Notice to Policyholders – Commercial Vehicles Policy

Commercial Vehicles Policy

We are pleased to inform you that with effect from 1^st May 2021 the Commercial Vehicles policy, has been updated. The wording aims to clarify the cover that is provided and to improve, in certain areas, the level of protection provided. The changes therefore affect the definitions of the terms used, the policy limits and the exclusions.

The following is a description of the changes made.

Description of Changes

Changes to cover:

1. We have included cover for loss or damage to audio and in-car entertainment equipment and Satellite Navigation Systems installed by the vehicle manufacturer up to a maximum value of €350.
2. The policy now clearly states that the insured has an obligation to inform us of any changes in the risk.
3. The policy limit on the payment of compensation to a third party for the cost of a replacement vehicle has been removed.
4. The limit for “Removal & Protection” cover for when the vehicle is disabled in an accident has been increased from €125 to €350 per claim.
5. Excesses per claim have been reduced as follows:
   • Third Party Liability – from €115 to €100 and from €55 to €50
   • Theft – from €235 to €200
6. The Excess for own damage has been revised to €350, Є200 & €100 from €350, €235 & €55 respectively.
7. Cover for accidental breakage of windscreen has been included up to a limit of €1,000 per claim.  No excess applies and No Claims Discount is not affected a claim is made under this section only.
8. There is now the option to buy Replacement Vehicle cover when one is unable to use the insured vehicle due to an accident covered by the insured policy.  The additional premium is €20, and the cover is limited to €350 per policy period. This cover is intended for small commercial vehicles such as vans only, so it is limited to vehicles with a carrying capacity of less than 3.5T and where the policyholder is an individual (i.e. not a company).
9. The cover for costs incurred to obtain roadside assistance due to a breakdown when using the vehicle outside of Malta (in another EU state) is increased to €1,000 per claim at the same additional premium.
10. Under the own damage section we will now also cover accessories while they are kept in a private garage up to the maximum amount payable.
11. The policy also clarifies that we have the right to give up our liability and obligations under it if we pay out the maximum amounts under the liability section (the “limits of indemnity”)
12. A new sub-section has been included ‘If the insured vehicle cannot be repaired in Malta’ outlining the procedure to be adopted.

Policy exclusions

These new exclusions have been added mainly to provide more clarity as to the cover being provided by the policy.

Exclusions under Section 1 – Loss or Damage to the Vehicle

1. The policy excludes any liability, loss or damage:
   • Caused by computer failure or malfunction.
   • Deterioration, or any loss which happens gradually.
   • If the vehicle is stolen when it was left unlocked or with its windows or sunroof open, when the keys or ignition device have been left in or on the vehicle, or when the vehicle is left unattended with the engine running.
   • To any trailer or vehicle and their contents while being towed by the insured vehicle.
   • Where possession of the vehicle is gained by someone using deception or trickery or by fraudulent means.
   • If the vehicle is confiscated or requisitioned by the Government or a Public Authority
   • Caused by the incorrect fuelling of the vehicle.
   • Caused by insects or vermin.
2. Other exclusions are:
   • That part of the cost of repair or parts replacement that improves the condition of the vehicle over its condition before the loss or damage took place.
   • Any costs indirect costs incurred following loss or damage to the vehicle, such as loss of earnings or additional travel costs, are not covered.
   • Storage costs incurred while the vehicle is awaiting repairs are not covered.

General Exclusions

No cover is provided:

1. If the vehicle driven by any person including the insured unless the driver holds or has held a licence to drive the vehicle insured and is not disqualified from holding or obtaining such a licence and holds any special permits or certificates required by law or regulation to drive the motor vehicle.
2. If the vehicle:
   • is not registered in Malta unless it is in the process of being registered as provided by section 6 of this policy;
   • is not normally based in Malta;
   • has been previously certified as unable to be repaired by an approved motor surveyor or other expert unless the insured are able to present satisfactory evidence that the vehicle was repaired and made roadworthy.
3. If any insured person fails to observe the policy terms and conditions
4. In respect of liability caused in connection with a communicable disease that can be transmitted from one person to another.
5. In respect of liability, loss or damage caused by a “Cyber act or incident”, i.e. where the vehicle’s computer system is hacked and controlled illegally, or where errors or omissions render the computer system inoperable or inaccessible.

Changes to definitions

1. In order to clarify the geographical scope of the policy, which provides automatic third-party liability cover when the vehicle is used outside Malta in another EU member state, as well as in EEA states being Norway, Iceland, Switzerland and Liechtenstein, we have included a definition of
   • “Third Country” – a country which is not an EU member state or one of the above mentioned ones.
   • “Designated States” – EU member states and the above four countries
2. Hazardous goods have been defined.  If the insured intends to carry such goods we need to be informed as the policy cover would otherwise not apply
3. The definition of “Spouse/Partner” has been extended to include live-in partners.
4. We have removed reference to vehicles used for self-drive purposes as we have a dedicated policy to be used for these vehicles.

Changes to Policy Conditions

1. The payments made under compulsory insurance legislation and regulations and rights of recovery condition now states that ‘If any payment is made under the own damage section of this policy, we will have a right to recover such costs from the driver’.
2. A new condition ‘Direct Right of Action’ has been included which states that a third party may contact us directly to claim compensation for loss or damage allegedly caused by the insured, in which case we have the right to handle this as a claim even if the insured has not reported it to us.
3. A new condition ‘Submission to Foreign Court or Tribunal’ has also been added, it is made it clear that the insured cannot accept to submit to a judgement of a foreign court or tribunal without our permission.

A new “Service Information” section has been added which describes our obligations and our rights in relation to the protection of data that we hold about the insured.

Important

It is the policy wording document that defines the insurance in precise terms and remains the legally binding document. Should you have any difficulties with or questions about the revised wording please contact us.

The policy wordings may be found by here: Motor Policy wordings