Territory Home Insurance Accidental Damage Product Disclosure Statement and Policy
Thank you for choosing TIO, the only fully Northern Territory owned insurance and banking organisation. With years of local knowledge and expertise, we pride ourselves on providing a broad range of quality products and services tailored to suit the needs of Territorians. We are dedicated to delivering high quality services to our customers through our customer service network and selected intermediaries. We are committed to developing our staff to the highest industry standards and to keeping abreast of the latest proven technology. This booklet contains information designed to help you decide whether to buy our Territory Home Insurance - Accidental Damage product. Territory Home Insurance - Accidental Damage covers your buildings and/or contents for accidental loss or damage. We will also provide additional cover under specific conditions for a range of incidents and your legal liability. Your Territory Home Insurance - Accidental Damage product gives you the flexibility to take out a buildings policy, a contents policy, or a combined buildings and contents policy. You can also add options to your policy for strata title mortgagee protection, disaster cover, or to extend your valuables cover. Your buildings and/or contents will be covered up to the sum insured, as listed in your Certificate of Insurance (subject to Section 6 Disaster Cover) taken out on your building. 2
Table of Contents Product Disclosure Statement 4 Policy Terms and Conditions 14 General Definitions Applying to all Sections of this Policy 19 Section 1 Your Building 21 Section 2 Your Contents 24 Section 3 Accidental Damage 29 Section 4 Valuable Items 39 Section 5 Legal Liability 40 Section 6 Disaster Cover 43 Section 7 Mortgage Protection 44 Section 8 What is Not Covered 45 How to Make a Claim 47 How We Pay Claims 49 Index 52 3
Product Disclosure Statement What is a Product Disclosure Statement? This Product Disclosure Statement (PDS) is designed to help you understand the key features and to help you compare and make an informed choice about whether to buy this product. This PDS is dated 31/03/2007. The information in this PDS is current as at that date. More up to date information may be available by contacting us. Our contact details are provided on the back cover of this booklet. The covers described in this booklet are issued, underwritten and sold by the Territory Insurance Office ( TIO ) ABN 72 532 995 678. Please read through the Policy Terms and Conditions carefully to make sure you have all the protection you want. We have written it in plain language to assist you in understanding the insurance cover you have chosen. If you don t fully understand what your insurance contract covers, or your rights and obligations, please contact us. This booklet is an important document and should be retained in a safe place with your Certificate of Insurance. Choosing the Type of Insurance You need to consider the type of insurance cover that suits your needs. You may choose all or some of the covers in the Territory Home Insurance - Accidental Damage product. You need to read the Policy Terms and Conditions part of this booklet to understand the significant features and benefits of the Territory Home Insurance - Accidental Damage product. 4
21 Day Cooling-Off Period We offer you a cooling-off period of 21 days to consider the information in this Policy and your Certificate of Insurance and determine whether the cover meets your needs. If you are not completely satisfied with the cover you have chosen, you can cancel your insurance. To do this, you must provide written notice to us within 21 days from the date your insurance commenced. If you have not made a claim, we will also give you a full refund of any premium you have paid. Proof of Ownership and Value To help us settle any claim you make, you must provide evidence of ownership and proof of value. Please keep receipts, valuations, catalogues and photographs of items of value. The Cost of Your Insurance The cost of your insurance is called the premium. We will tell you the premium amount you are required to pay and show it in your Certificate of Insurance. The premium may include compulsory government charges, such as GST and stamp duty. Where government charges apply, we will show these amounts in your Certificate of Insurance. The amount you are required to pay will vary based on the type of cover you have chosen. When we calculate your premium, we take into consideration a number of rating factors. These include factors relating to the sum insured, your claims history, construction of your building, location of your building and level of security. 5
Paying Your Premium We will tell you when your payment is due. You must pay us the premium on or before the due date to activate this insurance cover. If you pay by instalments, the date your instalment is due and the amount will be shown in your Certificate of Insurance. If you do not pay by the due date and your payment is overdue, we may: refuse to pay your claim if your payment is outstanding for 14 days or more, and cancel your insurance contract if your payment is outstanding for a month or more The date your insurance cover expires is shown in the Certificate of Insurance. If renewal is invited you must pay us the premium on or before the expiry date, or your insurance cover will not renew. You may ask us to change a provision of your insurance cover. If the change results in an additional premium, you must pay the amount and any other charges in full. If you do not, we may reduce the period of insurance so it is in line with the amount you have paid. Tax Implications In some circumstances, we may reduce your claim payment by the amount of any input tax credit that you are entitled to under A New Tax System (Goods and Services Tax) Act 1999. Please refer to the information provided under the heading Goods and Services Tax on page 51 of this Policy. 6
Other Costs Other costs, fees and charges that you may have to pay are listed below: Cost Excess Depreciation Cancellation Details The amount you must pay if you make a claim. The excess is explained on page 16 of this booklet. The amount we pay when you make a claim on certain items may be reduced by an amount for depreciation wear and tear. This is explained on page 50 of this booklet. If you cancel your insurance outside the 21 day cooling-off period, we will allow a pro-rata refund of the annual premium you have paid. Our Agreement with You Your insurance contract is made up of the following documents: your proposal, which may have been verbal the PDS the Policy Terms and Conditions your current Certificate of Insurance, and any endorsements sent by us to you. For your insurance cover to apply you must pay us the premium. The dates that cover commences and expires are shown in the Certificate of Insurance we issue to you. Provided you have paid us the premium on or before the due date we will give you the cover described in the Policy Terms and Conditions and the Certificate of Insurance. It is very important that you read in conjunction with the PDS each Section of the Policy Terms and Conditions that is relevant to the insurance cover you purchase, so you understand each Section s limitations, territorial limits and exclusions. You or any other person entitled to cover must comply with the terms, conditions, exclusions and any endorsements. 7
Significant Features and Benefits of this Product The following table summarises the insured events, features and benefits, and optional covers available under this product. Summary of Features and Benefits Accessories of a motor vehicle, motor cycle, caravan, trailer, watercraft and aircraft Accidental Damage cover Actual or Attempted Theft, Burglary or Housebreaking Contents in Temporary Storage Contract of Sale Cover for Architects and Surveyors fees Cover for Documents in a Bank Vault Cover for Legal Liability Cover for Loss of Rent Cover for money Cover for Plants Cover for Temporary Accommodation Cover for tools of trade Credit Cards and Debit Cards Cyclone Deterioration of Refrigerated Foods Domestic Pets Earthquake Extra costs to comply with by-laws Fatal Injury Fire or Explosion Flood Fusion of Electric Motors Impact Lightning Liquid escaping from any fixed apparatus, tank or fixed pipe Malicious Damage Modifications to the building Mortgagee discharge costs New for old cover for Contents Property in a home surgery or office Removal of Debris Replacement cover for Buildings Replacing keys and repairs to locks Riot or Civil Commotion Storm Surge Storm, Cyclone, Rainwater or Hail Visitors contents 8
The table is a guide only. Please read the Policy Terms and Conditions Section of this booklet carefully for full details of the cover, terms, conditions, restrictions and limits which apply to your insurance. Building Contents See Page 7 24 29 29 7 37 7 38 7 37 7 34 40 36 7 24 26 36 7 28 7 34 29 7 38 7 34 29 7 38 7 35 29 29 29 29 29 32 29 7 35 7 35 7 50 7 28 38 7 49 7 36 29 29 29 7 36 9
Summary of Optional Covers Available Building Contents See Page Disaster Cover 7 43 Mortgage Protection 7 44 for strata title units/flats only Valuable Items Cover 7 39 Significant Risks You need to be aware of the risks associated with this product. Generally speaking, the risks are that you: will not be covered for certain events or circumstances, and will fail to renew The Policy Terms and Conditions sets out what you are insured for and those circumstances where you will not be insured. It is important that you read the Policy Terms and Conditions in conjunction with your Certificate of Insurance carefully so that you understand what your insurance contract covers and excludes. It is also important to check any endorsements we note in your Certificate of Insurance. Your Duty of Disclosure What you must tell us Before you first start this insurance, you have a duty under law to tell us about any matter that you know, or could reasonably be expected to know is relevant to our decision whether to insure you and (if so) on what terms. You have the same duty to disclose those matters to us before you renew, change or reinstate your insurance contract. These requirements are part of the Insurance Contracts Act 1984. When we ask you specific questions, you must give us honest and complete answers. The information you give us helps us to decide whether to insure you and any other person whom you want to be covered by the insurance contract, the amount of your premium and whether any special conditions need to apply. 10
Who needs to tell us It is important that every person who will be insured under this insurance contract answer our questions in this way. What you do not need to tell us You do not need to tell us about any matter: that reduces the risk to be insured by us, that is of common knowledge, that we know, or as an insurer should know, or when we have waived compliance with your duty. What will happen if you do not tell us If you do not comply with these obligations, we may be entitled to refuse or reduce the amount we pay you if you make a claim, or we may cancel your insurance. If your non disclosure is fraudulent, or your answers are untruthful, we may refuse to pay a claim and treat the insurance contract as if it never existed. If you do not understand your duty, please contact us. Dispute Resolution TIO is proud of the quality service we provide to Territorians and we are committed to being the leading provider of quality insurance services in the Territory. If you find a reason to be dissatisfied with any of our products or services we need to know so we can work together to resolve the issue. First you should contact us or the insurance broker who issued your insurance. Let them know what the problem is and they may be able to resolve it on the spot. If you are not satisfied with the response, you may request that the matter be dealt with by TIO s Complaints Officer through our Complaints and Dispute Resolution Process. If the matter has not been resolved to your satisfaction, you will be advised of your further options for External Dispute Resolution which may include referral to the Financial Ombudsman Service. This is an independent scheme which adjudicates free of charge to you. 11
The Financial Ombudsman Service may be contacted by calling 1300 78 08 08 or via email: info@fos.org.au. If you want more information on the FOS, please visit their website: www.fos.org.au. If you would like more information or wish to receive a copy of TIO s Complaints and Dispute Resolution leaflet, please contact us. How to Contact Us You may contact us in any of the following ways: call us on 1300 301 833 via an information request from our website tiofi.com.au in person at any TIO Branch by writing to TIO GPO Box 770 Darwin NT 0801. Privacy of Your Information TIO is committed to protecting the privacy and confidentiality of your personal information. Generally, we collect personal information directly from you, however there may be times where we collect personal information from outside sources. Your personal information is collected for the primary purpose of evaluating and administering the proposed insurance or any claim, and for the secondary purpose of marketing our products and services to you. On request in most circumstances you may access your personal information collected and held by TIO. You may also cancel its use for marketing purposes at any time. The information you give us may be disclosed to others such as reinsurers, professional advisers and loss adjusters. If you believe your personal information is inaccurate or incomplete, you may request we make any necessary corrections, additions and deletions. 12
The Code of Practice TIO has adopted the General Insurance Code of Practice developed by the Insurance Council of Australia. The Code: is designed to promote understanding between insurers, agents and consumers by setting standards for insurers to follow in their dealings with the public, requires insurers to provide consumers with communications promptly and in plain language, requires the people you deal with when you are purchasing insurance or making a claim to be well trained, and provides an effective means to resolve disputes over our products or services or any claim you make. You can obtain more information about the General Insurance Code of Practice by contacting us. We Comply with the Obligations of the Corporations Act The Corporations Act 2001 requires financial service providers to have an Australian Financial Services Licence. TIO is excluded from the requirement to hold a licence as we are a statutory authority of the Northern Territory Government. However, in the interest of protecting our customers we have chosen to comply with the financial services obligations of the Corporations Act. We Comply with the Obligations of the Insurance Contracts Act The Insurance Contracts Act 1984 governs the law relating to certain contracts of insurance so that a fair balance is struck between the interests of insurers, insured s and other members of the public. TIO s insurance products are not required to be bound by this Act as we are a statutory authority of the Northern Territory Government. However, in order to protect the interests of our customers we have chosen to comply with the obligations which are imposed upon insurers pursuant to the Insurance Contracts Act 1984. 13
Policy Terms and Conditions Please read this information carefully as it outlines your obligations and responsibilities. You must comply with these terms and conditions. If you do not meet your responsibilities, we may refuse or reduce a claim, cancel your policy, or do both. If we cancel your policy we will advise you in writing. Cancelling your Insurance Your insurance cover may be cancelled: By You You may cancel your insurance by providing written notice to us. Your insurance will be cancelled from the date we receive the written request. By Us We may cancel your insurance by notifying you in writing. This notice shall be delivered to you personally or posted to you at your last known address. Cancellation of this insurance shall be effective from 4.00pm on the third business day after the expected normal postal delivery of this notice or at a time when you enter into another contract of insurance intended to replace this insurance cover, whichever is sooner. We may cancel your insurance cover if, for example: you make a misleading statement when applying for insurance, you fail to comply with the conditions of the insurance, you fail to pay the premium, or you make a fraudulent claim. 14
Refunds We will refund the balance of premium in respect of any unexpired period of this insurance. Refunds of premium do not apply to Section 7 Mortgage Protection or any insurance cover which has been the subject of a total loss claim. In most cases, refunds of premium do not apply to insurance policies paid by instalments. Changes You must notify us in writing as soon as possible of any circumstances which occur, or changes that are intended or made which increase the risk of loss, damage or liability. Unless we have agreed in writing to cover any changes to the risk and you pay any additional premium required, we will not pay for any loss, damage or liability caused by or contributed to by the changes. Contents with Limited Cover Certain contents items are subject to a limited cover. This means that there is a limit to the amount we will pay for a particular item or group of items. The contents with limited cover are listed on page 28 of this booklet. If you require cover for more than the specified limit, you must tell us. If we agree to increase the cover on a particular item we will advise you in writing. 15
Due Care You must at all times take reasonable steps: to ensure the safety and protection of the building and/or contents and when unoccupied, to lock or otherwise secure the building; to keep the building and/or contents in good condition; This means for example, that your building must be secure, watertight, structurally sound and well maintained; to prevent bodily injury, death and illness to other persons or damage to their property; and to comply with all statutory obligations, by-laws or regulations which are imposed for the safety of persons or property. Excess Applicable The excess shown in the Certificate of Insurance is the amount you must contribute towards the cost of any claim under this insurance cover. We will deduct this amount from any claim you make. The excess applies regardless of whether your claim includes depreciation. You will not have to pay the excess for claims under Section 5 Legal Liability. Note: An excess of $200 applies to damage caused in any 48 hour period by an earthquake. Fraudulent Claims If you or anyone acting on your behalf or with your implied permission should make a claim knowing or suspecting it to be false or fraudulent, payment may be refused. Other Insurance If at the time of incurring any liability, loss or damage covered by this insurance cover there is any other insurance contract covering the same property effected by you or person(s) other than you, this insurance contract will only pay any excess beyond the amount which would have been payable under such other insurance contract had this insurance cover not been effected. 16
Renewal Procedure Prior to the expiry of your insurance cover we will write to you about the renewal of your insurance. If renewal is invited you should carefully check the details contained in your renewal invitation, such as: the names of the people who are insured; the address of the property insured; specified contents, valuable items and the amount each item is insured for; the sums insured; and any excess which you must pay towards the cost of a claim. Prior to sending your renewal invitation we will automatically increase your building and contents sum insured by a percentage that will reflect inflation and the increased cost of labour and materials in the Northern Territory. It is important that you check the sums insured before renewing each year to satisfy yourself that they continue to represent current full replacement values. Sums Insured You are responsible for calculating the sum insured for the cost of replacing your building, contents and valuable items, as new. If you do not insure for the correct amount, you may be out-of-pocket if you suffer loss or damage to your building or contents. Waiting Period for Cyclone, Flood and Storm Surge TIO operates in an area of Australia that is subject to catastrophic natural events. It is necessary for us to apply a waiting period of 72 hours for loss or damage that occurs from cyclone, flood or storm surge. This means if you arrange new insurance or make a mid term alteration that affects your level of cover you will not have immediate cover for these natural events. 17
Unoccupancy If your building is unoccupied for a continuous period of more than 60 days, your cover will be limited to: earthquake including tsunami caused by an earthquake, flood, impact, lightning strike, riot or civil commotion, storm surge, and storm, cyclone, rainwater and hail. Your cover will be limited as described above if your building is unoccupied for a continuous period of more than 60 days unless you tell us beforehand that this will occur, we agree to cover you and you pay any additional premium we require. If we agree to provide such cover we will advise you in writing. If you use your Home for any Business, Trade or Profession This insurance is issued on the basis that your home is used primarily as a place of residence and it is not used for any income generating activity other than an office or surgery in the home. You must tell us immediately if you use or expect to use any part of your home for business, trade or professional purposes. If you use your home for earning income and do not tell us, it may affect your entitlement to make a claim. If we agree to provide cover we will advise you in writing. Please refer to Section 1 Your Building and Section 2 Your Contents for more information. 18
General Definitions Applying to all Sections of this Policy In this Policy unless the contrary intention appears the following expressions shall have the following meaning: accident, accidental loss, accidental damage an event which was not expected or intended by you and includes a series of accidents arising out of any one event. act of terrorism an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s), which from its nature or context is done for, or in connection with political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear. aircraft any vessel, craft or thing made or intended to fly through or move through the atmosphere or space. Australia the Commonwealth of Australia, its dependencies and Territories. building as described under Section 1 Your Building. Certificate of Insurance the current schedule or renewal schedule issued by us which forms part of this insurance. It will show details of your insurance cover and premium. collection(s) a group of individual items, which are of a similar type and which when grouped together, take on a value greater than the sum of the individual items values. Examples may be stamp, medal and coin collections. contents as described under Section 2 Contents. debris the residue of insured damaged property excluding any material which is itself a pollutant or contaminant and which is deposited beyond the boundaries of the site. depreciation the reduction in value of the property due to wear and tear, age, ordinary use or lack of maintenance. 19
endorsement any written alteration or addition to the terms, conditions and exclusions of your insurance cover. excess the amount you must contribute towards any claim under this insurance cover. flood the inundation of normally dry land by water overflowing from the normal confines of any watercourse, lake or dam, reservoir, canal, street gutter, storm channel or storm drain (other than water from water tanks, pipes or sullage drains) and includes the unusual accumulation of surface waters. fusion the process of fusing or melting together of the windings of an electric motor following damage to their insulating material as a result of overheating caused by electric current. impact collision or striking. money cash, notes, coin, negotiable instruments, negotiable securities and/or stamps. PDS Product Disclosure Statement. period of Insurance - the duration of this Policy for the period specified in the Certificate of Insurance, or any subsequent renewal period for which the appropriate premiums are paid. site the site specified in the Certificate of Insurance at which the building or contents are located. storm surge an increase in the sea level associated with a tropical cyclone or other intense storm. supplementary PDS a document that updates or adds to the information in this PDS and Policy. valuable item(s) the item or items specially nominated by you and shown in the Certificate of Insurance for cover under Section 4 Valuable Items. we, us, our The Territory Insurance Office (TIO). you, your the person(s) named in the Certificate of Insurance as the insured. It also includes your spouse (legal or de facto) and any member of your immediate family who permanently resides with you at the site. 20
Section 1 Your Building A building used primarily as a place of residence, outbuildings, fixtures and structural improvements including but not limited to: What is your building, all at the site specified in your Certificate of Insurance services (whether above or below ground) which are either your property or for which you are liable to pay the cost of repair or replacement any water reticulation system, hose, pipes, sprinklers, fittings, valves and controllers whether above or below ground, but limited to $5000 in total retaining walls, fences and gates, paths, driveways, terraces, wells, bores and pergolas 7 What is not your building, unless specifically referred to in this Policy or your current Certificate of Insurance. unpaved paths or driveways constructed of earth, gravel or the like 21
What is your building, all at the site specified in your Certificate of Insurance permanently fixed spas, saunas, barbeques, clothes lines, exterior blinds and awnings, built-in furniture, room heaters, stoves, fans, light fittings, air-conditioners, hot water services, in ground swimming pools, water tanks and stands fixed wall, ceiling and floor coverings fixed satellite dishes, meter boxes, television and radio aerials, their masts and fittings 7 What is not your building, unless specifically referred to in this Policy or your current Certificate of Insurance. water that is normally in a container such as a spa, swimming pool or any fixed apparatus, tank or fixed pipe carpets, whether fixed or not except for when you are the landlord and your Certificate of Insurance shows you have cover for your building, we will cover your carpets (fixed or unfixed), curtains and drapes where you regularly lease out your building on an unfurnished basis any part of your building used for any business, trade or profession, other than where the use is an office or surgery 22
Amount we will Pay If your claim is for your building, the maximum amount we will pay is the sum insured specified in your Certificate of Insurance, except if your current Certificate of Insurance shows you have selected cover for Section 6 Disaster Cover. Please refer to page 43 of this policy for more information. 23
Section 2 Your Contents The items listed over the page which are owned by you or for which you are legally responsible, anywhere in Australia and elsewhere in the world. Cover outside Australia is limited to 60 days in any one period of insurance. What are your Contents household goods, furniture, furnishings, carpets (fixed or unfixed), floor rugs, curtains and internal blinds portable household electrical appliances clothing and personal effects unregistered mechanically propelled garden appliances, motorised golf buggies, ride-on lawn mowers and wheelchairs swimming pools, spas and saunas which are not permanently fixed motor cycles or mini bikes up to 125cc engine capacity that are not required to be registered by law refer to exclusion 1. c) page 41 watercraft less than 4 metres in length that is not powered by a motor, or is powered by a motor less than 10hp refer to exclusion 1. b) page 41 accessories or spare parts of motor cycles, motor vehicles, trailers, caravans, watercraft and aircraft cover is limited to $1000 in total for all these items money and negotiable instruments cover is limited to a face value of $1000 in total fishing gear and accessories cover is limited to $10,000 in total for all these items mobile phones, satellite phones, blackberries, personal digital assistants and other communication devices cover is limited to $1000 per item 24
7 What are not your contents, unless specifically referred to in this Policy or your Current Certificate of Insurance items which are permanently attached or fixed to your building registered mechanically propelled garden appliances, golf buggies, ride-on lawn mowers and wheelchairs water that is normally in a container such as a spa, swimming pool or any fixed apparatus, tank or fixed pipe registered motor cycles or mini bikes unregistered motor cycles or mini bikes over 125cc engine capacity motorised vehicles, trailers and caravans watercraft that are more than 4 metres in length watercraft that are less than 4 metres in length that are powered by a motor of more than 10hp watercraft propelled by a sail, or designed to be propelled by a sail Jet skis aircraft (other than model or toy aircraft), aerial devices and their equipment documents such as deeds, passports, licences, memberships, manuscripts and the like, bills of exchange, cheques or promissory notes, unless forming part of a collection fishing gear and accessories whilst being used mobile phones, satellite phones, blackberries, personal digital assistants used for your business, trade or profession 25