MG Owners Club Warranty Plan Booklet

underwritten by: pinnacle insurance plc

mechanical breakdown insurance

This policy provides you with the Mechanical Breakdown insurance described in this document provided you have paid the premium for the insured vehicle . This insurance will remain in force from the commencement date for the period of cover shown in the proposal form and is subject to the terms and conditions set out below.

Please read this policy in conjunction with your proposal form so that you understand what cover is provided and you know what you should do in the event of a claim.

You must remember to have your vehicle regularly serviced. Please have the service record in this booklet stamped by the servicing agent and keep this booklet in a safe place.

signed on behalf of pinnacle insurance plc …………………………………director(s)

1. definitions

In this policy , except where the context otherwise requires:

“administrator” means [ ];

“commencement date” means the delivery date of the insured vehicle, which is the commencement date shown in the proposal form ;

“insured vehicle” means the motor vehicle detailed and shown in the proposal form , subject to the excluded vehicles set out in Section 6. (i);

“mechanical breakdown” means the unexpected and sudden failure of the part/component, as set out in Section 4., other than normal wear and tear;

“period of insurance” means theselected period of months until the vehicle reaches 36 months or 36000 miles from date of the vehicle’s first registration; or for vehicles over 36 months and under 60 months or 60,000 miles until the vehicle reaches 96 months or 96,0000 miles as stated on the proposal form and starting from the commencement date ;

“policy” means the terms and conditions of this mechanical breakdown insurance, set out in the document;

“premium” means the single payment by you to the dealer to ensure cover under this policy ;

“proposal form” means the document attached to this policy that sets out the details of your cover;

“we, us, our” means Pinnacle Insurance plc;

“you, your” means the person shown in the proposal form who has purchased the insured vehicle through a dealer.

The singular shall include the plural and vice versa.

2. service requirements

(i) It is your responsibility to ensure that the insured vehicle is serviced within 500 miles or 21 days of the manufacturer’s recommended service schedule following the insured vehicle’s purchase.

(ii) If you have details of when the last service was carried out, such as a correctly completed entry in the insured vehicle’s service booklet or an original service invoice, you may have the vehicle serviced at the manufacturer’s recommended service interval from that last service.

(iii) If no details are available to confirm that the insured vehicle is within the manufacturer’s recommended service limits then the first service must be carried out at the latest within 6 months or 6,000 miles (whichever is sooner) from the date or mileage at the commencement date , but preferably at the first available opportunity.

(iv) If you do not follow these servicing standards, your policy will be rendered invalid.

(v) The insured vehicle must be serviced by a VAT registered garage and must consist of a minimum of:

(a) a change of oil and oil filter;
(b) a check of oil levels in the gearbox and differential, and top up where necessary;
(c) a check of coolant level and anti-freeze/inhibitor strength, and top up where necessary; and
(d) a check of the timing belt (if fitted), renew if necessary.

(vi) Please note: Any proof of service must be supported by an original invoice and you must retain such proof of the service for our inspection in the event of a claim.

(vii) Warning:

Timing Belt – (otherwise known as camshaft drive belts)
Please make sure if your insured vehicle is fitted with a timing belt, it is inspected and in good condition and that it is changed in line with the manufacturer’s recommendations. If the timing belt breaks it can cause serious and unnecessary engine damage.

We will not be liable for any claims caused by the failure of a worn-out timing belt.

3. what is covered?

(i) We will indemnify you during the period of insurance for:

(a) the cost of replacing or repairing any of the parts detailed in Section 4. due to mechanical breakdown ; and
(b) the associated labour to repair the mechanical breakdown ,
up to the maximum claims limit specified on your proposal form , but always subject to a maximum of the purchase price of the insured vehicle .

(ii) Continental Use

The breakdown repair cost element of this policy described in 3. (i) is extended to cover the insured vehicle whilst in any country of the EEC and EFTA for a period of not more than 60 days in aggregate in any 12 month period.

You may authorise repair work and claim reimbursement in accordance with the terms of the policy subject to a receipted invoice, service history and completed claim form being forwarded to the administrator . No prior authorisation is required for this benefit, however, original documents and supporting evidence must be provided to our reasonable satisfaction.

(iii) The aggregate sum of all claims payable under this policy shall not exceed the purchase price of the insured vehicle specified on your proposal form .

The limit of liability shall be restricted to the equivalent UK rate of labour charges and parts at the date of a claim.

4. which parts are covered?

Components Covered

All original manufacturer fitted mechanical and electrical components of the insured vehicle are covered against mechanical breakdown, except those listed below.

Timing Belts are covered providing that the last due change of belt has taken place as specified by the manufacturer’s service schedule (proof required). Damage subsequently caused if the timing belt has not been changed as specified by the manufacturer is specifically excluded, as set out in Section 2. (vii).

Exhausts systems and catalytic converters are covered for mechanical failure but not as a result of corrosion, accidental damage or damage due to incorrect fuel.

Brake shoes, pads and discs are covered if the damage is a result of a covered component failing.

Please Note: These components are covered against mechanical or electrical failure due to sudden and unexpected circumstances only. The replacement of oil filters, lubricants, anti-freeze, spark plugs, pipes, hoses and fluids is included provided the replacement is necessitated by the failure of an insured component and the vehicle is not within 1,000 miles of its next due service. External oil leaks are specifically excluded unless the replacement requires the removal of a major unit.

What is Not Covered

(i) Those regarded as service items or components which are expected to require periodic replacement, such as distributor cap, rotor arm, condensers, points, high tension leads, spark plugs, filters.

(ii) Wheels and tyres; wiper blades and arms; auxiliary drive belts;; batteries; lamps and bulbs; fuses; wiring connections and looms;, GPS receivers, in-car game consoles, televisions; radio aerial masts and motors; bodywork and trim, paintwork; all weather-strips and seals; damage due to water ingress; doors; locks; handles; hinges, check straps; all glass including; upholstery including seat runners and seat adjustment mechanisms; interior furnishings and fittings; sunroof panels; cosmetic finishers; general oil leaks or the adjustment of any component.

important :
The administrator will issue a claims reference number and it is essential that this is obtained from the administrator before repairs commence.

5. extra benefits

The extra benefits listed below will also be provided during the period of insurance if any part covered under this policy fails and you are stranded with your insured vehicle .

(ii) car hire

We will pay up to £30 per day (including VAT) towards the cost of a hire car. You are only entitled to a hire car if the insured vehicle is being repaired under this policy and if you have permission in the form of an authority number from the administrator .

The duration of the hire contribution is limited to the period the insured vehicle is in the workshop undergoing repair, subject to a maximum of 7 days. NOTE: The first twenty-four hours after breakdown is not covered by this benefit. After the first twenty-four hours, any time awaiting the delivery of parts for the repair is not included in the maximum 7 day limit.

Conditions

(i) The hired vehicle must be of a comparable type and rented from a bona fide rental operator.
(ii) This cover is limited to hiring of a hire vehicle in the United Kingdom.
(iii) For the reimbursement of car hire charges a receipted rental agreement must be submitted to the administrator with the completed claim form.
(iv) Our liability is limited to the reimbursement of the hire cost only, subject to the limit stipulated above, and you are responsible for the cost of fuel, insurance and any other ancillary cost
(iii) overnight accommodation

In the event of an emergency breakdown due to the mechanical breakdown of one of the components covered within this policy , and you are more than 25 miles from your intended destination, we will pay for one nights bed and breakfast in a hotel for you and up to three passengers; subject to policy limit of £50 per person with a total amount payable of £200.

please note : Permission in the form of an authority number must be obtained from the administrator.

Important note:

Car hire and overnight accommodation costs will constitute part of the total claim and will be limited to the maximum claims limit specified on your proposal form .

6. exclusions and limitations

(i) This policy shall not cover:
(a) vehicles used for hire or reward (for example taxis, self-drive hire or driving instruction vehicle);
(b) vehicles used for road racing, rallying, pace-making, speed testing or any other competitive event; or
(c) vehicles modified other than in accordance with the manufacturer's specifications; customised or kit cars.

(ii) Our liability under this policy is limited to the maximum claim limit specified on your proposal form.
(iii) We shall not be liable for any claims arising directly or indirectly from or as the consequence of:

(a) any faults developed prior to the commencement date (provided they were evident at the time) and/or which have not been completely rectified;

(b) any modification or substitution of parts with non-standard components or equipment not approved by the insured vehicle’s manufacturer (unless cover for such items is agreed to beforehand by the administrator );
(c) the odometer having been altered or disconnected or is inoperative resulting in the mis-representation of the insured vehicle’s actual mileage;
(d) overheating, corrosion or the gradual reduction in operating performance commensurate with the age and mileage of the insured vehicle . This includes, but is not limited to:
(i) the gradual loss of engine compression necessitating the repair of valves or rings; and
(ii) the gradual increase in oil consumption due to the normal operation of the insured vehicle ;

(e) the use of a grade of fuel not recommended by the insured vehicle’s manufacturer or the inadequate or improper use of antifreeze protection;
(f) timing belt failure or breakage, unless checked and replaced in line with the manufacturers recommended service schedule;
(g) routine servicing, maintenance or repair of the insured vehicle ;
(h) abuse, negligence or wilful damage or failure to follow the appropriate servicing requirements of the insured vehicle ;
(i) subjecting the insured vehicle to a load greater than that permitted by the insured vehicle’s manufacturer or road traffic legislation;
(j) any road traffic accident or collision;
(k) any parts or components thereof subject to recall, repair or replacement by the manufacturer or attributable to a manufacturer’s design defect;
(l) war, invasion, act of foreign enemy, terrorism, hostilities (whether war has been declared or not), civil war, rebellion, revolution, insurrection, military or usurped power, riot, civil commotion, confiscation or detention by customs or other officials or authorities, malicious intent or vandalism,
(m) ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste, from the combustion of nuclear fuel or from radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof;
(n) fire, self-ignition, lightening, earthquake, explosion, frost, storm, tempest, flood, water damage, theft or attempted theft, aircraft or other aerial devices or articles dropped therefrom.

(iv) We shall not be liable for the cost of:
(a) fuel, chemicals, antifreeze, hydraulic fluids, grease or oils, any ancillary components or parts not listed in Section 4. “ what parts are covered ? “ in respect of each level of cover;
(b) investigatory or remedial work commenced before authorisation is obtained from the administrator . NOTE: Where the inspection of a concealed part is necessary to determine the validity of a claim, costs necessarily incurred in revealing such part for inspection will be met by us only if repair to or replacement of that part is eventually authorised and is subject to a valid claim. Otherwise the cost of inspection must be borne by you .
(c) routine servicing or repair.

7 How To Claim

Important
All repairs under the warranty are limited to parts and labour rates previously agreed with your supplying dealer and with a network of approved repairers. If you choose to appoint any other repairer any additional charges to the agreed rates will be your responsibility.

Should it be necessary for you to make a claim the following procedure must be adhered to:
(i) Ensure that no work of any description is carried out on the insured vehicle without the administrator’s express authorisation. It must be clearly understood that costs for any other work started or completed before authorisation has been given will be your responsibility and will automatically invalidate any claim under this policy .
(ii) Contact the MG Owners Club or the administrator for the location of the nearest approved repairer on 0870 752 7066 within 7 days of the mechanical breakdown occurring and make the following available to them:

(a) this policy document; and

(b) receipted proof of servicing.

If the cause of the mechanical breakdown is unknown and the inspection of a concealed part is necessary to determine the cause, the dealer must obtain your express authorisation before carrying out any investigatory work (See Section 6. (iv) above).

(iii) Once the cause of the mechanical breakdown is known, the dealer or repairer needs to contact the administrator and check that repairs can be covered under this policy, obtain a claim reference number and the administrator’s authorisation for repair work to commence. If the dealer/repairer is unable to make the repair, permission will be given, by the administrator , for you to have another repairer undertake the repair. NOTE: If you have already paid for the repair, it is your responsibility to contact the administrator .
(iv) The administrator may authorise repairs immediately; call for other estimates; nominate another repairer; investigate the claim further and may appoint an independent assessor to inspect the insured vehicle . It shall be clearly understood and agreed that in the event of any dispute arising as to the extent of our liability the decision of the independent assessor shall be final and binding.
(v) Following the completion of repairs, the dealer/repairer/ you must send the following to the administrator :
(a) a fully completed claim form;
(b) the repairer’s invoice which must quote the claim reference number. The invoice must clearly show to whom the administrator should pay, and give full details of the repair including all parts used in the authorised repair, labour and VAT.
(c) evidence of the vehicle service history from the commencement date of the plan; and

(vi) All documentation must be sent to:

The Administrator,
Car Care Plan Ltd.,
Jubilee House,
Mid Point Business Park,
Thornbury,
West Yorkshire,
BD3 7AG

Telephone: 0870 752 7066

Claims must be received within 30 days of the repairs being completed, otherwise they cannot be accepted. Claims received after this will be subject to review in terms of the reason for delay and it shall be at our reasonable discretion to accept such claims.

(viii) Where you have agreed to the dealer/repairer forwarding the documents on your behalf, you have also agreed that any benefit paid under this policy for the cost of repairs will paid directly to that dealer/repairer. Where you claim on your own behalf and produce conclusive evidence that the dealer/repairer has been paid for their work, then any benefit paid under this policy for the cost of repairs will be paid directly to you . The dealer/repairer forwarding the documents on your behalf will be deemed to have authority to receive payment direct for the cost of repairs, unless you claim on your own behalf and produce evidence that the dealer/repairer has been paid for their work.
(ix) Any additional costs not covered by, or in excess of, the terms of your policy or VAT where you are registered, must be settled direct with the dealer/repairer at the time of repair.

Please Note: VAT on repairs covered by the policy is not reimbursed where you are VAT registered.

8. general terms and conditions

(i) If you do not follow the Servicing Requirements described in Section 2. your policy will be rendered invalid.
(ii) You are covered only for the mechanical breakdown of parts described in this polic.
(iii) You are covered up to the limits shown on the proposal form or any lower limits that may be specified within this policy .
(iv) The administrator may insist that your repairer use exchanged or reconditioned parts to affect a repair.
(v) If the part to be replaced has some wear and tear or the part improves the general condition or value of the vehicle, you may be required to pay a specific amount towards the improvement. The administrator will provide full details upon request.
(vi) No repairs may be carried out under the policy until the administrator provides a claims reference number for those repairs. No liability shall exist in respect of parts supplied, repairs carried out or any other claim under this policy other than claims in accordance with the procedures set out in this policy document.
(vii) We reserve the right to provide replacement parts and to carry out repairs under this policy or to arrange for their provision by other persons.
(viii) The amount of time allowed for labour will be in line with the manufacturer’s standard repair time. We reserve the right to examine the vehicle, to subject it to expert independent assessment to determine the amount to be paid in respect of a claim. This will be subject to the claim limits and the terms and conditions of your policy .
(ix) This policy is not cancellable and shall not acquire a surrender value.
(x) The parties to this policy are free to choose the law applicable to it. Without agreement to the contrary English Law will apply. If you live in Scotland, Wales, Northern Ireland, the Channel Islands or the Isle of Man, you will be entitled to commence legal proceedings in your local courts.
(xi) You may assign your interest under this policy to any subsequent owners of the insured vehicle by writing to the administrator , provided the new owners are the registered keeper of the vehicle with the DVLA.
(xii) No liability will be accepted for any losses covered under an accidental damage or motor insurance policy or for any damage cause by a fire or accident. This policy does not provide cover for passengers/other people or for physical injury to you or the aforementioned.
(xiii) We or the administrator may declare void any policy where the proposal form does not correctly show the exact vehicle type, model, age and mileage. If you give the incorrect information on the proposal form , your policy may be void, or at the administrator’s option, allowed to continue subject to the payment and receipt of any additional premium that may be required to reflect the correct information.
(xiv) If we make any payments to you as a result of your fraud, recklessness or negligence you will no longer be entitled to any benefits under this policy and we may demand that any payments you have received from us are paid back. We may take legal action against you for the return of such monies and we may demand that you reimburse us for any investigation costs reasonably incurred.

enquiries and complaints

While it is always our intention to provide a first class standard of service, if you do have any concerns regarding your insurance cover, please address them to:

Customer Relations Manager,
Cardif Pinnacle
Pinnacle House
A1 Barnet Way
Borehamwood
Hertfordshire
WD6 2XX

Should you remain dissatisfied with the outcome of any internal enquiries, you have the right to refer your complaint to:

The Financial Ombudsman Service (FOS)
South Quay Plaza
183 Marsh Wall
London
E14 9SR

This procedure will not prejudice your right to take legal proceedings. However, please note that there are some instances when the FOS cannot consider complaints.

A leaflet detailing our full complaints/appeals process is available from us on request.