Lease protection insurance QBE Insurance (Australia) Limited

Transcription

1 Lease protection insurance QBE Insurance (Australia) Limited Product disclosure statement and policy

2 1 CONTENTS Introduction About this booklet Updating our PDS For more information About QBE Australia Important Information Duty of disclosure Privacy About lease protection insurance Applying for cover Significant benefits and features Significant risks Eligibility criteria What you are not covered for The cost of this Policy How to make a claim Cooling-off information The General Insurance Code of Practice Dispute resolution Financial claims scheme Policy Wording Our agreement with you Your Policy Paying your premium Paying your premium Words with special meaning Cover 1: Involuntary unemployment with Hand-back option Benefit payable Hand-back option Cover 2: Sickness and accident with Hand-back option Hand-back option General exclusions General conditions Claims Notification of an incident How to make a claim How claim administration and legal proceedings are undertaken Claims examples Other terms Date of preparation: 5th May 2015 Date effective: 5th May 2015 QM

3 2 Introduction We understand how important it is to be comfortable with your cover so we are glad you chose QBE to take care of your insurance. As the largest Australian owned general insurer and reinsurer, we have been taking care of the insurance needs of Australians since Safe, strong and secure, you can be confident you ve made a great choice. Inside, you will find the information you need to know about the Policy. We explain what the Policy covers, information about excesses and importantly, how to make a claim. Remember, whether you call us for a quote, or to report a claim, or to change your details, you can rely on our friendly team to help you. Thank you for making QBE your first choice. About this booklet This booklet is a Product Disclosure Statement (PDS) and is also the Policy Wording. Other documents may comprise the PDS and we will tell you if this is the case in the relevant document. This booklet has two (2) parts: Important Information to help you understand the insurance, and the Policy Wording, which sets out terms and condition of the cover provided. It is up to you to choose the cover you need. Any advice in this booklet is general in nature only and has not considered your objectives, financial situation or needs. You should carefully consider the information provided having regard to your personal circumstances to decide if it is right for you. Updating our PDS We may update the information contained in this PDS when necessary. A paper copy of any updated information is available to you at no cost by calling us. We will issue you with a new PDS or a supplementary PDS, where the update is to rectify a misleading or deceptive statement or omission, which is materially adverse from the point of view of a reasonable person deciding whether to obtain or renew this insurance. For more information Please take the time to read through this booklet and if you have any questions or need more information, please contact: QBE Insurance (Australia) Limited PO Box 1422 PARRAMATTA NSW motorinfo@qbe.com Phone: About QBE Australia QBE Insurance (Australia) Limited ABN AFSL is a member of the QBE Insurance Group Limited ABN (AS: QBE). QBE Insurance Group is Australia s largest international general insurance and reinsurance group, and one of the top 25 insurers and reinsurers worldwide. The company has been operating in Australia since 1886 and continues to provide insurance solutions that are focused on the needs of policyholders. QBE is a respected name in Australian insurance, backed by sizeable assets, and well known as a strong and financially secure organisation.

4 3 Important Information The information provided in this section includes high level information about this Policy including your duty of disclosure, privacy, how to make a claim, our dispute resolution process and other relevant information. This section may also set out other information such as options in cover you can choose from, factors that affect the cost and any cooling off rights. The Policy Wording section sets out the detailed terms, conditions and exclusions relating to the insurance. If we issue you with a Policy, you will be given a Policy Schedule. The Policy Schedule sets out the specific terms applicable to your cover and should be read together with the Policy Wording. The Policy Wording and Policy Schedule form your legal contract with us so please keep them in a safe place for future reference. You should check the Policy Schedule, or renewal schedule if you are issued one, when you receive it to ensure it accurately states what you have insured. Duty of disclosure New business What you must tell us When answering our questions, you must be honest and you have a duty under the law to tell us anything known to you, and which a reasonable person in the circumstances would include in answer to the questions. We will use the answers in deciding whether to insure you and anyone else to be insured under this insurance and on what terms. Who needs to tell us It is important that you understand you are answering our questions in this way for yourself and anyone else who is an insured under this insurance. If you do not tell us If you do not answer our questions in this way, we may reduce or refuse to pay a claim, or cancel your insurance. If you answer our questions fraudulently, we may refuse to pay a claim and treat the insurance as never having worked. Renewals, variations, extensions and reinstatements Once your insurance is entered into and is no longer new business then your duty to us changes. You are required before you renew, vary, extend or reinstate your insurance, to tell us everything you know and that a reasonable person in the circumstances could be expected to know, is a matter that is relevant to our decision whether to insure you, and anyone else to be insured under this insurance, and if so, on what terms. You do not have to tell us about any matter: that diminishes the risk to be undertaken by us; that is of common knowledge; that we know or should know or, in the ordinary course of our business, we ought to know; as to which compliance with your duty is waived by us. Non-disclosure If you fail to comply with your duty of disclosure, we may be entitled to reduce our liability under the insurance in respect of a claim or may cancel the insurance. If your non-disclosure is fraudulent, we may also have the option of avoiding the insurance from its beginning. You must disclose to us all previous claims You are asked at the time you take out this insurance to give us full and correct details concerning any: renewal or insurance policy declined, cancelled or refused, or where any excess was imposed; claim refused by an insurer; claim made; criminal conviction or finding of guilt for an offence, in relation to you and your family because any of these may affect the premium and extent of insurance. For example, we may be entitled to: charge you an additional premium; impose (back-dated) restrictions including declining your insurance back to when this information should have been provided; decline to insure your building, contents or valuables; refuse a claim. When renewing your Policy with us you must also advise us of any changes to your: claims; insurance; or criminal history. We will notify you in writing of the effect a change may have on your renewal. Privacy All companies in the QBE Group are committed to safeguarding your privacy and the confidentiality of your personal information. QBE collects only that personal information from or about you for the purpose of assessing your application for insurance and administering your insurance policy, including any claim made by you. QBE will only use and disclose your personal information for a purpose you would reasonably expect. We will request your consent for any other purpose. Without this personal information we may not be able to issue insurance cover, administer your insurance or process your claim. Our aim is to always have accurate and up-to-date information. When you receive a Policy Schedule, Certificate of Insurance, Renewal or other document from us, you should contact us if the information is not correct. QBE uses the services of a related company located in the Philippines to provide Call Centre sales and claims handling, accounting and administration services to QBE in Australia. QBE or our authorised agent may collect or disclose your personal information from or to: any person authorised by you; a mail house, records management company or technology services provider (for printing and/or delivery of mail and , including secure storage and management of our records). These companies may be located or the records stored using 'Cloud' technology overseas, including in India, Ireland, USA or the Netherlands; a financier whose name appears on your Policy Schedule (for the purpose of confirming the currency of your Policy or when you have a claim and the insured property is a total loss, to confirm if the financier has a current interest); an organisation that provides you with banking facilities (for the purpose of arranging direct debit or other payment transactions or confirming payments made by you to us); a financial services provider or our agent who is arranging your insurance (for the purpose of confirming your personal and insurance details); another person named as a co-insured on your Policy (for the purpose of confirming if full disclosure has been made to us); another insurer (to obtain confirmation of your no claim bonus or to assess insurance risks or to assist with an investigation); our reinsurer that may be located overseas (for the purpose of seeking recovery from them);

5 4 a dispute resolution organisation such as the Financial Ombudsman Service (for the purpose of resolving disputes between QBE and you or between QBE and a third party); a company to conduct surveys on our behalf for the purpose of improved customer services; and an insurance reference bureau (to record any claims you may make upon us). In addition to the above, in the event of a claim, QBE or our authorised agent may disclose your personal information: to a repairer or supplier (for the purpose of repairing or replacing your insured items); to an investigator, assessor (for the purpose of investigating or assessing your claim); to a lawyer or recovery agent (for the purpose of defending an action by a third party against you or recovering our costs including your excess or seeking a legal opinion regarding the acceptance of a claim); to a witness to a claim (for the purpose of obtaining a witness statement); to another party to a claim (for the purpose of obtaining a statement from them or seeking recovery from them or to defend an action by a third party). Personal information (about you) may also be obtained from the above people or organisations. In addition we will: give you the opportunity to find out what personal information we hold about you and when necessary, correct any errors in this information. Generally we will do this without restriction or charge; and provide our dispute resolution procedures to you, should you wish to complain about how we handle your personal information. To obtain further information about our Privacy Policy, to request access to or correct your personal information, or to make a complaint please complaints@qbe.com. About lease protection insurance Lease Protection Insurance meets the requirements of consumer credit insurance. The purpose of consumer credit insurance is to provide you with insurance cover in respect of your obligations under a finance agreement. In particular, this Policy is designed to meet your lease repayments in the event of involuntary unemployment or sickness and accident. This Policy will also pay the difference between the outstanding balance and the fair sale price of your vehicle if you decide to take the hand-back option following a defined period of involuntary unemployment or sickness and accident. Before you purchase this Policy, you should find out what is covered and what is not covered by reading this PDS and Policy in full. It is up to you to choose the cover you need. This document contains information which can help you decide. Any advice contained in this document is of a general nature only and has not considered your objectives, financial situation or needs. You should therefore consider the information provided having regard to your personal circumstances before deciding whether to purchase Lease Protection Insurance. This insurance is not compulsory and a finance or lease provider cannot insist upon you taking out this Policy as a condition of a lease. You should also be aware that you can effect insurance of this kind with any insurer of your choice. Applying for cover You may apply for the insurance at the time of applying for your lease. Assuming that you meet the eligibility criteria and your application is accepted, you will be issued with a Policy Schedule confirming your cover including the following information: your name and address; the amount of your lease repayment that is covered; which covers you have selected; and your premium including taxes and charges. Significant benefits and features Cover Involuntary unemployment Sickness and accident Benefit Significant risks Pays the monthly lease repayment shown in the lease agreement if you become involuntarily unemployed. After we have paid a benefit for involuntary unemployment of three (3) monthly lease repayments, you may be able to terminate your lease agreement and surrender your vehicle to the lease provider and take advantage of the hand-back option. The maximum claim period per claim is six (6) monthly lease repayments. Maximum payable regardless of the number of claims made during the period of insurance is $25,000. Pays the monthly lease repayment shown in the lease agreement if you are unable to work due to sickness or injury. After we have paid a benefit for sickness and accident of eighteen (18) monthly lease repayments, you may be able to terminate your lease agreement and surrender your vehicle to the lease provider and take advantage of the hand-back option. The maximum claim period per claim is twenty four (24) monthly lease repayments. Maximum payable regardless of the number of claims made during the period of insurance is $50,000. This product may not match your expectations This product may not match your expectations (for example, because an exclusion applies). You should read the PDS and the Policy Wording carefully. Please ask us if you are unsure about any aspect of this product. The Policy does not cover certain things Claims may be refused in certain circumstances. Please refer to the Policy Wording for full details of the terms and conditions of cover provided by this Policy and the relevant Policy exclusions. Eligibility criteria If you wish to take the covers provided by this Policy, you must: be years at the commencement date; be in good health and not suffering from any chronic or serious sickness that was previously known to you; have been engaged in permanent gainful employment for 6 consecutive months immediately prior to when you apply for your lease; not have any prior knowledge that your permanent gainful employment is to be terminated or decreased; and be an Australian or New Zealand citizen or holder of an Australian Permanent Residency Visa. What you are not covered for There are certain times when this Policy may not provide cover. Ensure that you have read the general exclusions for full details.

6 5 We may also refuse to pay or may reduce the amount we pay under a claim: if you do not comply with the Policy terms and conditions; if you do not comply with your duty of disclosure; or if you make a fraudulent claim. The cost of this Policy The total premium is the amount we charge you for this Policy. It includes the amount we have calculated for the risk and the taxes and government charges applicable. The premium will be shown on the Policy Schedule. When calculating the premium we take a number of factors into account. These factors and the degree to which they affect the premium will depend on the information you give us, and the level and type of cover you choose. The main factors that impact your premium include: Dispute resolution Our commitment to you At QBE we re committed to providing you with quality products and delivering the highest quality of service. We also know that sometimes there might be something about our products or service that you re not totally happy about. Step 1 - Talk to us If there s something you want to talk to us about, or if you would like to make a complaint, our staff are there to work with you to try and resolve your issue. If you re not happy with our staff, or if you re unhappy with how our staff have responded to your complaint you can ask to speak to their Manager. Factor Impact You can also make your complaint directly to our Customer Care Unit. the lease amount the premium will be calculated on the lease size and will increase as the amount borrowed increases. Phone (Office Hours Mon-Fri: 8:30-18:00) complaints@qbe.com the period of the lease the type of cover that you have selected the premium will increase as the period of cover increases. as you select more cover types, the premium increases. Post Customer Care GPO Box 219 PARRAMATTA NSW 2124 Commission of up to 20% is paid to the lease provider who sold you this Policy. How to make a claim Full details of what you must do for us to consider your claim are provided in the Claims section at the end of this booklet. To make a claim under this Policy please contact: QBE on as soon as possible. Cooling-off information If you want to return your Policy after your decision to buy it, you may cancel it and receive a full refund. This cooling off right does not apply if you have made or are entitled to make a claim. Even after the cooling off period ends, you still have cancellation rights. However, we may deduct certain amounts from any refund (refer to the Policy Wording under the section 'General conditions - Cancelling your Policy). To cancel your Policy within the cooling off period you must submit your request to us within twenty one (21) days of the commencement of your Policy. You can send your request to: your financial services provider or send an to insurancecentre@qbe.com The General Insurance Code of Practice QBE Australia is a signatory to the General Insurance Code of Practice. The Code aims to: promote more informed relations between insurers and their customers; improve consumer confidence in the general insurance industry; provide better mechanisms for the resolution of complaints and disputes between insurers and their customers; and commit insurers and the professionals they rely upon to higher standards of customer service. Step 2 Escalate your complaint Whenever you make a complaint we will try and resolve it within 15 business days. If this hasn t happened, or if you re not happy with how our staff tried to resolve it, you can ask that your complaint be escalated to one of our Dispute Resolution Specialists. Our Dispute Resolution Specialists will provide our final decision within 15 business days of your complaint being escalated, unless they have requested and you have agreed to give them more time. Step 3 - Still not resolved? If you re not happy with our decision, or if we ve taken more than 45 days to respond to you from the date you first made your complaint, you can contact the Financial Ombudsman Service (FOS), an ASIC approved external dispute resolution body. FOS is a free service that resolves insurance disputes between consumers and insurers, so there ll be no cost to you. QBE is bound by FOS decisions - but you re not. If you wish to access FOS, you can contact them: Phone Online (Office Hours: 9am - 5pm Melbourne time Monday - Friday) info@fos.org.au Financial claims scheme This Policy is a protected policy under the Financial Claims Scheme (FCS), which protects certain insureds and claimants in the event of an insurer becoming insolvent. In the unlikely event of QBE becoming insolvent you may be entitled to access the FCS, provided you meet the eligibility criteria. More information may be obtained from APRA - or

7 6 Policy Wording This Policy is underwritten by QBE Insurance (Australia) Limited ABN , AFS Licence No of Level 5, 2 Park Street, Sydney NSW Our agreement with you Your Policy is an agreement between you and us, made up of: this Policy Wording; and your Policy Schedule, which sets out the cover you ve chosen and any terms specific to you. The cover under this Policy is provided during the period of insurance, once you ve paid us your premium. There are also: conditions and exclusions which apply to specific covers or sections; general exclusions, which apply to any claim you make; general conditions, which set out your responsibilities under this Policy; claims conditions, which set out our rights and your responsibilities when you make a claim; and other terms, which set out how this Policy operates. Excesses If you make a claim, you must pay the excess set out in the Policy Schedule for every claim you make which applies to that cover or section. How much we will pay The most we will pay for a claim is the sum insured set out in the Policy Schedule for the cover or section you are claiming under, less any excess. Your Policy Your Policy consists of the Policy Wording in this booklet and the Policy Schedule we give you. Please keep them in a safe place for future reference. Please check the Policy Schedule details to ensure it accurately states what you have insured. Be sure to check that the limits and sums insured are adequate. The general exclusions and general conditions apply to all sections of this Policy. Paying your premium Paying your premium The premium for this insurance must be paid by the due date. If we do not receive your premium by the due date or your payment is dishonoured then this Policy will not operate and there will be no cover. Words with special meaning Some key words and terms used in this Policy have a special meaning. If words and terms are only used in one (1) section of the Policy, we will describe their special meaning in that section. Wherever the following words or terms are used in the Policy, they mean what is set out below: Word or Term Meaning Word or Term Fair sale price Gainful occupation Hand-back excess Incident Insured Involuntary unemployment/ Involuntarily unemployed Lease agreement Lease provider Lease repayment Medical practitioner Outstanding balance Period of insurance Meaning the value the lease provider achieved on sale or disposal of your vehicle. This value is calculated using the standard process in place by your lease provider at the commencement date. This value cannot be reduced by any damage to the vehicle that is not considered wear and tear as defined by your lease provider s guidelines. If this is not defined by your lease provider, it will be defined by the Fair Wear and Tear Guide issued by the Australian Fleet Lessors Association. any occupation for which you receive a financial reward. the amount you must contribute when you decide to take up the hand-back option of this Policy. an event, neither expected nor intended from your standpoint, which results in a claim on this Policy. the person named in the Policy Schedule as being covered by the Policy. an inability to continue permanent gainful employment as a direct result of involuntary dismissal or retrenchment (redundancy). the written agreement between you and the lease provider shown on the Policy Schedule. the company with whom you have entered a lease agreement to lease a vehicle detailed in that lease agreement. the regular monthly finance repayment amount that you, or any other person, entity or company has agreed to pay under the terms and conditions of the lease agreement. This includes operating costs, the amount paid to the lease operator for servicing the vehicle. This does not include any final residual or balloon payment. a registered and qualified medical practitioner in Australia or in another Country, as approved by us, who is not you or your business partner or another immediate family member. the amount outstanding in relation to the lease agreement at the date of the incident. This amount excludes: any arrears in lease repayments due by you, or any other person, entity or company responsible for the repayments; and/or any additional costs or repayment amounts arising from any variation to the lease agreement after the Policy was entered into including early discharge fees. the period from and to as shown in the Policy Schedule. Commencement date Drugs the date upon which the lease monies are first disbursed to you. any illegal substance or non-prescribed drug which, when used, impairs the person s faculties, or a prescribed drug used contrary to medical or manufacturer s advice. Permanent gainful employment you are working on a permanent and continuous basis for wages or income for a minimum of twenty (20) hours every week and you are not in employment of a seasonal, casual, temporary, contract or self employed nature.

8 7 Word or Term Meaning Word or Term Meaning Permanent resident of Australia Policy Policy Schedule Pre-existing medical condition Sickness and accident Sum insured Terrorism Usual occupation We, our, us You, your Your employer Your vehicle an Australian or New Zealand citizen or holder of an Australian Permanent Residency Visa. your insurance contract which consists of this PDS and Policy document and the Policy Schedule. the schedule of insurance. an injury, sickness, condition or related symptom that you were aware of, or a reasonable person should have been aware of, or for which you had a medical consultation. means: that: illness or disease which manifests itself during the period of insurance; or bodily injury that is unintentional, caused solely and directly by external and visible means as a result of an accident occurring during the period of insurance; has been certified by a medical practitioner; and which prevents you from engaging in your usual occupation or in any gainful occupation. the amount that you have insured your lease repayments for as shown on the Policy Schedule. We will pay no more than this amount. any act of any person acting on their own or in connection with an organisation or foreign Government, which can involve the use of, or threat of, force or violence, where the purpose, by its nature or context, is to put the public or a section of the public in fear, to resist or influence a Government or to further an ideological, religious, ethnic or similar aim. the main occupation you are engaged in when an incident occurred to lead you to claim under this Policy that is suitable to your experience, training and/or education for which you receive a financial reward. QBE Insurance (Australia) Limited, ABN , AFS Licence No of 2 Park Street, Sydney. NSW the person named on the current Policy Schedule as the Insured. the company you are employed by. the motor vehicle shown on your Policy Schedule: which is not more than ten (10) years old at the commencement date of the Policy; which is registered for use on public roads; including its standard tools, modifications and any genuine and non-genuine accessories that were fitted to the vehicle at the time of purchase by the selling motor dealer; which does not have a carrying capacity greater than two (2) tonnes; and which is not used as a courier vehicle, taxi, any other type of vehicle used for the carriage of people or goods for reward or used for driver education (other than for your immediate family member). Cover 1: Involuntary unemployment with Hand-back option This cover will apply in the event you are unable to continue your permanent gainful employment as a direct result of your involuntary dismissal or retrenchment. After we have paid a benefit of three (3) monthly lease repayments for a claim for involuntary unemployment, you may have the option under your lease agreement to surrender your vehicle to the lease provider (if you have not returned to permanent gainful employment) and take advantage of the hand-back option. Benefit payable We will only pay a benefit under this Policy for an incident that occurs during the period of insurance, except when an incident occurs during the first thirty (30) days of the commencement date of this Policy. For each day of involuntary unemployment, excluding the first fourteen (14) days, we will pay to the lease provider 1/30th of monthly lease repayment shown on the lease agreement. For any claim, we will only pay a benefit for a maximum period of six (6) monthly lease repayments, or up to the date you return to any employment were you are working more than an average of twenty (20) hours a week, whichever occurs first. For a benefit to be paid, you must: register your involuntary unemployment with Centrelink or the relevant Government employment agency in your area (regardless if you are able to receive any benefit payments from them or not); and be able to provide sufficient evidence of your involuntary unemployment; and be actively seeking new permanent gainful employment. If you return to work on a seasonal, casual, temporary, contract or self employed basis, for less than twenty (20) hours every week, your involuntary unemployment claim will continue to be paid by us. The first day of any claim period of involuntary unemployment will be calculated from the first day after your final date of employment. The maximum amount that we will pay under this cover including any payment made to the lease provider under the hand-back option, during the period of insurance, is $25,000, regardless of the number of claims. Once you have made a claim for involuntary unemployment and have returned to permanent gainful employment and did not elect to take the hand-back option, you must have remained in permanent gainful employment for at least another consecutive one hundred and eighty (180) days before another claim can be made under this cover. Hand-back option After we have paid a benefit of three (3) monthly lease repayments for a claim for involuntary unemployment, you may be able to take up the hand-back option of this cover. If you are still involuntarily unemployed after we have paid a benefit of three (3) monthly lease repayments and you have not entered into or about to enter into an agreement to commence new permanent gainful employment, you may up until immediately before the sixth (6th) monthly lease repayment, be able to (and decide to) terminate the lease agreement and surrender your vehicle to the lease provider.

9 8 Should you be able to (and decide to) terminate your lease agreement and surrender your vehicle to the lease provider, we will pay to the lease provider an amount equal to: the outstanding balance of the lease agreement as at the date you returned your vehicle; less the fair sale price obtained for your vehicle; less the hand-back excess of $300. The Policy will end once we have made a payment to the lease provider under the hand-back option. If you do not decide to surrender your vehicle, we will continue to pay a benefit for involuntary unemployment up to the maximum period per claim of six (6) monthly lease repayments, or until the date you return to permanent gainful employment, whichever occurs first. You will not be able to elect the hand-back option after we have paid the maximum claim period for involuntary unemployment of six (6) monthly lease repayments. If you did not take up the hand-back option, you will have to assume the responsibility of the lease repayment after the maximum claim period is reached. You will not be able to elect the hand-back option if the incident of involuntary unemployment occurred in the final six (6) months of your lease agreement. Cover 2: Sickness and accident with Hand-back option This cover will apply in the event that you are unable to perform your usual occupation and any gainful occupation up to twenty four (24) months due to sickness and accident. After we have paid a benefit of eighteen (18) monthly lease repayments for a claim for sickness and accident, you may have the option under your lease agreement to surrender your vehicle to the lease provider and take advantage of the hand-back option. Benefit payable We will only pay a benefit under this Policy for an Incident that occurs during the period of insurance, except when an incident of sickness occurs during the first thirty (30) days of the commencement date of this Policy. For each day of sickness and accident, excluding the first twenty eight (28) days, we will pay to the lease provider 1/30th of the monthly lease repayment shown on the lease agreement. This cover applies in the event that you are unable to perform: Your usual occupation for up to twelve (12) months, and Any gainful occupation after the first twelve (12) months of any claim, Due to a sickness or injury that has been certified by a medical practitioner. If your lease repayments are still being paid for via salary sacrifice when your claim begins, we will make our payments to you until such a time when your employer stops paying your repayments to the lease provider. For a benefit to be paid, you must: provide us with written evidence from a medical practitioner for the sickness or injury you have sustained and that you are following the advice of the medical practitioner for your rehabilitation; and not be working in your usual occupation or in any gainful occupation. If you return to work on a seasonal, casual, temporary, contract or self employed basis, for less than twenty (20) hours every week, your sickness and accident claim will continue to be paid by us. The maximum amount that we will pay under this cover including any payment made to the lease provider under the hand-back option, during the period of insurance, is $50,000, regardless of the number of claims during the period of insurance. If your employment with your employer is terminated while we are paying a benefit for sickness and accident, we will continue making payments according to the terms and conditions of this cover for up to twenty four (24) monthly lease repayments, or up to the date you are able to return to any gainful occupation, whichever occurs first. If you return to work for less than six (6) months following a period of sickness and accident, any further claim for sickness and accident will be considered as a continuation of the prior period(s) of sickness and accident. Hand-back option After we have paid a benefit for a continuous and uninterrupted eighteen (18) month period for a claim for sickness and accident, you may be able to take up the hand-back option of this cover. If you still are unable to return to your usual occupation or any gainful occupation if your employment was terminated: after we have paid a benefit for a continuous and uninterrupted eighteen (18) monthly lease repayments; and a medical practitioner can confirm that you will be unable to return before the twenty fourth (24th) and final month of your claim, and for at least another three (3) months after the maximum claim period has ended. You may up until immediately before the twenty fourth (24th) monthly lease repayment is paid by us, be able to (and decide to) terminate the lease agreement and surrender your vehicle to the lease provider. Should you be able to (and decide to) terminate your lease agreement and surrender your vehicle to the lease provider, we will pay to the lease provider an amount equal to: the outstanding balance of the lease agreement as at the date you returned your vehicle; less the fair sale price obtained for your vehicle; less the hand-back excess of $300. The Policy will end once we have made a payment to the lease provider under the hand-back option. If you do not decide to surrender your vehicle, we will continue to pay a benefit for sickness and accident up to the maximum period per claim for sickness and accident of twenty four (24) monthly lease repayments. You will not be able to elect the hand-back option after we have paid the maximum claim period for sickness and accident for twenty four (24) months. You will assume the responsibility of the lease repayment after the maximum claim period is reached and you did not take up the hand-back option. You will not be able to elect the hand-back option unless the maximum claim period of twenty four (24) monthly lease repayments ends before the final day of your lease agreement. General exclusions Events that we will not cover are listed in the table below and are marked by an x. Event or Circumstance A pre-existing medical condition occurring in the twelve (12) months preceding the commencement date. An intentionally self-inflicted sickness or injury whilst sane or insane (including suicide within thirteen (13) months following the issue of the Policy). Involuntary unemployment Sickness and accident

10 9 Event or Circumstance Involuntary unemployment Sickness and accident Event or Circumstance Involuntary unemployment Sickness and accident Alcoholism, drug addiction or the influence of intoxicating liquor or drugs. Mental or functional disorder (including but not limited to, any form of anxiety, depression, stress, psychosis or neurosis). Any variation to the original lease agreement which results in increased liability. War or warlike activities (excluding peace time manoeuvres). Acts of terrorism where such acts are directly or indirectly caused by, contributed to by, resulting from, or arising out of, or in connection with biological, chemical, or nuclear weapons, pollution or contamination. Engaging in a criminal act. Sickness and accident and involuntary unemployment claim simultaneously. Failure to seek medical attention, and/or treatment, and/or failure to follow medical advice. Childbirth, abortion or pregnancy (including conditions accelerated or induced as a result). Unreasonable refusal to attend an independent examination by a medical practitioner requested and paid for by us. Taking part in lockouts, riots, civil commotion, strikes. Engaging in professional racing of any kind except foot racing. Flying or taking part in aerial activity except as a fare paying passenger in a motor propelled aircraft owned and/or operated by a recognised airline or licensed charter company. Employed in the mining industry Sanctions exclusion You were not engaged in permanent gainful employment for at least sixty (60) days before becoming involuntarily unemployed. You became involuntarily unemployed and before you entered into this Policy you knew, or a reasonable person ought to have known, of any actual or proposed termination of employment or decrease in work available to you. You are not insured under any section of this Policy where a claim payment breaches any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of Australia, the European Union, United Kingdom or United States of America. General conditions There are conditions set out in these general conditions, in the claims section and under each particular cover and section. If any of these conditions are not met, we may refuse to pay a claim, reduce the amount we pay for a claim or in some circumstances we may cancel your Policy. When making a claim, you must have met and then continue to comply with the conditions of this Policy. Any person covered by this Policy, or claiming under it, must also comply with these conditions. Normal cessation of a contract or seasonal employment. If you, or a person covered under this Policy, don t meet these conditions or make a fraudulent claim we may: Voluntary redundancy, resignation, retirement or abandonment of your employment. Self employment or where you or your family s control exists over the employing company. (a) (b) refuse to pay your claim or reduce what we pay for your claim; cancel your Policy. Assistance and co-operation You must provide us with all reasonable assistance we require when you deal with us and you will: Involuntary unemployment arising out of not being able to or being unsuited to perform the work you were employed to undertake. be truthful and frank; not behave in a way that is abusive, dangerous, hostile, improper or threatening; co-operate fully with us, even after we have paid a claim. Refusal to accept a reasonable alternative position in Australia either with your existing employer or your new employer who has taken over your existing employer. Care and maintenance You must take reasonable care to prevent damage, injury or loss. We will not pay for damage, injury, loss or your liability to which your failure to take reasonable care is a contributing factor. At all times, you must: Dismissal due to unsatisfactory work, misconduct, performance or employment contract breach. prevent damage to others or their property; minimise the cost of any claim under this Policy; comply with all laws.

11 10 Changes to information previously advised You must tell us as soon as possible if circumstances occur, or if changes or alterations are intended or made which increase the risk of loss, damage or injury. Other insurance You must notify us of any other insurance which will or may, whether in whole or in part, cover any loss insured under this Policy. Claims Notification of an incident You must advise us as soon as possible of an incident which could lead to a claim on this Policy. How to make a claim When you make a claim you must: contact us by phone as soon as practicable and be ready to provide details of the incident; return the completed claim form that we provide you, promptly together with all letters, documents, medical certificates or other documentation that you have been asked to provide, otherwise we cannot process your claim; attend an independent examination by a medical practitioner if requested and paid for by us; provide written statements under oath if we require it; be interviewed about the circumstances of the claim, if we require this. If you require assistance or have any questions regarding a claim, please contact us on How claim administration and legal proceedings are undertaken When a claim is admitted under this Policy we have the right, at our discretion, to exercise all the legal rights of you relating to the incident and to do so in your name. We will take full control of the administration, conduct or settlement of the claim. What we do We may take over and conduct the defence or settlement of any claim or issue legal proceedings for damages. If we do this we will do it in your name. We have full discretion in the conduct of any legal proceedings and in the settlement of any claim. You must co-operate by giving us any statements, documents or assistance that we require. This may include giving evidence in any legal proceedings. Contribution If at the time of any loss, damage or liability there is any other insurance (whether effected by you or by any other person) which covers the same loss, damage or liability you must provide us with any reasonable assistance we require to make a claim for contribution from any other insurer(s). False or misleading information We may deny part or all of your claim if you are not truthful and frank in any statement you make in connection with a claim, or if the claim is fraudulent or false in any respect. Other insurance You must notify us of any other insurance which will or may, whether in whole or in part, cover any loss insured under this Policy. Preventing our right of recovery If you have agreed not to seek compensation from another person who is liable to compensate you for any loss, damage or liability which is covered by this Policy, we will not cover you under this Policy for that loss, damage or liability. Claims examples The following claim examples will demonstrate to you how a benefit is paid under this Lease Protection Insurance Policy. Example 1 Involuntary unemployment Claim Renee took out a Lease Protection Insurance Policy on January 1st, 2010 when she began her lease agreement with her lease provider. Her chosen cover combination at the time of purchasing the Policy included cover for involuntary unemployment. On March 31st, 2011 Renee is retrenched by her employer. Her monthly lease repayment is $600 and there is a 14 day waiting period per claim for involuntary unemployment. As per the Terms and Conditions of the Policy for a benefit to be paid, Renee has registered her unemployment with Centrelink and begins actively seeking new employment. After the waiting period of 14 days has passed, for each day she remains involuntarily unemployed, this Policy will pay a benefit of 1/30th of her monthly lease repayment. Renee remains unemployed for 130 days after the waiting period has passed. The benefit payment from this Policy to the lease provider would be: $ x 130 = $2,600 (equivalent to 4.3 monthly lease repayments). After 130 days, Renee is still unemployed and has not, nor is about to, enter into an agreement for new employment. She is able to, and decides to, surrender her vehicle to the lease provider. She is able to claim under the hand-back option of involuntary unemployment cover to assist her to settle and end her lease agreement with her lease provider. At the date of surrendering her vehicle to the lease provider, the outstanding balance of the lease agreement is $18,500. The fair sale price obtained for her vehicle by the lease provider is $15,000. The hand-back excess she is required to pay to claim under this option is $300. The benefit payment to the lease provider from this Policy to assist in settling and ending her lease agreement is an amount equal to: $18,500 - $15,000 - $300 = $3,200 Example 2 Sickness and accident Claim Steve took out a Lease Protection Insurance Policy on June 30th, 2010 when he began his lease agreement with his lease provider. His chosen cover combination at the time of purchasing the Policy included cover for sickness and accident. On January 31st, 2011 Steve becomes unable to work due to an Injury from a skiing accident. His monthly lease repayment is $750 and there is a 28 day waiting period per claim for sickness and accident. As per the Terms and Conditions of the Policy for a benefit to be paid, Steve has provided written evidence from his medical practitioner of his Injury and he is following their advice for his rehabilitation. After the waiting period of 28 days has passed, for each day he remains unable to work due to his Injury, this Policy will pay a benefit of 1/30th of his monthly lease repayment. Steve remains unable to work for 85 days after the waiting period has passed. The benefit payment from this Policy would be: $ x 85 = $2,125 (equivalent to 2.8 monthly lease repayments).

12 11 Steve continued to receive a salary for the first thirty (30) days of his claim and his employer continued to pay his monthly lease agreement, so the benefit payable for this period of his claim was paid directly to him. the date you are no longer a permanent resident of Australia (unless otherwise agreed in writing by us). If Steve continues to suffer from his Injury for a continuous and uninterrupted eighteen (18) month period, he may be able to, and decide to, surrender his vehicle to the lease provider and claim under the hand-back option of the sickness and accident cover to assist in settling and ending his lease agreement with his lease provider. Other terms These other terms apply to how your Policy operates, including what you must do once you've taken out this Policy and when you make a claim. Cancelling your Policy How you may cancel this Policy You may cancel this Policy at any time by telling us in writing that you want to cancel it. Where you involves more than one person, we will only cancel the Policy when a written agreement to cancel the Policy is received from all persons named as the insured. How we may cancel your Policy We may cancel this Policy in any of the circumstances permitted by law (e.g. failure to pay the premium by the due date) by informing you in writing We will give you notice in person or send it to your address (including an electronic address) last known to us. Where you have paid your premium in advance of the date you wish to cancel from, we will refund to you the proportion of the premium for the remaining period of insurance. Unless directed otherwise by all insured, the refund will be made payable to all insured. Changing your Policy If you want to make a change to this Policy, the change becomes effective when: we agree to it; and we give you a new Policy Schedule detailing the change. Notices Any notice we give you will be in writing, and it will be effective: If it is delivered to you personally; or It is delivered to you at your address (including an electronic address) last known to us. It is important for you to tell us of any change of address as soon as possible. When the Policy ends The Policy ends, and we stop paying benefits, on the earliest of any of the following: the expiry date shown on the Policy Schedule; the date of your sixty-fifth (65th) birthday; the date the lease agreement is discharged, re-financed, foreclosed or terminated; the date your indebtedness under the lease agreement is transferred to someone else; the date we receive a written request from you to terminate the Policy; the date given when we provide you with written notice to terminate the Policy in accordance with relevant legislation; the date upon which we paid an amount for the hand-back option of involuntary unemployment cover; the date upon which we paid an amount for the hand-back option of sickness and accident cover;

13 QBE Australia Level 5, 2 Park Street Sydney, New South Wales This policy is underwritten by QBE Insurance (Australia) Limited ABN , AFSL , of 2 Park Street, Sydney. QM