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 14/07/09
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 2-8
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 9-30
questions or let us know about anything that might affect your Our agreement with you 9
policy, you can call us on 13 46 46. In addition, you can Motor Vehicle Insurance 9
manage your policies online with our ‘My Insurance’ web Comprehensive motor vehicle insurance cover 10
service at shannons.com.au. Third party only (legal liability) motor vehicle
insurance cover 12
HOW TO USE THIS PRODUCT DISCLOSURE STATEMENT Uninsured Third Party 14
AND POLICY WORDING Additional benefits 16
We have designed this Product Disclosure Statement and Vehicle usage covers 24
Policy Wording so that it is easy for you to see what is General exclusions applicable to your policy 28
covered, and what is not covered. In most areas of the Policy Claim Information 32-40
Wording, we have put “WHAT IS COVERED” on the left hand Excesses 32
page of the booklet, and “WHAT IS NOT COVERED” on the Making a claim 34
right hand page of the booklet. This document should be read Paying a claim 38
in conjunction with your certificate. Important Information 41-49
To fully understand your cover, you should read the full Policy Conditions applicable to your policy 41
Wording including any limitations and exclusions that may Cancellation by you or by us 42
apply. Please keep this document in a safe place. You may The General Insurance Code of Practice 43
need to refer to it from time to time. Cooling off period 43
Your privacy 44
NOTICE How we resolve your complaints 45
If more than one person is included as an insured under this Direct Debit Request service agreement 47
policy, a failure or wrongful action by one of those persons Definitions of important words and phrases 50-54
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 14/07/09

INSURANCE FOR MOTORING ENTHUSIASTS

Page 1
PRODUCT DISCLOSURE STATEMENT
Please read this Product Disclosure Statement and Policy
Wording carefully so that you are aware of the risks, limits,
cover and other significant features associated with this policy.
SIGNIFICANT FEATURES AND BENEFITS
The Shannons motor vehicle insurance policy offers two types
of cover to choose from. The cover you choose will be shown
on your certificate.
Here is a brief summary of the significant benefits available
under each type of cover. For full details you must read the
entire Policy Wording which starts on page 9.
COMPREHENSIVE MOTOR VEHICLE INSURANCE provides
cover for the following:
• Agreed value accidental loss or damage to your motor
vehicle for the agreed value of your motor vehicle as
shown on your certificate.
• Choice of repairer a ‘must have’ for any special vehicle.
• Lifetime guarantee on repairs authorised repairs
guaranteed for life.
• Paying by instalments you may pay your premium by
regular instalments by direct debit at no extra charge.
• Modified vehicles modifications and non-standard
accessories to your motor vehicle are covered if we
agree and are shown on your certificate.
• Towing costs reasonable towing costs for your motor
vehicle following damage covered by this policy.
• Salvage purchase your choice to purchase the salvage
of your motor vehicle.
• Windscreen one windscreen or window breakage
replacement during the period of insurance without your
basic excess or no claim bonus being effected.
• Legal liability damage to someone else’s property
caused by or in connection with your motor vehicle, and
for which you are legally liable – up to $20,000,000 plus
legal costs.
Page 2
• Vehicle usage covers including Laid Up cover, Club
Plate cover, and other limited motor vehicle usage
covers as described in the Policy Wording on pages 24-
27.
• Additional benefits as described in the Policy Wording
on pages 16-23.
THIRD PARTY ONLY (LEGAL LIABILITY) MOTOR VEHICLE
INSURANCE provides cover for the following:
• Legal liability damage to someone else’s property
caused by or in connection with your motor vehicle, and
for which you are legally liable – up to $20,000,000 plus
legal costs.
• Damage by uninsured third parties up to $5,000 cover
for your motor vehicle if you have an accident that is not
your fault, providing the other party was not insured and
you can supply the other party’s full details.
NOTE THAT FOR ALL TYPES OF COVER
• Your motor vehicle is covered whilst in private use unless
we agree to cover the use of your car in connection with
your occupation or business.
• An excess may be payable for a claim under the policy.
For more information see page 32.
ABOUT THE INSURER
Australian Alliance Insurance Company Limited ABN 11 006
471 709, Australian Financial Services Licence No. 235011
(AAI), has prepared this Product Disclosure Statement and is
the insurer of policies effected by Shannons Limited ABN 14
099 650 996 (Shannons).
Shannons is the authorised representative and wholly owned
subsidiary of AAI, and acts as AAI’s agent under authority
given to it by AAI to enter into contracts of insurance on
behalf of AAI as insurer and to deal with and settle claims on
behalf of AAI. AAI can be contacted by writing to Level 4, 440
Collins Street, Melbourne 3000.
INSURANCE FOR MOTORING ENTHUSIASTS
Page 3
PRODUCT DISCLOSURE STATEMENT
(CONTINUED)
SERVICES PROVIDED BY SHANNONS
Shannons is authorised by AAI to provide the following
financial services:
• Provide personal advice in respect of the authorised
insurance policies listed below.
• Quote or arrange the issue of authorised insurance
policies listed below.
• Agree on policy variations requested by you of
authorised insurance policies listed below.
• Handle and settle claims.
AUTHORISED INSURANCE POLICIES
• Shannons Motor Vehicle Insurance
• Shannons Home & Contents Insurance
If we recommend a particular insurance policy to you, or
arrange for the issue of an insurance policy, we will also
provide you with a Product Disclosure Statement. This will
contain information to help you make an informed decision
about the policy.
Shannons does not receive any commissions or benefits from
AAI for giving advice or for arranging the issue of the
authorised insurance policies. AAI as insurer will receive
100% of the premiums paid for the policy. Shannons has
engaged Regional Development Officers to promote
Shannons in regional Australia. A Regional Development
Officer is renumerated by Shannons for these services at a
rate of up to $20 for each insurance quotation provided to
customers who have contact with or are allocated to the
Regional Development Officer.
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.
Page 4
WHO NEEDS TO TELL US
It is important that you understand you are answering our
questions in this way for yourself and anyone else whom you
want to be covered by the policy.
IF YOU DO NOT TELL US
If you do not answer our questions in this way, we may
reduce or refuse to pay a claim, or cancel the policy. If you
answer our questions fraudulently, we may refuse to pay a
claim and treat the policy as never having worked.
KEEPING YOUR DETAILS UP TO DATE
You need to tell us immediately if:
• any details on your certificate are incorrect or have
changed.
• any changes as to how often you use your motor vehicle,
or to the way you use your motor vehicle.
• anyone who is expected to drive your motor vehicle has
over the past 5 years had changes to their
driving/insurance record, and/or criminal history relating
to fraud, theft, arson, malicious or wilful damage.
• you change your address or the place where you keep
your motor vehicle.
• any modifications and/or accessories are fitted to your
motor vehicle.
EXCLUSIONS APPLICABLE TO YOUR POLICY
Your policy may not provide you with cover in certain
circumstances. Further information about the circumstances
in which exclusions under this policy may apply is contained
on pages 28-30.
INSURANCE FOR MOTORING ENTHUSIASTS
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’ and is in
institution addition to your basic excess”.
Multi-Vehicle discount Having more than
one motor vehicle YOUNG DRIVER EXCESS
currently insured on An excess of $400 will apply to drivers who are under the age
the same Motor
Vehicle Insurance of 25 and are listed on your certificate. An excess of $1,500
Policy will apply to drivers who are under the age of 25 and are not
Trailer cover Insuring a trailer with listed on your certificate. The young driver excess is in
a value greater than addition to your basic excess.
$750
RACING EXCESS
Your premium also takes into account our obligation to pay
This excess will be shown on your certificate. We will apply
any relevant compulsory government charges, taxes or levies
this excess if you have the Racing endorsement shown on
(eg. stamp duty, GST and fire services levy) in relation to your
your certificate and is in addition to your basic excess.
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
PRODUCT DISCLOSURE STATEMENT
(CONTINUED)
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.
Page 8
POLICY WORDING
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 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
✔ We will cover you for your legal liability if your motor
vehicle or substitute motor vehicle is involved in an
accident during the period of insurance that causes:
• death or bodily injury to other people, or
• damage to someone else’s property.
We will only pay this if you, or any person who has your
permission to use your vehicle, are legally liable.
Your legal liability extends to cover:
• goods falling accidentally from your motor vehicle or
substitute motor vehicle.
• goods falling accidentally from a trailer or caravan
attached to your motor vehicle or substitute motor
vehicle.
• the process of loading or unloading your motor vehicle,
substitute motor vehicle, or trailer or caravan attached to
your motor vehicle or substitute motor vehicle.
✔ We will also pay any legal costs which you incur with our
written consent in defending any legal action brought
against you.
Page 12
WHAT IS NOT COVERED
✗ Any amount in excess of $20,000,000 under this policy or
any other policy issued to you by us.
✗ The general exclusions on pages 28-30.
✗ Loss or damage to a substitute motor vehicle.
✗ Liability arising out of the use of a substitute motor vehicle
if the claim is covered by another insurer or insurance
policy.
✗ Liability for death or bodily injury to you or any person who
normally lives with you.
✗ Liability incurred in circumstances where the driver of your
motor vehicle has been refused motor vehicle insurance
during the previous five years.
✗ Liability for loss or damage to your own property, or
property which is in your possession, custody or control,
or the property of a person who normally resides with you.
✗ Any penalties or fines.
✗ 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 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
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.

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, and
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,
• 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.
✔ 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 26 Page 27
GENERAL EXCLUSIONS APPLICABLE TO YOUR
POLICY
YOU ARE NOT COVERED UNDER ANY SECTION OF
THIS POLICY FOR LOSS, DAMAGE OR LIABILITY
CAUSED BY, ARISING FROM OR INVOLVING THE
FOLLOWING:
✗ Your motor vehicle or any trailer or caravan being towed by
your motor vehicle being used otherwise than in
accordance with the vehicle usage as shown on your
certificate.
✗ A driver who was not licensed or authorised to be driving
your motor vehicle unless your motor vehicle was being
driven by a person without your consent.
✗ Your motor vehicle being driven or in the control of a
driver:
• under the influence of alcohol or drugs, and the alcohol
or drugs contributed to the accident, or
• whose breath or blood alcohol level was above the legal
limit in the state or territory where the accident occurred,
or
• who refused to take a legal test for alcohol or drugs.
We will not refuse your claim if you can satisfy us you had
no reason to suspect that alcohol or any drug affected the
driver.
✗ Your motor vehicle is being driven or used in any form of
Motor Sport or while being used in preparation, practice or
familiarisation for Motor Sport (unless cover has been
provided under the Racing endorsement – and then only
in respect of damage to your motor vehicle subject to the
terms and limitations set out under the Racing
endorsement on page 26).
✗ Your motor vehicle or a trailer or caravan attached to your
motor vehicle was carrying either passengers or a load in
excess of that for which it was designed or is permitted by
law, unless you prove that the loss, damage or liability was
not contributed to or caused by that excess load or excess
number of passengers.
Page 28
✗ Your motor vehicle is present at or upon a race track or
testing ground, or at or upon land immediately adjacent to
a race track or testing ground, unless
• you prove that your motor vehicle is there solely for a
purpose other than driving or riding or use in a Motor
Sport event to be conducted, being conducted at or
upon the race track or testing ground, or
• cover has been provided under the Racing endorsement
which will be subject to the terms and limitations set out
under the Racing endorsement on page 26.
✗ Your motor vehicle or trailer or caravan being towed by
your motor vehicle was being used whilst in an unsafe,
unroadworthy or damaged condition unless you can prove
the loss, damage or liability was not contributed to or
caused by that condition.
✗ Your motor vehicle or trailer or caravan being used in
connection with the motor trade for experiments, tests,
trials or demonstration purposes.
✗ Your motor vehicle or trailer or caravan being used while
unregistered.
✗ Your motor vehicle being used by any person who is not a
named driver, if your certificate shows that your policy is
restricted to a named driver(s) only.
✗ Your motor vehicle was being used to carry passengers for
hire or reward (unless Wedding hire cover is shown on
your certificate).
✗ Your motor vehicle or trailer or caravan was being used
outside Australia.
✗ The lawful seizure or repossession of your motor vehicle or
trailer or caravan.
✗ Any contract or undertaking entered into by you without
our written authority.
✗ The use, misuse, or existence of nuclear weapons or the
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 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
When you make a claim under this policy, you may be
required to pay more than one excess in respect of your
claim. When one or more excesses apply to your policy,
those amounts will be shown on your certificate.
We will tell you when an excess is payable.
The types of excess you may have to pay are detailed below.
BASIC EXCESS
This is the minimum amount that you may be required to
contribute towards your claim. The amount of your basic
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
and is in addition to your basic excess.
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.
Page 32
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.
An excess for under 25 year old drivers will not apply to:
• damage caused by hail, flood, storm or other natural
disasters.
• windscreen claims.
• classic vehicles aged 30 years or more.
• damage if your vehicle is being used by a driver in the
case of an extreme medical emergency.
• learner drivers who are accompanied by a fully licensed
driver 25 years of age or more.
• damage caused by an employee of a hotel, restaurant,
service station or garage using your vehicle for the
purpose of parking, overhaul, upkeep or repair.
OTHER EXCESSES MAY APPLY
We may apply an excess to your policy which differs from the
basic and theft excesses due to your insurance history,
driving record, motor vehicle type or for other reasons.
We will tell you if we need to apply an excess that varies from
the basic and theft excesses before you agree to purchase or
renew your insurance or when we agreed in writing to provide
cover to you for a particular use, event or circumstance. The
amount of any excess that we apply will be shown on your
certificate or will be notified to you in writing.
The excess that we apply will replace the basic excess.
INSURANCE FOR MOTORING ENTHUSIASTS
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
instalments
If you are paying the premium for this policy by
instalments, you should be aware that if any instalment is
not paid on time and remains overdue for:
• 14 days (or more) we will not pay claims that occur on or
after the 14th day,
• a month (or more) we will cancel this policy from when
the instalment was due for payment.
For further information on paying by instalments, please
refer to the Direct Debit Request Service Agreement on
page 47.
Fraudulent claims
If any claim made under this policy is made fraudulently,
we may, subject to the Insurance Contracts Act, refuse
payment of the claim, or cancel your policy, or do both.
Reasonable protection and maintenance
You must take all reasonable steps to protect your motor
vehicle from loss, theft and damage, and comply with all
legal requirements regarding the safety and maintenance
of your motor vehicle.
Legal representation
We may represent or defend you or any person entitled to
cover under this policy in respect of legal liability as we
see fit at any inquest or inquiry or in any action or
proceedings.
Cancellation by you
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
Notification of change
You must notify us as soon as possible if any change is
made to your motor vehicle which might affect the nature
of the risk covered by this policy.
The General Insurance Code of Practice
Shannons believes it is important that insurance
companies meet high performance and service standards.
We fully support the General Insurance Code of Practice.
The Code sets the standards of customer service to be
provided by the insurance industry. It covers matters such
as purchasing insurance, claims handling and dispute
resolution.
The Code is the general insurance industry’s promise to
be open, fair and honest in the way it deals with
customers.
You can obtain more information about the Code from
your local Shannons branch or the Insurance Council of
Australia.
Cooling off period
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
addresses listed on the back page and telling us that you
want to cancel it. If you cancel the insurance contract
within 14 days and you have not made any claims, we will
return to you all of the premium you have paid us. (To
cancel at other times, please see “Cancellation by you” on
page 42)
Page 43
CONDITIONS APPLICABLE TO YOUR POLICY
(CONTINUED)
Your privacy
Shannons complies with Australia’s privacy laws.
We may communicate your information to organisations to
whom we outsource certain functions such as claim
assessing or mail processing. In these circumstances
confidentiality agreements apply. On occasion, we may be
obliged to disclose information by law if requested to do
so.
For full details of our privacy policy, you can:
• view it online at shannons.com.au, or
• request a copy of our privacy brochure by calling
13 46 46 or visiting a Shannons branch.
Shannons likes to keep you informed about our products,
which may be of interest to you. If you would prefer not to
receive any promotional material and have not previously
told us, then please call 13 46 46.
Please note that you are able to access any information
we hold about you.
Page 44
WHAT TO DO IF YOU HAVE A COMPLAINT
HOW WE RESOLVE YOUR COMPLAINTS
Our goal is to have you as a happy, long-term customer.
We want you to be completely satisfied in all your dealings
with us.
Shannons is committed to dealing with our customers by:
• listening carefully to what you tell us,
• being accurate and honest in telling you about our
products and services,
• communicating with you professionally and in plain
language,
• resolving any complaints or concerns you have with us.
If you think we have let you down in any way, or our service
is not what you expect, (even if through one of our sub-
contractors) please let us know so that we can help.
HOW TO CONTACT SHANNONS
You can contact us:
By phone
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 45
WHAT TO DO IF YOU HAVE A COMPLAINT
(CONTINUED)
Rest assured, this is what we will do. If you phone, you will be
told the name of the most appropriate person to deal with the
matter. If you write to us, your letter will be directed to the
correct person. In either case, your complaint will be handled
by the person who has authority to deal with it. This person
will consider the facts and contact you to resolve your
complaint as soon as possible, usually within 24 hours of
receipt.
If this person is not able to resolve the matter to your
satisfaction, then it will be referred to a Dispute Resolution
Manager who has the authority to deal with it and you will be
contacted within 5 business days. Should the Dispute
Resolution Manager still not be able to resolve the matter to
your satisfaction, then it will be referred to the Executive
General Manager. You will be sent our final decision in writing
within 15 business days of the date you first made your
complaint.
IF YOUR COMPLAINT REMAINS UNRESOLVED
We expect our procedures will deal fairly and promptly with
your complaint. However, if you remain dissatisfied, you also
have external dispute resolution options such as mediation,
arbitration or legal action.
You can also raise certain complaints directly with the
Financial Ombudsman Service. This is an independent body
and its service is free to you. We agree to accept the
Service’s decision. Again, you have the right to take legal
action if you don’t accept the Service’s decision.
YOU CAN WRITE TO THEM AT:
Financial Ombudsman Service
GPO Box 3
Melbourne VIC 3001
Or you can phone them on 1300 780 808 for the cost of a
local call anywhere in Australia.
Page 46
DIRECT DEBIT REQUEST SERVICE AGREEMENT
1. Our commitment to you
This outlines our service commitment to you in respect of
the Direct Debit Request (DDR) arrangements made
between Australian Alliance Insurance Company Limited
(AAI, us or we) ABN 11006471709 (User lD 367852) and
you. It sets out your rights and our commitment to you.
In terms of the DDR arrangements made between yourself
and us, we undertake to periodically debit your nominated
account for the agreed amount of the insurance premium.
Drawing arrangements:
• If any drawing falls due on a non-business day, your
account will be debited on the business day following
the scheduled drawing date. If you are uncertain when
the debit will be processed, you should contact your
financial institution.
• We will give you at least 14 days notice in writing when
changes to the initial terms of the arrangement are
made.
• We will keep information relating to your nominated
financial institution account confidential except where
disclosure is required for the purposes of conducting the
DDR arrangements with your financial institution.
• If you wish to discuss any changes to the initial terms,
you may contact us on 13 46 46.
2. Your rights
Subject to the terms and conditions of your AAI policy:
• You may request to alter, defer, stop, suspend or cancel
your DDR arrangements with us. Such advice should be
given to us by calling 13 46 46 or in writing and should
be received by us at least 7 days prior to the scheduled
drawing date.
• You may suspend or defer your DDR arrangement for a
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 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.
Accessories are items or equipment installed to your
motor vehicle that increases your motor vehicle’s value,
but does not alter the safety, performance or handling of
the vehicle. Accessories include but are not limited to
sound systems, instruments, and interior improvements.
Agreed value means the dollar value of your vehicle,
inclusive of all accessories and modifications as agreed to
by us, and shown on your certificate. Your vehicle’s agreed
value is set at the beginning of each period of insurance.
Address is where your motor vehicle is usually kept when
not being driven.
Certificate is the document outlining the terms and
conditions of your insurance policy. Together with the
Product Disclosure Statement and Policy Wording, your
current certificate forms your contract with us.
Collectable caravan means the caravan or campervan
described on your certificate which is 30 years of age or
more that is used for recreational purposes. It includes
every accessory installed or fitted to the caravan by the
manufacturer.
Excess means the amount you may be required to
contribute towards your claim. We calculate your excess
by adding your basic excess, or any excess we have
applied, to any young driver excess that applies as shown
on your certificate.
Family means the following people who normally live with
you:
• your spouse or partner,
• your children, parents, grandparents, grandchildren,
brothers and sisters,
• the children, parents, grandparents, grandchildren,
brothers and sisters of your spouse or partner.
INSURANCE FOR MOTORING ENTHUSIASTS
Page 50
Race track or testing ground means:
• a road or other surface which is used as a race track or
testing ground, or
• a public road (whether made or unmade) that, for the
purpose of a Motor Sport event, has temporarily been
closed for use by the public generally.
Motor Sport Governing Body means, in the case of cars,
the Confederation of Australian Motor Sport Limited
(“CAMS”) and in the case of motor cycles, Motorcycling
Australia, Motorcycling NSW, Motorcycling Victoria,
Motorcycling Queensland, Motorcycling South Australia,
Motorcycling Tasmania, Motorcycling Western Australia
and Motorcycling Northern Territory.
Recreational purposes means your motor vehicle is used
for driving pleasure, motor vehicle shows and club events.
Motor enthusiast club is an organisation (other than
motoring organisations such as incorporated companies)
for motor vehicle enthusiasts who are passionate about
particular motor vehicles and motoring activities.
No-claim discount is a discount off your premium. If you
have a No-claim discount, it is shown for each motor
vehicle on your certificate. The discount for each motor
vehicle increases each year to a maximum of 65% if you
do not make a claim.
You will be on the maximum discount after five continuous
claim free years with us or another insurer provided you
have been insured comprehensively for those five years
and have not had any at fault collision claims.
Riding apparel means any items of clothing worn
specifically for the riding of a motorcycle. These include:
helmet (including visor and/or radio communications);
gloves; leather jacket and leather pants designed for
motorcycle riding; riding boots and any other motorcycle
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.
Page 51
DEFINITIONS OF IMPORTANT WORDS AND
PHRASES (CONTINUED)
Period of insurance is the duration of time from the start
date to the end date of your policy as shown on your
certificate.
Personal effects means belongings normally worn or
carried by you or a member of your family. Personal effects
does not include:
• Cash, credit or debit cards or negotiable documents.
• Electronic organiser, portable computer or similar
articles, or portable electronic data storage devices.
• Goods carried in connection with any business or
occupation.
Modifications are alterations or additions to your motor
vehicle that alters the safety, performance or handling of
your motor vehicle. Modifications include but are not
limited to body, exhaust, transmission and suspension.
Restricted driver means the cover provided by this policy
is restricted to the person(s) named on your certificate.
The only exceptions are:
• 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.
Policy means your contract of insurance with us and
includes the Product Disclosure Statement and Policy
Wording, your certificate and any endorsements.
Premium is the amount you pay us for your insurance
cover. It includes any compulsory government statutory
charges, levies, duties and taxes where applicable.
Total loss means the cost to repair to your motor vehicle is
uneconomical, taking into consideration:
• the agreed value,
• the assessed cost of repairs,
• the assessed salvage value, or
• the motor vehicle is stolen and not recovered.
INSURANCE FOR MOTORING ENTHUSIASTS
Page 52
Uninsured third party refers to a driver whom you are
able to prove did not have current insurance cover
providing them, or the owner of the third party motor
vehicle, cover for damage caused to your motor vehicle at
the time of the accident. This does not extend to a driver
or owner who had a current insurance policy at the time of
the accident, but whose insurer refuses to pay all or part of
the claim.
Motor vehicle means the car or bike described on your
certificate. It includes every accessory or modification
installed in or fitted to your car or bike by the manufacturer
or by you or any previous owner that we have agreed to
cover, and your certificate states that your car or bike is
modified and/or has accessories. If you have not told us
about any modification or accessory which we would have
covered if you had told us about it, you must pay us any
additional premium we would have asked for. We will not
cover any accessory or modification that is not legal or is
not approved by your State’s or Territory’s rules and
regulations.
In respect of cover for legal liability, motor vehicle includes
a trailer, caravan or mechanically disabled motor vehicle
whilst being towed by your car or bike.
Motor sport means any form of motor vehicle or
motorcycle racing or sport, including, but not limited to;
racing, circuit racing, rallying, karting, demonstration,
pacemaking, reliability or regularity trial, speed time test,
hill climbing, drifting, drag racing, speedway racing,
motorkhana, khanacross, touring assemblies, observed
section trials, power cruises and off road events such as
rock climbing or mud racing.
Substitute motor vehicle is a motor vehicle you drive
whilst your motor vehicle is not able to be driven because
your motor vehicle is unroadworthy or it is being repaired
as a result of a claim covered by this policy.
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

Page 56 Page 57