CAR WARRANTY PLUS
MECHANICAL BREAKDOWN INSURANCE
Whereas Allianz New Zealand Limited (hereinafter referred to as Allianz) has authorised PROTECTA
Insurance New Zealand Limited (hereinafter referred to as PROTECTA Insurance) and it’s Sub-Agents to
issue Car Warranty Plus Mechanical Breakdown Insurance Contracts (hereinafter referred to as this
Insurance Contract) on their behalf.
This Insurance Contract witnesses that in consideration of payment of the agreed premium and on the basis
of the information declared in the Certificate of Insurance, PROTECTA Insurance has been authorised to pay
for the repair or replacement of the Parts Covered, subject to the terms and conditions contained in this
The Insurance Contract shall become operative on the Commencement Date of Cover as declared in the
Certificate of Insurance and will continue in force until terminated in accordance with the terms and
conditions contained in this Insurance Contract.
means a vehicle repairer authorised by PROTECTA Insurance
“Authorised Repairer” to carry out the repair or replacement of the Parts Covered
in this Insurance Contract.
means the Certificate of Insurance completed on the
“Certificate of Insurance” Insured’s behalf and provided to the Insured as confirmation
of the Insurance Contract.
means (30) thirty days after the date of the Certificate of
“Commencement Date of Cover” Insurance or (30) thirty days after the purchase date,
whichever is the latter.
means this Mechanical Breakdown Insurance Contract and
“Insurance Contract” any endorsements (if any).
means the person or persons declared in the Certificate of
“Insured” Insurance as the registered owner of the Vehicle.
“Parts Covered” means the components as specified under Parts Covered.
means the period of the Insurance Contract in months as
“Period of Insurance” declared in the Certificate of Insurance.
means an agent approved by PROTECTA Insurance who may
“Sub-Agents” be involved in the sale of this Insurance Contract.
“Vehicle” means the vehicle declared in the Certificate of Insurance.
2. Mechanical Breakdown
This means any sudden and unforeseen mechanical or electrical failure of the Parts Covered.
In the event that a failure occurs and the Insured has complied with the terms and conditions contained in
this Insurance Contract, PROTECTA Insurance agrees to contract with it’s Authorised Repairer for the repair
or replacement of the Parts Covered, at PROTECTA Insurance’s discretion, based on the rates of labour,
parts and outwork negotiated between PROTECTA Insurance and it’s Authorised Repairer. Payment shall
include the reasonable cost required to repair or replace the Parts Covered to a condition in no way inferior
to that at the Commencement Date of Cover of this Insurance Contract and PROTECTA Insurance reserves
the right to source and supply the replacement Parts Covered.
The Insured agrees to accept such payment as full and final satisfaction and discharge of all liability under
this Insurance Contract.
What is covered?
This Insurance Contract covers the Vehicle as declared in the Certificate of Insurance for any
Mechanical Breakdown of the following components subject to the terms and conditions contained in
this Insurance Contract.
The following Components are covered:
AIR CONDITIONING CVT TRANSMISSIONS FRONT SUSPENSION PROPSHAFT
Compressor Casing and all internal parts such Anti-roll bar Bearing
Condenser as: Anti-tramp bars Universal joints
Evaporator Drive pulleys and drive belt Coil springs REAR SUSPENSION
Fan motor Frictions Constant velocity joints Anti-roll bar
Pressure hoses and pipes Gears, bearings and bushes Hub assembly Anti-tramp bars
Receiver drier Gear selector lever linkages Leaf springs Coil springs
Sensors Oil cooler Stub axles Constant velocity joints
TX valve Oil pump and piston Upper and lower ball joints Hub assembly
Oil seals and gaskets Upper and lower control arms Leaf springs
Solenoids Upper and lower wishbones Panhard rods
Speed sensor Wheel bearings Stub axles
Valve body Trailing arms
AUTOMATIC Alternator and voltage regulator FRONT WHEEL DRIVE STEERING
TRANSMISSION Coil ASSEMBLY Ball joints
Casing and all internal parts such Distributor including cap and rotor Constant velocity joints Idler box
as: Electronic ignition module Drive shafts Intermediate shaft
Frictions Engine computer Final drive unit Oil seals and gaskets
Gear select lever linkages Electric window motors Hub assembly Power steering pump
Gears, bearings and bushes Gauges – oil pressure, Gears, internal bearings and Reservoir and pressure pipes
Governor temperature, voltmeter, speedo, bushes Sensors
Modulator rev counter, ampmeter Oil seals and gaskets Steering box
Oil cooler Generator (Hybrid Vehicles only) Sensors Steering column bearings and
Oil pump Glow plugs Transfer casing universal joints
Oil seals and gaskets Heater fan motor Steering rack
Pressure control solenoid Indicator unit Tilt-steer mechanism
Shift solenoids Relays Track rods ends
Shafts Starter motor
Torque converter Transmission computer
Valve body Washer motor
BRAKING SYSTEM ENGINE FUEL SYSTEM TRANSFER BOX – 4 WHEEL
ABS modulator, compressor and Ancillary shaft Air-flow meter DRIVE
valves Automatic drive plate Carburettor Bearings
ABS computer Balance shaft Fuel gauge sender unit Casing
Brake proportion valve Balance shaft bearings Fuel pressure regulator Gears
Callipers Balance shaft belt Fuel injection pump Oil seals and gaskets
Diesel vacuum pump Camshaft followers Fuel pump Selectors
Master cylinder Camshafts Fuel rail Sensors
Pedal and fulcrum assembly Camshaft bearings Injectors Shafts
Sensors Connecting rods and gudgeon pins Lift pumps
Servo Crankshaft Pressure lines and pipes
Wheel cylinders Crankshaft bearings Throttle body
Cylinder block Sensors
Cylinder head Warm-up regulator
CLUTCH Cylinder head gasket MANUAL TRANSMISSION TURBO CHARGER
Cable Distributor drive gear Casing and all internal parts such /SUPERCHARGER
Fork Distributor drive shaft as: Bearings
Master cylinder Flywheel and ring gear Baulk rings Boost sensor
Release bearing Hydraulic tappets Extension shaft gears Housing
Slave cylinder Inlet and exhaust manifolds Gear lever Intercooler
Oil pressure relief valve Gears, internal bearings and Intercooler water pump
Oil pump bushes Oil feed lines
COOLING SYSTEM Oil pump drive gear and shaft Linkages Oil seals and gaskets
Cooling fan thermostat switch Oil seals and gaskets Oil seals and gaskets Rotor
Engine cooling fan motor Pistons and rings Selectors Shaft
Heating matrix Pulleys Sensors Turbine and compressor
Oil cooler Pushrods and tappets Shafts Wastegate
Radiator Rocker shafts Synchromesh hubs
Thermostat and housing Timing belt and chain
Viscous fan Valve springs
Water pump Valves and guides
3. Limits of Liability
A. The maximum liability during the period of this Insurance Contract is limited to the current market
value of the Vehicle at the time of the claim and is subject to the Excess as described below under
The maximum liability in respect of any one Mechanical Breakdown is:
• Vehicles that have travelled less that 80,000kms as at the date of the Certificate of Insurance -
• Vehicles that have travelled less that 125,000kms as at the date of the Certificate of Insurance -
• Vehicles that have travelled less that 175,000kms as at the date of the Certificate of Insurance -
• Vehicles that have travelled less that 225,000kms as at the date of the Certificate of Insurance -
The Limits of Liability stated above shall include any amounts that may become liable to pay for Travel
Costs, Accommodation Costs and Towing Costs.
B. PROTECTA Insurance will reimburse the Insured for:
1. Travel Costs - The cost of hiring a rental vehicle of a similar size to the Vehicle covered by this
Insurance Contract or the cost of an alternative (more economical) form of transport, up to a
maximum of $300 in respect of any one Mechanical Breakdown covered by this Insurance
Contract to return home. This cover will only apply when the Vehicle breaks down more that
50km from the Insured’s current residential address and the Vehicle is unable to be used due to
repairs being effected for a period exceeding (72) seventy two hours. PROTECTA Insurance shall
not be liable for the normal running costs (e.g. insurance, mileage, petrol, oil) of the rental
2. Accommodation Costs - The cost of reasonable accommodation expenses incurred by the
Insured to a maximum of $300 per claim through the Vehicle sustaining a Mechanical Breakdown
covered by this Insurance Contract when such Mechanical Breakdown occurs more than 100km
from the Insured’s current residential address.
3. Towing Costs - The cost of towing the Vehicle covered by this Insurance Contract arising from
the Vehicle sustaining a Mechanical Breakdown covered by this Insurance Contract up to a
maximum of $100 on any one claim.
Please Note: The costs in Clause B above can only be considered following presentation to
PROTECTA Insurance of a detailed relevant GST invoice or receipt.
C. Excess – The Excess as declared in your Certificate of Insurance applies to each and every unrelated
claim accepted by PROTECTA Insurance. Unrelated claims are where one component has not directly
caused the failure of another and therefore each failure is treated as a separate and unrelated claim.
This Insurance Contract shall not apply:
• To any claim arising from defects which were in existence prior to the Commencement Date of
• Where the Vehicle is not maintained and serviced in accordance with the Vehicle Service
Programme outlined in this Insurance Contract.
• To any Mechanical Breakdown where any repairs have been effected contrary to the Claims
• To any Mechanical Breakdown which is related to any change in fuel quality brought about by
government legislation and to any alternative fuel, bio fuel or fuel additive which has not been
regulated and approved for sale by the government through retail outlets.
• To any Mechanical Breakdown caused by detonation and/or poor quality or incorrect grade of fuel
including damage caused by any Bio-Fuels, lead replacement fuel and/or Diesel Engine low
• To any costs arising from diagnosing a repair where the repair is not covered by this Insurance
• Where the Mechanical Breakdown is the subject of a recall by the vehicle manufacturer.
• To any repairs covered by any other form of insurance, warranty or guarantee.
• To any costs arising from the rectifying of any failure of, or defect or fault in, the design or
specification of any component.
• To any Mechanical Breakdown or liability occurring in whole or in part due to any misuse, or
abuse, external damage/cause or act or omission (whether wilful, unlawful or negligent) to the
• To any claims that are fraudulent.
• To any costs arising from contamination by any external causes, corrosion, perishing, rust or
• To any claim arising from loss of time, loss of use, inconvenience, storage charges, accidental
damage, fire, theft, conversion, or any other consequential loss.
• To any claim arising or liability for incidental or consequential damage caused by the failure of a
• To any Mechanical Breakdown that has either been contributed to or has arisen as a result of the
Vehicle being modified from the manufacturer’s original specification.
• To any costs arising from, or for rectifying, defective or faulty repair or workmanship.
• To any claim arising from the continued operation of the Vehicle once a fault has occurred,
including loss of lubricant and coolant.
• To any costs associated with the servicing, maintenance, adjustment or tuning of any component.
• To any general repair expenses including telephone, facsimile, sundry, freight charges and any
disposal or environmental charges.
• To any costs relating to the repair or replacement of brake shoe linings/discs and or pads, brake
rotors, bushes, rubber mountings, shock absorbers, suspension air bags, tyre pressure sensors,
tyres, wheels, wheel alignment and balancing.
• To any costs relating to the repair or replacement of bodywork, chassis, cosmetic items, glass,
paintwork, struts, sunroofs and associated mechanisms, trim, upholstery, visual and audible
parking systems, window regulators , wiring and wiring looms.
• To any costs relating to the repair or replacement, clutches, engine and transmission mounts,
exhaust systems, filters and spark plugs.
• To any costs relating to the replacement of antifreeze, fluids, gases, lubricants, oils, refrigerant,
fuel, grease and aerosols.
5. Qualifying Vehicles
• This Insurance Contract covers the Vehicle as declared in the Certificate of Insurance, with the
exceptions as set out under Vehicles not Covered, for any Mechanical Breakdown subject to the
terms and conditions contained in this Insurance Contract.
Vehicles not Covered
• Any Vehicle with an odometer reading in excess of 225,000kms at the date this Insurance
Contract was arranged or where the Vehicle is over 18 years of age at the end of the Period of
• Any Vehicle that does not have a current warrant of fitness of no more than (60) sixty days old or
a vehicle inspection by an approved inspection facility as at the Commencement Date of Cover.
• Taxis, rentals, couriers, delivery Vehicles and other fare paying passenger Vehicles.
• Any Vehicle with a gross weight exceeding 3500kg.
• Any high performance Vehicle including but not limited to Alfa Romeo, Alpina BMW, Aston Martin,
Bentley, Ferrari, Hamann BMW, Honda NSX, Jaguar, Lamborghini, Land Rover, Lotus, Maserati,
Maybach, MG, Morgan, Porsche, Range Rover, Rolls Royce, Rover, Saab, Schnitzer BMW, Subaru
Impreza Turbo’s, TRV, Volvo, VW Passat W8.
• Any hybrid Vehicle manufactured in or prior to 2000.
• Any Rotary powered vehicles
• Any Vehicle used in racing competitions, time trials or rallies
6. Roadside Assistance (24 hours a day – 7 Days a week)
If your Vehicle suffers a Mechanical Breakdown and cannot be driven just Phone 0800 HELP TO YOU (435
7868) and advise that you are a PROTECTA Insurance Roadside Assistance customer and quote your
Vehicles registered number.
Please note: You will be required to pay any costs incurred and seek reimbursement if such costs are
covered by this Insurance Contract.
7. Vehicle Service Programme
• All servicing should be carried out by an approved service facility - Phone 0800 HELP TO U (435
7868) for assistance.
• The FIRST service must be completed prior to the Vehicle travelling 5,000km from the date of the
Certificate of Insurance.
• The minimum service requirements thereafter:
Petrol Vehicles every 15,000kms or within 12 months; whichever occurs first.
Diesel Vehicles every 10,000kms or within 12 months; whichever occurs first.
• The servicing required to be carried out in accordance with the Vehicle Service Programme is the
responsibility of the Insured and failure to complete the minimum service requirements outlined
below may result in your claim being declined.
Minimum Service Requirements are:
• Change engine oil and oil filter
• Change the fuel filters every 20,000km’s (diesel only)
• Check air cleaner and replace if necessary
• Check clutch operation for slippage
• Check turbo oil feed pipe for blockages and leaks
• Check camshaft belt and all drive belts and replace if necessary
• Check all fluid and oil levels and top up if necessary
• Check CV joints and boots
• Check cooling system for leaks and pressure test
• Check transmission oil and filter and service transmission if required
• Check engine tuning and adjust as required
• Check braking system
• Check steering and suspension systems
• The camshaft belt does not need to be checked if it has been replaced within the last 40,000km.
(However proof may be required).
8. Claims Procedure
• In the event of a Mechanical Breakdown - Phone 0800 HELP TO U (435 7868)
• All repairs must be carried out by an Authorised Repairer. Failure to comply may result in your
claim being declined.
• In the event of a claim the Insured must supply a copy of the relevant invoice relating to the
servicing requirements as outlined in the Vehicle Service Programme.
• The Insured will be required to authorise any dismantling required to determine if there is a valid
claim under this Insurance Contract. Costs for dismantling are covered subject to the Limits of
Liability and terms and conditions contained in this Insurance Contract should a subsequent
acceptable claim arise.
• A claim form may need to be completed prior to the acceptance of a claim and in the event of an
acceptable claim PROTECTA Insurance will pay for the time taken to repair the Vehicle as
determined by a recognised and current flat rate manual as supplied by the manufacturer, MTA or
• Any repairs commenced or carried out without prior approval will not be covered.
If the Insured is not satisfied with the cover provided in this Insurance Contract, please advise PROTECTA
Insurance in writing within (15) fifteen days of the Certificate of Insurance being completed and signed by
the Insured. PROTECTA Insurance may then agree to change this Insurance Contract. If the Insured is still
not satisfied they can still cancel this Insurance Contract. However both the Certificate of Insurance and
Insurance Contract must be returned to PROTECTA Insurance before any refund of premium will be made.
No refund will be paid if a claim has been made under this Insurance Contract.
PROTECTA Insurance may at any time cancel this Insurance Contract by giving (7) seven days notice in
writing to the Insured at the last known address. After such cancellation, PROTECTA Insurance will refund
the premium on a pro-rata basis less an administration fee. The Insured may at any time cancel this
Insurance Contract however no refund of premium will be made unless it is covered under the Cool-Off
Period clause above. No refund will be paid if a claim has been made under this Insurance Contract. The
cancellation provision above shall be effective as from 4pm on the seventh day after posting or personal
delivery of the notice of cancellation to the Insured at the last known address.
PROTECTA Insurance will at its sole discretion consider transferring this Insurance Contract if the Vehicle
as declared in the Certificate of Insurance changes ownership other than to a motor vehicle dealer or
To request a transfer form please - Phone 0800 HELP TO U (435 7868)..
Once the Insured has completed this form and attached receipt of a current warrant of fitness of no more
that (30) thirty days old, a copy of the Service Records confirming that the Vehicle has been serviced in
accordance with the Vehicle Service Programme and payment of the transfer fee of $100 PROTECTA
Insurance will agree to transfer this Insurance Contract.
Goods and Service Tax (GST)
All dollar amounts expressed in this Insurance Contract are inclusive of GST (where applicable)
10. Important Notices
Fair Insurance Code
Allianz New Zealand Limited supports the principles of the Fair Insurance Code. The purpose of this code is
to increase the standards of practice and service within the insurance industry. Further information
relating to the Fair Insurance Code is available on request- Phone 0800 HELP TO U (435 7868).
Insurance Companies (Ratings and Inspection Act 1994)
This policy is administered by PROTECTA Insurance and underwritten by Allianz New Zealand Limited.
Allianz New Zealand Limited has been assigned an Insurer Financial Strength Rating of “A (Strong
Financial Security)” from Standard and Poor’s (Australia) Pty. Limited on the 8th November 2007.