Car insurance terms and conditions

Car insurance terms and conditions We want our Car (MOD, or Motor Own Damage) Insurance to be of benefit to you and give you peace of mind in unexpected turn of events.

Table of Contents 1. Definitions...3 2. Entry into Force and Termination of Insurance Contract...5 3. Insurance Premium...7 4. Insured Item and its Value...8 5. Insured Risks and Exceptions...9 6. Insurance Bundles...12 7. Duties of the Policyholder and the Insured...15 8. Safety Requirements...19 9. Consequences of Incompliance with Duties and/or Safety Requirements...20 10. Rights and Duties of the Insurer...20 11. Excess...21 12. Estimation of Loss and Insurance Indemnity Payout...22 13. Exchange of Information between Parties; Procedure of Offering Services...26 14. Personal Data Processing...28 15. Amendment of Insurance Contract...29 16. Dispute Resolution Procedure...29

1. Definitions Policyholder means the person stated on the Insurance Policy. Insurer means Swedbank P&C Insurance AS, registered in the Commercial Register of the Republic of Estonia under registration No. 11269248 and having its registered office at Liivalaia 12, Tallinn, 15039, Estonia, which is represented in the Republic of Latvia by Swedbank P&C Insurance AS Latvian branch registered in the Commercial Register of the Republic of Latvia under unified registration No. 40103212048. Insured means the person stated on the Insurance Policy who has the covered interest not to suffer loss and who will be paid Indemnity upon occurrence of Insured Event. Insurance Contract means the contract between the Policyholder and the Insurer, whereby the Insurer undertakes to pay out Insurance Indemnity upon occurrence of Insured Event, while the Policyholder undertakes to pay the Insurance Premium. The Insurance Contract consists of Insurance Policy, Insurance Terms and Conditions, insurance application, and other annexes or amendments, if any, to the Insurance Contract. Insurance Policy means the document issued by the Insurer as proof of entry into the Insurance Contract. Insurance Terms and Conditions means the Car Insurance Terms and Conditions No. AUTO 0913 (alternatively, may be referred to as MOD Insurance Terms and Conditions No. AUTO 0913 ), which form an integral part of the Insurance Contract. Period of Insurance Contract means the period of time stated on the Insurance Policy, during which the Insurer becomes liable to pay out the Insurance Indemnity under the Insurance Contract upon occurrence of an Insured Event. Insurance Premium means the payment for insurance as stated in the Insurance Contract. Insured Event means an event that stands beyond control of the Insured and is an unexpected, sudden and unforeseen event, which directly impacts the Insured Item, or any parts thereof, and results in the Insured Item, or any parts thereof, being damaged, damaged beyond repair, stolen or otherwise removed without consent, and for which the Insurer pays Insurance Indemnity according to the procedure laid down in the Insurance Contract. 3

Sum Insured means the amount of money that equals the value of the Insured Item and up to which the Insurance Indemnity will be paid. The Sum Insured will not decrease if an Insurance Indemnity is paid out during the Period of Insurance Contract, except in case of Complete Destruction or loss of the Insured Item. Insurance Indemnity means a sum of money, which the Insurer pays out to the Insured, or the services, which the Insurer provides the Insured with in case of Insured Event. Interior Windows means, for the purposes of these Insurance Terms and Conditions, the front windscreen, side windows, and rear windows of the vehicle. Authorized user of the Insured Item means the person using the Insured Item with the Policyholder s and/or Insured s permission on the basis of a contract or other legal arrangement. Insurance Territory means the geographic area specified on the Insurance Policy in which the Insurance Contract is valid: European countries means, for the purposes of these Insurance Terms and Conditions, Latvia, Lithuania, Estonia, Albania, Austria, Andorra, Belgium, Bosnia and Herzegovina, Bulgaria, Czech Republic, Denmark, France, Greece, Georgia, Croatia, Italy, Ireland, Iceland, the United Kingdom of Great Britain and Northern Ireland, Liechtenstein, Luxembourg, Macedonia, Malta, Montenegro, Monaco, the Netherlands, Norway, Poland, Portugal, Romania, Spain, Finland, Slovakia, Slovenia, Serbia, San Marino, Switzerland, Hungary, Germany, Vatican, Sweden. CIS countries means, for the purposes of these Insurance Terms and Conditions, the European part of Russia, Belarus, Moldova, Ukraine. Remote Banking Services means a credit institution s services like Internet Banking, Telephone Banking and Mobile Banking through which the Insurer ensures the delivery of notifications and other Insurance Contract related information to the Policyholder, through which the Insurer can make it possible to amend or terminate the Insurance Contract and where the Policyholder can view, print out or save on other data media the information prepared by the Insurer, using the relevant means of identification (username, password, code, etc.); in order to use the Remote Banking Services, the Policyholder must enter into an agreement with the credit institution for use of such services. Internet Banking is a Remote Banking Service. Telephone Banking is a Remote Banking Service. 4

Mobile Banking is a Remote Banking Service. Purpose means the intended use of the Insured Item as specified in the Insurance Policy. A vehicle is considered as being in normal use if it is not used as a taxi or a public transport vehicle, a short-term rental vehicle (the term of the rental agreement is less than 6 (six) months), an emergency vehicle, a vehicle for driving practice, a courier vehicle or an emergency vehicle of a security company. Excess means the part of loss, expressed as a percentage or a sum of money, which will not be reimbursed for by the Insurer upon occurrence of Insured Event. If expressed as a percentage, the Excess is calculated from the amount of loss. Complete Destruction means condition of the Insured Item after an Insured Event when the Insurer, or experts engaged by the Insurer, have recognized that renovating the Insured Item is technically impossible or economically unsound i.e. in cases when the expected cost of renovating the Insured Item exceeds 70% of the value of the Insured Item at the time of occurrence of the Insured Event. Agreed Statement of Facts of Motor Vehicle Accident means approved standard form completed by drivers of vehicles involved in a road traffic accident at the location of accident thus certifying, by their signatures, the circumstances, facts and sketch of the accident. Unlawful Act by Third Party means an act which is committed by an individual who is not the owner or authorized user of the Insured Item and is aimed at deliberate damaging and/or destruction of the Insured Item or any part thereof. Theft means unlawful driving off with the Insured Item or unlawful removal of any parts thereof. Defrauding, misappropriation and blackmailing do not constitute Theft. Robbery means unlawful driving off with the Insured Item or unlawful removal of any parts thereof if it involves violence or threat to use violence. 2. Entry into Force and Termination of Insurance Contract 2.1. The Insurance Contract comes into force on the first day of the Insurance Contract Validity Period specified in the Insurance Policy, but in any event not earlier than the Insurance Contract is entered into. 5

The Insurance Contract continues in force until 23:59 on the end date of the Insurance Contract Validity Period specified in the Insurance Policy. 2.2. The Insurance Contract will be considered as null and void before the Insurance Contract Validity Period end date without any express notice by the Insurer to the Policyholder in the following events: 2.2.1. in case of change in owner or authorized user of the Insured Item and unless agreed otherwise with the Insurer, the Insurance Contract becomes null and void when change in ownership of the Insured Item is duly registered with the Road Traffic Safety Directorate or with the State Technical Supervision Inspectorate; 2.2.2. in case of complete performance of the Insurer s obligations under the Insurance Contract; 2.2.3. in other cases provided for in the Law on Insurance Contracts. 2.3. The Insurer has the right to terminate the Insurance Contract before its expiration in cases and subject to the procedure stipulated in the Law on Insurance Contract, including: 2.3.1. when the Policyholder has failed to pay the Insurance Premium, in whole or in part, in compliance with the terms of the Insurance Contract; 2.3.2. if the insured risk occurs through bad faith on the part of the Insured or the Policyholder; in such an event the Insurance Contract will be considered to be null and void as from the moment of said facts being established and the Insurance Premium will be not be refunded by the Insurer; 2.3.3. if the Insurer establishes that untruthful information has been supplied, in bad faith or through gross negligence, about an Insured Event and about the circumstances which lead to the Insured Event; 2.3.4. if Insurance Indemnity is paid out. 2.4. The Policyholder is entitled to terminate the Insurance Contract before the expiration date at any time by giving a written application for such early termination of the Insurance Contract to the Insurer. In case of early termination of the Insurance Contract, the Insurer will refund the Policyholder the portion of Insurance Premium paid but not utilized, if any, on a pro rata basis to the number of days remaining in the Insurance Contract Validity Period. 6

2.5. In case of Complete Destruction or Theft/Robbery of the Insured Item, the Insurer is entitled to deduct from the Insurance Indemnity any outstanding Insurance Premium payments for the entire Insurance Contract Validity Period specified in the Insurance Policy. 2.6. Where the Insurance Contract is entered into via means of distance communication, the Policyholder is entitled to unilaterally withdraw from (rescind) the Insurance Contract within 14 (fourteen) days of entry into force of the Insurance Contract. The Policyholder expresses their consent to the formation of the Insurance Contract by paying the Insurance Premium in the form, within the time period and to the amount stated in the Insurance Policy. Following payment of the Insurance Premium, or the first part thereof, within the time period required in the Insurance Policy, the Insurance Contract will come into force as from the date stated on the Insurance Policy. In order to exercise their right of refusal, the Policyholder must notify the Insurer about exercising the right of refusal in writing by delivering an application to the Insurer to a branch office or by using the Internet Banking service. The 14-day time-limit for exercising the right of refusal will be considered as having been complied with if the notice of refusal has been sent to the Insurer before expiration of that period. The Insurance Contract will be considered terminated as from the date of receiving the notice of exercising the right of refusal. If the right of refusal is exercised by the Policyholder, the Insurer will be under an obligation to refund the paid Insurance Premium to the Policyholder within a maximum of 30 (thirty) days after the day of receiving the Policyholder s notice of exercising the right of refusal. 3. Insurance Premium 3.1. The Policyholder has a duty to pay the Insurance Premium, or a part thereof, in compliance with the procedure, within the time period and to the amount stipulated in the Insurance Policy. 3.2. The current Insurance Premium payments specified in the Insurance Policy are payable by the Policyholder on a regular basis and in compliance with the time limits specified in the Insurance Policy, irrespective of whether or not the Insurer has sent the Policyholder a relevant written reminder or notification or invoice. Insurer s invoices are issued in electronic form and are valid without signature or stamp. 7

Invoices may be sent to the Policyholder by post, by e-mail, or, if the Insurer has provided such an option, the invoices may be made available in electronic form on the Internet Banking site. 3.3. Where Insurance Premium is paid by bank transfer, it will be considered paid on the date when the money enters the current account of the Insurer or of an insurance agent authorized to collect Insurance Premiums on behalf of the Insurer and through whom the respective Insurance Contract is entered into. 4. Insured Item and its Value 4.1. The following constitutes an Insured Item: 4.1.1. any mechanical land (except railway) vehicle which participates, or is capable of participating, in road traffic and is registered, or is subject to registration, with the Road Traffic Safety Directorate or State Technical Supervision Inspectorate, which is stated on the Insurance Policy, as well as items (audio equipment, wheel rims, additional lights) permanently installed, attached to or build into the interior or exterior of the vehicle, and; 4.1.2. accessories which, for the purposes of these Insurance Terms and Conditions, mean a light trailer (maximum authorized mass of up to 750 kg) when hitched to the Insured Item (passenger car), bicycle rack, roof rack, roof box (for skis, surfboard etc), child s seat (cradle, chair), portable navigation devices fastened or connected to the Insured Item with security devices at the time of Insured Event, and a set of additional tyres of the Insured Item (passenger car), and; 4.1.3. personal belongings which, for the purposes of these Insurance Terms and Conditions, mean the personal belongings of the Policyholder, the Insured or the authorized user of the Insured Item which at the time of the Insured Event were inside the Insured Item but are not regarded as accessories for the purposes of these Insurance Terms and Conditions, as well as a bicycle and skis which, at the time of the Insured Event, were on or next to the Insured Item and were fastened with security devices. Personal belongings are covered only if the Policyholder has selected the Extra Car Insurance bundle as specified in the Insurance Policy. 4.2. The value of Insured Item in case of Complete Destruction or Theft/Robbery of the Insured Item equals the highest of the following values: 8

4.2.1. the sum of money at which the Insured Item is insured as specified in the Insurance Policy which decreases by 1% each month starting with the first day in the Insurance Contract Validity Period. If the Insured Item has the new-car cover according to paragraph 6.1.1.3 of the Insurance Terms and Conditions, then the value of the Insured Item will not decrease during the new-car cover service; or 4.2.2. the market value of the Insured Item which is the amount of money necessary for acquiring an equivalent vehicle as a replacement of the Insured Item that, in terms of its functionality and uses, would be as similar as possible to the lost Insured Item and would belong to the same price category. The value of accessories lost in the Insured Event (but not that of the personal belongings) will be taken into account in determining the market value of the Insured Item. 4.3. Over-insurance means a situation when the Sum Insured of the Insured Item exceeds the value of the Insured Item under one or several valid Insurance Contracts. In case of over-insurance, upon occurrence of an Insured Event, the Insurance Indemnity payable may not exceed the value of the Insured Item. 4.4. Under-insurance means a situation when the Sum Insured is lower than the value of the Insured Item. In case of under-insurance, the Insurer will reimburse for loss in proportion to the relation of the Sum Insured to the value of Insured Item, less the Excess. 5. Insured Risks and Exceptions 5.1. The Insurance Contract covers all risks, i.e. all possible unexpected, sudden and unforeseen events which stand beyond the control of the Insured, may directly affect the Insured Item, or any parts thereof, and have resulted in loss to the Insured, subject to the exceptions and limitations outlined below. 5.2. It does not constitute an Insured Event and no Insurance Indemnity will be paid out if the loss originated due to the following events, circumstances or acts: 5.2.1. the speed limit was significantly exceeded by the driver of the Insured Item and this is in cause-and-effect relationship with the occurrence of loss; 5.2.2. summer tyres were used on the Insured Item in road traffic at the time when use of winter tyres is mandatory pursuant to laws and regulations; 9

5.2.3. the Insured Item was driven in road traffic by a person without a relevant driver s licence; 5.2.4. the Insured Item was used in road traffic in violation of traffic rules and other legislation prohibiting use of the Insured Item; 5.2.5. the Insured Item was driven by a person under the influence of narcotic drugs or alcohol. Additionally, the driver of the Insured Item will be presumed to have been the influence of narcotic drugs or alcohol if they: 5.2.5.1. refused to take the test for checking the presence of alcohol or narcotic drugs in the blood of the driver of the Insured Item; 5.2.5.2. consumed alcohol or narcotic drugs at the scene of the Insured Event before the circumstances of the traffic accident were clarified; 5.2.6. police was not notified in case of Theft or Robbery of the Insured Item, or any parts thereof, or in cases when it was necessary to call the police or the rescue service according to laws or regulations in force in the Republic of Latvia; 5.2.7. the Insured Item was restored without the consent of the Insurer; 5.2.8. the Insured Item was driven in a location unsuitable for traffic (e.g. forest, a boggy area, coastal waters, water body, etc.) or on a flooded road, area, frozen body of water or in an area or on a part of road prohibited for traffic under traffic rules (e.g. airport, quarry, mine) and such prohibition applies to the Insured Item; However: The Insurer will reimburse for loss if the Insured Item was driven on a flooded road on which traffic is allowed and, as a result, water has entered the Insured Item s electrical, electronic and/or mechanical equipment, units and/or components. 5.2.9. the Insured Item was used for motor sports (incl. amateur sports or unofficial race), in competitions, practice or testing of the Insured Item, and unofficial speed racing; 5.2.10. wear and tear and/or corrosion of the Insured Item or any of its parts and/ or faults or malfunctioning in the electrical, electronic devices and/or mechanisms, parts, coating or equipment of the Insured Item, or insufficient quantity or insufficient circulation of oil, cooling liquid or other liquids in the equipment of the Insured Item unless such faults are caused by external events or are related, through cause and effect, to the cause of the external event; However: The Insurer will indemnify for loss due to damage to other parts of the Insured Item if incurred as a result of collision in road traffic accident caused by any of the faults 10

or damages referred to in paragraph 5.2.10 of the Insurance Terms and Conditions. 5.2.11. regular maintenance, repairing and/or cleaning of the Insured Item or any of its devices or parts, including recurrent or extraordinary technical maintenance, and replacement or renovation of worn-out parts or auxiliary devices (cables, valves, fuses, gaskets) or coating materials; 5.2.12. any act or omission by the manufacturer or supplier of the Insured Item or by the Insured Item renovation service provider resulting in loss for which the manufacturer or the supplier or the service provider is liable under law or contract (for instance, a warranty); However: The Insurance will indemnify loss caused by an act or omission by the Insured Item renovation service provider if the renovation service provider has a contract with the Insurer on renovation of vehicles. 5.2.13. insufficient looking after the key(s) and/or alarm remote control(s) of the Insured Item as a result of which the Insured Item was stolen. Such cases include instances when the key(s) and/or alarm remote control(s) of the Insured Item were left unattended at a public venue or during a public event; 5.2.14. deliberate handing over of the Insured Item, its key(s) and/or alarm remote control(s) to a third party (including in case of renting of the Insured Item) as a result of which the Insured Item, or any parts thereof, was misappropriated; 5.2.15. the Insured Item, or any parts thereof, was stolen as a result of the doors, windows, roof hatch or other openings of the Insured Item not having been closed and/or locked and/or being damaged; 5.2.16. Theft of audio equipment in the Insured Item together with the removable front panel and/or code card or Theft of the front panel (if any); However: The Insurer will indemnify for loss due to damage to the Insured Item or any of its parts incurred as a result of Theft of the audio equipment or loss due to Theft of the Insured Item. 5.2.17. a truck s trailer was not connected to the truck or was not in a guarded territory with a perimeter fence, as a result of which the trailer was stolen; 5.2.18. Theft or loss of a custom-made state registration plate of the Insured Item; However: The Insurer will indemnify for loss due to renewing of standard state registration plate of the Insured Item or due to damage resulting from Theft of the state 11

registration plate of the Insured Item. 5.2.19. war or political armed conflict, insurrection, mass riots, strikes, interruption of work, act of terrorism, imposition of international sanctions, expropriation of the Insured Item for public needs, confiscation, and destruction of the Insured Item if authorized by state authorities; 5.2.20. nuclear weapons, nuclear fuel, nuclear energy or radioactive substance or other source of radiation, explosion of nuclear or radioactive substances. 6. Insurance Bundles 6.1. When entering into Insurance Contract, we offer a choice of two insurance bundles: The insurance bundle selected by the Policyholder is shown on the Insurance Policy. 6.1.1. Standard Car Insurance when an Insured Event occurs, the Insurer will indemnify for loss which arises in the Insurance Territory specified in the Insurance Policy during the Insurance Contract Validity Period as a result of the events set forth in paragraph 5.1 of the Insurance Terms and Conditions (such as road traffic accident, natural calamity, havoc, fire, Theft, Robbery, impact of falling items, Unlawful Act by Third Party). Additionally, the following services are provided: 24-Hour Technical Assistance, Vehicle Renting (if stated so on the Insurance Policy) and Car-Car Cover (if stated so on the Insurance Policy). 6.1.1.1. 24-hour Technical Assistance Additionally, the 24-Hour Technical Assistance service is provided for the Insured Item: For vehicles with maximum authorized mass of up to 3.5 t: For passenger cars, vans or trucks in case the Insured Item can no longer move, the 24-Hour Technical Assistance will be provided by the service provider on site, however if assistance cannot be provided on site, then the Insured Item will be transported to the nearest or Insurer-designated repair shop or guarded car park. 24-Hour Technical Assistance which can be provided on site is, for example, starting up the Insured Item in case of depletion of the battery of Insured Item; delivery of fuel in order for the Insured Item to be able to get to the nearest filling station; restoring pressure in tyres in case of no or insufficient pressure, or with fitting of a new tyre on the Insured Item if the Insured Item s tyre is damaged and assistance is necessary to 12

replace it or if there is no spare wheel, etc. For vehicles with maximum authorized mass above 3.5 t: For trucks, cargo haulers, buses or their trailers in case of an Insured Event, the 24-Hour Technical Assistance provider will provide 24-Hour Technical Assistance service which entails transporting the Insured Item to the nearest or Insurer-designated repair shop or guarded car park. If you require the 24-Hour Technical Assistance, call 67 444 449 Where the Insurer is unable to provide the 24-Hour Technical Assistance (for instance, the Insured Event occurs in a CIS country) or if the driver of the Insured Item has used other service provider s service which is essentially equivalent to the 24-Hour Technical Assistance service according to the Insurance Terms and Conditions, then reasonable expenses of that service will be reimbursed on the basis of proof of such expenses. 6.1.1.2. Vehicle Renting Indemnity will be paid to reimburse for reasonable expenses of renting a vehicle to replace the Insured Item during the period of time when the Insured Item cannot be used due to occurrence of the Insured Event. The Vehicle Renting expenses will be indemnified for the period of time from leaving the Insured Item at the repair shop to its restoration, however for a maximum of 30 (thirty) days per one Insured Event. In case of Theft, Robbery or Complete Destruction, the Vehicle Renting expenses will be indemnified for a period of up to 14 (fourteen) days as from the moment of occurrence of Insured Event. The maximum amount indemnified per one day is stated on the Insurance Policy. The Vehicle Renting expenses will be reimbursed if stated so on the Insurance Policy. In case of the Insurer s decision to deny Insurance Indemnity, these expenses will also not be reimbursed. The following expenses will not be reimbursed for in using the Vehicle Renting service: expenses of fuel and other running costs of the replacement vehicle (parking, windshield washer fluid, etc.); expenses caused by and/or to the replacement vehicle; expenses incurred during the period of time when renovating the Insured Item was not possible through the fault of the Policyholder, the Insured or the authorized user of the Insured Item. 6.1.1.3. New Car Cover The Insured Item will have the New Car Cover and the Sum Insured will not decrease 13

during the Insurance Contract Validity Period if less than a year has passed since first registration of the Insured Item. The New Car Cover will be discontinued as from when the Insured Item no longer satisfies the aforesaid condition. The New Car Cover will be in force if stated so on the Insurance Policy. 6.1.2. Extra Car Insurance includes the Standard Car Insurance bundle and additional services: Trip Interruption, Loss of Keys, Damage to Personal Belongings, Transporting the Vehicle to Repair Shop. The Insured Item is covered by Extra Car Insurance only if stated so on the Insurance Policy. 6.1.2.1. Trip Interruption If continued participation in road traffic is not possible due to technical damage to the Insured Item, loss or theft/robbery of keys, then the driver and passengers of the Insured Item will be reimbursed for the following expenses: documented, reasonable expenses of accommodation and catering if returning the place of residence is not possible during the same day; documented, reasonable expenses of returning to place of residence using other vehicle. The maximum amount reimbursed for one event of Trip Interruption is stated on the Insurance Policy. 6.1.2.2. Loss of Keys In cases of loss or theft or other unlawful removal of keys to or alarm remote control(s), if any, of the Insured Item, compensation will be paid to reimburse expenses of keys and alarm remote control recoding or, if that is impossible, for replacing locks of the Insured Item. The Excess payable in case of loss of keys is specified in the Insurance Policy. 6.1.2.3. Damage to Personal Belongings Indemnity will be paid to reimburse for expenses of replacement with a brand new unused item, which, in terms of its functionality and application, is as similar as possible to the lost item of personal belongings and be in the same price range or for expenses of renovating the damaged item of personal belongings if: it was located in the passenger area or the luggage compartment of the Insured Item and was damaged as a result of the Insured Event; the Insured Item was left unattended and personal belongings were, at that time, inside the Insured Item out of the sight of unauthorized persons in the passenger area 14

or the luggage compartment of the Insured Item, or bicycle and skis were on or next to the Insured Item and were locked up to it using security devices. Theft of personal belongings must be reported to the police. The maximum amount to be reimbursed per one event of damage to Personal Belongings and the applicable excess are stated on the Insurance Policy. 6.1.2.4. Vehicle Transportation to Repair Shop The service entails transporting the Insured Item, at a time specified by the Insured or the authorized user of the Insured Item, to a renovation workshop for evaluation of the consequences of the Insured Event and for renovation of the Insured Item and returning it to the Insured or to authorized user of the Insured Item, as well as reimbursement for the Insured s expenses of travelling to and back from the renovation workshop. The service is provided only in the largest cities of Latvia (Riga, Daugavpils, Jelgava, Liepaja, Ventspils, Valmiera) and within 20-km radius of the said cities; the service is not available in the rest of the territory of Latvia. The service entails transportation of the Insured Item to a renovation workshop in the same city where the Insured Item is located. In order to use this service, the Insured or the authorized user of the Insured Item must issue an authorization to the Insurer s representative to use the Insured Item. Where the Insurer is unable to provide, or the Insured does not wish the Insurer to provide, this service, then the Insurer will reimburse for reasonable expenses of up to EUR 40, which is equivalent to LVL 28.11, for the used service on the basis of proof of such expenses. 7. Duties of the Policyholder and the Insured 7.1. The duties and liability set forth in the Insurance Contract apply equally to the Policyholder, the Insured, and the authorized user of the Insured Item. 7.2. Policyholder s duties upon entering into the Insurance Contract are: 7.2.1. to supply truthful and accurate information to the Insurer. If bad faith or gross negligence on the part of the Policyholder or the Insured has resulted in misleading the Insurer about the conditions it must know in order to evaluate the possibility of occurrence of the Insured Risk, the Insurance Contract will be treated as invalid as from the time of entry into thereof. The Insurance Premium will not be refunded by the Insurer neither in whole, nor in part; 15

7.2.2. to notify the Insurer if the Insured Item is also insured with other insurance company; 7.2.3. upon the Insurer s request, to provide the Insurer with a possibility to inspect the Insured Item or to deliver photos of the Insured Item to the Insurer; 7.2.4. to disclose any encumbrances existing on the Insured Item; 7.2.5. to notify of circumstances which are material in the Insurer s assessment of probability of occurrence of the Insured Risk. If the Policyholder is in doubt as to the materiality of the effect of a circumstance on Insured Risk, the Policyholder must consult the Insurer; 7.2.6. to inform the Insured and the authorized user of the Insured Item about the terms of Insurance Contract and to explain their rights and obligations under the Insurance Contract. 7.3. Duties of the Policyholder, the Insured and authorized user of the Insured Item during the Insurance Contract Validity Period are: 7.3.1. to comply with all laws and regulations in force in the Republic of Latvia, including any statutory fire safety rules, road traffic rules and technical maintenance rules of the Insured Item, as well as the terms and conditions of the Insurance Contract, including safety requirements; 7.3.2. to notify the Insurer of any changes in the contract details of the Policyholder and the Insured; 7.3.3. to notify of any change in the owner or authorized user of the Insured Item; 7.3.4. without delay and as soon as possible, to notify the Insurer of loss or Theft / Robbery of keys to or alarm remote control(s), if any, of the Insured Item and to comply with the safety requirements laid down in these Terms and Conditions; 7.3.5. to use the Insured Item for its intended purpose, with due care, without causing loss or danger to other persons, as well as not to increase the probability of occurrence of the insured risks through any act or failure to act; 7.4. Duties of the Insured and authorized user of the Insured Item in case of a potential Insured Event are: 7.4.1. to immediately take the following steps and measures: 7.4.1.1. call the police: 16

if, in the traffic accident, people have been injured, third-party property has been damaged, or any vehicle has suffered damage due to which driving the vehicle is prohibited by traffic laws; if more than two vehicles are involved in the road traffic accident or the drivers are unable to agree on all the material circumstances of the accident in the Agreed Statement of Facts of Motor Vehicle Accident; in case of Theft or Robbery of the Insured Item or any part thereof. 7.4.1.2. or fill out the Agreed Statement of Facts of Motor Vehicle Accident: if, in the traffic accident, two vehicles are involved, no people have been injured, no third-party property has been damaged, and no vehicle has suffered any damage due to which driving the vehicle is prohibited by traffic laws. 7.4.1.3. call the rescue service: in case of fire, explosion or possible pollution of the environment. 7.4.2. to notify the Insurer of occurrence of occurrence of an Insured Event without delay and as soon as possible by phone on 67 444 449; 7.4.3. to deliver the claim application in the required form to the Insurer without delay and as soon as possible; The claim application may be delivered to the Insurer in writing in person, by mail or electronically on the Internet Banking site using the provided claim application form (if such online form is provided by the Insurer); 7.4.4. to provide the Insurer with documents requested by the Insurer about occurrence of a potential Insured Event and losses thereby caused, including documents containing sensitive personal data and/or commercial secret, as well as information related to the potential Insured Event about civil, administrative and criminal proceedings in the case; 7.4.5. to provide the Insurer with complete and truthful information about the circumstances of occurrence of the potential Insured Event, the amount of loss, the person responsible for causing damage and witnesses, as well as with other proof of entitlement to Insurance Indemnity; 7.4.6. to preserve the damaged Insured Item in the condition in which it was immediately after occurrence of the potential Insured Event until a person designated by the Insurer has inspected it. An exception to this is carrying out the actions set forth in paragraph 7.4.8 of the Insurance Terms and Conditions. 17

7.4.7. to give the Insurer the opportunity to examine the Insured Item and carry out inspections for establishing and assessing loss; 7.4.8. to take steps and actions necessary for preventing imminent loss and/or further loss, avoiding an increase in the amount of loss already sustained and/or where necessary in the interest of society; 7.4.9. to preserve the damaged Insured Item, or any parts thereof, and, where requested so by the Insurer, to transfer it into the Insurer s possession for the time of expert evaluation; 7.4.10. not to commence the restoration of the Insured Item or the writing-off or deregistration of the Insured Item in the vehicle registry maintained by the State Traffic Safety Directorate (VAS Ceļu Satiksmes Drošības Direkcija) or the State Technical Supervision Inspectorate (Valsts Tehniskās Uzraudzības Inspekcija) without the Insurer s consent; 7.4.11. to promptly notify the Insurer of recovery of lost Insured Item, or any part or remains thereof, or notify to the Insurer the location of Insured Item, or any part or remains thereof; 7.4.12. in the event of Theft or Robbery of the Insured Item, to hand over to the Insurer the registration documents of the Insured Item, all keys and alarm remote controls of the Insured Item as specified by the manufacturer or the installer, if any such alarms or antitheft devices have been installed, including any duplicates thereof. An acceptance and transfer certificate will be executed for such handing over; 7.4.13. in the event of Theft of audio equipment from the Insured Item, to hand over the removable front panel and/or code card to the Insurer; 7.4.14. prior to receiving the Insurance Indemnity and if so requested, to transfer to the Insurer the ownership of any parts of the Insured Item damaged in the Insured Event and replaced during renovation; 7.4.15. if the traffic accident happened in a country which is a member of the Green Card system and a third party is at fault in the traffic accident, to report the accident to the insurance company which insured the third-party liability of the owner of the vehicle at fault in the accident or to the Green Card office. 18

8. Safety Requirements 8.1. The Policyholder, the Insured and the authorized user of Insured Item must comply with the following safety requirements: 8.1.1. the Insured Item must pass the roadworthiness tests as and when required under applicable laws and regulations; 8.1.2. in cases when the Insured Item is left unattended, its doors, windows, roof hatches and other openings must be locked or closed and may not be damaged; anti-theft devices (alarm, immobilizer, etc), if any, must be switched on; 8.1.3. in cases of loss or theft or other unlawful removal of keys to or alarm remote control(s), if any, of the Insured Item, to promptly replace the locks or recode the antitheft devices or, if that is not possible, to keep the Insured Item in a guarded parking lot or locked garage until the locks are replaced or anti-theft devices are recoded; 8.1.4. in cases when the Insured Item is left unattended, the audio equipment s removable front panel and/or code card, if any, must be removed from the audio equipment and may not be left inside the Insured Item; 8.1.5. in cases when the Insured Item is left unattended, all personal belongings must be kept out of the sight of unauthorized persons in the passenger area or in the luggage compartment of the Insured Item; 8.1.6. in cases when the Insured Item is left unattended, personal belongings (skis or bicycle) fastened to or on the Insured Item must be locked to the Insured Item using security devices; 8.1.7. additional tyre set of the Insured Item (passenger car) must be kept in a locked storage room which third parties cannot enter without damaging the door or lock(s); 8.1.8. in transporting cargo or certain other items, they must be properly fastened and the weight of the cargo or items must be considered so as to avoid the Insured Item being overloaded as defined in road traffic rules and other applicable laws or regulations. 19

9. Consequences of Incompliance with Duties and/or Safety Requirements 9.1. The Insurer has the right to reduce or deny Insurance Indemnity if the Policyholder or the Insured or authorized user of the Insured Item performs any of the following acts: 9.1.1. deliberate supplying, upon entry into or during validity period of the Insurance Contract, of untruthful information or withholding of any material facts that could have affected the origination or the extent of loss or the conditions of Insurance Contract, including the assessment of probability of insured risk; 9.1.2. upon filing the claim application or upon notifying about loss, furnishing of untruthful information about the potential Insured Event, about the circumstances of the origination or about the extent of loss, or withholds material information about the potential Insured Event, about the circumstances of the origination or about the extent of loss; 9.1.3. violation or incompliance with duty(-ies) or safety requirement(s) laid down in the Insurance Contract if such violation or incompliance has affected the origination or the extent of loss. In such an event, the Insurer has the right: to reduce the Insurance Indemnity by up to 20% (twenty per cent) in case of minor negligence; to reduce or refuse the Insurance Indemnity in case of violation or incompliance through bad faith or gross negligence. 10. Rights and Duties of the Insurer 10.1. The Insurer, upon entry into Insurance Contract, will introduce the Policyholder to the terms of the Insurance Contract, and the rights and obligations of the Policyholder, the Insured and the authorized user of the Insured Item. 10.2. If the Insurer changes its name or registered office during the Insurance Contract Validity Period, the Insurer will notify the Policyholder thereof by publishing a relevant notice. 10.3. The Insurer reserves the right, during the Period of Insurance Contract, to inspect the Insured Item and, where necessary, to set additional security requirements for reduction of potential risks, which will be binding on the Policyholder, the Insurer and all 20

authorized users of the Insured Item. 10.4. Upon receipt of claim application, the Insurer or its authorized representative may carry out expert assessment of the Insured Item in order to establish and assess the reasons and scope of damage. 10.5. Upon receipt of claim application and all necessary documents relating to occurrence of the potential Insured Event, the Insurer will, according to the procedure laid down in the Insurance Contract, decide on approval, reduction or denial of Insurance Indemnity and notify the Insured thereof, specifying the reasons and basis for reduction or denial of Insurance Indemnity. 11. Excess 11.1. In calculation of Insurance Indemnity for each Insured Event, the Excess is always deducted from the amount of loss that is subject to reimbursement by the Insurer under the terms of Insurance Contract, and any loss below the Excess will not be reimbursed by the Insurer. 11.2. No Excess will be payable if the Insured Event (traffic accident) is caused by a third party and that person s liability for the damage to the Insured Item has been proved according to the decisions of the Insurer or law enforcement institutions. 11.3. One largest Excess stipulated in the Insurance Contract will be applicable to Insured Event irrespective of the number of risks having occurred in the Insured Event. 11.4. If the Insured Item is used as a taxi, as a short-term rental vehicle (the term of the rental agreement is less than 6 (six) months), as a public transport vehicle, as an emergency vehicle, as vehicle of a security company, or as a vehicle for driving practice, and this is not stated on the Insurance Policy, then in the event of damage the Excess specified in the Insurance Policy will be applicable at triple rate. 11.5. If loss to a convertible is due to damage to its soft roof, the Excess will be EUR 420, which is equivalent to LVL 295.18, but in any event not less than the Excess applicable to damages. 11.6. If the Insured Event occurs in a CIS country, the Excess for Theft and/or Robbery stated in Insurance Policy will be applicable at double rate. 21

12. Estimation of Loss and Insurance Indemnity Payout 12.1. Loss is calculated according to the compensation principle, i.e. the Insurance Indemnity payout may not exceed the loss suffered by the Insured in the Insured Event. 12.2. The Insurer will decide to pay out or deny the Insurance Indemnity within 5 (five) days of receiving all the necessary documents. In case of Theft or Robbery of the Insured Item, the Insurer will decide to pay out or deny the Insurance Indemnity within 30 (thirty) days of receiving all the necessary documents and material evidence. The Insurer may, for valid reasons, extend this period by a maximum of 6 (six) months of the day of receipt of application for payout of Insurance Indemnity. 12.3. Where performance of the Insurer s obligations, or scope of performance thereof, depends on circumstances, which are ascertained in legal proceedings of criminal or administrative case or administrative rights offence case, the Insurer is entitled to decide on payout or denial of Insurance Indemnity after suspension or termination of legal proceedings, or coming into force of court s or relevant official s decision. 12.4. Where a dispute arises between the Insured and the Insurer regarding the size of Insurance Indemnity, the Insurer may, prior to final calculation of damages, pay out the Insurance Indemnity in the amount not contested by neither the Insurer, nor the Insured. 12.5. The decision to pay out or deny Insurance Indemnity will be notified by the Insurer to the Insured within 10 (ten) days of the date of decision. 12.6. The Insurer will pay out Insurance Indemnity within 15 (fifteen) days of the date of the decision to pay out the Insurance Indemnity unless the Insurance Indemnity payout is planned in the form of periodic payments or provision of services or the Insurer and the recipient of Insurance Indemnity have, after the decision to pay out Insurance Indemnity, agreed on other procedure of payout of the Insurance Indemnity. 12.7. If payout of the Insurance Indemnity is not made within the period of time stated in paragraph 12.6 of the Insurance Terms and Conditions, then the Insurer will pay a penalty at the rate of 0,1% of the payable Insurance Indemnity for each day of delay, however not more than 10% of the Insurance Indemnity payable. No penalty will be payable if: 12.7.1. the Insurance Indemnity payout is planned in the form of periodic payments or provision of services; 12.7.2. the Insurer and the recipient of Insurance Indemnity have, after the decision 22

to pay out Insurance Indemnity, agreed on other procedure of payout of Insurance Indemnity; 12.7.3. the Insurer has suspended payout of Insurance Indemnity as set forth in paragraph 12.8 of the Insurance Terms and Conditions; 12.7.4. after the decision to pay out Insurance Indemnity, the Insurer has obtained new evidence due to which the existing decision need to be altered or a new decision needs to be made. 12.8. The Insurer may suspend payout of Insurance Indemnity until and unless the remains of the Insured Item, separate parts thereof, or ownership of the Insured Item are transferred to the Insurer. If the Insured or the authorized user of Insured Item fails to comply with the said requirement within 30 (thirty) days of receipt of a respective notice from the Insurer, the Insurer is entitled to reduce the payable Insurance Indemnity by the value of the remains of the respective Insured Item. 12.9. If the Insured Item has been lost as a result of Theft or Robbery and, following payout of Insurance Indemnity, the Insured Item has been found or the Insured or the authorized user of the Insured Item has become aware of its location, the Insured or the authorized user of the Insured Item has a duty to promptly notify the Insurer thereof. If the Insured wishes to keep the recovered Insured Item or any part thereof, the Insured has a duty to return the Insurance Indemnity received for loss of the Insured Item or any parts thereof to the Insurer without undue delay. 12.10. If following Theft or Robbery, the Insured Item is found and the Insurer has not yet decided on the Insurance Indemnity, then reimbursement will be made for the loss on account of damage caused to the Insured Item during the time of unlawful possession, incl. the damage suffered as a result of the Theft or Robbery. 12.11. The Insured has a duty to immediately return the received Insurance Indemnity, or any part thereof, to the Insurer if, following payout of the Insurance Indemnity, evidence is found to the effect that the paid Indemnity, or any part thereof, has been unfounded or unjustified. 12.12. If loss incurred by the Insured is reimbursed in full or in part under other insurance contract, the Insurer is entitled to reduce or deny the Insurance Indemnity accordingly. 12.13. The Insurer will not reimburse for any indirect costs incurred by the Insured or the authorized user of the Insured Item (e.g. phone bills, unearned income, lost profit, 23

financial encumbrances), for any damage to the environment or people, for damage to third-party property, or for loss suffered by the Insured not as a result of the Insured Event. 12.14. After payout of Insurance Indemnity the Insurer obtains the right of subrogation i.e. the right to claim damage at the extent of paid Insurance Indemnity from the person responsible for causing the damage. Unless the Insured, in the Insurance Indemnity claim application and before payout of Insurance Indemnity, has advised the Insurer in writing of other procedure, then also in case the Insurance Indemnity paid out by the Insurer covers only a part of the expenses of the Insured, the Insurer may exercise its right of subrogation irrespective of whether or not the Insured exercises the right to take action against the person who caused the damage. The Insurer and the Insured may agree in writing on cooperation in recovery of damages from the person liable for the damages including on jointly bringing or maintaining action at court of law. 12.15. The Insurance Indemnity may be paid out: 12.15.1. to a service provider in the form of payment for services related to renovation of the damaged Insured Item or any part thereof; 12.15.2. to a person who supplies a new vehicle, or parts thereof, as a replacement of damaged Insured Item or damaged part thereof; 12.15.3. to the Insured in the form of cash payment of the Insurance Indemnity. The form of reimbursement for damage may be selected by the Insurer. 12.16. Renovation of Insured Item and/or any Parts thereof 12.16.1. If the Insurer has decided to renovate (repair) the Insured Item and renovation of the Insured Item is economically sound, then the amount of loss subject to indemnification by the Insurer under the terms of Insurance Contract is equivalent to the amount of money necessary for restoring the Insured Item to such a condition as to enable it to perform its earlier functions at the extent the Insured Item performed those functions before the Insured Event occurred. 12.16.2. The Insurer is entitled to choose the service provider who renovates the Insured Item. If the Policyholder wishes that renovation of the Insured Item be performed by a service provider selected by the Insured and that service provider s renovation works estimate exceeds the quotation offered by the service provider selected by the Insurer, 24