SUPREME HOUSE INSURANCE (SHI)

Transcription

1 SUPREME HOUSE INSURANCE (SHI) POLICY WORDING -1- SHI/CINZ/010406

2 1 ABOUT THIS POLICY 1.1 Welcome China Insurance (NZ) Company Limited is proud to be part of China Insurance Group, which has been writing insurance business since its inception in Today the Group is amongst the top insurance companies of the world with more than 20 subsidiaries spread over the globe in Europe, United States of America, Japan, Hong Kong, and South East Asia. In New Zealand, China Insurance (NZ) Company limited has been operating since 1994 and is committed to New Zealand for the long term. We are dedicated to providing you with the very best financial security in New Zealand which is supported through an extensive international reinsurance programme. We are members of the Insurance Council of New Zealand and the ISO (Insurance and Savings Ombudsman Scheme), and are also keen supporters of IBANZ (the Insurance Brokers Association of New Zealand). We continually strive for excellence as well as a reputation for paying claims in a fair and reasonable manner. We offer you the opportunity to join us in our long term goal of one day becoming one of New Zealand s foremost general insurance companies. 1.2 Your insurance policy: Your proposal and any other information you supplied us, and This policy wording, and The policy schedule 1.3 Your free look period. We will give you a full refund of your premium within the first 30 days if you are not completely happy with the policy. You can only do this if you never make a claim under it. 1.4 Your duty of disclosure When arranging this insurance, you must tell us everything you know (or could be reasonably expected to know) that a prudent insurer would want to take into account in deciding: Whether to accept your proposal, and If so, on what terms. Examples of what you must tell us include: -2- SHI/CINZ/010406

3 Anything that increases the risk of a claim Any criminal offending or convictions Any previous insurance claims Any refusal by another insurer to insure you on standard terms, or continue to insure you on standard terms. You must tell us this every time this policy renews, and/or when you make any changes to it. If you fail to do this, we may avoid the policy back to when it started as if you were never insured at all. When in doubt, disclose. We treat all information confidentially. 1.5 Your rights under the Fair Insurance Code We are members of the Insurance Council of New Zealand. It promotes a code of ethics amongst its members. This is called the Fair Insurance Code The code sets out some of your rights when dealing with us. We view these as a minimum only. Please contact us if you would like to receive a copy of the Code. Alternatively, it can be located at: Premium Once you have paid, or agreed to pay, the premium, we will insure you on the terms set out in this policy. 2 HOW TO MAKE A CLAIM UNDER THE POLICY 2.4 To make a claim You must: (a) Tell us as soon as you are aware of any circumstances likely to avoid any further claim. (b) Take steps to minimize your claim, and try to avoid any further claim. (c) Complete our claim form in full if we request it. (d) Allow us to investigate the circumstances of the claim and provide any other information assistance that we need. (e) Authorise the disclosure to us of your personal information held by any other party that relates to your claim. (f) Forward to us all relevant information and correspondence as soon as you receive it. (g) Provide a statutory declaration to verify the claim, if we request it. -3- SHI/CINZ/010406

4 (h) Where appropriate: Lay a complaint with the Police if you suspected burglary, theft, arson or intentional damage, and Take reasonable steps to obtain details of any other person, property or vehicle involved, and any witnesses. You must not: (a) Dispose of any property that you intend to claim under this policy (b) Start any repairs without our permission unless it is necessary to prevent the claim increasing. (c) Say or do anything that may prejudice our ability to: Defend, negotiate or settle any liability you may face, and Make recovery from any person who may be responsible for your loss or liability 2.5 After you have made a claim After you have made a claim: (a) We may take over in full any legal rights of recovery that you have. If we do so, you must fully assist us at no cost. This includes completing court documentation and attending hearings if necessary. (b) If any lost or stolen property for which we have paid a claim is later found or recovered, you must: Tell us immediately, and Hand the property over to us if we request it. (c) You must reimburse us if you receive any money from any person ordered to make reparation to you. (d) We have the sole right to act in your name and defend, negotiate, or settle any liability on your behalf at our expense. (e) We may appoint our own lawyers to defend you. They will report to us. -4- SHI/CINZ/010406

5 (f) We may pay the maximum amount payable under this policy ( or any lesser amount for which the liability can be settled), plus the defence costs incurred to date. This meets our obligations under the policy in full. 2.6 Dishonest or fraudulent claims If your claim is dishonest or fraudulent in any way we may, at our discretion: (a) Decline your claim, wholly or partially, or (b) Declare this policy unenforceable from the date of the dishonest or fraudulent act. 3 COVER 3.1 Definition of House House means the dwelling and its: outbuildings, garages, carports; walls, gates, fences; underground and overhead services; paths and driveways; swimming and spa pools which are permanently installed; other permanently fixed or installed structures; all owned by you which are located at the Situation shown in the Current Schedule, and used primarily for private residential purposes. House does not include any of the following: hedges, live plants or trees; wharves, jetties or bridges. 3.2 The cover We will indemnify you against physical accidental loss to the insured property (House), occurring during the period of insurance at the situation. 3.3 Basis of settlement of claims We will settle your claim on either of the followings ways at our option: -5- SHI/CINZ/010406

6 pay for the actual repair or Replacement Cost; pay an amount equal to the Current Value or Replacement Cost. If a specific limit or amount is shown in the Policy wording or Schedule, this is the most you can claim for in respect of a Loss or a series of Losses which are caused by the same event. Any Excess will be deducted from the amount paid by us If the House is rebuilt: If the House is actually rebuilt or repaired after a Loss you can claim replacement cost but you must make sure that settlement for repairs and rebuilding work are carried out promptly. If repairs or replacement cannot be carried exactly to the condition of the House before the Loss, we will ensure that any repair or replacement is as reasonably comparable with that condition as is possible If the House is not rebuilt: If you do not rebuild or repair your house we will compensate you up to the Current Value of your House and the cost of demolition and removal of debris and contents Additional costs You can also claim any of the following if they are actually incurred as reasonable and necessary parts of the repair or rebuilding. Consultants fee - the cost, authorised by us, of the services of architects, engineers, surveyors and other consultants in respect of a Loss to your House. Demolition Costs - the costs of demolition and removal of debris, including the contents of your House. Additional costs as may be necessary to comply with Government or Local Body by Laws and Resource Management Requirements. However, we will only pay for compliance in that part of your House which has suffered Loss covered by this insurance and when your House complied with existing requirements at the time it was built or altered. 4 ADDITIONAL BENEFITS 4.1 Temporary Accommodation If you were not covered by other insurance and your House cannot be lived in because of a Loss covered by this policy we will reimburse you for the reasonable costs of temporary accommodation. We will pay for a period up to 6 months. -6- SHI/CINZ/010406

7 We will also reimburse you for the reasonable costs of boarding out domestic pets normally kept at your House for a period up to 6 months. 4.2 Natural Disaster Damage Extension If your Policy has been extended to include earthquake this will be shown on your Schedule. Once the Earthquake Commission (EQC) has accepted liability for Loss to your House caused by earthquake, natural landslip, volcanic eruption, hydrothermal activity or tsunami, there will be cover under this Policy. We will pay the difference between the amount paid by the EQC (plus any excess applied by it) and the amount payable under the Basis of Settlement of Claims section of this Policy. 4.3 Damage by Gradual Deterioration This insurance will cover gradual deterioration, mildew or rot, caused by leaking of any internal water pipe or waste disposal pipe provided that: the leak first occurs during the time that you both own and occupy the House, and you take immediate steps to minimise the Loss as soon as you are aware of it. We will pay up to $2,500 for any Loss covered under this extension. 4.4 Inflation Protection This insurance covers the House for its total replacement cost so in order to keep pace with building costs. We will adjust the premium each year in line with any changes to building costs during the past 12 months. 4.5 Protection of your Sum Insured We will not reduce the cover on your House by the amount of any claim for material Loss provided you carry out all reasonable recommendations we make to prevent further Loss. 5 LEGAL LIABILITY This insurance will cover your legal liability as owner of the House which results from an Accident which happens at your House, or on the residential land on which your House is situated during the Period of Insurance and which causes: Loss or damage to property owned by; or death, bodily injury or illness to. Any person other than yourself, your family or any other person with whom you reside. This cover will also include the payment of any costs or expenses incurred by you with our prior consent. -7- SHI/CINZ/010406

8 5.1 What We will pay: This insurance will pay up to $1,000,000, including any costs and expenses for any Loss or series of Losses which result from the same Accident. 5.2 What We will not pay for: We will not pay if your liability arises out of or is caused by: a deliberate act or omission by you the consequences of which you could reasonably have expected having regard to the nature or circumstances of such act or omission; the ownership or use of any mechanically propelled vehicle (other than a domestic garden implement), trailer, caravan, watercraft, aircraft or vehicle required to be registered for road use; any person employed by you in your House who has their own liability insurance; any act done in connection with any business trade or profession whatsoever; any act done in connection with the operation of a farm (including horticultural farm), whether conducted as an income generating activity or as a hobby or interest; your having accepted liability; a contract or agreement ( except where you would have been liable even in the absence of a contract or agreement); liability for damage to property belonging to you or any of your family or under your or their care or control; subsidence, soil expansion, soil shrinkage, soil compacting or erosion; animals. we will not pay for any liability arising outside New Zealand. 6 CHANGES IN COVER 6.1 Unoccupancy: If your House is unoccupied for more than 21 days you must ensure that: all the doors and windows are securely locked; the land is kept tidy If your House is unoccupied for more than 60 consecutive days, unless you have given prior notice to us and received our written acceptance that insurance will continue, cover under this insurance will be suspended and we will have no liability to you for any Loss whatsoever occurring during the period of the suspension. -8- SHI/CINZ/010406

9 6.1.3 If notice is received from you that your House is to be unoccupied for more than 60 days, we have the right to change the terms of this insurance. Unless we notify you otherwise, full cover will resume as soon as the House is occupied again. 7 THE INSURANCE WILL NOT COVER appliances; furniture; other chattels of whatever kind. not permanently fitted or fixed in the House unless specifically shown in the Schedule. 8 GENERAL EXCLUSIONS General Exclusions apply to all parts of this contract and are additional to the Specific Exclusions that are stated in the individual parts of this contract. 8.1 There is no cover under any part of this insurance for any Loss or liability caused directly or indirectly in any way by any of the following: war, invasion, act of foreign enemy, warlike operations (whether war has been declared or not); confiscation, nationalization, or requisition by the order of Government local body, or authority, unless it is to prevent a Loss for which a claim would otherwise have been covered by a part of this insurance; nuclear weapons material; ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear wastes which result from the combustion (including self-sustaining process of nuclear fission) of nuclear fuel; earthquake, volcanic eruption, hydrothermal or geothermal activity, tsunami, or any event where cover is provided under the Earthquake Commission Act 1993, except to the extent that cover is provided by any NATURAL DISASTER DAMAGE EXTENSION ; any event where cover is provided under the Accident Rehabilitation and Compensation Insurance Act 1992; alterations or repairs which involve the removal of any structural support; or foundation; total or partial removal of any roofing material; insects and vermin other than opossums; faulty or defective material, workmanship or design; -9- SHI/CINZ/010406

10 mechanical or electrical breakdown or failure unless actual burning out occurs, but burning out of fuses of similar protective devices, or lighting or heating elements is not covered; power cuts made by any electricity supply authority; cleaning, repairing or restoring; land movement, settlement or cracking; underground water pressure. 8.2 This insurance does not cover any of the following: wear and tear; mildew, rot, corrosion, rust or gradual deterioration save as provided in the damage by Gradual Deterioration ; scratching, denting, or chipping; action of light; burglary or theft or intentional damage by any of the following: any tenant; any person who is living at the House; any person who is lawfully at the House. unless the intentional damage is by fire, explosion or impact by a land vehicle. However, if the damage or Loss excluded above causes further damage or Loss of a type that is covered by this insurance and is not excluded by other provisions of this insurance, then You shall have cover for this further damage or Loss. 8.3 Building Defects & Mould Exclusion In any relation to any building structure you are not insured for any loss, damage, liability, death, injury, illness, or any other form of cover otherwise available under this policy of whatsoever nature directly or indirectly caused by, or contributed to, or arise from; moisture or water or the penetration of external moisture or water; or the action or effects of mould, fungi, mildew, rot decay, micro-organisms, bacteria, protozoa, or any similar or like forms; or the failure of any building or structure to comply with or perform to the requirements of any building code or to meet the level of performance, fitness or durability of its intended purpose SHI/CINZ/010406

11 8.3.4 In addition you are not insured for any costs or expenses arising out of the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing, remediating or disposal of, or in anyway responding to or assessing the effects of mould, fungi, mildew, rot, decay micro-organisms, bacteria, protozoa or similar or like forms. This exclusion shall not exclude damage that is caused by, or arises out of leakage of internal water pipes, waste disposal pipes or cisterns. However, if the damage or Loss excluded in 8.3.1, or above causes further damage or Loss of a type that is covered by this insurance and is not excluded by other provisions of this insurance, then You shall have cover for this further damage or loss. 9 GENERAL CONDITIONS 9.1 Comply with the policy You must meet the following conditions before we pay you: You must comply with all the policy terms, and All statements and answers, whether by you or anyone else, must be true when you: Apply for this insurance, and Notify us about any change in circumstances, and Make any claim. These conditions apply equally to anyone else entitled to claim under the policy. 9.2 Cancellation You may cancel the policy by giving us notice. We will refund to you 80% of the unexpired portion of any premium you have already paid to us We may cancel this policy at any time by giving notice to you. Cancellation will be effective from 4.00pm 14 days after the notice is given. The 14-day period starts on the day the notice is delivered or posted to you. We will refund to you the unused portion of any premium you have already paid to us Change in circumstances -11- SHI/CINZ/010406

12 9.3.1 After the start of the policy, you must tell us immediately if you know about any material fact that will: Increase the risk insured, or Alter the risk insured After you have told us, we may immediately amend the terms of your policy, including the premium If you fail to tell us, we may: Declare this policy unenforceable, or Refuse to pay any subsequent claim. 9.4 Double insurance You must notify us immediately of any other insurance policy that covers any of the risks covered under this policy If there is such a policy, we will only pay over and above the limit payable under that policy. 9.5 Goods and Services Tax Where GST is recoverable by us under the Goods and Services Tax Act 1985: All Sums Insured exclude GST (unless otherwise stated), and GST will be added, where applicable, to claim payments. 9.6 Governing Law The law of New Zealand applies to this policy Any disputes about the policy are subject to the New Zealand Courts' exclusive jurisdiction. 9.7 Insurance Law Reform Acts The exclusions and conditions in this policy are subject to your rights under the Insurance Law Reform Acts 1977 and Notices -12- SHI/CINZ/010406

13 9.8.1 Notices from you to us must be delivered personally, posted, faxed or ed to us Notices from us to you must be delivered personally, posted, faxed or ed to your last known address, or that of your insurance broker. 9.9 Take reasonable care You, and anyone else covered under this policy, must take reasonable care at their own expense to avoid circumstances that may result in a claim The claim will not be covered if you, or they, are reckless or grossly irresponsible Parties with security interests If we are advised of any party that holds a security interest over any property insured under this policy, that party is not insured under this policy unless we expressly say so However, we may pay all or part of any claim relating to that property to the holder of that security interest. Our obligations to you under this policy are satisfied to the extent of that payment You authorise us to disclose personal information about you to any holder of such a security interest Acts of Parliament Where this policy refers to any Act of Parliament, this includes any Statutory Regulations made under it. It also includes any Act or Regulations enacted in substitution Separate insurance If more than one person or entity is named as 'Insured' in the schedule, then all the parties are insured separately (as though a separate policy had been issued to each person/entity) However, the limits contained in this policy are the most we pay to all persons and entities combined Headings Headings in this policy are for ease of reference only. They do not form part of the policy, and are not to be used as an aid to interpretation SHI/CINZ/010406

14 10 DEFINITIONS When the following words (and any derivatives) are used in this policy, this is what they mean: Accident means an event or omission that is unexpected and unintended from your point of view. Act of terrorism means an act, including but not limited to the use of force or violence and threat of any person or group, whether acting alone or on behalf of or in connection with any organisation or government that from its nature or context is done for, or in connection with political, religious, ideological, ethnic or similar purposes or reasons, including the intention to influence any government and, or, to put the public or any part of the public in fear. Claim means an event or series of events arising from one source or original cause. Computer virus means a set of corrupting, harmful or unauthorised instructions or code, including a set of maliciously introduced and unauthorised instructions or code, programmed or any thing else, which duplicates itself through a computer system or network. This includes, but is not limited to Trojan horses, worms, and time or logic bombs. Destroyed means cannot be repaired because of an insured event. Electronic data means facts, concepts, and information converted to a form useable for communication interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment. It includes programs, software and other coded instructions for the processing and manipulation of data or the direction and manipulation of such equipment. Equivalent dwelling means: (a) (b) (c) Firstly, a dwelling that is as similar as possible as the dwelling that was destroyed, and that: (i) (ii) uses equivalent building materials and techniques currently available, and incorporates any alterations necessary to comply with any regulations or other legal requirements, or Secondly, if because of special circumstances, a dwelling(described in (a) above) can no longer be built, an equivalent building is a dwelling that: (i) has the same functional use as, and (ii) is as similar as possible to, the dwelling that was destroyed, or Thirdly, if because of special circumstances there is no dwelling that meets the criteria listed in (a) or (b) above, (subject to our agreement) an equivalent building is a dwelling that: (i) has a functional use as similar as possible as, and (ii) is no more extensive than, the dwelling that was destroyed. Indemnity Value is the amount needed to put you back in the same financial position you were in immediately before the loss occurred. This is either: (a) (b) Current market value of the dwelling at the time of loss or damage; or The cost of rebuilding or repairing the damaged portion of the dwelling to a -14- SHI/CINZ/010406

15 condition no better or more extensive than when new, less due allowance for depreciation and wear and tear. Excess means the amount stated in the policy or shown in the schedule. Insured property means the following tangible property specified in the schedule: Loss means physical loss, physical damage or physical destruction. Market value means the new replacement cost of an item, less a fair allowance for depreciation based on age, use and condition. Natural disaster damage means damage that results directly from: (a) (b) Earthquake, subterranean fire, volcanic eruption, tsunami, geothermal activity, hydrothermal activity, or fire caused by any of these, and Measures taken under proper authority, to avoid any of these spreading, or reduce their consequences. Period of insurance means the period of time shown in the schedule. Reinstatement means: (a) (b) Where property is destroyed replacement by an equivalent building as appropriate, or Where property is damaged but not destroyed restoration of the damaged part of the property to a condition that is: substantially the same as, but not better nor more extensive than, its condition when new. Schedule means the most recent Schedule to this policy that we issued to you. Situation means the location or locations referred to in the schedule. We/us/our means China Insurance (NZ) Company Limited. You means the person or entity named in the schedule as 'Insured' SHI/CINZ/010406