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AA Mechanical Breakdown Insurance terms and conditions

Congratulations on the purchase of Your vehicle. AA Mechanical Breakdown Insurance (AA MBI) is marketed by MARAC Insurance Limited (referred to in this policy as “AA Warranty”) and underwritten by Vero Insurance New Zealand Limited (“Vero”).

Please take the time to read the policy. It contains information You need to know and understand.

In particular, You should note that the insurance policy may not cover You if You do not follow the vehicle servicing requirements set out.

Having Your vehicle maintained and regularly serviced helps to protect Your investment. For safety purposes You must always maintain a current warrant of fitness and registration. We recommend You practise safe and considerate driving.

Important notices

Definitions

Vero Insurance New Zealand Limited (referred to as “We” “Our” or “Us” in this policy) is the insurer under this contract.

AA Warranty does not have any liability under this insurance policy. “You” or “Your” means the insured person or persons named on the proposal certificate.

Your Contract

Your contract is made up of:

The proposal certificate; and
The policy booklet

Together these documents set out the terms and conditions of Your policy. It is Your responsibility to ensure that all details contained on the proposal certificate are correct.

Insured Components means the list of covered parts contained in this document. Any parts not listed are not covered.

Authorised Repair Facility

These facilities include:

AA Licensed Repairer;
AA Auto Service & Repair;
Other repairers approved by Vero.

Cover provided

The reasonable cost to repair the actual failure of mechanical or electrical insured components unless otherwise excluded following a sudden and unforeseen breakdown that occurs within New Zealand during normal use.

Qualifying vehicles

A. Standard Vehicles

Petrol powered vehicles 12 years old and less having travelled less than 150,000 kms at commencement of cover other than those listed in B and C and not listed in Excluded Vehicles.

B. Special Category Vehicles

Vehicles 12 years old and less having travelled less than 150,000 kms at commencement of cover falling into the following categories:

Turbo and supercharged vehicles
Vehicles manufactured in the USA
Diesel powered vehicles
Hybrid vehicles
Mazda RX8.

C. European Vehicles

Diesel or petrol powered vehicles, manufactured in Europe, 12 years old and less that have travelled less than 150,000 kms at commencement of cover including but not limited to: Alfa Romeo, Audi, BMW, Citroen, Daimler, Fiat, Jaguar, Lancia, Land Rover, Mercedes-Benz, MG, Mini, Opel, Peugeot, Renault, Rover, Saab, Seat, Skoda, Vauxhall, Volvo and Volkswagen.

Excluded vehicles

There is no cover for any of the following vehicles:

Gross Vehicle Mass over 3500 kg;
over 12 years old or have travelled more than 150,000 kms;
powered by engines with more than 8 cylinders;
modified in any way from the manufacturer’s standard specification
manufactured by Aston Martin, Bentley, Ferrari, Jensen, Lamborghini, Lotus, Maserati, Porsche, Rolls Royce or TVR;
BMW M3, M5, & M6 series, BMW 7 series, Mercedes-Benz AMG
used as taxis, rentals, courier vehicles, shuttles, any fare paying passenger vehicle or goods delivery vehicles.

If Your vehicle falls into this category a refund of the unused part of Your paid premium will be made on request.

Excess

You must contribute the amount shown as the excess as the first amount of each unrelated claim. You must pay the excess to the repairer before You collect Your vehicle.

Standard Vehicles $125

Special Category Vehicles $250

European Vehicles $350

What is not covered

We will not pay for:

Repairs that are covered by the manufacturer’s warranty 1. or repairs that are the subject of a manufacturer’s recall or any component design fault or any damage arising from the design fault;
Any fault existing at the commencement of cover and any resulting damage;
Failure of any item not contained in the list of Insured Components;
Damage caused by the failure of a part not included in the list of Insured Components
The reconditioning or replacement of components that whilst worn, have not actually failed;
Servicing and maintenance;
Costs arising from the failure of the cambelt and/or any resulting damage when the cambelt is not replaced in accordance with the manufacturer’s recommendation;
Costs relating to any claim that is not lodged during the policy term;
Any costs whatsoever relating to loss of use of the vehicle;
Costs arising from repairs necessitated by external causes, contamination, perishing, corrosion, rust, accident damage, fire damage, water damage, theft, willful damage, misuse, neglect, faulty repair and/or defective workmanship;
Any costs related to the excessive use and/or burning of oil where no mechanical failure has occurred;
Repairs necessitated by the failure of any plastic components due to gradual deterioration and any resulting damage;
Repairs resulting from incorrect use of fuel, bio fuel, oil, lubricant, coolant or any other fluid. This includes using the wrong octane fuel grade;
Any repairs commenced or carried out without Our approval.

Conditions

You must take all reasonable steps to protect Your vehicle from breakdown and comply with the manufacturer’s servicing, operating and safety recommendations. This information can be found in the owner’s handbook, on the manufacturer’s website or obtained from any authorised service centre.

This policy does not apply if Your vehicle is used in racing competitions, time trials, rallies, speed testing, pace making, reliability trials, any off-road activities, street racing, sustained loss of traction, burn outs or drifting.

If any claim under this policy is supported by any incorrect information or statement or is in any respect fraudulent, then Your claim is not payable and this entire policy automatically terminates from the date that the incorrect statement or fraudulent claim was made to Us.

If You breach any policy term or condition no claim will be payable under this policy. Nothing in this policy affects Our rights to avoid the policy for nondisclosure.

You must comply with the service requirements detailed in this policy. If a claim is made, payment of the unpaid premium will be required before the claim is paid to the repairer.

Cost of parts

We reserve the right to supply new, used or reconditioned parts at Our discretion. If any parts, required for a repair, are unavailable in New Zealand then the most We will pay is the least of:

The manufacturer’s most recent New Zealand list price;
The list price of the closest equivalent part available in New Zealand; or
The cost of having a new part made in New Zealand.

Transfer of MBI

At Our discretion We may permit transfer of this policy to a new owner if You sell the vehicle, provided the premium has been paid in full.

A transfer will not be permitted if the vehicle is sold to or through a motor dealer or trader. A transfer will not be permitted if any claim has been paid under this policy.

To request a transfer please contact Us for a Transfer of Mechanical Breakdown Insurance Request Form. Once You have completed this form return it to Us witha :

Copy of new warrant of fitness or Vehicle Inspection report (if requested);
Copy of receipt of vehicle purchase;
Copy of vehicle service records; and
Transfer fee of $75 (incl GST).

Both You and the person You wish to transfer the policy to must sign the form. There is no refund of premium available.

To request a transfer please apply in writing to:

Vero Insurance New Zealand Limited, PO Box 33 1248, Takapuna, North Shore City 0740 or phone 0800 267 873.

Cancellation

You may cancel your AA MBI policy at any time. We will provide a full refund of premium paid only if You do this within the first 30 days and You have not made a claim under this policy. At any other time We will refund the unused part of Your paid premium (less Our administration fee and any commission paid).

We may cancel this policy at any time by sending a letter to this effect to You at Your last known address or contact. The cancellation will take effect at 4pm on the 7th day after the advice has been sent. We will refund the unused part of Your paid premium (less Our administration fee and any commission paid) upon request.

If paying monthly We will cancel this policy if the monthly payment is not received within 10 working days of the reminder letter being sent.

Vehicle servicing

It is a condition of this policy that You have the Vehicle regularly and punctuallyserviced.

Petrol Vehicles must be serviced at least every 15,000 kms or 12 months, whichever comes first, from the policy commencement date or as per the manufacturer’s specification.

Diesel Vehicles must be serviced at least every 10,000 kms or 12 months, whichever comes first, from policy commencement date or as per the manufacturer’s specification.

All Vehicle servicing must be carried out by a recognised Service Facility. As part of the service the following must be checked and attended to as required:

change engine oil and oil filter
check all fluid levels and condition
check air filter
check all belts, replace if necessary. Please note cambelts must be replaced as specified by the Vehicle manufacturer
check cooling system including inhibitor and hoses
check turbo oil feed
check automatic transmission oil
check warrant of fitness
check CV joints and boots
check braking system including brake fluid condition
check steering and suspension systems.

The cost of servicing is at Your expense.

All servicing invoices will be required in the event of a claim. Please retain all invoices for future reference.

List of insured components

Air Bags – and componentry.

Air Conditioning – Cooling Fan, Compressor, Condenser, Evaporator, Thermo Switch. (Excluding Gas)

Automatic Transmission – Casing and all internal components.

Braking System – ABS Compressor & Modulator, ABS Valves, Calipers, Master Cylinder, Servo, Wheel Cylinders, Wheel Sensors.

Cooling System – Cooling Fan Thermo Switch, Engine Cooling Fan Motors, Heater Core, Oil Cooler, Radiator, Thermostat & Housing, Viscous Fan, Water Pump. (Excluding Corrosion).

Differential – (inc. Limited Slip Differential), Bearings & Internal Bushes, Casing, Clutches, Crown Wheel Carrier, Crown Wheel & Pinion, Extension Shafts, Gears, Half Shafts, Shims, Spider Gear Shaft, Transfer Box, 4 Wheel Drive - Bearings, Casing, Gears, Selectors, Shafts, Viscous Coupling.

Drive Assembly – Constant Velocity Joints, Drive Shafts, Hubs, Final Drive Unit, Free Wheeling Hubs, Shafts, Bearings & Bushes, Transfer Gears, Transfer Casing.

Electrics – Alternator, Alternator Voltage Regulator, Coils, Distributor, ECU Electronic Ignition, Electronic Ignition Module, Engine Management Computer, Fuel Injection Computer, Reluctor & Impulse Sensor, Heater Fan Motor, Indicator Unit ( Relay Only), Knock Sensors, Rear Screen Heater, Starter Motor, Transmission Computer, Washer Motors, Windscreen Wiper Motors.

Engine – Ancillary Shaft, Balance Shafts, Cambelt, Camshaft, Camshaft Followers, Connecting Rods & Pins, Cylinder Block, Cylinder Head, Cylinder Head Gasket, Cylinder Liners, Crankshaft, Distributor Drive Gear, Distributor Drive Shaft, Fly Wheel and Ring Gear, Hydraulic Tappets, Manifolds, Oil Filter Housing, Oil Pressure Relief Valve, Oil Pump, Pistons and Rings, Pulleys, Push Rods & Tappets, Shell Bearings & Internal Bushes, Timing Belt Tensioner, Timing Chain Tensioner, Timing Gears & Chain, Rocker Shafts, Valves & Guides, Valve Seat Inserts, Valve Springs.

Fuel System – Air Flow Meter, Carburettor, Fuel Gauge Sender Unit, Fuel Pump, Fuel Flow Sensor, Fuel Governor, Fuel Injection Pump, Injectors, Lift Pumps, Throttle Body.

Manual Transmission – Casing and all internal components.

Overdrive – Casing, Gears, Internal Bearings & Bushes, Shafts.

Prop Shaft – Constant Velocity Joints, Bearings, Couplings, Universal Joints.

Seals & Gaskets – other than those listed above seals and gaskets are only covered where they form part of a repair to an Insured Component.

Steering – Drop Arm, Power Steering Pump, Rack & Pinion, Rear Steering Rack & Pinion, Reservoir & Pressure Pipes, Speed Sensor, Steering Box, Steering Column Universal Joint.

Suspension – Anti-Roll Bar, Coil Springs, Leaf Springs, Stub Axle, Upper & Lower Wishbones, Upper & Lower Ball Joints, Wheel Bearings, Hub Assembly, Trailing Arms.

Turbo Unit & Supercharger – Bearings, Housing, Rotor, Shaft, Turbine, Wastegate.

NOTE – Any parts not listed above are excluded from cover.