SHANNONS MOTOR VEHICLE INSURANCE

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					            SHANNONS BRANCHES
        AUSTRALIAN CAPITAL TERRITORY
      Unit 1, 74 Newcastle Street, Fyshwick 2609

                 NEW SOUTH WALES
     Unit B, 12 Frederick Street, St Leonards 2065

               NORTHERN TERRITORY
            Hidden Valley Motor Sports Park,
           Hidden Valley Road, Berrimah 0828

                    QUEENSLAND
            3-11 Ross Street, Newstead 4006

                SOUTH AUSTRALIA
     863-865 South Road, Clarence Gardens 5039

                     TASMANIA
       337-341 Argyle Street, North Hobart 7000

                       VICTORIA
          321 Warrigal Road, Cheltenham 3192

                WESTERN AUSTRALIA
          152 Burswood Road, Burswood 6100

     Call 13 46 46 for the cost of a
 local call from anywhere in Australia.




                                                                                         SHANNONS
                                                                                     MOTOR VEHICLE
                                                                                        INSURANCE
  National Claims Email: claims@shannons.com.au
         Agent for Insurer & Authorised Representative
                      Shannons Limited
 ABN 91 099 692 636 Authorised Representative No. 239594                       PRODUCT DISCLOSURE STATEMENT
                   Insurer & Licensee
                                                                                            & POLICY WORDING
        Australian Alliance Insurance Company Ltd
ABN 11 006 471 709 Australian Financial Services Licence No. 235011
                                                        SMPDS 01/12/08
                                                                         INSURANCE FOR MOTORING ENTHUSIASTS
 WELCOME TO SHANNONS - THE INSURER FOR                             CONTENTS
 MOTORING ENTHUSIASTS

Shannons have specialised in insurance for classic and other       Product Disclosure Statement                        2-7
collectible vehicles for over 30 years. We enjoy a unique          Significant features and benefits                    2
relationship with motoring enthusiasts and our dedicated           About the insurer                                    3
team is in place to offer you a knowledgeable and                  What you must tell us                                4
personalised service.                                              Keeping your details up to date                      5
If you want to make any changes to your policy, ask any            Policy Wording                                     8-30
questions or let us know about anything that might affect your     Our agreement with you                               8
policy, you can call us on 13 46 46. In addition, you can          Comprehensive motor vehicle insurance cover         10
manage your policies online with our ‘My Insurance’ web            Third party only (legal liability) motor vehicle
service at shannons.com.au.                                        insurance cover                                     12
                                                                   Additional benefits                                 16
HOW TO USE THIS PRODUCT DISCLOSURE STATEMENT                       Vehicle usage covers                                24
AND POLICY WORDING                                                 General exclusions applicable to your policy        28
We have designed this Product Disclosure Statement and             Claim Information                                  32-40
Policy Wording so that it is easy for you to see what is           Excesses                                            32
covered, and what is not covered. In most areas of the Policy      Making a claim                                      34
Wording, we have put “WHAT IS COVERED” on the left hand            Paying a claim                                      38
page of the booklet, and “WHAT IS NOT COVERED” on the              Important Information                              41-49
right hand page of the booklet. This document should be read       Conditions applicable to your policy                41
in conjunction with your certificate.                              Cancellation by you or by us                        42
To fully understand your cover, you should read the full Policy    The General Insurance Code of Practice              43
Wording including any limitations and exclusions that may          Cooling off period                                  43
apply. Please keep this document in a safe place. You may          Your privacy                                        44
need to refer to it from time to time.                             How we resolve your complaints                      44
                                                                   Direct Debit Request service agreement              47
NOTICE                                                             Definitions of important words and phrases         50-54
If more than one person is included as an insured under this
policy, a failure or wrongful action by one of those persons
may adversely affect the rights of the other person(s) insured
under this policy.




This insurance product is issued by:
Australian Alliance Insurance Company Limited ABN 11 006 471 709
Australian Financial Services Licence No. 235011
Level 4, 440 Collins Street, Melbourne VIC 3000
This Product Disclosure Statement was prepared on 01/12/08


                                                                    INSURANCE FOR MOTORING ENTHUSIASTS
                                                                                                                       Page 1
PRODUCT DISCLOSURE STATEMENT


Please read this Product Disclosure Statement and Policy               • Vehicle usage covers including Laid Up cover, Club
Wording carefully so that you are aware of the risks, limits,            Plate cover, and other limited motor vehicle usage
cover and other significant features associated with this policy.        covers as described in the Policy Wording on pages 24-
                                                                         27.
SIGNIFICANT FEATURES AND BENEFITS                                      • Additional benefits as described in the Policy Wording
The Shannons motor vehicle insurance policy offers two types             on pages 16-23.
of cover to choose from. The cover you choose will be shown
                                                                    THIRD PARTY ONLY (LEGAL LIABILITY) MOTOR VEHICLE
on your certificate.
                                                                    INSURANCE provides cover for the following:
Here is a brief summary of the significant benefits available
                                                                       • Legal liability damage to someone else’s property
under each type of cover. For full details you must read the
                                                                         caused by or in connection with your motor vehicle, and
entire Policy Wording which starts on page 8.
                                                                         for which you are legally liable – up to $20,000,000 plus
COMPREHENSIVE MOTOR VEHICLE INSURANCE provides                           legal costs.
cover for the following:                                               • Damage by uninsured third parties up to $5,000 cover
   • Agreed value accidental loss or damage to your motor                for your motor vehicle if you have an accident that is not
     vehicle for the agreed value of your motor vehicle as               your fault, providing the other party was not insured and
     shown on your certificate.                                          you can supply the other party’s full details.
   • Choice of repairer a ‘must have’ for any special vehicle.      NOTE THAT FOR ALL TYPES OF COVER
   • Lifetime guarantee on repairs authorised repairs                 • Your motor vehicle is covered whilst in private use unless
     guaranteed for life.                                               we agree to cover the use of your car in connection with
   • Paying by instalments you may pay your premium by                  your occupation or business.
     regular instalments by direct debit at no extra charge.           • An excess may be payable for a claim under the policy.
   • Modified vehicles modifications and non-standard                  For more information see page 32.
     accessories to your motor vehicle are covered if we
     agree and are shown on your certificate.                       ABOUT THE INSURER
   • Towing costs reasonable towing costs for your motor            Australian Alliance Insurance Company Limited ABN 11 006
     vehicle following damage covered by this policy.               471 709, Australian Financial Services Licence No. 235011
                                                                    (AAI), has prepared this Product Disclosure Statement and is
   • Salvage purchase your choice to purchase the salvage
                                                                    the insurer of policies effected by Shannons Limited ABN 14
     of your motor vehicle.
                                                                    099 650 996 (Shannons).
   • Windscreen one windscreen or window breakage
                                                                    Shannons is the authorised representative and wholly owned
     replacement during the period of insurance without your
                                                                    subsidiary of AAI, and acts as AAI’s agent under authority
     basic excess or no claim bonus being effected.
                                                                    given to it by AAI to enter into contracts of insurance on
   • Legal liability damage to someone else’s property              behalf of AAI as insurer and to deal with and settle claims on
     caused by or in connection with your motor vehicle, and        behalf of AAI. AAI can be contacted by writing to Level 4, 440
     for which you are legally liable – up to $20,000,000 plus      Collins Street, Melbourne 3000.
     legal costs.




                                                                     INSURANCE FOR MOTORING ENTHUSIASTS
Page 2                                                                                                                        Page 3
PRODUCT DISCLOSURE STATEMENT
(CONTINUED)


SERVICES PROVIDED BY SHANNONS                                   WHO NEEDS TO TELL US
Shannons is authorised by AAI to provide the following          It is important that you understand you are answering our
financial services:                                             questions in this way for yourself and anyone else whom you
   • Provide personal advice in respect of the authorised       want to be covered by the policy.
     insurance policies listed below.                           IF YOU DO NOT TELL US
   • Quote or arrange the issue of authorised insurance         If you do not answer our questions in this way, we may
     policies listed below.                                     reduce or refuse to pay a claim, or cancel the policy. If you
   • Agree on policy variations requested by you of             answer our questions fraudulently, we may refuse to pay a
     authorised insurance policies listed below.                claim and treat the policy as never having worked.
   • Handle and settle claims.                                  KEEPING YOUR DETAILS UP TO DATE
AUTHORISED INSURANCE POLICIES                                   You need to tell us immediately if:
  • Shannons Motor Vehicle Insurance                               • any details on your certificate are incorrect or have
                                                                     changed.
   • Shannons Home & Contents Insurance
                                                                   • any changes as to how often you use your motor vehicle,
If we recommend a particular insurance policy to you, or
                                                                     or to the way you use your motor vehicle.
arrange for the issue of an insurance policy, we will also
provide you with a Product Disclosure Statement. This will         • anyone who is expected to drive your motor vehicle has
contain information to help you make an informed decision            over the past 5 years had changes to their
about the policy.                                                    driving/insurance record, and/or criminal history relating
                                                                     to fraud, theft, arson, malicious or wilful damage.
Shannons does not receive any commissions or benefits from
AAI for giving advice or for arranging the issue of the            • you change your address or the place where you keep
authorised insurance policies. AAI as insurer will receive           your motor vehicle.
100% of the premiums paid for the policy. Shannons has             • any modifications and/or accessories are fitted to your
engaged Regional Development Officers to promote                     motor vehicle.
Shannons in regional Australia. A Regional Development
                                                                EXCLUSIONS APPLICABLE TO YOUR POLICY
Officer is renumerated by Shannons for these services at a
rate of up to $20 for each insurance quotation provided to      Your policy may not provide you with cover in certain
customers who have contact with or are allocated to the         circumstances. Further information about the circumstances
Regional Development Officer.                                   in which exclusions under this policy may apply is contained
                                                                on pages 28-30.
WHAT YOU MUST TELL US
When answering our questions, you must be honest and you
have a duty under law to tell us anything known to you, and
which a reasonable person in the circumstances, would
include in answer to the question. We will use the answers in
deciding whether to insure you and anyone else to be insured
under the policy, and on what terms.




                                                                 INSURANCE FOR MOTORING ENTHUSIASTS
Page 4                                                                                                                       Page 5
PRODUCT DISCLOSURE STATEMENT
(CONTINUED)


PREMIUMS                                                                               NO CLAIM DISCOUNT
We calculate your premium after taking a variety of factors                            The amount of premium you pay may be reduced by a no
into account. Some factors are set, such as our costs of                               claim discount. This discount on your premium increases
distribution and profit component. Other factors can affect the                        each year until you reach ‘rating one’ provided there is no
amount of your premium. The higher your risk profile, the                              claim made that affects your rating.
higher your premium. Using our experience, we decide what                              EXCESS
factors will increase your risk profile and how they impact on
                                                                                       When you make a claim under your policy, you may be
the premium.
                                                                                       required to pay an excess in respect of your claim. Refer to
The following table is a guide on how these factors combine                            pages 32-33 for more information. We will tell you when an
together and may influence our assessment of the risk and                              excess is payable.
therefore, your premium.
                                                                                       You may need to pay more than one excess when you make a
Factor                                May Reduce Premium May Increase Premium          claim. When one or more excesses apply to your policy, the
The postcode where your motor         Lower risk postcode    Higher risk postcode      amounts will be shown on your certificate. The types of excess
vehicle is located                                                                     that may apply are:
The agreed value of your motor        Lower value            Higher value
vehicle                                                                                BASIC EXCESS
The level of insurance you have       Third party only       Comprehensive             This is the minimum amount that you may be required to
chosen
                                                                                       contribute towards your claim. The amount of your basic
How often you use your motor          Laid up use            Regular use
vehicle                                                                                excess is shown on your certificate under the heading ‘Basic
Modifications to your motor vehicle   Lower risk             Higher risk               Excess’.
                                      modifications          modifications
                                                                                       THEFT EXCESS
Your no claim discount                Higher no claim        Lower no claim
                                      discount               discount                  This excess will be shown on your certificate. We will apply
Age of the driver                     Older driver           Younger driver            this excess if the loss or damage is caused by theft or
Make/model of your motor vehicle      Lower risk vehicle      Higher risk vehicle      attempted theft. The amount of your theft excess is shown on
Finance                               No finance             Finance by lending        your certificate under the heading ‘Theft Excess’.
                                                             institution
                                                                                       YOUNG DRIVER EXCESS
Multi-Vehicle discount                Having more than
                                      one motor vehicle                                An excess of $400 will apply to drivers who are under the age
                                      currently insured on                             of 25 and are listed on your certificate. An excess of $1,500
                                      the same Motor
                                      Vehicle Insurance                                will apply to drivers who are under the age of 25 and are not
                                      Policy                                           listed on your certificate. The young driver excess is in
Trailer cover                                                Insuring a trailer with   addition to your basic excess.
                                                             a value greater than
                                                             $750                      RACING EXCESS
                                                                                       This excess will be shown on your certificate. We will apply
Your premium also takes into account our obligation to pay
                                                                                       this excess if you have the Racing endorsement shown on
any relevant compulsory government charges, taxes or levies
                                                                                       your certificate and is in addition to your basic excess.
(eg. stamp duty, GST and fire services levy) in relation to your
policy. These amounts will be set out separately on any
certificate as part of the total premium payable.




                                                                                        INSURANCE FOR MOTORING ENTHUSIASTS
Page 6                                                                                                                                            Page 7
POLICY WORDING


OTHER EXCESS
Where we have agreed in writing to provide cover to you for a
particular use, event or circumstance, we may also advise you
in writing of any excess applicable to that use, event or
circumstance.
CANCELLING THIS POLICY
You may cancel this policy at any time and you will be
refunded the unexpired portion of the premium, less any non-
refundable government taxes and duties.
Information in this Product Disclosure Statement is subject to
change from time to time. We will issue a supplementary or
replacement Product Disclosure Statement if the change is
materially adverse. For other changes, updated information
can be obtained at any Shannons branch or by calling
13 46 46. A paper copy of any updated information will be
provided, free of charge, on request.


POLICY WORDING
OUR AGREEMENT WITH YOU
Shannons Limited on behalf of Australian Alliance Insurance
Company Limited ABN 11 006 471 709 agrees in return for
your premium to insure you in the circumstances and subject
to the terms, conditions, exclusions and amounts of cover set
out in this policy and/or your certificate.
MOTOR VEHICLE INSURANCE
There are two types of cover available for you to choose from.
   • Comprehensive motor vehicle insurance.
   • Third party only (legal liability) motor vehicle insurance.
The type of cover you have chosen will be shown on your
certificate.




                                                                   INSURANCE FOR MOTORING ENTHUSIASTS
Page 8                                                                                            Page 9
COMPREHENSIVE MOTOR VEHICLE
INSURANCE COVER

If you have chosen comprehensive motor vehicle insurance, it
will be shown on your certificate.
Legal liability is automatically included in ‘what is covered’.
WHAT IS COVERED                                                    WHAT IS NOT COVERED
    If your motor vehicle suffers loss, damage or theft              We will not pay more than the value agreed by us less the
    anywhere in Australia, we will choose to do one of the           excess as shown on your certificate.
    following:
   • repair your motor vehicle,
   • replace your motor vehicle, or
   • pay you the cost of repair or replacement,
    less the excess shown on your certificate.
    Where we replace your motor vehicle, we will only do this if
    we agree that your motor vehicle is a total loss.
    We will also cover your legal liability for damage to other
    people’s property and for the death or injury of another
    person. Refer to pages 12-13 for details of cover.




                                                                   INSURANCE FOR MOTORING ENTHUSIASTS
Page 10                                                                                                                  Page 11
THIRD PARTY ONLY (LEGAL LIABILITY) COVER


If you have chosen Third party only (legal liability) motor
vehicle insurance, the cover provided is for legal liability only.
WHAT IS COVERED                                                      WHAT IS NOT COVERED
    We will cover you for your legal liability if your motor           Any amount in excess of $20,000,000 under this policy or
    vehicle or substitute motor vehicle is involved in an              any other policy issued to you by us.
    accident during the period of insurance that causes:
                                                                       The general exclusions on pages 28-30.
   • death or bodily injury to other people, or
                                                                       Loss or damage to a substitute motor vehicle.
   • damage to someone else’s property.
    We will only pay this if you, or any person who has your           Liability arising out of the use of a substitute motor vehicle
    permission to use your vehicle, are legally liable.                if the claim is covered by another insurer or insurance
                                                                       policy.
    Your legal liability extends to cover:
   • goods falling accidentally from your motor vehicle or             Liability for death or bodily injury to you or any person who
     substitute motor vehicle.                                         normally lives with you.

   • goods falling accidentally from a trailer or caravan              Liability incurred in circumstances where the driver of your
     attached to your motor vehicle or substitute motor                motor vehicle has been refused motor vehicle insurance
     vehicle.                                                          during the previous five years.
   • the process of loading or unloading your motor vehicle,           Liability for loss or damage to your own property, or
     substitute motor vehicle, or trailer or caravan attached to       property which is in your possession, custody or control,
     your motor vehicle or substitute motor vehicle.                   or the property of a person who normally resides with you.
    We will also pay any legal costs which you incur with our          Any penalties or fines.
    written consent in defending any legal action brought
    against you.                                                       Any punitive, aggravated or exemplary damages.
                                                                       Liability for death or bodily injury to the extent that you are
                                                                       entitled to be covered under any statutory compulsory
                                                                       insurance or motor accident compensation scheme.
                                                                       Your motor vehicle was not in the custody, control or
                                                                       possession of you, or a person who has your permission
                                                                       to use your motor vehicle.




                                                                     INSURANCE FOR MOTORING ENTHUSIASTS
Page 12                                                                                                                         Page 13
ADDITIONAL BENEFIT - UNINSURED THIRD
PARTY

We will pay the cost to repair your motor vehicle if your motor
vehicle is damaged as a result of an accident caused by the
driver of another motor vehicle, and you can provide us with
the:
   • current name and address of the driver and/or owner of
     the other motor vehicle, or
   • registration number and description of the motor vehicle
     that caused the loss or damage.
We will pay you up to $5,000 for reasonable repairs or the
market value of your motor vehicle, whichever is the lesser,
including the cost of towing your motor vehicle to the nearest
repairer or place of safety if it cannot be driven after it is
damaged.




                                                                  INSURANCE FOR MOTORING ENTHUSIASTS
Page 14                                                                                         Page 15
ADDITIONAL BENEFITS FOR COMPREHENSIVE
MOTOR VEHICLE INSURANCE COVER (CONTINUED)

WHAT IS COVERED                                                    WHAT IS NOT COVERED
    Choice of repairer. Following loss or damage covered by          We may not pay for repairs to your motor vehicle (other
    this policy, if we decide to repair your motor vehicle or        than emergency repairs up to $500) not authorised by us.
    replace any part of it, the choice of repairer is yours.
    We will pay the amount we assess to be reasonable by
    considering your repairer’s quote with any adjustments
    made by our assessor. We may decide to replace
    damaged parts with new parts or used parts of a similar
    condition to those being replaced.
    If you prefer, we can arrange to tow your damaged motor
    vehicle as well as handle the entire quote and repair
    process on your behalf.
    Please contact us on 13 46 46 and we will make the
    necessary arrangements.
    Lifetime guarantee on repairs. The quality of the                We will not pay for any rectification work that we have not
    workmanship and the materials authorised by us in the            authorised.
    repair of your motor vehicle will be guaranteed for the life
    of your motor vehicle.
    Windscreen or window glass replacement. If the front             We will not pay for:
    windscreen or side or rear window glass in your motor           • chips or fractures that do not extend through the entire
    vehicle is accidentally broken, and is the only damage            thickness or affect the integrity of the glass,
    sustained to your motor vehicle, we will pay to have it
                                                                    • replacement of rubber or sealant due to wear and tear or
    replaced.
                                                                      deterioration,
    We will pay for one windscreen or window glass breakage         • airfreight.
    replacement per motor vehicle during any one period of
    insurance without applying any excess, or your no claim
    discount being affected.
    Riding apparel cover. Following loss or damage covered           We will not pay:
    by this policy, we will pay for your and your pillion           • more than $3,000 for your riding apparel,
    passenger’s riding apparel.
                                                                    • more than $1,500 for your pillion passenger’s riding
    You must keep the damaged property so that we can                 apparel,
    inspect it. If you wish to keep the damaged property, we        • more than $1,000 for any individual item unless shown
    will determine its salvage value, and deduct this amount          on your certificate.
    from your claim.




                                                                   INSURANCE FOR MOTORING ENTHUSIASTS
Page 16                                                                                                                    Page 17
ADDITIONAL BENEFITS FOR COMPREHENSIVE
MOTOR VEHICLE INSURANCE COVER (CONTINUED)

WHAT IS COVERED                                                   WHAT IS NOT COVERED
    Protected no-claim discount. If the no-claim discount on
    your motor vehicle is protected, it will be shown on your
    certificate.
    You will not be penalised even if you are at fault in an
    accident. However, your claim history is still a factor in
    deciding whether or not we offer you renewal and on what
    terms.
    Salvage rights. If this endorsement is shown on your            Salvage rights will not apply if your motor vehicle is stolen
    certificate and we declare your motor vehicle a total loss,     and we pay you for a total loss.
    you will keep the wreck of your motor vehicle at no cost to
    you.
    Emergency expenses following breakdown at a motor
    enthusiast club rally. If you are participating in an
    organised motor enthusiast club rally and your motor
    vehicle cannot be driven following breakdown of your
    motor vehicle whilst travelling to, from or whilst
    participating in the rally, and you are more than 100
    kilometres from your address, we will pay essential
    accommodation and travelling expenses up to $500 for
    you and members of your family travelling with you,
    without applying any excess or your no claim discount
    being affected.
    Cover for your trailer. We will cover you up to $750            We will not pay:
    (unless a higher amount is shown in your certificate) for      • for the loss of or damage to any contents of the trailer,
    loss or damage to your trailer that is attached to your
                                                                   • for any fixtures or equipment attached to the trailer,
    motor vehicle at the time of loss or damage.
                                                                   • if the trailer is not owned by you.
    Cover for your collectable caravan. We will cover you up        We will not pay for the accessories of any collectable
    the amount shown in your certificate for loss or damage to      caravan as a result of theft, attempted theft or malicious
    your collectable caravan.                                       damage unless there has been forcible or violent entry to
                                                                    your locked collectable caravan.
                                                                    We will not pay more than $500 for period accessories
                                                                    unless a higher amount is shown in your certificate.




                                                                  INSURANCE FOR MOTORING ENTHUSIASTS
Page 18                                                                                                                       Page 19
ADDITIONAL BENEFITS FOR COMPREHENSIVE
MOTOR VEHICLE INSURANCE COVER (CONTINUED)

WHAT IS COVERED                                                      WHAT IS NOT COVERED
    Towing and storage costs. If your motor vehicle cannot             We will not pay more than 72 hours storage costs.
    be driven following loss or damage covered by this policy,
    we will pay the reasonable costs of towing and storage of
    your motor vehicle to the nearest repairer or place of
    safety.
    Should the costs of towing and storage plus the necessary
    repairs exceed the agreed value of your motor vehicle
    shown on your certificate, we reserve the right to treat your
    motor vehicle as a total loss.
    Defensive driving courses. We will provide you with full           You are not covered if your motor vehicle is being driven:
    cover if your motor vehicle is damaged as a result of an          • on a race track or testing ground or a closed road,
    accident whilst you are participating in a defensive driving
                                                                      • whilst you are participating in a course conducted,
    course.
                                                                        advertised, promoted or designed to improve high
    A defensive driving course means a driver                           speed driving skills such as high speed cornering skills
    education/training course solely teaching defensive driving         or to improve or prepare for any form of Motor Sport.
    skills, that is conducted under full time, direct professional
    instruction and supervision and that is designed and
    promoted solely to improve your safety on the road
    through defensive driving skills.
    Theft of keys and re-coding. If the keys to your motor             We will not pay unless the theft of your keys has been
    vehicle are stolen we will pay up to $2,000 after you pay          reported to the police.
    your excess for the repair, replacement or re-coding of
                                                                       Cover under this benefit does not entitle you to a claim for
    your motor vehicle keys, locks and barrels.
                                                                       a rental motor vehicle or any other additional benefit.

    Tools and personal effects. We will pay the costs of
    replacing your tools and personal effects up to $500
    contained in your motor vehicle that are stolen from your
    locked motor vehicle or damaged as a result of an
    accident covered by this policy.
    Learner drivers. Persons driving your motor vehicle on a           Persons riding a motorcycle on a learners permit are not
    learners permit whilst under instruction from an                   covered by this policy.
    experienced, fully licensed driver are automatically
    covered to drive your motor vehicle. In these instances,
    any age excess applicable will be based on the age of the
    experienced, fully licensed driver.




                                                                     INSURANCE FOR MOTORING ENTHUSIASTS
Page 20                                                                                                                       Page 21
ADDITIONAL BENEFITS FOR COMPREHENSIVE
MOTOR VEHICLE INSURANCE COVER (CONTINUED)

WHAT IS COVERED                                                     WHAT IS NOT COVERED
    New vehicle replacement. Following loss or damage
    covered by this policy, if we agree that your motor vehicle
    is a total loss, and
   • your motor vehicle is less than one year old from the
     date of original registration, and
   • you purchased your motor vehicle new, and
   • you are the first registered owner, and
   • any finance company with an interest in your motor
     vehicle gives its consent,
    we will replace your motor vehicle with a new motor
    vehicle of the same make, model and series (subject to
    availability within Australia) including similar accessories,
    tools and spare parts as shown on your certificate. We will
    also pay the stamp duties and delivery charges
    applicable.
    Emergency expenses. If your motor vehicle cannot be
    driven following loss or damage covered by this policy and
    you are more than 100 kilometres from your address, we
    will pay essential accommodation and travelling expenses
    up to $500 for you and members of your family travelling
    with you.
    Hire car following theft. If your motor vehicle is stolen, we     We will not pay:
    will provide you with a hire car for up to 14 days, or until     • any deposit you are required to pay for the hire car,
    your motor vehicle is recovered and returned to you in a
                                                                     • any running costs of the hire car,
    roadworthy condition, whichever is the earliest.
                                                                     • if your vehicle is used for Laid up cover, Club plate cover,
                                                                       Limited use cover, Extreme limited use cover, or
                                                                       Wedding hire cover,
                                                                     • more than $1,500 under this benefit.
    Change of motor vehicle. If you sell your motor vehicle           Cover for the replacement motor vehicle will cease to be
    and buy another motor vehicle, we will automatically cover        covered at the end of the 14 day period unless you have
    the replacement motor vehicle for a period of 14 days from        contacted us and we have agreed to extend your cover.
    the date you bought the replacement motor vehicle.
                                                                      The agreed value of the replacement motor vehicle will not
                                                                      exceed the current agreed value on your certificate or
                                                                      $300,000 whichever is the lesser.




                                                                    INSURANCE FOR MOTORING ENTHUSIASTS
Page 22                                                                                                                        Page 23
VEHICLE USAGE COVERS


WHAT IS COVERED                                                    WHAT IS NOT COVERED
    Laid up cover. If Laid up cover is shown on your                 We will not pay if your motor vehicle is being driven under
    certificate, we will cover you for loss, damage or liability     its own power.
    whilst your motor vehicle is not in use and your motor
    vehicle is located at:
   • a private residence,
   • a Shannons Auction event,
   • at an organised motor enthusiast club event,
   • or a licensed garage or workshop.
    We will also cover your motor vehicle whilst being loaded
    or unloaded for transport or whilst being transported to
    any of the above locations.
    Club plate cover. If Club plate cover is shown on your
    certificate, we will cover you for loss, damage or liability
    whilst your motor vehicle is being driven in accordance
    with your State’s or Territory’s rules and regulations for
    Club registration.
    Extreme limited use cover. If Extreme limited use cover is
    shown on your certificate, we will cover you for loss,
    damage or liability whilst your motor vehicle is used for
    recreational purposes, on average twice a month.
    Limited use cover. If Limited use cover is shown on your
    certificate, we will cover you for loss, damage or liability
    whilst your motor vehicle is used for recreational purposes,
    on average once a week.
    Regular use cover. If Regular use cover is shown on your
    certificate, we will cover you for loss, damage or liability
    whilst your motor vehicle is used privately as your regular
    mode of transport including driving to and from work.




                                                                   INSURANCE FOR MOTORING ENTHUSIASTS
Page 24                                                                                                                    Page 25
VEHICLE USAGE COVERS
(CONTINUED)


WHAT IS COVERED                                                       WHAT IS NOT COVERED
    Racing cover. If this endorsement is shown on your                  We will not pay more than the agreed value of your motor
    certificate or is otherwise approved by us in writing,              vehicle or $20,000 whichever is the lesser, less the excess
    subject strictly to the terms of that endorsement or                shown on your certificate.
    approval, we will pay for loss or damage to your motor
                                                                        We will not pay any claim for legal liability arising from the
    vehicle if at the time of loss or damage you are driving or
                                                                        use of your motor vehicle when participating in, preparing
    using your motor vehicle whilst participating in, preparing
                                                                        for, practicing for or familiarisation for any Motor Sport
    for, practicing for or familiarisation for a Motor Sport event,
                                                                        event, whether or not that event is sanctioned by a Motor
    but only if the event is either;
                                                                        Sport Governing Body or requires a license issued by a
   • an event sanctioned by a Motor Sport Governing Body,               Motor Sport Governing Body to participate in.
     and your participation in that event requires a license of
     any kind issued by a Motor Sport Governing Body and
     you are the holder of such a license, or
   • an event which has been approved by us in writing or by
     way of endorsement to your policy
    Wedding hire cover. If this endorsement is shown on your
    certificate that you have wedding hire cover, we will pay for
    loss, damage or liability whilst your motor vehicle is being
    used for carrying passengers for hire or reward in
    connection with a wedding or a school formal.




                                                                      INSURANCE FOR MOTORING ENTHUSIASTS
Page 26                                                                                                                          Page 27
GENERAL EXCLUSIONS APPLICABLE TO YOUR
POLICY

YOU ARE NOT COVERED UNDER ANY SECTION OF                             Your motor vehicle is present at or upon a race track or
THIS POLICY FOR LOSS, DAMAGE OR LIABILITY                            testing ground, or at or upon land immediately adjacent to
CAUSED BY, ARISING FROM OR INVOLVING THE                             a race track or testing ground, unless
FOLLOWING:                                                           • you prove that your motor vehicle is there solely for a
    Your motor vehicle or any trailer or caravan being towed by        purpose other than driving or riding or use in a Motor
    your motor vehicle being used otherwise than in                    Sport event to be conducted, being conducted at or
    accordance with the vehicle usage as shown on your                 upon the race track or testing ground, or
    certificate.                                                     • cover has been provided under the Racing endorsement
                                                                       which will be subject to the terms and limitations set out
    A driver who was not licensed or authorised to be driving
                                                                       under the Racing endorsement on page 26.
    your motor vehicle unless your motor vehicle was being
    driven by a person without your consent.                         Your motor vehicle or trailer or caravan being towed by
                                                                     your motor vehicle was being used whilst in an unsafe,
    Your motor vehicle being driven or in the control of a
                                                                     unroadworthy or damaged condition unless you can prove
    driver:
                                                                     the loss, damage or liability was not contributed to or
   • under the influence of alcohol or drugs, and the alcohol
                                                                     caused by that condition.
     or drugs contributed to the accident, or
                                                                     Your motor vehicle or trailer or caravan being used in
   • whose breath or blood alcohol level was above the legal
                                                                     connection with the motor trade for experiments, tests,
     limit in the state or territory where the accident occurred,
                                                                     trials or demonstration purposes.
     or
   • who refused to take a legal test for alcohol or drugs.          Your motor vehicle or trailer or caravan being used while
                                                                     unregistered.
    We will not refuse your claim if you can satisfy us you had
    no reason to suspect that alcohol or any drug affected the       Your motor vehicle being used by any person who is not a
    driver.                                                          named driver, if your certificate shows that your policy is
                                                                     restricted to a named driver(s) only.
    Your motor vehicle is being driven or used in any form of
    Motor Sport or while being used in preparation, practice or      Your motor vehicle was being used to carry passengers for
    familiarisation for Motor Sport (unless cover has been           hire or reward (unless Wedding hire cover is shown on
    provided under the Racing endorsement – and then only            your certificate).
    in respect of damage to your motor vehicle subject to the
                                                                     Your motor vehicle or trailer or caravan was being used
    terms and limitations set out under the Racing
                                                                     outside Australia.
    endorsement on page 26).
                                                                     The lawful seizure or repossession of your motor vehicle or
    Your motor vehicle or a trailer or caravan attached to your
                                                                     trailer or caravan.
    motor vehicle was carrying either passengers or a load in
    excess of that for which it was designed or is permitted by      Any contract or undertaking entered into by you without
    law, unless you prove that the loss, damage or liability was     our written authority.
    not contributed to or caused by that excess load or excess
                                                                     The use, misuse, or existence of nuclear weapons or the
    number of passengers.
                                                                     use, misuse, escape or existence of nuclear fuel, waste or
                                                                     materials or ionising radiation or contamination from such
                                                                     fuels, waste or materials, or the combustion, detonation,
                                                                     fission and/or fusion of nuclear fuel or nuclear materials.

                                                                    INSURANCE FOR MOTORING ENTHUSIASTS
Page 28                                                                                                                     Page 29
GENERAL EXCLUSIONS APPLICABLE TO YOUR
POLICY (CONTINUED)

    The existence of, or operation of, or threatened existence
    or operation of chemical or biological weapon(s) or actual
    or threatened pollution or contamination from such
    weapons, or action taken by a public authority or anyone
    authorised by a public authority to prevent, limit or remedy
    such pollution or contamination.
    War, invasion, act of a foreign enemy, hostilities (whether
    war be declared or not), civil war, rebellion or insurrection.
    Damage to tyres caused by the application of brakes,
    road punctures, cuts or bursting.
    Financial loss because your motor vehicle’s value was less
    after being repaired, or because you cannot use your
    motor vehicle.
    Any wear, tear, rust, corrosion or depreciation.
    Mechanical, structural, electrical or electronic breakdown,
    failure or malfunction.
    An intentional act by you or by a person acting with your
    consent.




                                                                     INSURANCE FOR MOTORING ENTHUSIASTS
Page 30                                                                                            Page 31
CLAIMS INFORMATION


EXCESSES                                                        OTHER EXCESSES MAY APPLY
When you make a claim under this policy, you may be             We may apply an excess to your policy which differs from the
required to pay more than one excess in respect of your         basic and theft excesses due to your insurance history,
claim. When one or more excesses apply to your policy,          driving record, motor vehicle type or for other reasons.
those amounts will be shown on your certificate.                We will tell you if we need to apply an excess that varies from
We will tell you when an excess is payable.                     the basic and theft excesses before you agree to purchase or
                                                                renew your insurance or when we agreed in writing to provide
The types of excess you may have to pay are detailed below.
                                                                cover to you for a particular use, event or circumstance. The
BASIC EXCESS                                                    amount of any excess that we apply will be shown on your
This is the minimum amount that you may be required to          certificate or will be notified to you in writing.
contribute towards your claim. The amount of your basic         The excess that we apply will replace the basic excess.
excess is shown on your certificate.
THEFT EXCESS
This excess will be applied if the loss or damage to your
motor vehicle is caused by theft or attempted theft.
The amount of your theft excess is shown on your certificate.

RACING EXCESS
This excess will be applied to all claims under the Racing
endorsement. The amount of your racing excess is shown on
your certificate and is in addition to your basic excess.

YOUNG DRIVER EXCESS
An excess of $400 will apply to drivers who are under the age
of 25 and listed on your certificate.
An excess of $1,500 will apply to drivers who are under the
age of 25 and are not listed on your certificate.
The young driver excess is in addition to your basic excess.




                                                                 INSURANCE FOR MOTORING ENTHUSIASTS
Page 32                                                                                                                   Page 33
MAKING A CLAIM


The checklist below can help to ensure you have done all you
need to do to enable us to handle your claim quickly.
WHAT YOU MUST DO WHEN YOU MAKE A                                     WHAT YOU MUST NOT DO WHEN YOU MAKE
CLAIM                                                                A CLAIM
    Call us immediately. If you have an accident or your               Liability. You must not admit guilt or liability to anyone,
    motor vehicle is stolen, please contact us immediately on          offer, agree or promise to settle any claim without our prior
    13 46 46, providing full details of the event which has            consent. If you do so, we can refuse to pay your claim.
    occurred. Once you have provided us with these details,
                                                                       Authorise repairs. Following a loss, you should not carry
    we will advise you of what is required next. We are
                                                                       out or authorise any repairs or arrange replacement of any
    available 24 hours a day.
                                                                       property without our prior consent (other than emergency
    You must promptly forward any writ, summons or                     repairs up to $500). If you do so, we can refuse to pay
    proceedings which you receive relating to any                      your claim.
    prosecution, inquest or hearing and all other information
                                                                       Dispose of damaged goods. You will need to keep any
    relevant to those matters where any liability under this
                                                                       damaged property for inspection and assessment of
    policy may arise.
                                                                       repair costs by us or our representative.
    At the scene of the accident. Depending on the laws of
    the State or Territory in which the accident occurs, you
    must contact the police immediately. If possible, get the
    full name, address and phone number of the person or
    persons involved in the accident, as well as the vehicle
    registration numbers and insurance details.
    If a crime is suspected. Immediately advise the police of
    any malicious damage or act, theft, attempted theft or
    loss. You will need to give us the name of the police officer,
    the police station reported to and the date reported, or the
    police report number.
    Prevent further loss. Do everything you reasonably can to
    prevent any further loss, theft or damage from occurring.
    Cooperate with us at all times. When requested, you will
    need to provide us with all proofs, information, co-
    operation and assistance in relation to a claim including
    giving evidence in court if necessary.




                                                                     INSURANCE FOR MOTORING ENTHUSIASTS
Page 34                                                                                                                       Page 35
MAKING A CLAIM
(CONTINUED)


WHAT YOU MUST DO WHEN YOU MAKE A                                  WHAT YOU MUST NOT DO WHEN YOU MAKE
CLAIM                                                             A CLAIM
    Assist us with your claim. You will need to give us any         See page 35.
    information deemed relevant to your claim, including
    agreeing to be interviewed, which we may need to handle,
    assess or investigate your claim, and to arrive at a
    settlement of your damage or loss.
    You will need to make your motor vehicle available for
    inspection by us or our representative, and if we require,
    deliver your motor vehicle to us. You may need to provide
    us with your permission to tow your motor vehicle to a
    place nominated by us, such as a repairer.
    If you make a claim and we wish to recover the amount we
    have paid from another person then, subject to the
    Insurance Contracts Act, we can do so. And you and any
    other person entitled to cover under this policy must give
    us any information and help that we may reasonably
    require.
    Providing proof of ownership and evidence of the
    value of your motor vehicle. When requested, you will
    need to provide us with evidence of ownership and value
    of your motor vehicle including any modifications and/or
    accessories.
    Some acceptable proof of ownership and evidence of
    value documents are listed below:
   • Registration of the motor vehicle.
   • Contracts of sale.
   • Photographs.
   • Receipts, bank and credit card statements.
    If you are unable to provide us with the proof of ownership
    and/or the evidence of value we require, we can reduce or
    refuse to pay your claim.
    Pay your excess. You may be required to pay us an
    excess in respect of your claim. We will tell you when an
    excess is payable. For further information on excesses
    applicable to your policy, please refer to page 32.



                                                                  INSURANCE FOR MOTORING ENTHUSIASTS
Page 36                                                                                           Page 37
PAYING YOUR CLAIM


REPLACEMENT PARTS FOR REPAIRS TO YOUR                            WHEN YOUR MOTOR VEHICLE IS A TOTAL
MOTOR VEHICLE                                                    LOSS
When your motor vehicle is within the manufacturer’s new         If we agree to pay your claim and we declare your motor
vehicle warranty period, we will use original equipment          vehicle is a total loss or your motor vehicle is not found after
manufacture (OEM) parts when we authorise repairs to your        being stolen, we will pay you the agreed value of your motor
vehicle. However, Australian manufactured or Australian          vehicle inclusive of any accessories and modifications.
design rule compliant parts may be used for the replacement
                                                                 Once we settle your claim, the insurance cover on your motor
of windscreens and window glass.
                                                                 vehicle ceases. Any excess, and/or salvage value, and/or
When your motor vehicle is outside the manufacturer’s new        unpaid premium you must pay will be deducted from the
vehicle warranty period, we will use new and/or reconditioned    amount we pay.
original equipment manufacture (OEM) parts when we
                                                                 If another party has a financial interest in your motor vehicle,
authorise repairs to your vehicle. However, Australian
                                                                 we may pay them where required by law to do so.
manufactured or Australian design rule compliant parts may
be used for the replacement of windscreens and window
                                                                 WHAT HAPPENS TO YOUR PREMIUMS AFTER
glass. We may use parts produced by OEM suppliers for the
                                                                 A TOTAL LOSS
repairs of some components, such as radiators and air
conditioning condensers.                                         When we agree to pay a claim for your motor vehicle and
                                                                 your motor vehicle is a total loss, all our obligations under this
In the event that any replacement part cannot be obtained        policy will be fulfilled.
immediately, we may choose to pay you the value of the
replacement part (together with a reasonable charge for          This means:
fitting) rather than supply the replacement part.                   • if you pay your premium annually, you will not receive a
                                                                      refund of premium,
RETAINING YOUR MOTOR VEHICLE AFTER                                  • if you pay your premium by instalments, we will deduct
TOTAL LOSS                                                            any remaining instalments from the amount of the claim
We will retain your motor vehicle for salvage purposes after a        before we pay it to you.
total loss unless you have salvage rights as shown on your
certificate. This includes all modifications and accessories
fitted to your motor vehicle.
You may choose to purchase your damaged motor vehicle. If
you choose to purchase your damaged motor vehicle, we will
determine the salvage value of the damaged motor vehicle,
and deduct this amount from your claim.




                                                                  INSURANCE FOR MOTORING ENTHUSIASTS
Page 38                                                                                                                     Page 39
PAYING YOUR CLAIM                                                       CONDITIONS APPLICABLE TO YOUR POLICY
(CONTINUED)


NO-CLAIM DISCOUNT IMPACT                                              Driver particulars
                                                                      You must give us prompt notice of any:
If your no-claim discount is protected, it will be shown on your
certificate. You will not be penalised even if you are at fault in    • addition to or change in drivers of your motor vehicle,
an accident.                                                          • motor vehicle accidents in which you or any driver of
                                                                        your motor vehicle are involved,
If your no claim discount is not protected and you have an
accident, or your motor vehicle was damaged while parked,             • driving offences and/or traffic infringements of which you
you will keep your no-claim discount if:                                or any driver of your motor vehicle are convicted,
   • we agree the accident was not your fault, and                    • criminal offences relating to fraud, theft, arson, malicious
                                                                        or wilful damage of which you or any driver of your motor
   • you tell us the person’s name, current address and the
                                                                        vehicle are convicted.
     registration number of their motor vehicle.
                                                                      What you must tell us
We will reduce your no-claim discount for all other claims at
                                                                      If you do not comply with “What you must tell us” and
the next renewal of your policy. Your no-claim discount will not
                                                                      “Keeping your details up to date” on page 4 and 5 of the
be affected by a claim for windscreen or window damage
                                                                      Product Disclosure Statement and Policy Wording, we can
only.
                                                                      refuse to pay a claim, reduce the amount we pay, or
The amount we reduce your no-claim discount to is set out             cancel your policy.
below:
                                                                      Inspection
                                                                      We shall at all reasonable times have free access to
 If your NCD or         For one claim, we     For two claims,we
 rating is              reduce your NCD on    reduce your NCD on      examine your motor vehicle.
                        renewal to            renewal to
                                                                      Hazardous goods
 Protected Rating One   No change             No change
                                                                      If you are carrying or using hazardous goods or
 65% or Rating 1        55% or Rating 2       45% or Rating 3         substances with your motor vehicle, you must obey all
 55% or Rating 2        45% or Rating 3       25% or Rating 4         applicable laws, by-laws or statutory regulations.
 45% or Rating 3        25% or Rating 4       0% or Rating 5          Other persons bound by this policy
 25% or Rating 4        Nil or Rating 5       Nil or Rating 5         Any person entitled to cover under this policy is bound by
 0% or Rating 5         Nil or Rating 5       Nil or Rating 5         its terms and conditions.
                                                                      Breach of policy
                                                                      If you fail to comply with this policy and your breach or
                                                                      failure prejudices our interests, subject to the Insurance
                                                                      Contracts Act, we may refuse to pay any claim under this
                                                                      policy either in whole or in part. We may also choose to
                                                                      cancel your policy, or do both.




                                                                     INSURANCE FOR MOTORING ENTHUSIASTS
Page 40                                                                                                                       Page 41
CONDITIONS APPLICABLE TO YOUR POLICY
(CONTINUED)


     Important information for customers paying by                     Notification of change
     instalments                                                       You must notify us as soon as possible if any change is
     If you are paying the premium for this policy by                  made to your motor vehicle which might affect the nature
     instalments, you should be aware that if any instalment is        of the risk covered by this policy.
     not paid on time and remains overdue for:
                                                                       The General Insurance Code of Practice
    • 14 days (or more) we will not pay claims that occur on or        Shannons believes it is important that insurance
      after the 14th day,                                              companies meet high performance and service standards.
    • a month (or more) we will cancel this policy from when           We fully support the General Insurance Code of Practice.
      the instalment was due for payment.
                                                                       The Code sets the standards of customer service to be
     For further information on paying by instalments, please          provided by the insurance industry. It covers matters such
     refer to the Direct Debit Request Service Agreement on            as purchasing insurance, claims handling and dispute
     page 47.                                                          resolution.
     Fraudulent claims                                                 The Code is the general insurance industry’s promise to
     If any claim made under this policy is made fraudulently,         be open, fair and honest in the way it deals with
     we may, subject to the Insurance Contracts Act, refuse            customers.
     payment of the claim, or cancel your policy, or do both.
                                                                       You can obtain more information about the Code from
     Reasonable protection and maintenance                             your local Shannons branch or the Insurance Council of
     You must take all reasonable steps to protect your motor          Australia.
     vehicle from loss, theft and damage, and comply with all
     legal requirements regarding the safety and maintenance           Cooling off period
     of your motor vehicle.                                            You may cancel the insurance contract up to 14 days after
                                                                       you receive it by calling us or writing to us at one of the
     Legal representation                                              addresses listed on the back page and telling us that you
     We may represent or defend you or any person entitled to          want to cancel it. If you cancel the insurance contract
     cover under this policy in respect of legal liability as we       within 14 days and you have not made any claims, we will
     see fit at any inquest or inquiry or in any action or             return to you all of the premium you have paid us. (To
     proceedings.                                                      cancel at other times, please see “Cancellation by you” on
     Cancellation by you                                               page 42)
     You may cancel this policy at any time, either by telephone
     or in writing. If you cancel this policy, you will be refunded
     the unexpired portion of the premium, less any non-
     refundable government taxes and duties.
     Cancellation by us
     We may cancel this policy at any time where we are
     entitled to do so under the Insurance Contracts Act. If we
     cancel this policy, we will repay the amount of the
     premium paid for the unexpired period of this policy
     calculated from the date of cancellation, less any non-
     refundable government taxes and duties.


                                                                      INSURANCE FOR MOTORING ENTHUSIASTS
Page 42                                                                                                                    Page 43
CONDITIONS APPLICABLE TO YOUR POLICY                                       WHAT TO DO IF YOU HAVE A COMPLAINT
(CONTINUED)


    Your privacy                                                  HOW WE RESOLVE YOUR COMPLAINTS
    Shannons complies with Australia’s privacy laws.                Our goal is to have you as a happy, long-term customer.
    We may communicate your information to organisations to         We want you to be completely satisfied in all your dealings
    whom we outsource certain functions such as claim               with us.
    assessing or mail processing. In these circumstances             Shannons is committed to dealing with our customers by:
    confidentiality agreements apply. On occasion, we may be         • listening carefully to what you tell us,
    obliged to disclose information by law if requested to do
                                                                     • being accurate and honest in telling you about our
    so.
                                                                       products and services,
    For full details of our privacy policy, you can:                 • communicating with you professionally and in plain
   • view it online at shannons.com.au, or                             language,
   • request a copy of our privacy brochure by calling               • resolving any complaints or concerns you have with us.
     13 46 46 or visiting a Shannons branch.
                                                                     If you think we have let you down in any way, or our service
    Shannons likes to keep you informed about our products,          is not what you expect, (even if through one of our sub-
    which may be of interest to you. If you would prefer not to      contractors) please let us know so that we can help.
    receive any promotional material and have not previously
                                                                  HOW TO CONTACT SHANNONS
    told us, then please call 13 46 46.
                                                                  You can contact us:
    Please note that you are able to access any information
                                                                     By phone
    we hold about you.
                                                                     If you have a complaint, please phone 13 46 46. If we are
                                                                     unable to resolve the matter over the phone, we will ask
                                                                     you to put it in writing.
                                                                     By email
                                                                     Send us the full details of your complaint and explain what
                                                                     you would like us to do.
                                                                     Please email to enquiries@shannons.com.au
                                                                     In writing
                                                                     Send us the full details of your complaint and explain what
                                                                     you would like us to do. Please address this information to
                                                                     your nearest Shannons branch. These addresses are
                                                                     listed on the back of this Product Disclosure Statement
                                                                     and Policy Wording.
                                                                     In person
                                                                     Come in and talk to us face to face at your local Shannons
                                                                     branch.




                                                                   INSURANCE FOR MOTORING ENTHUSIASTS
Page 44                                                                                                                     Page 45
WHAT TO DO IF YOU HAVE A COMPLAINT                                  DIRECT DEBIT REQUEST SERVICE AGREEMENT
(CONTINUED)


Rest assured, this is what we will do. If you phone, you will be   1. Our commitment to you
told the name of the most appropriate person to deal with the         This outlines our service commitment to you in respect of
matter. If you write to us, your letter will be directed to the       the Direct Debit Request (DDR) arrangements made
correct person. In either case, your complaint will be handled        between Australian Alliance Insurance Company Limited
by the person who has authority to deal with it. This person          (AAI, us or we) ABN 11006471709 (User lD 367852) and
will consider the facts and contact you to resolve your               you. It sets out your rights and our commitment to you.
complaint as soon as possible, usually within 24 hours of
                                                                      In terms of the DDR arrangements made between yourself
receipt.
                                                                      and us, we undertake to periodically debit your nominated
If this person is not able to resolve the matter to your              account for the agreed amount of the insurance premium.
satisfaction, then it will be referred to a Dispute Resolution
                                                                      Drawing arrangements:
Manager who has the authority to deal with it and you will be
contacted within 5 business days. Should the Dispute                  • If any drawing falls due on a non-business day, your
Resolution Manager still not be able to resolve the matter to           account will be debited on the business day following
your satisfaction, then it will be referred to the Executive            the scheduled drawing date. If you are uncertain when
General Manager. You will be sent our final decision in writing         the debit will be processed, you should contact your
within 15 business days of the date you first made your                 financial institution.
complaint.                                                            • We will give you at least 14 days notice in writing when
                                                                        changes to the initial terms of the arrangement are
IF YOUR COMPLAINT REMAINS UNRESOLVED
                                                                        made.
We expect our procedures will deal fairly and promptly with
                                                                      • We will keep information relating to your nominated
your complaint. However, if you remain dissatisfied, you also
                                                                        financial institution account confidential except where
have external dispute resolution options such as mediation,
                                                                        disclosure is required for the purposes of conducting the
arbitration or legal action.
                                                                        DDR arrangements with your financial institution.
You can also raise certain complaints directly with the               • If you wish to discuss any changes to the initial terms,
Financial Ombudsman Service. This is an independent body                you may contact us on 13 46 46.
and its service is free to you. We agree to accept the
Service’s decision. Again, you have the right to take legal        2. Your rights
action if you don’t accept the Service’s decision.                    Subject to the terms and conditions of your AAI policy:
                                                                      • You may request to alter, defer, stop, suspend or cancel
YOU CAN WRITE TO THEM AT:
                                                                        your DDR arrangements with us. Such advice should be
Financial Ombudsman Service
                                                                        given to us by calling 13 46 46 or in writing and should
GPO Box 3
                                                                        be received by us at least 7 days prior to the scheduled
Melbourne VIC 3001
                                                                        drawing date.
Or you can phone them on 1300 780 808 for the cost of a               • You may suspend or defer your DDR arrangement for a
local call anywhere in Australia.                                       maximum of 14 days, after which your nominated
                                                                        account will be debited for the agreed periodic amount
                                                                        of the insurance premium. The following periodic
                                                                        amount will be debited on the next scheduled drawing
                                                                        date.




                                                                    INSURANCE FOR MOTORING ENTHUSIASTS
Page 46                                                                                                                      Page 47
DIRECT DEBIT REQUEST SERVICE AGREEMENT
(CONTINUED)


   • AAI may refuse to alter, defer, stop or suspend the DDR       4. Disputes (continued)
     arrangement if you have previously made two or more              - within 30 business days (for queries made more than 12
     requests to alter, defer, stop or suspend your DDR                 months after the disputed drawing).
     arrangements with us during the period of insurance.             Note: Your financial institution will ask you to contact us to
   • AAI may also refuse to alter, defer, stop or suspend your        resolve your dispute prior to involving them.
     DDR arrangements if for consecutive instalment periods
                                                                   5. Enquiries
     or for more than two drawings by us, the drawing is
                                                                      Direct all enquiries to us, rather than your financial
     returned or dishonoured by your financial institution.
                                                                      institution. All communication addressed to us should
3. Your commitment to us                                              include your policy number.
   It is your responsibility to ensure that:
                                                                   5. Other information
   • your nominated account can accept direct debits (your            The terms and conditions of your Australian Alliance
     financial institution can confirm this); and                     Insurance policy govern your instalments. The policy
   • on the drawing date there is sufficient cleared funds in         allows us to cancel it after writing to you if drawings by us
     the nominated account; and                                       are dishonoured by your financial institution and your
                                                                      premium is overdue by 30 days or more. Where additional
   • you advise us if the nominated account is transferred or
                                                                      premiums are charged as a result of a request by you for a
     closed,
                                                                      change to your policy, Australian Alliance Insurance may
   • all account holders of the nominated financial institution       debit the nominated account for extra premiums. This
     account agree to the DDR arrangement.                            charge may be in addition to any instalment which may be
    If your drawing is returned or dishonoured by your financial      due in the same month. We will advise you if this occurs.
    institution, we will contact you by telephone, SMS or mail
    within 7 days advising of a redraw date. Any transaction
    fees payable by us in respect of the above may be passed
    onto you. AAI may cancel or refuse to alter, defer, stop or
    suspend your DDR arrangements if you have previously
    made two or more requests to alter, defer, stop or suspend
    your DDR arrangements or if for consecutive instalment
    periods a drawing by us is returned or dishonoured by
    your financial institution.
4. Disputes
   • If you believe that a drawing has been initiated
     incorrectly we encourage you to take the matter up
     directly with us by calling us on 13 46 46.
   • If you do not receive a satisfactory response from us to
     your dispute, contact your financial institution who will
     respond to you with an answer to your query:
          - within 7 business days (for queries made within 12
            months of the disputed drawing), or


                                                                    INSURANCE FOR MOTORING ENTHUSIASTS
Page 48                                                                                                                       Page 49
DEFINITIONS OF IMPORTANT WORDS AND
PHRASES

    Accident means an incident that occurs without intent.         Race track or testing ground means:
    Accessories are items or equipment installed to your           • a road or other surface which is used as a race track or
    motor vehicle that increases your motor vehicle’s value,         testing ground, or
    but does not alter the safety, performance or handling of      • a public road (whether made or unmade) that, for the
    the vehicle. Accessories include but are not limited to          purpose of a race, rally, club day or like event, has
    sound systems, instruments, and interior improvements.           temporarily been closed for use by the public generally.
    Agreed value means the dollar value of your vehicle,           Motor Sport Governing Body means, in the case of cars,
    inclusive of all accessories and modifications as agreed to    the Confederation of Australian Motor Sport Limited
    by us, and shown on your certificate. Your vehicle’s agreed    (“CAMS”) and in the case of motor cycles, Motorcycling
    value is set at the beginning of each period of insurance.     Australia, Motorcycling NSW, Motorcycling Victoria,
                                                                   Motorcycling Queensland, Motorcycling South Australia,
    Address is where your motor vehicle is usually kept when
                                                                   Motorcycling Tasmania, Motorcycling Western Australia
    not being driven.
                                                                   and Motorcycling Northern Territory.
    Certificate is the document outlining the terms and
                                                                   Recreational purposes means your motor vehicle is used
    conditions of your insurance policy. Together with the
                                                                   for driving pleasure, motor vehicle shows and club events.
    Product Disclosure Statement and Policy Wording, your
    current certificate forms your contract with us.               Motor enthusiast club is an organisation (other than
                                                                   motoring organisations such as incorporated companies)
    Collectable caravan means the caravan or campervan
                                                                   for motor vehicle enthusiasts who are passionate about
    described on your certificate which is 30 years of age or
                                                                   particular motor vehicles and motoring activities.
    more that is used for recreational purposes. It includes
    every accessory installed or fitted to the caravan by the      No-claim discount is a discount off your premium. If you
    manufacturer.                                                  have a No-claim discount, it is shown for each motor
                                                                   vehicle on your certificate. The discount for each motor
    Excess means the amount you may be required to
                                                                   vehicle increases each year to a maximum of 65% if you
    contribute towards your claim. We calculate your excess
                                                                   do not make a claim.
    by adding your basic excess, or any excess we have
    applied, to any young driver excess that applies as shown      You will be on the maximum discount after five continuous
    on your certificate.                                           claim free years with us or another insurer provided you
                                                                   have been insured comprehensively for those five years
    Family means the following people who normally live with
                                                                   and have not had any at fault collision claims.
    you:
   • your spouse or partner,                                       Riding apparel means any items of clothing worn
                                                                   specifically for the riding of a motorcycle. These include:
   • your children, parents, grandparents, grandchildren,
                                                                   helmet (including visor and/or radio communications);
     brothers and sisters,
                                                                   gloves; leather jacket and leather pants designed for
   • the children, parents, grandparents, grandchildren,           motorcycle riding; riding boots and any other motorcycle
     brothers and sisters of your spouse or partner.               riding specific gear such as rib braces, spine guards and
                                                                   kneeguards.
                                                                   Generic items of clothing and personal effects not
                                                                   exclusive to motorcycle riding are not covered by this
                                                                   policy.

                                                                  INSURANCE FOR MOTORING ENTHUSIASTS
Page 50                                                                                                                  Page 51
DEFINITIONS OF IMPORTANT WORDS AND
PHRASES (CONTINUED)

    Period of insurance is the duration of time from the start      Uninsured third party refers to a driver whom you are
    date to the end date of your policy as shown on your            able to prove did not have current insurance cover
    certificate.                                                    providing them, or the owner of the third party motor
                                                                    vehicle, cover for damage caused to your motor vehicle at
    Personal effects imeans belongings normally worn or
                                                                    the time of the accident. This does not extend to a driver
    carried by you or a member of your family. Personal effects
                                                                    or owner who had a current insurance policy at the time of
    does not include:
                                                                    the accident, but whose insurer refuses to pay all or part of
   • Cash, credit or debit cards or negotiable documents.           the claim.
   • Electronic organiser, portable computer or similar
                                                                    Motor vehicle means the car or bike described on your
     articles, or portable electronic data storage devices.
                                                                    certificate. It includes every accessory or modification
   • Goods carried in connection with any business or               installed in or fitted to your car or bike by the manufacturer
     occupation.                                                    or by you or any previous owner that we have agreed to
    Modifications are alterations or additions to your motor        cover, and your certificate states that your car or bike is
    vehicle that alters the safety, performance or handling of      modified and/or has accessories. If you have not told us
    your motor vehicle. Modifications include but are not           about any modification or accessory which we would have
    limited to body, exhaust, transmission and suspension.          covered if you had told us about it, you must pay us any
                                                                    additional premium we would have asked for. We will not
    Restricted driver means the cover provided by this policy       cover any accessory or modification that is not legal or is
    is restricted to the person(s) named on your certificate.       not approved by your State’s or Territory’s rules and
    The only exceptions are:                                        regulations.
   • any member of the motor trade who has control or
                                                                    In respect of cover for legal liability, motor vehicle includes
     custody of your motor vehicle for maintenance or repair,
                                                                    a trailer, caravan or mechanically disabled motor vehicle
     or
                                                                    whilst being towed by your car or bike.
   • any employee or agent or a restaurant, hotel, car park or
     similar business that has control or custody of your           Motor sport means any form of motor vehicle or
     motor vehicle for parking purposes.                            motorcycle racing or sport, including, but not limited to;
                                                                    racing, circuit racing, rallying, karting, demonstration,
    Policy means your contract of insurance with us and             pacemaking, reliability or regularity trial, speed time test,
    includes the Product Disclosure Statement and Policy            hill climbing, drifting, drag racing, speedway racing,
    Wording, your certificate and any endorsements.                 motorkhana, khanacross, touring assemblies, observed
    Premium is the amount you pay us for your insurance             section trials, power cruises and off road events such as
    cover. It includes any compulsory government statutory          rock climbing or mud racing.
    charges, levies, duties and taxes where applicable.             Substitute motor vehicle is a motor vehicle you drive
    Total loss means the cost to repair to your motor vehicle is    whilst your motor vehicle is not able to be driven because
    uneconomical, taking into consideration:                        your motor vehicle is unroadworthy or it is being repaired
   • the agreed value,                                              as a result of a claim covered by this policy.

   • the assessed cost of repairs,
   • the assessed salvage value, or
   • the motor vehicle is stolen and not recovered.


                                                                   INSURANCE FOR MOTORING ENTHUSIASTS
Page 52                                                                                                                      Page 53
DEFINITIONS OF IMPORTANT WORDS AND                                                           NOTES
PHRASES (CONTINUED)

     Vehicle usage means the use of your motor vehicles
     shown on your certificate. Vehicle usage covers are
     described in the Policy Wording on pages 24-27 under
     the heading ‘Vehicle Usage Covers’. In addition:
    • Business use which means any motor vehicle which:
          - is registered as a business motor vehicle,
          - or is used for income earning purposes.
    • Private use which means any motor vehicle which is
      used for private purposes.
     You, your means the person or persons named as the
     insured on your current certificate of insurance and that
     person or person’s family. You, your also means:
    • any member of the motor trade who has control or
      custody of your motor vehicle for maintenance or
      repair, or
    • any employee or agent or a restaurant, hotel, car park
      or similar business that has control or custody of your
      motor vehicle for parking purposes.
     We, us, our means Shannons on behalf of Australian
     Alliance Insurance Company Limited.




                                                                 INSURANCE FOR MOTORING ENTHUSIASTS
Page 54                                                                                        Page 55
NOTES




          INSURANCE FOR MOTORING ENTHUSIASTS
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