Commercial Vehicle Policy Module

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This policy document explains your insurance cover, your responsibilities and how to make a claim. Please read it carefully and keep it in a safe place.

Your insurance contract consists of this policy document and your most recent policy schedule.

Your policy document and policy schedule are designed to be read together.

When read together, your policy schedule and policy document outline your cover, which is the insurance we agree to provide you. This cover is governed by the limits, terms and conditions set out within this policy document and your policy schedule.

Your policy schedule takes priority if the information in this policy document and your policy schedule is different.

We agree to provide cover as long as you have paid your premium.

We have used the headings in this policy document to help guide you. These headings are purely descriptive in nature. You should not rely on headings to interpret the policy

If your policy schedule shows ‘Type of cover: Comprehensive’, the most we will pay for any one event is the total of:

If your policy schedule shows ‘Type of cover: Third Party, Fire & Theft’, the most we will pay for any one event is the total of:

If your policy schedule shows ‘Type of cover: Third Party’, the most we will pay for any one event is the total of:

The following extensions are automatically included in your cover.

The following extensions only apply if your policy schedule shows the insured vehicle has ‘Type of cover: Comprehensive’.

The following extension only applies if your policy schedule shows the insured vehicle has ‘Type of cover: Third Party’ or ‘Third Party, Fire & Theft’.

If any of the following extensions or memoranda apply, they will be shown on your policy schedule under ‘Additional extensions’.

Unless otherwise stated these extensions and memoranda are subject to all provisions of this policy module.

If there is any conflict or inconsistency between this extension or memoranda, only the more particular extension or memorandum will apply.

This section explains what you need to do when you make a claim.

We will choose to settle your claim in any of the following ways:

This section explains what your policy does not cover. These exclusions apply to all sections of this policy.

Intentional damage

This policy does not cover any loss, damage or liability, directly or indirectly caused by, arising from or involving acts or omissions which are intentional, reckless, deliberate, malicious or have criminal intent by you, anyone covered by this policy or any person with a financial or ownership interest in the insured vehicle or in your business.

Existing damage

This policy does not cover an event which happened before your policy started.

Driving under the influence or leaving the scene of an accident

This policy does not provide cover if the person using the insured vehicle at the time of the event:

This does not apply if the driver has stolen the insured vehicle and you have made a complaint to the police.

Breach of licence or driving conditions

This policy does not provide cover when the insured vehicle is being used or driven by any person who at the time of the event:

However, we will not apply this exclusion if the driver has stolen the insured vehicle and you have made a complaint to the police.

Faulty workmanship

This policy does not cover loss, damage or liability directly or indirectly caused by, arising from or involving poor, defective or faulty workmanship, design or manufacture, structural or inherent defect.

Wear, tear or gradual damage

This policy does not cover any loss, damage or liability, directly or indirectly caused by, arising from or involving any of the following:

This policy does not cover any loss, damage or liability, directly or indirectly caused by, arising from or involving gradual deterioration, blockage, or depreciation of the insured vehicle.

Undamaged property

This policy does not cover any loss, damage or liability associated with the cost of painting, repairing or replacing an area, set or part of the insured vehicle that was not damaged in the event, or that is not related to your claim.

This policy also does not cover any loss, damage or liability arising because paint, features, fabrics, or other parts of the insured vehicle cannot be matched.

Consequential loss or costs you incur

This policy does not cover any of the following:

This exclusion includes, but is not limited to, the following:

Tyre damage

This policy does not cover loss or damage to tyres caused by the application of brakes or by punctures, cuts or bursts. However, we will pay for damage to tyres caused by malicious damage by third parties.

Weight damage

This policy does not cover loss or damage to any property (including any road) arising from vibration caused by the insured vehicle, or the weight of the insured vehicle including the weight of the load carried by the insured vehicle.

Water damage

This policy does not cover any loss, damage or liability, directly or indirectly caused by, arising from or involving water damage due to defective or blocked drainage systems, leaking seals or gaskets.

Mechanical or electrical breakdown

This policy does not cover loss or damage to, or failure of, mechanical, electrical or electronic parts of the insured vehicle or any damage resulting directly or indirectly from a mechanical, electrical or electronic failure or breakdown.

Pest damage

This policy does not cover any loss, damage or liability, directly or indirectly caused by, arising from or involving insects, pests, vermin, rodents, or possums.

Excesses and other insurance

This policy does not cover your excess on this or any other policy.

This policy does not provide cover where cover is provided by other insurance or by a warranty or guarantee. We will not contribute towards any claim made under any other policy.

Entanglement

This policy does not cover damage to any insured vehicle that is an agricultural implement or machine arising from ingestion or entry of any foreign body or object into that insured vehicle, except where you have selected the Additional extension – 'Entanglement’.

Vehicle use

This policy does not cover the insured vehicle when it is being used for any of the following, unless we have agreed in writing:

Overloaded or unsafe vehicles

This policy does not cover the insured vehicle if it is:

Cover will still apply if you can prove that you and the driver were unaware of such condition, your lack of knowledge was reasonable, and you had taken all reasonable steps to maintain the insured vehicle.

Pollution or contamination

This policy does not cover any loss, damage or liability caused by, arising from, or involving, pollution or contamination.

Accident Compensation Act 2001

This policy does not cover any money that could be recovered from the Accident Compensation Corporation under the Accident Compensation Act 2001, future amendments to the Act, or any replacement Act.

This policy also does not cover any money that cannot be recovered from the Accident Compensation Corporation because of any of the following:

Confiscation

This policy does not cover any loss, damage or liability connected in any way with the insured vehicle being confiscated or seized by anyone with a financial interest in the insured vehicle.

This policy does not cover any loss, damage or liability connected in any way with confiscation, destruction, acquisition, designation, or decision by government or public or local authorities.

Electronic data

This policy does not cover damage, cost or liability, directly or indirectly caused by, arising from, contributed to by, or in any way connected to any of the following:

Cyber events

This policy does not cover damage, cost or liability, directly or indirectly caused by, arising from, contributed to by, or in any way connected to a cyber act or cyber incident. However, we will not apply this exclusion for any of the following:

Communicable disease

This policy does not cover any damage, cost, any other sum of any kind, or liability, directly or indirectly caused by, arising from, contributed to by, or any way connected to any of the following:

Any other sum of any kind also includes any increased or additional costs or expenses of a claim that is otherwise covered by this policy.

Communicable disease means any disease that can be transmitted by any substance or agent, directly or indirectly from one organism to another, including any:

Communicable disease also includes any Infectious Disease or Quarantinable Disease as defined in or declared under the Health Act 1956, future amendments to the Act, or any replacement Act. This exclusion applies, regardless of any other contributing cause or event that happens at the same time or some other time.

War, terrorism or nuclear incidents

This policy does not cover any loss, damage or liability, directly or indirectly caused by, arising from, or involving:

Unlawful or otherwise prohibited to insure

This policy does not cover any loss, damage, personal injury, liability or prosecution of any type, directly or indirectly caused by, or arising from any act, event, occurrence or thing against which insurance is either:

Some parts of this policy can cover other parties as well as you. You and any person covered by this policy must meet all the following conditions and obligations to benefit from any cover under this policy. We will not pay any claim where any person covered under this policy does not meet any of the terms and conditions.

Nothing in this policy affects the common law rights of either party, including our right to avoid your policy for non-disclosure. This means your policy will be treated as if it never existed and any claim payments must be returned to us.

You must disclose material information and give us full and accurate statements

Your policy with us relies on the accuracy of the information supplied by you, or any person on your behalf. You must advise us of all material information before the start of this policy and before each renewal or variation of the policy.

You must also give us full and accurate information and answer honestly, correctly and completely all questions we ask you. Failure to do so entitles us to deny any claim and to cancel this and any other policy you have with us from the date the information should have been provided.

You must tell us if there is a change in circumstances

You must tell us immediately of any change in circumstances that has happened after the start of this policy or that you know is going to happen and which may increase any of the following:

As a result of these changes in circumstances, or if you fail to tell us immediately of any change in circumstances, we may:

You must avoid loss, damage or liability

You must take all reasonable care to avoid doing anything that could result in a claim, and at your cost and expense, must take reasonable steps to:

You must not transfer your legal rights

You must not assign or transfer, or attempt to assign or transfer this policy or your interest in this policy to any other party.

Paying premiums

If your premium is overdue, we may refuse to make any claim payments until your overdue premiums have been paid.

If there is a change to your premium which remains unpaid, or you do not pay the full amount of your premium, we may reduce the period of insurance in line with the proportion of the unpaid premium.

If your premium remains unpaid for 28 days, your policy will automatically be cancelled and you will not be sent a cancellation notice.

Sending notices

We will send any notice, policy schedule or other written documents to your last known physical, postal or email address.

Noting interested parties

By noting an Interested Party on your policy schedule, you are authorising us to disclose your information to them. If your policy schedule shows an Interested Party, we may partially or fully settle your claim by making a payment to them, fulfilling our obligations under this policy. Anyone noted as an Interested Party is not covered by this policy and cannot make a claim under this policy.

You are jointly insured

All those listed as insured are jointly insured and are considered to act with the expressed authority of each other. This means that if anyone does or fails to do anything so that there is no cover, there will be no cover for any of the insureds.

Each insured has the right to:

Currency

All amounts referred to in your policy are expressed in New Zealand currency and include Goods and Services Tax (GST). We will pay all claims in New Zealand currency.

Governing law

This policy is governed by New Zealand law, and the New Zealand courts have exclusive jurisdiction over any legal proceedings about it.

AA Insurance repairers

A repairer whom we have selected to repair vehicles on our behalf.

An item kept in or on the insured vehicle that is not directly related to the function of the insured vehicle. This includes but is not limited to any of the following:

Agreed Value

The Agreed Value shown on your policy schedule. This is the amount determined when your policy begins and at each renewal. The Agreed Value is reviewed at each renewal and may be adjusted as the value of the insured vehicle depreciates with age and use.

You can discuss the value with us at any time. By paying your premium, you have accepted the Agreed Value.

The business and occupation described on your policy schedule.

Computer system

Any of the following systems:

A computer system also includes any system, output or data storage device that is similar to those mentioned above.

Cyber act

One or more unauthorised, malicious or criminal acts involving accessing, using, processing, or operating of any computer system. This also includes any threat or hoax of these acts.

Cyber incident

Any of the following:

Sudden, unforeseen, accidental physical loss and sudden, unforeseen, accidental physical damage that occurs at a specific place and time.

Electronic data

Facts, concepts and information converted to a form useable for communications, display, distribution, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment.

Any of the following while working for any insured in connection with the business:

A sudden, accidental and unforeseen occurrence that causes loss or damage that you do not intend or expect.

The person, company, or entity listed as ‘Who’s insured’ on your policy schedule domiciled in New Zealand.

Insured vehicle

The vehicle shown on your policy schedule.

Market Value

The reasonable retail value of the item immediately before the event occurred, as determined either by us or by an independent valuer.

Material information

Any information which might influence the decision we make as to whether to provide insurance and if so on what terms and at what premium.

Any change or alteration made to the insured vehicle beyond the manufacturer’s original specification. This includes but is not limited to any of the following:

Natural disaster

Earthquake, tsunami, volcanic activity, hydrothermal activity, geothermal activity, subterranean fire, or fire resulting from any of these.

Natural disaster damage

Any of the following:

On-road costs

Vehicle registration fees or road user charges.

Period of insurance

When your policy starts, to when it ends. It is shown on your policy schedule, unless the policy is ended earlier.

Personal injury

Any of the following:

Persons insured

Any of the following:

Policy schedule

The most recent policy schedule we have sent you which includes, who’s insured, business description, business address and the policy modules you have selected.

Reparation

An amount ordered by a New Zealand Court under Section 32 of the Sentencing Act 2002 to be paid to the victim of an offence. Reparation does not include:

Subsidiary company

Any of the following:

Any type of machine on wheels or on self-laid tracks made or intended to be propelled by other than manual power and any trailer made or intended to be drawn by any such machine while attached to it.