ABRAXAS GAP TERMS AND CONDITIONS

COMBINED GAP TERMS & CONDITIONS - WHICH INCLUDE DETAILS OF YOUR RIGHT TO CANCEL COVER

DEFINITIONS

In this Policy the following expressions shall have the following meanings:

'Administrator' means Abraxas Insurance Administration Services Ltd PO Box 520, Bristol, BS34 9BW, who acts on behalf of the Insurer. Abraxas Insurance Administration Services Limited is authorised and regulated by the Financial Conduct Authority with FCA number 308702. Abraxas Insurance Administration Services Limited is registered in England and Wales with company number 02928787 and whose registered office is at One Glass Wharf, Bristol, BS2 0ZX.

'Date of Loss' means the date of the incident occurring to the Insured Vehicle which results in the Motor Insurance, or Third Party’s Insurance paying a claim for Total Loss.

'Eligible Vehicle' means a vehicle specified on the Certificate of Insurance, and listed in Glass’s Guide (Industry standard vehicle price guide) and principally used in the United Kingdom.

'Early Settlement Balance' means the net balance payable to the Finance Company at the date of Total Loss less any rebates in respect of credit insurance but excluding arrears and associated fees.

'Finance Agreement' means the agreement between the Insured and the Finance Company (excluding Contract Hire and finance lease agreements) arranged by the Supplying Dealer for the purchase of the Insured Vehicle but excluding any secondary schedule that may be noted in the Finance Agreement.

'Finance Company' means any Finance Company or other lender with whom the Insured has agreed a loan or credit agreement through the Supplying Dealer.

'Insured' or 'Policyholder' is each individual or company specified on the Certificate of Insurance who/which is purchasing an Eligible Vehicle, has applied and been accepted for cover under this Policy and has paid the Premium (and has not cancelled during any cooling off period).

'Insured Value' means the greater of:-

a) the value of the Insured Vehicle (excluding contents) at the Date of Loss as assessed by the insurers of the Motor Insurance, or Third Party’s Insurance, or;

b) the value of the Insured Vehicle (excluding contents) as at the Date of Loss by reference to Glass's Guide Retail Transacted value and adjusted, if the Administrator considers it necessary to request an assessors report, due to improvements on the Insured Vehicle's options or accessories.

In the event of a Total Loss the Administrator and Insurer are unable to negotiate the settlement offered by the Motor Insurance, or Third Party’s Insurance.

'Insured Vehicle' means an Eligible Vehicle purchased by the Insured being the vehicle specified on the Certificate of Insurance.

'Insurer' means MAPFRE ASISTENCIA Compañía Internacional de Seguros y Reaseguros Sociedad Anonima who is authorised by Dirección General de Seguros y Fondos de Pensiones and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of regulation by the Financial Conduct Authority and Prudential Regulation Authority are available on request. MAPFRE ASISTENCIA Compañía Internacional de Seguros y Reaseguros Sociedad Anonima is incorporated and registered in the Kingdom of Spain and registered as a foreign company in the United Kingdom with company number FC021974, acting through its UK branch with branch number BR008042 and whose principal office is at Alpha House, 5th Floor, 24A Lime Street, London, EC3M 7HS.

'Loan' means the sum of money borrowed by the Insured under the terms of the Finance Agreement which has been arranged by the Supplying Dealer for the purchase of the Insured Vehicle at the Start Date.

'Motor Insurance' means a comprehensive policy of motor insurance issued by an authorised UK motor insurer which insures against accidental or malicious damage (including fire and theft) to the Insured Vehicle and which is maintained in the name of the Insured or a nominated/authorised driver throughout the Period of Insurance.

'Negative Equity' means any outstanding debt transferred from a previous vehicle.

'Net Invoice Price' means the price paid by the Insured for the Insured Vehicle including all factory fitted accessories, deducting any discount given (including and not limited to finance deposit allowance, cashback or any government grant allowance) and excluding dealer fitted accessories and extras, road fund licence, new vehicle registration fee, fuel, paintwork and/or upholstery protection kits, insurance premiums (including the Premium), warranty premiums and any such associated costs and any Negative Equity.

The maximum Net Invoice Price must not exceed the maximum amount as specified on the Certificate of Insurance.

'New Vehicle' means an Eligible Vehicle purchased by the Policyholder and the Policyholder being the first registered owner of the Insured Vehicle.

'Period of Insurance' means the period from the Start Date until the earliest of the following dates:-

a) maximum 36 months from the Start Date in respect of Benefit section 1, or;

b) maximum 60 months from the Start Date in respect of Benefit section 2, or;

c) the scheduled expiry date of the Finance Agreement after 36 months from the Start Date, or;

d) the date on which the Insured shall have paid all sums due under the Finance Agreement or for any other reason ceases to be indebted, after 36 months from the Start Date, or;

e) date on which the Insured Vehicle is sold or transferred to a new owner, or;

f) the date a claim is paid in respect of the Insured Vehicle under this Policy, or;

g) repossession, or;

h) cancellation of the Policy.

'Policy' means this written agreement with the Insurer to provide Combined GAP Insurance to the Insured.

'Premium' means the amount payable by the Insured (and any taxes or charges thereon) for cover under this Policy.

'Secondary Schedule' means a second Finance Agreement between the Insured and the Finance Company arranged by the Supplying Dealer for the Insured and is noted on the Finance Agreement and is not for the purchase of the Insured Vehicle.

'Start Date' means the date cover commences as shown on the Certificate of Insurance. This will be the date on which the Policyholder takes delivery of the Insured Vehicle.

'Supplying Dealer' means the motor dealer that supplied the Insured Vehicle to the Insured.

'Territorial Limits' means Great Britain, Northern Ireland, Isle of Man, Channel Islands and member countries of the European Union at the time of Total Loss.

'Third Party’s Insurance' means in the event of a claim during the Period of Insurance, the total loss value of the Insured Vehicle is being paid by a insurer on behalf of the party who is liable for the Total Loss of the Insured Vehicle occurring.

'Total Loss' means the Insured Vehicle is the subject of accidental or malicious damage, fire or theft to the extent that a claim is paid as full and final settlement under the Motor Insurance, or Third Party’s Insurance and the Insured Vehicle becomes the property of the insurer of the Motor Insurance, or Third Party’s Insurance.

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BENEFIT

SECTION 1

In the event of the Total Loss of the Insured Vehicle occurring within the Territorial Limits during the Period of Insurance within 36 months from the Start Date the Insurer agrees to pay the greater of:-

a) the amount by which the Net Invoice Price exceeds the Insured Value (this amount will be paid to the Insured).

or;

b) if the Insured Vehicle is financed, the amount by which the Early Settlement Balance exceeds the Insured Value (this amount will be paid to the Finance Company).

SECTION 2

In the event of the Total Loss of the Insured Vehicle occurring within the Territorial Limits during the Period of Insurance within 60 months from the Start Date the Insurer agrees to pay:-

If the Insured Vehicle is financed, the amount by which the Early Settlement Balance exceeds the Insured Value (this amount will be paid to the Finance Company).

If Negative Equity is included in the Finance Agreement the benefit under Benefit section 1b or 2 of this Policy will be calculated by taking the percentage of the Finance Agreement which relates to the purchase of the Insured Vehicle and multiplying this percentage by the Early Settlement Balance due under the Finance Agreement.

The total benefit payable under Benefit section 1 and 2 of this Policy shall not exceed the maximum amount specified on the Certificate of Insurance.

If the Total Loss of the Insured Vehicle results in a benefit paid under this Policy, the benefit will also include up to £250 excess for the Motor Insurance policy.

CONDITIONS

1. In the event of the Total Loss of the Insured Vehicle occurring within the Territorial Limits during the Period of Insurance the Insured should contact the Administrator prior to accepting any settlement offer made by the Motor Insurance, or Third Party’s Insurance. The Administrator may request the Insured to negotiate with the Motor Insurance, or Third Party’s Insurance to obtain a higher offer based on the Insured Value.

2. In the event of the Total Loss of the Insured Vehicle occurring within the Territorial Limits during the Period of Insurance, the Insured must check with the Motor Insurance to confirm: if the Insured is entitled to a brand new replacement vehicle if the Insured Vehicle was a New Vehicle at the Start Date of the Policy, or; if the Insured is entitled to a replacement vehicle if the Insured Vehicle was not a New Vehicle at the Start Date of the Policy.

In the event that the Insured does not utilise the Motor Insurance condition of a brand new replacement vehicle or replacement vehicle, then the Insurer reserves the right to settle the claim: by using the cost of a brand new replacement vehicle as at the Date of Loss by reference to Glass’s Guide as the Insured Value if the Insured Vehicle was a New Vehicle as at the Start Date of the Policy, or; by using the cost of Glass’s Guide Retail Transacted value as at the Date of Loss as the Insured Value if the Insured Vehicle was not a New Vehicle at the Start Date of the Policy.

In the event that the Insured does not utilise the Motor Insurance provision of a brand new replacement vehicle or replacement vehicle this may result in no benefit being paid to the Insured in the event of a Total Loss in respect of this Policy.

3. In the event of a Total Loss the Insured must contact and advise the Administrator if the Insured is not pursuing the Total Loss through the Motor Insurance provider, but with a Third Party’s Insurance. If the Total Loss is being handled by a Third Party’s Insurance then all Terms and Conditions in connection with the Motor Insurance will still apply.

4. The Policy is not transferable to any subsequent owner of the Insured Vehicle.

5. If any information provided to the Insurer or Administrator by the Insured or anyone acting on behalf of the Insured is inaccurate or if the Insured fails to disclose any information in response to a specific request which might reasonably affect the Insurer's decision to provide insurance under this Policy, the Insured's right to any benefit under this Policy will end.

6. If any information under this Policy is fraudulent or is intended to mislead the Insurer or the Administrator or if fraudulent or misleading means are used by the Insured or anyone acting on the Insured's behalf to obtain benefit under this Policy, the Insured's right to any benefit under this Policy shall end and the Insurer shall be entitled to recover any benefit paid, and costs incurred as a result of any such fraudulent or misleading means.

7. If the risk covered by this Policy is also covered by any other insurance or warranty then the Insurer shall only be responsible for paying a fair proportion of any benefit which it would otherwise be due to pay under this Policy.

8. Unless written permission to the contrary is given by the Administrator cover under this Policy must be purchased within 30 days of the delivery of the Insured Vehicle.

9. This Policy is not renewable.

10. The parties hereto are free to choose the law applicable to this insurance contract. However, unless specifically agreed to the contrary, this insurance shall be subject to English Law and the jurisdiction of the English courts.

11. If the premium is paid by monthly instalments, then any outstanding premiums will be deducted from the benefit payable.

12. In the event of a Total Loss, the Total Loss must be recorded and registered as one of the following categories:-

A;

B;

C;

D.

13. If You withdraw from the Finance Agreement, or for any reason You cease to become indebted to the Finance Company under the Finance Agreement or for any other reason the Finance Agreement is cancelled, void or terminated, then the benefit under Section 1b) or 2 of this Policy will cease to be payable by the Insurer. If this occurs then You must notify the Insurer.

IMPORTANT INFORMATION

In the event of the Total Loss of the Insured Vehicle occurring within the Territorial Limits during the Period of Insurance the Insured should not accept any settlement offer made by the Motor Insurance or the Third Party’s Insurance until the Insured has contacted the Administrator (Gap Claims Department).

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EXCLUSIONS

THIS INSURANCE DOES NOT COVER ANY CLAIM:

1. if the Insured Vehicle is stolen by any person who has access to the keys of the Insured Vehicle including but not limited to family members;

2. the following makes of vehicle are excluded:-

a) any commercial vehicles over 3.5 tonne;

b) any imported vehicle unless manufactured as right hand drive and purchased from an authorised UK distributor.

3. in respect of any Total Loss which occurs while the Insured Vehicle is being used for:-

a) any type of competition or rallies, racing, any type of track day, off road, speed testing, pacemaking or reliability trials;

b) commercial business use of hire and reward including and not limited to taxi, courier services and private hire;

c) an emergency vehicle.

or is being driven by any person not holding a valid current licence to drive the Insured Vehicle.

4. in respect of any Total Loss by accident when the driver of the Insured Vehicle is intoxicated by alcohol or under the influence of drugs not prescribed by a registered medical practitioner;

5. arising from war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, acts of terrorism, military or usurped power or confiscation or nationalisation or requisition or destruction of or damage to property by or under the order of any government or public or local authority;

6. directly or indirectly caused by or contributed to or arising from ionising radiation, contamination by radioactivity from any nuclear fuel or from any nuclear waste, from the combustion of nuclear fuel or the radioactive toxic explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof;

7. in relation to Negative Equity (refer to Definition ‘Negative Equity’);

8. for any VAT element if the Insured are VAT registered;

9. for any excess in respect of the Motor Insurance if a Total Loss of the Insured Vehicle has not resulted in a benefit being paid under this Policy;

10. for any discount given (including and not limited to any finance deposit allowance, cashback or any government grant allowance);

11. if the Total Loss of the Insured Vehicle has been recorded and registered as Category X.

PREMIUMS

Any collection of monthly premiums will be undertaken by third party administrator.

CUSTOMER CARE

In the unlikely event of a dispute occurring regarding this Policy or the service received the Insured should write to the Administrator, Abraxas Insurance Administration Services Ltd, who will investigate this matter, or if the Insured has any issues regarding the terms of this Policy, the Insured should write to the Customer Care Manager at MAPFRE ASISTENCIA Compañía Internacional de Seguros y Reaseguros Sociedad Anonima.

Registered Address:

Alpha House

5th Floor

24A Lime Street

London

EC3M 7HS

If the Insured remains dissatisfied with the way a complaint has been dealt with, then the Insured may refer the complaint to the Financial Ombudsman Service within 6 months of the date of the final response.

www.financial-ombudsman.org.uk

This procedure is in addition to any other legal rights the Insured may have to take legal proceedings.

Any telephone calls made in connection with this Policy may be monitored or recorded to assist with staff training and for quality control purposes.

If you suffer from any disability affecting your ability to read these Policy Terms and Conditions and/or to take any action under them please contact, or arrange for some person, on your behalf, to contact the Administrator for assistance.

COMPENSATION

MAPFRE ASISTENCIA is covered under the Financial Services Compensation Scheme. This provides compensation in case any of its members are unable, in specified circumstances, to meet any valid claims under their policies. 90% of the claim will be met with no upper limit. Compensation is only available to commercial customers in limited circumstances. Further information can be obtained from the Insurer, or from the Financial Services Compensation Scheme at the following address:

Financial Services Compensation Scheme

10th Floor, Beaufort House,

15 St Botolph Street, London, EC3A 7QU

MAKING A CLAIM

1. In the event of a claim please contact:

Gap Claims Department

Abraxas Insurance Administration Services Ltd,

PO Box 520,

Bristol,

BS34 9BW

Tel: 0845 1368431

2. Details of the claim will be registered by telephone. A claims declaration form will be sent to the Insured to sign. The Insured will need to return the signed declaration form to the Administrator with the following:-

a) the Motor Insurance certificate and schedule;

b) Motor Insurance, or Third Party’s Insurance Total Loss offer letter;

c) original purchase invoice in respect of the Insured Vehicle;

d) a copy of the Finance Agreement;

e) Early Settlement Balance from the Finance Company.

3. Please contact the Administrators before accepting an offer from the Motor Insurance, or Third Party’s Insurance.

4. If the information above is not given to the Administrator within 30 calendar days of opening a claim then, unless the claimant has previously contacted the Administrator and the Administrator has agreed an extension, or other exceptional circumstances apply, no benefit will be paid in respect of the claim.

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DATA PROTECTION

Some or all of the Information which the Insured supplies to the Insurer or the Administrator in connection with this Policy will be held on their computer records to help with the administration of the Policy. It may be used for underwriting, claims purposes or marketing purposes by the Insurer or Administrator. The Insured's information may be transferred outside of the European Economic Area. This will only happen when it is necessary for the conclusion, or performance of a contract that is entered into at the Insured's request, or interest, or for administrative, or marketing purposes.

Should the Insured not wish their details to be used for marketing purposes or the Insured requires a copy of personal information the Insurer or Administrator hold, this can be requested by writing directly to the Administrator.

TRANSFER OF POLICY

In the event that the Insured Vehicle listed on the Certificate of Insurance is declared a Total Loss by the Motor Insurance Company within the first 12 months from the Start Date of the Policy and the Motor Insurance Company has provided the Insured with a replacement vehicle the Insured may transfer this Policy to the replacement vehicle subject to the following conditions and exclusions:-

CONDITIONS

1. The Total Loss must occur within the Period of Insurance.

2. The original Insured Vehicle must have been declared a Total Loss and recorded and registered as salvage categories A, B, C or D as set out in the UK Insurance Industry’s Code of Practice for the Disposal of Motor Vehicle Salvage.

3. The replacement Vehicle must have been provided by the Motor Insurance Company in settlement of a claim for the Total Loss of the original Insured Vehicle.

4. Irrespective of the invoice price of the replacement vehicle being higher or lower than the original Insured Vehicle then the original Net Invoice Price or Glass’s Guide Retail Transacted value will be used to calculate the Benefit of any future claim.

5. The Start Date of the Policy will not change.

6. The Period of Insurance of the Policy will not change.

7. The Insured must request for the Policy to be transferred in writing within 30 days after the Insured taking delivery of the replacement vehicle from the Motor Insurance Company.

EXCLUSIONS

This Policy cannot be transferred:-

1. To any vehicle that is replacing a vehicle that you are not satisfied with.

2. To any vehicle after the original Insured Vehicle has been subject to a Total Loss for which the insured has received a cash settlement from the Motor Insurance Company instead of a replacement vehicle.

3. If the Total Loss of the original Insured Vehicle has been recorded and registered as Category X i.e. has been listed as not being damaged on the HPI register, or listed as having very little damage.

HOW TO TRANSFER

If you need to transfer the policy, please contact the Administrator:-

Abraxas Insurance Administration Services Ltd

PO Box 520, Bristol, BS34 9BW

Tel: 0845 1368431

The following will need to be provided if the Policy is to be transferred to a replacement vehicle:-

  • A fee of £35;
  • A copy of the original Insured Vehicle invoice;
  • A copy of the invoice for the replacement Vehicle.

CANCELLATION

The Insured has a right to cancel cover and to receive a full refund of Premium under this Policy provided no claims are known or reported by giving written notice of cancellation within 14 days from the Start Date or when the Insured receives the Policy documents (whichever is the latest), to Abraxas Insurance Administration Services Ltd, PO Box 520, Bristol, BS34 9BW quoting the certificate number. If the Insured does not cancel cover within 14 days from the Start Date or when the Insured receives the Policy documents (whichever is the latest), cover will continue until its natural expiry, unless the Insured subsequently cancels the Policy.

If the Policy is cancelled after the 14 day cooling off period from the Start Date or when the Insured receives the Policy documents (whichever is the latest), provided no claims are known, pending or reported, the Insured will be entitled to a daily pro rata refund of the paid Premium from the Start Date.

Any refund due will be calculated from the date the Administrator receives the letter of cancellation, email or phone call, whichever is the earliest date, however no refund will be issued until the Administrator has obtained written confirmation of cancellation from the Insured.

Once this Policy is cancelled the Insured will not be entitled to make a claim under this Policy.

PLEASE NOTE: all cancellations made after the 14 day period from the Start Date are subject to a £35.00 Administration charge, which will be deducted from any pro rata refund due.

‘these details were correct at time of publication please refer to the supplier website for full terms and conditions