Archived Notice to Policyholders – Collectors’ Vehicles Policy

Collectors’ Vehicles Policy

We are pleased to inform you that with effect from 1^st May 2021 the Collectors’ vehicle 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.

Description of Changes

Changes to cover:

1. We have clarified the Jurisdiction Clause of the policy, which determines which court judgements are valid in terms of the cover provided.  We have also made it clear that the insured cannot accept to submit to a judgement of a foreign court or tribunal without our permission under the ‘Submission to Foreign Court or Tribunal’ condition.
2. The policy now clearly states that the insured has an obligation to inform us of any changes in the risk.
3. The complaints procedure has been updated.
4. The limit on paying compensation to a third party for the cost of a replacement vehicle has been removed.
5. The limit for “Protection & Removal” cover for when the vehicle is disabled in accident has been increased from €125 to €350 per claim.
6. Excesses (per claim) under the Loss or damage section have been changed as follows:
   

1. The Excess for third party liability has been reduced from €115 to €100 and from €55 to €50.
2. The Theft excess has been reduced to €200 from €235.
3. The limit on medical expenses cover per claim has been increased from €250 to €500.
4. Section 5 which describes the cover when taking the insured vehicle outside Malta has been reworded to make the cover provided clearer.
5. The policy now 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”).
6. New sub-section ‘If the insured vehicle cannot be repaired in Malta’ has been included outlining the procedure to be adopted.
7. The mileage limit, in any one period of insurance on the insured vehicle has increased from 1000miles (1600kms) to 2000kms.

Policy exclusions

In most cases these new exclusions have been added 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 loss or damage:
   • Relating to deterioration, wear and tear and any damage that happens gradually.
   • Caused by computer failure or malfunction.
   • 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, if the hood or roof is left down in a convertible, 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. The policy does not cover liability for loss or damage to a vehicle or trailer being towed by the insured vehicle.
3. No cover applies if the damage to the vehicle is caused deliberately by the insured or anyone insured under the policy.
4. We do not cover that part of the cost of repair or parts replacement that improves the condition of the vehicle over its condition before the accident.
5. Any costs indirect costs incurred following loss or damage to the vehicle, such as loss of earnings or additional travel costs, are not covered.
6. Storage costs incurred while the vehicle is awaiting repairs are not covered.

Exclusions under Section 2 – Liability to Others

1. Loss or damage due to pollution or contamination caused by the insured vehicle, if this is due to a gradually operating cause is excluded.

General Exclusions

No cover is provided:

1. If the vehicle is carrying hazardous goods.  The insured can however carry up to two 25kg gas cylinders and the policy cover will not be affected.
2. If the vehicle
   • driven by or is in the charge of any person to whom the insured vehicle has been hired;
   • driven by or is in the charge of 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 or is not complying with the terms and conditions on their licence.
   • driven by or is in the charge of any person including the insured if at the time of driving the driver:
     • is found to be over the limit prescribed by law for alcohol;
     • is driving whilst unfit through drink or drugs, except for drugs taken under medical supervision and not for the treatment of drug addiction; or
     • fails to provide a sample of breath, blood or urine when required to do so without lawful reason.
   • This exclusion applies irrespective of whether or not;
     • the insured were aware of the condition of the driver; or
     • the insured gave consent to the driver to use the car.
   • We will not, however, withdraw cover if the vehicle is vehicle is in the custody or control of a member of the motor trade for the purposes of maintenance or repair, or of a hotel or restaurant or car parking service or car valeting service or if the liability, loss or damage was caused as a result of theft.
     • is not registered in Malta;
     •  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. In respect of liability caused in connection with a communicable disease that can be transmitted from one person to another
4. 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. Since the policy can be used both for private cars as well as motorcycles, , we have replaced the word “car” by “vehicle” throughout the policy.
2. The Protection and Compensation Fund Regulations (L.N. 403.13) has been included under the definition ‘Legislation’.
3. 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 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
   • “Territorial Limits” – Malta or another country as defined in section 5 (If the insured take the insured vehicle abroad) of this policy or as may be extended by endorsement.
4. ‘Hazardous goods’ have been defined. 
5. The definition of “Spouse/Partner” has been extended to include live-in partners.
6. We have added a definition of “Trailer”.

Changes to conditions

1. A new condition ‘Direct Right of Action’ has been included which states that a third party may contact is 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.

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