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MOTOR TRADE DEALERS PLATE POLICY

MOTOR TRADE DEALERS PLATE POLICY



WHEREAS the insured by proposal and declaration, which shall be the basis of this contract and is deemed to be incorporated herein has applied to the company for the insurance hereinafter contained and has paid the premium as consideration for such insurance.

NOW THIS POLICY WITNESSETH:-
That in respect of events occurring during the period of insurance whilst the Motor Vehicle is on the road or is temporarily garaged during the course of a journey elsewhere than in or on any premises owned by or in the occupation of the insured and subject to the terms, exceptions and conditions contained herein or endorsed hereon (hereinafter collectively referred to as the terms of this Policy).

SECTION 1 – LOSS OR DAMAGE

The company will indemnify the insured against loss of or damage to the Motor Vehicle and its accessories whilst thereon.
(a) by accidental collision or overturning consequent upon mechanical breakdown or consequent upon wear and tear.
(b) by fire, external explosion, self-ignition or lightning or burglary housebreaking or theft.

1. At its own option the company may pay in cash the amount of the loss or damage or may repair reinstate or replace the Motor Vehicle or any part thereof or its accessories if to the knowledge of the company the Motor Vehicle is the subject of a hire purchase agreement or a bill of sale by way of mortgage such payment shall be made to the owner described in the hire purchase agreement or the mortgage described in the bill of sale whose receipt shall be a full and final discharge to the company in respect of such loss or damage. The liability of the company under sub- section 1 of this Section shall not exceed the value of the parts lost or damaged (such value being the price quoted in the latest catalogue or price list issued by the manufacturer or his agents in Nigeria or if no such catalogue or price list exists the price obtaining at the manufacturer‟s work plus the reasonable cost of transport by sea to Nigeria) and the reasonable cost of fitting such parts at the same time as any other necessary repair arising out of the same occurrence are effected it being understood that the company‟s liability shall be limited to the reasonable market value of the Motor Vehicle at the time of the loss or damage but not exceeding the insured‟s estimate of value stated in the schedule.

2. If the Motor Vehicle is disabled by reason of loss or damage insured under this policy the company will subject to the limits of liability bear the reasonable cost of protection and removal to the nearest repairers and of a delivery within the country where the loss or damage was sustained.

EXCEPTIONS TO SECTION 1

The company shall not be liable to pay for;
1. Consequential loss depreciation wear and tear mechanical or electrical breakdowns, failures or breakages.
2. Damage caused by overloading or strain.
3. Damage to tyres unless the Motor Vehicle is damaged at the same time.
4. Loss or damage to accessories by burglary housebreaking or theft unless the Motor Vehicle is stolen at the same time.

SECTION 11 – LIABILITY TO THIRD PARTIES

1. The company will subject to the limits of liability indemnify the insured in the event of accident caused by or arising of the use of the vehicle or in connection with the loading or unloading of the motor vehicle against all sums including claimant‟s costs and expenses which the insured shall become legally liable to pay in respect of
(a) death of or bodily injury to any person
(b) damage to property
1. In terms of and subject to the limitations of and for the purposes of this section the company will indemnify any person who is driving the Motor Vehicle provided that such person
(a) is entitled in the effective Certificate of Insurance to drive the Motor Vehicle.
(b) shall as though he were the insured observed fulfil and be subject to the Terms of this policy in so far as they can apply.
(c) Is not entitled to indemnify under any other policy.

1. In event of the death of any person entitled to indemnity under this section the company will in respect of the liability incurred by such indemnify his personal representatives in terms of and subject to the limitations of such section provided that such representatives shall asthough they were the insured observe fulfill and be subject to the Terms of this policy in so far as they can apply.
2. The company will pay all costs and expenses incurred with its written consent.
3. In the event of any accident involving indemnity under this section to more than one person the limits of liability shall apply to the aggregate amount of indemnity to all persons indemnified and such indemnity shall apply in priority to the insured.
4. The company may at its own option.
(a) Arrange for representation at any request or fatal inquiry in respect of any death which may be the subject of indemnity under this section.
(b) Undertake the defense of proceedings in any Court of Law in respect of any act or alleged offence causing or relating to any event which may be subject of indemnity under this section.

JURISDICTION CLAUSE

The indemnity under Section II shall not apply in respect of judgments which are not in the first instance delivered by or obtained from a Court of competent jurisdiction within the geographical area.

EXCEPTIONS TO SECTION II

The company shall not be liable in respect of
1. death, bodily injury or damage caused or arising beyond the limits of any carriageway or thoroughfare in connection with the bringing of the load to the motor vehicle for loading thereon or the taking away of the load from the motor vehicle after such unloading therefrom.
2. death of or bodily injury to any person in the employment of the insured arising out of and in the course of such employment.
3. Death of or bodily injury to any person (other than a passenger carried by reason of or in or upon or entering or getting on to or alighting from the motor vehicle at the time of the occurrence of the event out of which any claim arises
4. Damage to property belonging to held in trust by or in custody or control of the insured‟s household or being conveyed by the motor vehicle.
5. Damage to any bridge weighbridge or viaduct or to any road or anything beneath by vibration or by the weight of the motor vehicle.

AVOIDANCE OF CERTAIN TERMS AND RIGHT OF RECOVERY

If the company is obliged by the law of any country within the geographical area to pay an amount for which the company would not otherwise be liable under this policy the insured shall repay the amount to the company.

GENERAL EXCEPTIONS

The company shall not be liable in respect of
1. The excess forming part of the schedule.
2. any accident loss and damage or liability caused sustained or incurred
(a) Outside the geographical area.
(b) whilst any motor vehicle in respect of which indemnity is provided by this policy is
(i) Being used otherwise than in accordance with the use permitted in effective Certificate of Insurance.
(ii) Being driven by or is for the purpose of being driven by him in the charge of any person who is not entitled to drive in the effective Certificate of Insurance.

1. any accident loss or damage or liability (except so far as is necessary to meet the requirements of the Legislation) directly or indirectly proximately or remotely occasioned by contributed to by or traceable to or arising out of or in connection with flood typhoon hurricane volcanic eruption earthquake or other convulsion of nature invasion the act of foreign enemies hostilities or warlike operations (whether war be declared or not) civil commotion mutiny rebellion revolution insurrection military or usurped power or by direct consequences of any of the said occurrences and in the event of any claim or liability arose independently of and was in no way connected with or occasioned by or contributed to or by traceable to any of the said occurrences or any consequence thereof and in default of such proof the company shall not be liable to make any payment in respect of such a claim.

2. Any liability which attaches by virtue of an agreement but which would not have attached in the absence of such agreement.
3. Any sum which the insured would have been entitled to recover from any party but for an agreement between the insured and such party.
6. (a) any accident loss or damage to any property whatsoever or any or expense whatsoever resulting or arising therefrom or any consequential loss.
(b) any liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionizing radiations or contaminations by radio-activity from any nuclear waste from the combustion or nuclear fuel. For the purposes of this exceptions combustion shall include any self-sustaining process of nuclear fission.
7. any accident loss damage or liability directly or indirectly caused by or contributed to by arising from nuclear weapons material.

CONDITIONS

1. The work “Policy Holder” appearing in the effective “Certificate of Insurance” shall have the same meaning as the word “Insured” appearing in this policy and the schedule.
This policy and the schedule and the effective Certificate of Insurance shall be read together as one contract and any word or expression to which a specific meaning has been attached in any part of this policy of or the schedule or of the effective Certificate of Insurance shall bear such specific meaning wherever it may appear.

2. Every notice or communication to be given or made under this policy shall be delivered in writing to the company.

3. The insured shall take all reasonable steps to safeguard the motor vehicle from loss or damage and to maintain the motor vehicles in efficient condition and the company shall have at all times free and full access to examine the motor vehicle or any part thereof or any driver or employees of the insured. In the event of any accident or breakdown the motor vehicle shall not be left unattended without proper precautions being taken to prevent further loss or damage and if the motor vehicle be driven before the necessary repairs are effected any extension of the

damage or any further damage or any further damage to the motor vehicle shall be excluded from the scope of the indemnity granted by the policy.

4. In the event of any occurrence, which may give, rise to a claim under this policy the insured shall as soon as possible give notice thereof to the company with the full particulars. Every letter claim writ summons and process shall be notified or forwarded to the company immediately on receipt. Notice shall also be given to the company immediately the insured shall have knowledge of any impending prosecution inquest or fatal inquiry in connection with any such occurrence. In case of theft or other criminal act which may give rise to a claim under this policy the insured shall give immediate notice to the police and co-operate with the company in securing the conviction of the offender.

5. No admission offer promise or payment shall be made by or on behalf of the insured without the written consent of the company which shall be entitled if it so desires to take over and conduct in his name the defense or settlement of any claim or to prosecute in his name for his name and its own benefit any claim for indemnity or damages or otherwise and shall have full discretion in the conduct of any proceedings and in the settlement of any claim and the insured shall give all such information and assistance as the company may require.

6. At any time after the happening of any event giving rise to a claim or series of claims under Section II-I(b) of this policy the company may pay to the insured the full amount of the company‟s liability under Section II- I(b) and relinquish the conduct of any defense settlement or proceedings and the company shall not be responsible for any damage alleged to have been caused to the insured in consequence of any alleged action or omission of the company in connection with such defense settlement or proceedings or if the company relinquish such conduct nor shall the company be liable for any costs or expenses whatsoever incurred by the insured or any claimant or other person after the company shall have relinquished such conduct.

7. The company may cancel this policy by sending seven days‟ notice by registered letter to the insured at his last known address and in such event will return to the insured the premium paid less the pro-rata portion thereof for the period the policy has been in force or the policy may be cancelled at any time by the insured on seven days‟ notice and (provided no claim has arisen during the current period of insurance) the insured shall be entitled to a return of premium less premium at the company‟s short period rates for the period the policy has been in force.

8. If at the time any claim arises under this policy, there is any other insurance covering the same loss damage or liability the company shall not be liable to pay or contribute more than its ratable proportion of any loss damage compensation costs or expenses. Provided always that nothing in this condition shall impose on the company any liability from which but for this condition it would have been relieved under provision
(iii) of Section II-2 of this policy.

9. All differences arising out of this policy shall be referred to the decision of an arbitrator to be appointed in writing by the parties in difference or if they cannot agree upon a single arbitrator to the decision of two arbitrators one to be appointed in writing by each of the parties within one calendar month after having been required in writing so to do by either of the parties or in case the arbitrators do not agree of an umpire appointed in writing by the arbitrators before entering upon the reference. The umpire shall sit with the arbitrators and preside at their meetings and the making of an award shall be a condition precedent to any right of action against the company. If the company shall disclaim liability to the insured for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provisions herein contained, then the claim shall for all our purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.

10. The observance and fulfilment of the terms of this policy in so far they relate to anything to be done or not to be done by the insured and the truth of the statements and answers in the proposal shall be conditions precedent to any liability of the company to make any payment under this policy.

ENDORSEMENTS ATTACHING TO AND FORMING PART OF MOTOR TRADE INSURANCE POLICY

1. JURISDICTION CLAUSE
Notwithstanding anything contained herein to the contrary, it is agreed that the indemnity provided herein shall not apply to compensation for damages in respect of judgement delivered or obtained in the first instance in a court of competent jurisdiction outside Nigeria.

2. ENDORSEMENT 3Y
Notwithstanding anything herein contained to the contrary it is hereby understood and agreed that the company will indemnify the insured against loss of or damage to the in-built accessories: -

1. (Communication and safety equipment permanently fitted on the vehicle, manufacturers tool kit) whilst such items(s) is (are) in or on the motor vehicle where such loss or damage is occasioned by theft or attempt thereat. Provided always that the liability of the company shall be limited to a reasonable market value or 2% of the value of the vehicle whichever is less. 2. Where the accessories are separately purchased (not in-built) and fitted by the insured these items shall be declared at inception and an additional premium charged and paid accordingly. 3. In consideration of the payment of an additional premium it is hereby understood and agreed that the company will indemnify the insured against loss or damage to the accessories as herein declared whilst such item(s) is (are) on the motor vehicle. Provided always that the liability of the company shall be limited to the value of the accessories less depreciation/excess as the case may be.

3. PARTS REPLACEMENT CLAUSE
It is hereby declared and agreed that in the event of any loss or damage to the Motor Vehicle and or its accessories insured under this Policy necessitating the supply of a spare part not obtainable from stocks held in the country in which the Motor Vehicle is held for repair the Company‟s liability in respect of any such part shall be limited to the cost of repairs as per the repairer‟s estimate acceptable to the Company. It is further declared and agreed that the insured has no right to abandon the said Motor vehicle to the Company whether as a result of unavailability of spare part or otherwise.

4. PETROL TANK WARRANTY
It is hereby declared and agreed that the petrol/diesel/gas tank of any vehicle described and insured under this policy be not opened, filled or emptied while the Engine is running and / or in the presence of any artificial light or heat other than electric light.

5. (A.T.D) ANTI- THEFT DEVICES WARRANTY
It is understood and agreed that the cover granted by this policy in respect of the vehicle insured herein shall only be operated subject to the following Conditions:

(i) That the insured vehicle shall be fitted with an Immobilizer or a Burglary Alarm or Pedals Bracket.
(ii) That the evidence of such installations shall be produced at the time of obtaining insurance and/or at the time of claim as a result of theft.
(iii) That the devices shall be put in operation at all times when the vehicle is not in use.

6. ABANDONMENT CLAUSE
It is hereby declared and agreed that in the event of any loss or damage to the motor vehicle and or its accessories insured under this policy necessitating the supply of a spare part not obtainable from stocks held in the country in which the motor vehicle is held for repair, the company‟s liability in respect of any such part shall be limited to the cost of repairs as per the repairer‟s estimate acceptable to the company.

7. EXCESS CLAUSE:
It hereby understood and agreed that notwithstanding anything to the contrary contained in the Sections of this Policy specified in the schedule the Insured in respect of each and every event shall be responsible for the first part that is to say the sum stated in the Schedule of any expenditure (or any less expenditure which may be incurred) for which provision is made thereunder including where this Excess Clause applies to liability under Section 11 of this Policy any payments in respect of costs and expenses and any expenditure by the Company in the exercise of its discretion under Condition 2 of this Policy.

If the expenditure incurred by the Company shall include the amount for which the Insured is responsible hereunder such amount shall be repaid by the Insured to the Company forthwith.

For the purposes of this endorsement the expression, ‟event‟ shall mean an event or series of events arising out of one cause in connection with any one Motor Vehicle in respect of or in connection with which indemnity is granted under this Policy.

EXCESS: SECTION 1 (Own Damage)

VALUE =N= EXCESS
75,000.00- 250,000.00 5,000.00 OR 5% OF THE LOSS WHICH EVER IS HIGHER
250,001.00- 500,000.00 10,000.00 OR 5% OF THE LOSS WHICH EVER IS HIGHER
500,001.00- 1,000,000.00 15,000.00 OR 5% OF THE LOSS WHICH EVER IS HIGHER
1,000,001.00- 2,000,000.00 20,000.00 OR 5% OF THE LOSS WHICH EVER IS HIGHER
2,000,001.00- and above 30,000.00 OR 5% OF THE LOSS WHICH EVER IS HIGHER


Partial Loss: 5% of each and every Claim.
Total Loss/Theft: 10% of the Claim amount.

8. TOWING CLAUSE
It is hereby declared and agreed notwithstanding anything herein contained to the contrary that the company's liability for cost of towing, removal or protection of disabled vehicles shall be limited to N10,000.00

9. TOTAL LOSS SETTLEMENT ON PRE-ACCIDENT VALUE BASIS
The estimated value of the vehicle(s) shown in this policy is not necessarily the amount payable by the company in the event of a Total loss since their liability is limited to the market value of the vehicle(s) immediately anterior to the date loss or to the value shown in the policy whichever is the less.

10. CONSTRUCTIVE TOTAL LOSS CLAUSE
It is hereby declared and agreed that notwithstanding anything herein contained to the contrary, in the event of loss or damage to the insured vehicle caused by perils covered by the policy, where the estimate of repairs exceeds 60% of the sum insured in respect of 5 years and above or 70% of the sum insured in respect of vehicle below 5 years, the company may at its options regard the loss to the damage to the vehicle as “Constructive Total Loss”.

11. SURVEY AND INSPECTION WARRANTY
It is warranted that the Insured shall on request allow any authorized representative of the Company to carry out necessary survey/inspection of the vehicle or any other pre-loss investigation for the purpose of sighting and advising on risk management measures.
The due observance and implementation of the risk improvement measures shall be a condition precedent to the liability of the Company.

12. TERRORISM EXCLUSION CLAUSE
Notwithstanding any provision to the contrary within this policy, any endorsement thereto, this policy does not cover any Loss, Damage or expenses of whatsoever nature directly or indirectly caused by, resulting from, happening through or in connection with any act of Terrorism, regardless of any other cause contributing concurrently or in any other sequence to the Loss, Damage or expense.

For the purpose of this exclusion, terrorism means an act of violence or an act dangerous to human life, tangible property or infrastructure with the intention or effect to influence any government or to put the public or any section of the public in fear. In any action suit or other proceedings where the insurer alleges that by reason of this definition a loss, damage or expense is not covered by this policy, the burden of proving that such loss, damage or expense is covered shall be upon the insured.

13. LICENCE CLAUSE
Notwithstanding anything contained herein to the contrary, it is hereby declared and agreed that the company shall be under no liability whatsoever in respect of any accident loss damage or liability caused or arising whilst the motor vehicle in connection with which insurance or indemnity granted hereunder is being driven by him who has not held an appropriate driving Licence.

It is also agreed that the insured shall bear the sum of N10,000.00 in respect of accidental loss, damage or liability caused or arising whilst the motor vehicle described in the schedule of this policy is being driven by a learner driver.

14. INTOXICATING LIQUORS OR DRUGS CLAUSE
Warranted that the company shall not be liable to make any payment in respect of any accidents, loss, damage or liability, caused or arising whilst the Motor Vehicle in connection with which insurance or indemnity is granted hereunder is being driven by the insured (or by any person, provided he is in the Insured‟s employment and/or is driving on his order or with his permission) whilst under the influence of or whilst his efficiency as a driver is impaired by intoxicating liquors or drugs.

15 FIRE EXTINGUISHER WARRANTY
It is warranted that fire extinguishers shall be installed and notice of such purchase and erection shall be given to the Insurer. Installed extinguishers shall be maintained in good and efficient working conditions and same shall be serviced by the manufacturers or their agents at least every six months.

16 DOCUMENTARY EVIDENCE WARRANTY
It is warranted during the currency of this policy that in the event of a claim or loss arising under the policy the insured will produce Documentary Evidence in English of original vehicle license, proof of ownership, customs papers, central motor registry certificate, purchase invoice and receipt showing the value of the vehicle(s) prior to the happening of the loss.

17 NO PREMIUM NO COVER WARRANTY
The receipt of insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk unless premium is paid in advance subject to the provisions of Section 50 (1) of insurance Act 2003

18. CLAIM NOTIFICATION CLAUSE
It is hereby declared and agreed notwithstanding anything contained herein to the contrary that the company shall be under no liability whatsoever in respect of any accident/loss resulting in a claim reported after “30 days” of the occurrence of such accident/loss.

19. MOTOR TRADE POLICIES (DECLARATION BASIS)
Notwithstanding anything contained herein to the contrary, it is hereby understood and agreed that if the premium or any part thereof is calculated on the estimated total value of vehicle at risk furnished by the Insured, the Insured shall keep proper records of the make, type, chassis and engine number and value of all vehicles as risk and shall at all times allow the company to inspect such records.

The Insured at the end of each quarter during the period of insurance declare to the company the details of such records mentioned above and upon receipt by the company of twelve, such monthly declarations or such less number of declaration is required to complete the period of insurance, adjust the premium and the difference paid by or allowed to the insured as the case may be subject to the company retaining at least 75% of the provisional premium paid.

20. MAINTENANCE GARAGE CLAUSE
Notwithstanding anything contained herein to the contrary, it is hereby declared and agreed that in the event of an accident involving the vehicle(s) covered by this policy, the Insured is restricted to obtaining estimate of repairs from maintenance garage engaged for regular maintenance activities or repairs for at least a period of six months prior to the incident or loss.

21. CLAIM PROCEDURE
a) Immediate notification to the company of any event that may likely give rise to a claim, stating the date, time and nature of loss.
b) Submission of completed Claim Form.
In addition, the following documents are needed

Motor Accident
a) Itemized estimate of repairs for the damaged vehicle/vehicles
b) Insurance Particulars of a third party vehicle involved (if any)
c) Letter of claim from Third Party and Police Report (if applicable)
d) Police Report if there is a fatal injury or death or damage to the property of third parties
e) Photograph of vehicle/vehicles involved.
f) Driver‟s written statement of accident
g) Any other document which may be required from the insured based on the circumstances of the accident.

Motor Theft
a) Original Certificate of Insurance
b) Original and duplicate keys of the stolen vehicle
c) Original vehicle license
d) Original purchase receipt/invoice
e) Interim and final Police reports
f) Driver‟s written statement of the incident.
g) Any other document which may be required from the insured based on the circumstances of the theft.


ENDORSEMENTS ATTACHED.
1. Jurisdiction clause
2. Endorsement 3y
3. Parts replacement clause
4. Petrol warranty
5. (A.T.D) anti- theft devices warranty
6. Abandonment clause
7. Excess clause
8. Towing clause
9. Total loss settlement on pre-accident value basis
10. Constructive total loss clause
11. Survey and inspection warranty
12. Terrorism exclusion clause
13. Licence clause
14. Intoxicating liquors or drugs clause
15. Fire extinguisher warranty
16. Documentary evidence warranty
17. No premium no cover warranty
18. Claim notification clause
19. Motor trade policies (declaration basis)
20. Maintenance garage clause
21. Claim procedure