Product Disclosure Statement

index-header
  1. Important Messages
  2. Product Disclosure Statement
  3. Policy Wording
  4. Definitions
  5. Section 1 - Damage to your vehicle
  6. Section 1 - Additional Benefits
  7. Section 1 - Endorsements
  8. Section 2 - Legal Liability
  9. Section 3 - Uninsured Third Party
  10. Excesses
  11. No Claim Bonus
  12. General Exclusions to you policy
  13. We may refuse a claim
  14. Conditions Applicable to Your Policy
  15. What to do if you have an accident
  16. What to do if you have a complaint

Section One - Damage to your vehicle

What is covered What is not covered

Types of loss or damage you can claim for

You can only claim for loss or damage to your vehicle if:

  1. that loss or damage is caused by:
    • accident;
    • theft;
    • any other event not otherwise excluded.

    2. For example, we will cover damage from hail or fire and malicious damage; and

  2. that loss or damage is not excluded by:
    the “What is not covered” sections;
    the “We may refuse a claim” section (click here); or the “General exclusions to your policy” section (click here);
  3. the accident or event occurs during the period of insurance; and
  4. we show in your schedule that this section applies.

Please check carefully that your claim satisfies all of these requirements.

We will not pay you for:

  • repairs that are done without first getting our written consent other than emergency repairs (click here); or
  • the cost of repairing damage not caused by the accident or event you are claiming for; or
  • the cost of fixing faulty repairs or faulty workmanship other than repairs covered under Shannons Lifetime Guarantee (click here); or
  • wear and tear, gradual deterioration, corrosion, rusting or depreciation; or
  • mechanical, structural, electrical or electronic breakdown, failure or breakage; or
  • tyre damage caused by punctures, bursts, road cuts or applying brakes; or
  • loss or damage as a result of you failing to protect your vehicle after:
  • it breaks down; or
  • it is damaged in an accident; or
  • you have been notified that your stolen vehicle has been found.
We will either pay you for partial loss or total loss. This is determined by the loss or damage, the cost of repair and the agreed value of your vehicle.

We will not cover under total loss or partial loss:

  • loss that occurs because you cannot use your vehicle;
  • the cost of hiring a vehicle, except where your vehicle is stolen (see ‘Hire vehicle following theft’);
  • vehicle accessories other than those:
    • supplied by the manufacturer of your vehicle as original equipment; or
    • declared to us and listed in your schedule;
  • any additional benefit unless a claim is payable for loss or damage to your vehicle under this policy;
  • more than $1,000 for the cost of replacing, recoding and/or rekeying locks following damage to, or loss or theft of, your keys;
  • loss or damage in excess of the agreed value of your vehicle;
  • the costs of air freight for replacement parts.

If we agree to pay your claim under this policy we will not pay you more than:

  • the quote from the repairer you choose as adjusted by our assessor; or
  • the agreed value of your vehicle;
    whichever is the lesser.

Total loss

If we agree to pay your claim and we determine that your vehicle is a total loss we will pay you the agreed value of your vehicle minus any excess that may apply.

If we pay a claim for total loss:

  • we will first pay out any finance which we have noted as owing on your vehicle, and then pay you the balance;
  • your insurance policy with us ends and because we have carried out our part of the insurance contract, you are not entitled to a refund of any premium.

If the salvage rights endorsement is not shown in your schedule we will give you the first option to buy the wreck of your vehicle at its market price.

  

We will replace your vehicle with a new vehicle if:

  • the total loss occurs within 1 year of the date your vehicle was first registered; and
  • you purchased the vehicle new; and
  • you are the first registered owner; and
  • you want us to replace the vehicle; and
  • any finance company with an interest in your vehicle gives its consent.

We will replace your vehicle with a new vehicle of the same make, model, and series including similar accessories, tools and spare parts (all subject to local availability).

We will also pay for all on road costs.

  

Partial loss

If we agree to pay your claim for partial loss or damage we may choose to:

  • repair your vehicle, or any part of it; or
  • replace any part of your vehicle; or
  • pay you the costs of repairing or replacing your vehicle, or any part of it.

Should we decide to repair your vehicle or replace any part of it, the choice of repairer is yours. We reserve the right to determine the method of repair that your repairer shall use. We may decide to replace damaged parts with new parts or used parts of a similar condition to those being replaced.

For parts or accessories that we agree to replace that are not readily available in Australia, we will only pay the cost of the parts and cost of shipping the parts. We will also pay the reasonable cost of fitting the parts.

If we pay you any claim for partial loss or legal liability, your insurance under this policy remains at the same amount as it was before you made your claim.

Before we pay you for partial loss or damage:

If your vehicle can still be driven/ridden:

  • you must get at least one quote for repairs from a repairer of your choice.

If your vehicle cannot be driven/ridden you can either:

  • call us and we will arrange for your vehicle to be towed from the accident; or
  • allow us to tow your vehicle from the place it was taken to after the accident so that quotes can be obtained for repairs.
    We will pay for this.

Damaged or stolen property

You must keep any:

  • damaged property; or
  • stolen property;

that you recover, and let us inspect it if we need to.

Please remember, we take over your legal right to recover the insured property.

  
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