insurer has not yet decided on the Insurance Indemnity, then reimbursement will be made for the loss caused to the Insured Item during the time of unlawful possession, incl. that caused as a result of theft or robbery Insured has a duty to return the received Insurance Indemnity or any part thereof to the Insurer if, following payout of the Insurance Indemnity, any evidence is found that the paid Insurance Indemnity or any part thereof has been unfounded or unjustified If loss incurred by the Insured is reimbursed in full or in part under other insurance contract, the Insurer is entitled to reduce or deny the Insurance Indemnity accordingly After payout of Insurance Indemnity the Insurer obtains the right of subrogation i.e. the right to claim damage at the extent of paid Insurance Indemnity from the person who is responsible for causing the damage. Unless the Insured, in the Insurance Indemnity claim application and before payout of Insurance Indemnity, has advised the Insurer in writing of other procedure, then also in case the Insurance Indemnity paid out by the Insurer covers only a part of the expenses of the Insured, the Insurer may exercise its right of subrogation irrespective of whether or not the Insured exercises the right to take action against the person who caused the damage. The Insurer and the Insured may agree in writing on cooperation in recovery of damages from the person liable for the damages including on jointly bringing or maintaining action at court of law The Insurance Indemnity may be paid out: to a service provider in the form of payment for services related to renovation of the damaged Insured Item or any part thereof; to a person, who supplies a new vehicle, or parts thereof, as a replacement of damaged Insured Item or damaged part thereof; to the Insured in the form of cash payment of the Insurance Indemnity. 20

21 The form of reimbursement for damage may be selected by the Insurer Restoration of Insured Item and/or any parts thereof If the Insurer has decided to restore (repair) the Insured Item and the restoration of the Insured Item is economically sound, then the amount of loss subject to indemnification by the Insurer under the terms of Insurance Contract is equivalent to the amount of money necessary for restoring the Insured Item to such a condition as to enable it to perform its earlier functions at the extent the Insured Item performed those functions before the Insured Event occurred The Insurer is entitled to choose the service provider who restores the Insured Item. If the Policyholder wishes that the restoration of the Insured Item be performed by a service provider selected by the Insured and that service provider s reconstruction works estimate exceeds the quotation offered by the service provider selected by the Insurer, then the Insurer has the right to calculate the Insurance Indemnity on the basis of the lowest quotation In case of restoration of the Insured Item, the Excess will be paid to the service provider by the Insured If the cost of restoring the Insured Item accounts for more than 50% of the value of the Insured Item, the Insurer may recognize the Insured Item to have suffered complete destruction. If the cost of restoring the Insured Item accounts for more than 70% of the value of the Insured Item, the Insurer will recognize the Insured Item to have suffered complete destruction The Insurer indemnifies for direct loss, the damage caused to the Insured Item as result of the Insured Event The age and overall condition of the Insured Item is taken into account in deciding on restoration of the Insured Item. Genuine manufacturer s spare parts are used in restoration of Insured Items that are up to five years old. Second-hand or non-genuine spare parts may be used in restoration of Insured Items that are more than five years old, however provided that their condition is not worse than the condition of the corresponding damaged spare parts of the Insured Item before the Insured Event occurred For Insured Items that are more than 3 years old, in case of damage to windows of the Insured Item, the damaged windows are replaced with new windows of identical quality If, in the process of restoration of the Insured Item, it becomes necessary to replace or repair any parts of the Insured Item that have been damaged already before the Insured Event occurred, the Insurer is entitled to reduce the amount of Insurance Indemnity accordingly. 21

22 9.15. Replacement of Insured Item and/or any parts thereof If the Insurer decides to replace the Insured Item or any parts thereof, then: in case of complete destruction, theft or robbery of the Insured Item, it will be replaced by an equivalent (in terms of brand, model, year of manufacture, configuration) vehicle; in case of damage, theft or robbery of parts of the Insured Item, the parts will be replaced with equivalent ones which, in terms of their functionality and uses, would be as similar as possible to the lost parts and would belong to the same price group The amount of loss subject to indemnification by the Insurer under the terms of Insurance Contract in replacement of the Insured Item and/or any parts thereof is equivalent to the amount of money necessary for acquiring, in place of the Insured Item or any parts thereof, an equivalent vehicle or its parts that, in terms of their functionality and uses, would be as similar as possible to the lost Insured Item or parts thereof and would belong to the same price group In case of replacement of the Insured Item, the Insurance Indemnity will be provided to the Insured in the form of services and the Insurer will pay for the supplied services to the supplier of the replacement Insured Item and/or parts thereof, while the Excess, which is calculated taking into account the value of the vehicle replaced, will be paid to such supplier by the Insured Insurance Indemnity in form of cash payment in case of complete destruction, theft or robbery of the Insured Item when the Insurer has decided not to restore the destroyed Insured Item and not to replace the Insured Item affected by theft or robbery, the amount of loss is equivalent to the value of the Insured Item. The Insured will be paid Insurance Indemnity calculated as the value of the Insured Item less the Excess and unpaid Insurance Premiums for the whole Period of the Insurance Contract If the Insurer has decided to treat the Insured Item as having been damaged beyond repair (complete destruction) and paid the Insurance Indemnity to the Insured, the remains of the Insured Item becomes the property of the Insurer. If the Insured, prior to receiving the Insurance Indemnity, notifies the Insurer that the Insured wishes to retain ownership of the remains of the Insured Item, then the Insurer will reduce the amount of loss by the market value of the remains of the Insured Item or, if the Insurance Indemnity has already been paid out to the Insured, the Insured will have a duty to pay back the part of the received amount corresponding to the market value of the remains of the Insured Item. 22

23 The market value of the remains of the Insured Item is determined by experts engaged by the Insurer In case of payment of Insurance Indemnity, the person entitled under the Insurance Contract to the Insurance Indemnity must notify the Insurer of the bank account number to which the Insurer is to transfer the Insurance Indemnity. 10. Excess In calculation of Insurance Indemnity for each Insured Event, the Excess is always deducted from the amount of loss that is subject to reimbursement by the Insurer under the terms of Insurance Contract, and any loss below the Excess will not be reimbursed by the Insurer No Excess will be payable if the traffic accident was caused by a third party and that person s liability for the damage to the Insured Item has been proved according to the decisions of the Insurer or law enforcement institutions One largest Excess stipulated in the Insurance Contract will be applicable to Insured Event irrespective of the number of risks having occurred in the Insured Event If the Insured Item is not equipped with anti-theft devices (e.g. alarm system, immobilizer, security bolts) compliant with the requirements laid down for security system in the Insurance Contract and/or in case of theft or robbery of the Insured Item all keys and alarm remote controls of the Insured Item as specified by the manufacturer or the installer were not handed over to the Insurer, Excess at the rate of 50% (fifty per cent) of the amount of loss will be applicable. Anti-theft devices compliant with the minimum requirements for security systems are specified in Insurance Policy If the Insured Item is used as a taxi, as a short-term rental vehicle (the term of the rental agreement is less than 6 (six) months), as a public transport vehicle, as an emergency vehicle, as vehicle of a security company, or as a vehicle for driving practice, and this is not stated on the Insurance Policy, then in the event of damage the Excess specified in the Insurance Policy will be applicable at triple rate If loss to a convertible is due to damage to its soft roof, the Excess is LVL 300 but in any event not less than the Excess applicable to damages. 23

24 11. Implications of Incompliance with Duties and/or Safety Requirements The Insurer has the right to reduce or deny the Insurance Indemnity if the Policyholder or the Insured or authorized user of the Insured Item performs any of the following acts: upon entry into or during Period of Insurance Contract, deliberate supplying of untruthful information or withholding of information about any material facts of the Insurance Contract that could have affected the origination or the extent of loss or terms of Insurance Contract, including the assessment of probability of Insured Risk; upon filing the claim application or upon notifying about loss, deliberate supplying of untruthful information about the Insured Event, about the circumstances of the origination or the extent of loss, or withholding of material information about the Insured Event, the about the circumstances of the origination or the extent of loss; violation or incompliance with a duty(-ies) or safety requirement(s) laid down in the Insurance Contract if such violation or incompliance has affected the origination or the extent of loss. In such an event, the Insurer has the right: to reduce the Insurance Indemnity by up to 20% (twenty per cent) in case of minor negligence; reduce or refuse the Insurance Indemnity in case of violation or incompliance in bad faith or with gross negligence. 12. Exceptions The Insurer will be under no obligation to indemnify for loss incurred due to the following events, circumstances and actions: the speed limit was exceeded significantly by the driver of the Insured Item and this is in cause-and-effect relationship with the occurrence of loss; summer tyres are used on the Insured Item in road traffic at the time when use of winter tyres is mandatory pursuant to laws and regulations; the Insured Item was driven by a person without the right to drive a vehicle of that category; 24