function no_wordpress_errors(){ return 'Something is wrong!'; } add_filter( 'login_errors', 'no_wordpress_errors' ); Understanding Our New Essentials by AAI Car and Contents Insurance PDS – Essentials by AAI

Understanding Our New Essentials by AAI Car and Contents Insurance PDS

Introducing a new Essentials by AAI Insurance Product Disclosure Statement (PDS) for policies renewing from 16/03/2021. The PDS is an important legal document that contains details of the product you purchase so you need to read it carefully.

The purpose of this page is to advise you of some changes that we have made to our Essentials by AAI Insurance PDS. We have updated some of the wording to make it clearer and we have added and changed some covers, conditions and exclusions.

Below are some of the areas in the PDS where we have made changes:

Key Information

Changes to Contents Insurance cover

Changes to Car Insurance cover

Changes to the Claims section

Key Information

New section – Extra support

Sometimes your circumstances might mean you need additional support or assistance in dealing with us. If you are comfortable, you can tell us about your situation and we will work with you to arrange support.

New section – Conduct of others

When we consider a claim, we will have regard to prejudice suffered by you due to conduct of others and may meet the claim when we are not legally required to do so.

Your responsibilities

We have changed the responsibility for you to take ‘all reasonable care’ to prevent theft, loss, damage or legal liability with the responsibility to ‘take steps’ to prevent theft, loss, damage or legal liability. We have also included an example of a step you can take ‘(e.g. ensuring there are working smoke detectors in the building or unit)’.

Communicating with You

We have made this term clearer for our customers.

You/Your

We have extended this definition to include:

  • your legal guardian
  • people who provide care or services to you.

Joint policyholders

During the period of insurance, we might ask all joint policyholders first before we action a request or direction in relation to your policy (e.g. before we cancel your policy, reduce your cover or remove another policyholder). This way we can help protect the interests of all policyholders.

Late Instalments

‘Overdue instalments’ are now called ‘Late instalments’. We have updated the wording to make it clearer.

When you need to contact us

Additional situations when you must contact us have been included in the PDS. For example, you must tell us as soon as possible if:

  • any part of the insured address is used by a tenant, paying guest or boarder;
  • you have chosen car insurance and:
    • the listed drivers of your car change
    • you no longer plan to use your car for private use only

Changes to your Contents Insurance cover

Changes have been made to contents insurance covers:

Temporary accommodation limits

The most we will pay under this feature during the policy period is up to $8,000 for all claims arising from any one incident. This is no longer limited to 26 weeks.

What we do not cover – contents insurance

The following new exclusions have been added to our contents insurance:
  • Biological, chemical, other pollutant or contaminant
  • Chemical damage when cleaning
  • Communicable Disease
  • Deliberate damage to a reservoir or dam
  • Drones – We do not cover legal liability for or caused by, connected with or arising from aerial devices, drones and other autonomously piloted aircraft
  • Loss or damage, cost or legal liability that arises from the sale of your contents
  • Radioactivity/nuclear materials
  • Revolution, war
  • Roots of trees, shrubs and plants
  • Sanctions
  • Seepage of water
  • Storm surge in the first 72 hours of cover
  • Structural improvements of units
  • When security or alarms are not working
We have changed some of our contents insurance exclusions:
  • Alcohol, drugs, medication
  • Asbestos
  • Breaking the law
  • Bicycle – does not include e-bicycle
  • ‘Consequential losses’ is replaced by ‘Other losses’ following an incident covered by your policy and this section has also been expanded
  • Intentional or deliberate acts
  • Mould or mildew
  • Storm surge – we have added storm surge as a standalone  insured event to increase transparency. We cover loss or damage caused by storm surge that happens at the same time as other insured damage caused by storm
  • Theft or Burglary
  • Unlawful purposes
  • When other people live in the building or unit (previously referred to as Tenants, paying guests or boarders)

Changes to your Car Insurance cover

Changes have been made to car insurance covers:

Car Sum Insured

Our CarCover level of cover now provides $3,000 (less any deductions) for a total loss (not ‘up to $3,000 or market value whichever is lesser’)
Our CarPlus level of cover now provides $5,000 cover (less any deductions) for a total loss (not ‘up to $5000 or market value, whichever is lesser’)

Towing and storage costs

This is now limited to 1 tow per incident and not 2 tows

What we do not cover – car insurance

The following new exclusions have been added to our car insurance
  • Baby capsules and child seats
  • Biological, chemical, other pollutant or contaminant
  • Loss or damage, cost or legal liability that arises from the sale of your car
  • Revolution, war
  • Sanctions
  • Unattended car – theft or damage to your car if the car is left unattended, unlocked and with the keys left in the car
  • Unregistered cars
We have changed some of our car insurance exclusions
  • Alcohol, drugs, medication
  • ‘Consequential losses’ is replaced by ‘Other losses’ following an incident covered by your policy and this section has also been expanded
  • Driving a damaged car
  • Intentional or deliberate acts
  • Unlawful purposes
  • Unlicensed driving

Changes to the Claims section

Making a claim

The making a claim section has been updated. This includes changes to:
  • Here’s what to do
  • What you must do during the claim process for both contents and car insurance
  • What you must not do
  • If you do not comply
  • If we decline a claim or do not pay a claim in full

How we settle contents claims

We’ve made a range of changes including:

  • To repairing or replacing your contents settlement method
  • What we will not do when we settle claims
  • Clarification of the meaning of ‘New for old’
  • Obsolete electrical appliances

How we settle depends on the circumstances of the claim including the cost of repair or replacement, your sum insured and any lower policy limits.

Our right to recover from those who are responsible

We have the right and you permit us to take recovery action against a party responsible for your loss. We have added examples of the assistance that may be required if we take action against a party for the recovery of your loss.

Your Excess

We have made changes to this section including:
  • When you need to pay the standard excess
  • How to pay your excess – we have removed any requirement for you to pay your excess in full when a claim is made
  • When your excess will be waived
  • We have removed the Additional excess
  • Previously the standard excess did not apply to the first 2 contents claims or the first 2 car claims in any period of insurance. Now the standard excess will apply to the third claim (and any further claims) made on the policy (regardless of whether it is a contents claim or a car claim) in any period of insurance.

How we settle car claims

We’ve made a range of changes including:

  • You can no longer choose your own repairer
  • If your claim for loss, theft or damage to your car is covered under your policy, in the first instance we will arrange the repairs to your car with one of our preferred repairers and manage the repair process.
  • Our parts policy for authorised repairs

The information above is not a complete list of the changes to your Car and Contents Insurance. For full details of what is and isn’t covered, please read the Essentials by AAI Car and Contents Insurance Product Disclosure Statement (PDS). Consider the PDS before making a decision about this insurance.