Introducing a new Shannons Motor Insurance Product Disclosure Statement (PDS) for policies renewing on or after 23 March 2021. The PDS is an important legal document that contains details of the product you purchase so you need to read it carefully.
The purpose of this page is to advise you of some changes that we have made to our Motor Insurance PDS. We have updated some of the wording to make it clearer and we have added and changed some covers, options, conditions and exclusions. Information on this page applies if you are renewing your Motor insurance policy and your current policy commenced between 15 May 2020 and 22 March 2021 OR if you renewed your current policy between 15 Jun 2020 and 22 March 2021.
For full details, please refer to your PDS.
- General Information
- Things we Don't Cover
- Summary of Changes to Cover
- Changes to the 'Making a Claim' Section
New section - Extra support
Sometimes your circumstances might mean you need additional support or assistance in dealing with us. If you are comfortable, you can tell us about your situation, and we will work with you to arrange support.
During the period of insurance, we might ask all joint policyholders first before we action a request or direction in relation to your policy (e.g. before we cancel your policy, reduce your cover or remove another policyholder). This way we can help protect the interests of all policyholders.
When you need to contact us
Additional situations when you must contact Shannons have been included in the PDS. For example, you must tell us as soon as possible if:
- you or any person who is likely to drive your vehicle has their driver licence cancelled, suspended, disqualified or restricted;
- you or any person who is likely to drive your vehicle has been charged with or convicted of a criminal act or offence;
- you have had another insurer cancel or decline an insurance policy, impose specific conditions on a policy or refuse a claim;
- you have added accessories or modifications to your vehicle.
We have changed the responsibility for you to take 'all reasonable precautions' to prevent damage or theft with the responsibility to 'take steps to prevent loss or damage'. We have also included some examples of how you can take steps to keep your vehicle in 'good, safe and roadworthy condition', such as fixing electrical and mechanical problems.
New section - Conduct of others
When we consider a claim, we will have regard to any prejudice suffered by you due to the conduct of others and we may meet the claim when we are not legally required to do so.
Things We Don't Cover
General Exclusions are now called 'Things we don't cover'.
'Things we don't cover' has been updated, with both new exclusions to be aware of as well as changes to existing exclusions.
Alcohol, drugs, medication
Medication has been added to this exclusion. In addition we will pay a claim if it can be demonstrated that the alcohol/drugs/medication intake was not a contributing factor in the incident.
Defensive driving courses
This additional cover does not apply to vehicles with Laid up cover.
Extra costs or other losses following an incident covered by your policy
The section for "Consequential losses or extra costs following an incident covered by your policy" is now known as "Extra costs or other losses following an incident covered by your policy". It also includes any other loss, damage or costs not covered by your policy.
We do not cover any reckless act by you, or by the driver of your vehicle or by a person acting with your encouragement, assistance or express or implied consent to the reckless act (such as street racing, burnouts, donuts, driving into water, illegally using a mobile telephone, driving at excessive speed).
This exclusion applies if the vehicle being driven/ridden, or any caravan or trailer attached to your vehicle being used at the time of an incident, was unregistered, unless the loss, damage, cost or legal liability was not caused by or did not result from the vehicle being unregistered.
Biological, chemical, other pollutant or contaminant
This exclusion encompasses the use, existence or release of any biological, bacterial, viral, germ, chemical or poisonous substance, pollutant or contaminant.
Driving a damaged motor vehicle
There is a new exception for when you are acting to prevent further loss or damage such as driving the vehicle from a busy motorway.
Intentional or deliberate acts
We do not cover an intentional or deliberate act by:
- you or a member of your family;
- a person who shares ownership of your vehicle;
- a person acting with your encouragement, assistance or express or implied consent;
- a person authorised by you to operate your vehicle.
You are not covered when your vehicle is being driven/ridden by, or is in the charge of someone who is not licensed, not correctly licensed or not complying with the conditions of their licence. We will pay a claim for you (but not the driver/rider or person in charge of your vehicle) if you did not give encouragement, assistance or express or implied consent to the unlicensed driving/riding or the incident.
Summary of Changes to Cover
Towing and storage costs
We cover the reasonable cost of towing and storage when your vehicle is damaged in an incident.
Limit - One tow from the scene of the incident for any one claim.
Comes with: Comprehensive
Applies to: All vehicles
Hire car after a not at fault incident
Where you can provide the name and address of the at fault driver and registration number of the at fault vehicle, we now arrange and pay the reasonable cost of a hire car that meets your transport needs. If our providers are unable to provide a hire car that meets your transport needs, we will pay you the reasonable cost you incur in hiring a car that meets your transport needs or in arranging alternative transport.
Comes with: Comprehensive (Regular use only) & Third party legal liability
Applies to: Motor Vehicles & Motorcycles
Hire car after an event for unlimited days (Optional Cover)
For Motorcycles: we now arrange and pay the reasonable cost of a hire car that meets your transport needs. If our providers are unable to provide a hire car that meets your transport needs, we will pay you the reasonable cost you incur in hiring a car that meets your transport needs or in arranging alternative transport. The cover for Motor Vehicles has not changed.
Available with: Comprehensive (Regular use only)
Damage by uninsured drivers
When your motor vehicle or motorcycle is damaged in the period of insurance by a collision with another vehicle driven by an uninsured driver, we cover damage to your motor vehicle or motorcycle but only if:
- the driver/rider, of your motor vehicle or motorcycle didn't contribute to the incident (this means that the other driver was entirely at fault). You may be able to show this by photographs taken at the scene, police report or witness statements; and
- you give us the name and address of the uninsured driver and the registration number of the other vehicle, and we have otherwise agreed to pay your claim.
Limit: The most we will pay for any one incident is the reasonable cost of repairs, but not more than $5,000 in total.
Note: No excess applies under this additional cover.
Note: If due to the circumstances of your incident, you are unable to obtain the name and address of the person at fault and/or the registration number of the at fault vehicle, please contact us.
Comes with: Third party legal liability
Applies to: Motor Vehicles & Motorcycles
Hire car following theft up to 21 days
We now arrange and pay the reasonable cost of a hire car that meets your transport needs. If our providers are unable to provide hire car that meets your transport needs, we will pay you the reasonable cost you incur in hiring a car that meets your transport needs or in arranging alternative transport.
Comes with: Comprehensive (Regular use only)
Applies to: Motor Vehicles & Motorcycles
After claim expenses
We cover personal tools and personal property in the vehicle at the time of the incident up to a total of $1,000 in any one incident.
Comes with: Comprehensive
Applies to: All Vehicles
We don't cover use of your collectible caravan as a place of residence or business.
Changes to the Making a Claim Section
Changes have been made to the Making a Claim section including introducing or changing:
We have removed any requirement for you to pay your excess in full at the same time that a claim is made.
How we settle your claim
We have updated the settlement options for repairs and cash settlement.
If your claim for loss, theft or damage to your vehicle is covered under your policy we will either:
- repair the damage or replace the damaged parts of your vehicle using one of our preferred repairers or you may choose your own repairer. If you choose your own repairer we will authorise repairs for the amount of the assessed quote from your repairer;
- pay you the amount of the assessed quote from our preferred repairer when our preferred repairer is able to complete the repair or replace the damaged parts of your vehicle but you request a cash settlement;
- pay you the amount of the assessed quote from your repairer if our preferred repairer is unable to carry out repairs or we do not authorise repairs based upon your repairer's quote; or
- settle your claim as a total loss.
Our right to recover from those who are responsible
We have the right and you permit us to take recovery action against a party responsible for your loss. We have added examples of the assistance that may be required from you if we take action against a party for the recovery of your loss.
Lifetime guarantee on authorised repairs
The quality of the workmanship and the materials authorised by Shannons in the repair of your vehicle will be guaranteed for its life. We have removed the need for you to own the vehicle for the guarantee to apply. You will not be entitled to the lifetime guarantee on repairs that we do not authorise.
We have removed the section 'Obsolete parts' from the PDS and replaced this with 'Unavailable parts'. Where a damaged part is no longer available, we will pay you the last known market price of that part.
We are not responsible for costs which occur because of delays in delivery of parts. If a part is unavailable in Australia we will pay the cost of surface freight (not airfreight) from the nearest reasonable source of supply.
The information above is not a complete list of the changes to your Shannons Motor Insurance Product Disclosure Statement (PDS). For full details of what is and isn't covered, please read the Shannons Motor Insurance PDS. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available. These changes apply to policies renewing on or after 23 March 2021.