Mechanical Breakdown Insurance
Terms & Conditions

Summary of Consumers’ Rights and remedies under the Consumer Guarantees Act (CGA)

The CGA provides consumers with a number of guarantees. The principle guarantee is that the goods must be of acceptable quality which generally means that they are fit for the purpose for which they are commonly supplied subject to the price paid and existing defects at the time of supply disclosed in writing.

It can also mean acceptable in appearance and finish, free from minor defects, safe and durable. Guarantees also arise if you have relied on the Motor Vehicle Dealer fulfilling a particular purpose that you told the Motor Vehicle Dealer you wanted the goods for and you relied on the Motor Vehicle Dealer’s expertise or the Motor Vehicle Dealer represented that the goods were suitable for a particular purpose. If you brought the goods by description or sample, there is a guarantee that the goods will comply with that description or be similar to that sample.

If there is a failure of any of those guarantees, then you can require the Motor Vehicle Dealer to remedy those failures within a reasonable time. If the Motor Vehicle Dealer fails to remedy within a reasonable time you can have the remedy carried out somewhere and claim the cost from the Motor Vehicle Dealer.

Sometimes the failure might be of a substantial character (that is a reasonable consumer knowing of the defects wouldn’t have acquired the goods, or they vary from their description or the sample in a significant respect, or the goods are substantially unfit for the purpose made known to the Motor Vehicle Dealer and cannot be remedied within a reasonable time or are unsafe) then you can reject the goods and require a refund or replacement.

However, you can lose the right to reject the goods if you wait beyond the time at which the defect would reasonably become apparent or if you dispose of the goods or if they are damaged (but not because of some defect) after delivery to you. This is a brief summary only of your rights and remedies and if in any doubt you should seek legal advice. The benefits of this policy are in addition to your rights under the CGA.

Comparison Chart

Policy Terms and Conditions – Autolife Mechanical Breakdown Insurance Policy (Autolife Standard Vehicle, Autolife Plus Standard Vehicles, Autolife Plus Special Vehicles & Autolife Green Hybrid & EV.

Your Cover

Your vehicle is covered for the reasonable cost of repairing or replacing the actual breakdown of mechanical components due to a sudden and unforeseen event during normal use. We agree to insure you subject to the terms, conditions & exclusions contained in the policy during the Period of Insurance (shown on the Policy Schedule) for which you have paid the premium. For any Roadside Assistance needs please phone 0800 288 654.

Cooling off Period

You can cancel this Policy within 5 business days after the date you purchased the Policy by giving us notice of cancellation. In addition, if we have failed to comply with our disclosure requirements relating to this Policy, you may cancel at any time. In any case where you are entitled to cancel this Policy, you can give us notice of cancellation in writing by telephone, post or email. Upon receipt within the 5-business day cooling off period, we will provide you with a full refund of the premium you have paid.  

What is Mechanical Breakdown Insurance?

Mechanical Breakdown Insurance (MBI), is a Policy to assist You with paying for the reasonable cost of repairs to your car in the event of an unforeseen mechanical or electrical failure to the maximum value of the policy which you have chosen.

This policy has been written so that you can understand what is covered, what your obligations are, and the procedure to be followed if a breakdown occurs. We would ask that you read this document carefully, and contact us if you have any questions.

Beneficial Insurance Limited (Company) will pay the insured. Subject to the exclusions terms and conditions mentioned in the Policy. The Benefits up to the Maximum Cover if an Insured event occurs during the Period of Cover.

Please note this is not a vehicle maintenance warranty.

Period of Cover

1. The cover is for a term that you have selected ranging from 12 months to 36 months in length, the policy length is determined by the age of the car is no more than 19 years or the number of kilometres which the car has travelled being no more than 250,000 prior to the start date of this policy.
2. There is an initial 21-day stand-down period, in where no claims will be able to be made. In the event that a car requires mechanical repair within this stand down period, this repair will then form part of an exclusion for this policy going forward.
3. The cover is for the term specified in your Policy Schedule. Where we agree that you may pay your premium on an instalment basis, which can be paid weekly, fortnightly, monthly, or yearly premium payments.
4. If this policy is being added to a loan to purchase a motor vehicle, you may wish to elect that the premiums for the term of this policy are added to the loan balance and then the premium would be paid in full.
5. The Company reserves the right to terminate this Policy by advising you in writing upon 21 days’ notice. Where the Company terminates the Policy, it will refund any unused Premium for the remaining term of the Policy, if any.
6. You can cancel the Policy at the end of the cover period or at any other time if you pay the Company the Full Premium Due to the Company during that Period of Cover.

Benefits

• 24/7 Nationwide Roadside Assistance
• 10 years cover on Lithium-ion EV batteries
• Away from home package if your car breaks down
• Reimbursement of Warrant of Fitness costs for the life of the policy.
• No additional premium loadings or exclusions if your car is being used as an Uber or Taxi
• 6 Free Tows per year

If the vehicle suffers a mechanical breakdown during the period of cover, the following benefits are provided once the claim has been approved by Autolife.

Car Rental Option

This option is only available if you do not choose the away from home package. 

Payment of reasonable costs (including GST) incurred by you to hire a substitute vehicle (similar in all material respects to the Vehicle) for your usual transport requirements while your vehicle is being recovered, repaired, or having parts replaced, for up to 5 days to a maximum claim value of $500.00.

Changing your Plan

You can, at the time of renewal, apply in writing to increase or decrease the Benefits of the Policy by up-grading or down-grading the Plan. Any such increase or decrease will only be effective if approved by the Company in writing.

Renewal of Cover

1. The Policy will be automatically renewed for 12 months from the date of Renewal. You will have a period of 5 business days to request in writing that you wish to cancel the Policy.
2. A renewal advice will be sent to the your last known email address before the Renewal Date including an updated Policy Schedule (Updated Schedule) and Policy Wording. The renewal of any policy is at the sole discretion of the Company.
3. Any adjustments to the Premium, Details of Cover or Terms of Cover will be advised to you on the Updated Schedule and Policy Wording.
4. You are responsible for ensuring that all Policy details and contact details are correct including details relating to you and your driving record.
5. Payment of the Premium due of the Renewal and outlined on the Updated Schedule is payable by your existing method of payment and frequency, as set out in the Policy unless we agree before the Renewal Date.
6. Until further notice, you grant the Company authority to continue any existing Payment Authority given by you to the Company and your Bank concerning premium payments. This Authority includes any Direct Debit Authority, Automatic Payment Authority, or Credit / Debit Card Details where you have authorised the Company to debit a nominated bank account and/ or credit/ debit card for the Premium payments due under the Policy or Renewal.

Conditions

The obligations of the company and payment of any Benefit under the Policy are conditional upon:

1. You having paid to the Company the Premium on or before the due date for payment. If a Premium payment is not paid by the due date the policy will lapse 7 days after the due date. No Benefits will be paid if a claim is received after a Policy has lapsed. In the event that the Policy lapses you the Insured can apply to have the Policy reinstated subject to the Company’s discretion, which could include proof of your driving history, new terms and conditions, new exclusions being imposed, and no claim being assessed or paid for the period that the Policy was lapsed.
2. You will need to pay the policy Excess which you have chosen to the Approved Repairer.
3. The Maximum Claim Limit which you have chosen is not exceeded.
4. The Maximum Cover which you have chosen not being exceeded
5. The Vehicle not being a Non-Qualifying Vehicle (unless approved by Autolife)
6. You ensure that you fully disclose all Material information at the time of making the initial application, at the time of the policy renewal or at any time during the Policy term if a Material event or information relating to such events arises. In the event it is found that any information has been withheld the Company has the right to deem the Policy void and not meet any lodged claims.
7. None of the exclusions listed in the Exclusions section below are applicable.
8. Any work covered by a Benefit being undertaken by an Approved Repairer.
9. The Vehicle:
10. The 1^st service must be completed within 5,000km or 3 months (whichever comes sooner) following the Start Date of your Policy and thereafter a yearly service or every 10,000km whichever comes sooner by an MTA Authorised Service Centre or other repair workshop approved by Autolife.
11. At all times your car must have a current Warrant of Fitness and Registration.
12. You must advise the Company of any changes to the Vehicle, including make, model, year, registration number and odometer reading.
13. In the event of a claim or information provided to the Company is fraudulent, dishonest misleading or untrue this Policy will be cancelled and you forfeit entitlements to all Benefits which would otherwise have been payable under your The Company reserves the right to claim Premiums paid to cover the Company’s costs.
14. Your Policy will need to continue for the full Policy Term once a claim has been paid.

Exclusions

The obligations of the Company and payment of any Benefit, will not apply if a claim arises due to or occurs as a result of;

1. any repair or replacement which the Company has not previously authorised in writing.
2. routine maintenance, servicing, parts replacement and repairs.
3. any repair covered by any other insurance policy, warranty or guarantee.
4. the vehicle being used for any business purposes, hire or reward unless approved by Autolife (including, without limitation, as a taxi service, driving school or for commercial delivery).
5. the weight of the vehicle at any time exceeding 3,500kg.
6. the vehicle is in any way modified from its manufacturer’s standard specifications unless such modifications, have been approved by the Company in writing beforehand.
7. any replacement or repair covered by a Vehicle manufacturer’s warranty or recall.
8. any vehicle for which the vehicle manufacturer does provide a warranty.
9. use of the vehicle for any competitive or sporting purpose, whether legal, sanctioned or otherwise, including (without limitation) road racing, rallying, drag racing, circuit racing, or an unauthorised exhibition of speed or acceleration (also known as boy racing).
10. any vehicle involvement in an accident.
11. any damage occurring or arising as a result of the application of force, weather, intrusion of water, fire, natural disaster. Infestation by insects or rodents, rock slides, stone strike, corrosion, rust or natural deterioration of any materials used in the manufacture of the Vehicle (including perishing)
12. any fault of repair which existed at the Commencement Date or Renewal Date as applicable.
13. any repair or replacement of any parts that are worn or any damage, fault, repair caused by worn out parts.
14. any repairs arising as a result of consequence of careless, reckless or negligent driving or willful damage.
15. any replacement or repair to batteries, except electrical batteries, to exhaust systems, chassis, tyres, the cosmetic appearance of the Vehicle (including paint and finishing), glass, struts, shock absorbers, seat movement mechanisms, brake shoe linings, disk pads, cam- belts, other items requiring regular servicing, air bags and air suspension systems, clutch, sunroofs, global positioning systems, fuel tanks, remote controls, trim, upholstery, communication systems, programming or reprogramming of the infotainment systems, catalytic converters, mountings, blubs, keys, sparks plugs, seals, gaskets, bearings, oils and filters, all hoses, fluids including incorrect fueling and consumables used in connection with the Vehicle.
16. any items requiring regular servicing, scanning or diagnostics to determine the cause of the fault and repairs during routine maintenance and tuning including Warrant of Fitness and Certificate of Fitness.
17. cam belts and any belts or chains, exhaust systems, chassis component, shock absorbers, airbags, and air suspension systems, clutch, and all associated components.
18. any repairs that are either caused by, or are a result of, the owner not following the recommended servicing guidelines of the vehicle manufacturer in relation to any vehicle part.
19. Lithium-ion battery replacement due to the reduced life-cycle. The Lithium-ion battery is only covered for sudden and unforeseen failure.
20. Any loss or damage or legal liability whatsoever directly or indirectly caused by or arising from;
21. any occurrence consequent upon war and related risks, fire, earthquake, volcanic activity, tsunami or another seismic event.
22. War, invasion, acts of a foreign enemy, terrorism or hostilities (whether war is declared or not). Revolution, insurrection, military or usurped power or confiscation or nationalism or requisition or destruction or damage to property by or under the order of any government, public or local authority.
23. Any faults which occur during the 21-day stand down period.
24. Any cars which have been previously written off in New Zealand or any other country, even if they have been recertified in New Zealand to be roadworthy.

Claims Process

To make a claim for reimbursement of a Benefit covered under the Policy (subject to the Terms and Conditions, Exclusions contained in your Policy Schedule) You will need to contact the Company, via email claims@autolife.co.nz. and a claim form will be emailed to you. A claim form can also be downloaded directly from our website, www.autolife/claims.co.nz. Or you can contact Autolife on 0800-288-654 and a claim form will be sent to you.

It is important to note that any unpaid Annual Premiums will be deducted from any approved claim payment (including any Annual Premium amount outstanding of policies that are being paid via agreed installments).

In order for the Company to assess your claim, we will require a duly completed a claim form, as well as copies of all relevant supporting documents

You will be required to provide at your own expense all relevant information as requested by the Company. In order for us to assess the claim and to make a decision, in particular you will be required to provide an up-to-date odometer reading together with the vehicle servicing history. Along details of any changes to the Vehicle, since the Commencement or Renewal date or your last advice as appropriate.

You, will then need to drive the Vehicle to an MTA Approved Repairer, if the Vehicle requires towing due to the nature of the event, it will be at your cost (unless this is covered by your Policy).

The approved MTA repairer will provide an initial assessment of the work required, and the reason if it is able to be determined of the cause. The Company will then be able to make an initial assessment, to see if the work is required and the reason for the fault falls within the Policy Terms & Conditions, Exclusions.   

If you are unsure whether or not the work is covered under your policy, please feel free to contact the Company at any time.

The approved MTA repairer must contact the Company and advise of the work required to repair the Vehicle before any work commences. The company will need to provide approval of any and all work to be completed.

Once the company is satisfied that the advised work is covered by your Policy, we will advise the Approved MTA Repairer to proceed with the work. The Approved MTA Repairer may, if they see fit, use reconditioned or used, as well as new parts.

In the event that you are covered with another insurance provider or manufactures warrantee addition to this Policy Cover, the cover provided under this Policy will be excluded. In the event there is a disagreement between the Company and you in regards to the claim, the claim may be referred to an independent adjudicator as agreed by both parties who will act as an arbitrator.

The cost for this arbitration will be at the expense of the party who is found to be at fault. For each unrelated breakdown, the excess amount shown on your policy schedule will be deducted from the amount of the claim.

Any payment of monies for the repair of this Vehicle by the Company, will only be paid directly to the approved MTA Repairer once the work has been completed and the vehicle is then roadworthy.   

Servicing

You are required to keep your vehicle serviced as per the terms listed below, by an MTA Approved Repairer or other repair workshop approved by Autolife to ensure the cover under this policy remains in place.

The following items must be checked and attended to, as per your schedule outlined under ‘Conditions i’

• Engine, oil and oil filter, all fluid levels, air filter, all belts replaced as necessary (not cambelts which must be replaced as specified by the vehicle manufacture), cooling systems including inhibitor and hoses, turbo oil feed, automatic transmission, braking system including break fluid, air conditioning, steering and suspension systems.

The cost of servicing is at your expense, you are required to keep all servicing invoices and receipts as we will require them when assessing a claim.

Specific Electric and Hybrid Vehicle Conditions

Cover

Autolife will contribute towards the repair or replacement of factory-fitted lithium-ion batteries for sudden and unforeseen failure only.

Exclusions

1. Any damage related to charging the lithium-ion battery caused by incorrect charging or where the manufacture’s recommendation are not followed.
2. Lithium-ion battery replacement due to reduced life cycle or end of useful life.

Definitions

Approved Repairer(s) means an authorised MTA Repair or other repair workshop approved by Autolife.

Benefit(s) means a benefit provided under your Policy.

Commencement Date means the date set out in the Policy Schedule.

Company, us, or we means Beneficial Insurance Limited or its division, Autolife.

Excess means the amount set out in the Appendix unless such other amount is specified in your Policy Schedule.  

Full Premium Due means the Premium due on a Policy for any given year determined by the Company, excluding any Premium discounts applied (if any)

GST means goods and services tax payable under the Goods and Services Tax Act 1985.

Insured or you  means the person(s) referred to in the Policy Schedule.

Insured Event means the sudden or unexpected mechanical failure of the Vehicle, and for Roadside Assistance includes you the insured losing access to your vehicle.

Material means any information that would have influenced, the judgement of a prudent provider in fixing the premium or in determining that we / you would have taken or continued the risk upon substantially the same terms.

Maximum Claim Limit means the maximum amount of cover under the policy which you have chosen, as set out in the Policy Wording unless such other amounts are specified in your Policy Schedule.

Maximum Cover means the amount specified in the Policy Schedule.

Non- Qualifying Vehicles means the following types of vehicles – Alfa Romeo, Aston Martin, Audi RS, R8 A8, S8, Austin, Bentley, BMW, M3, M5, M6, 7 Series, Caterham, Daimler, Dodge Viper, Ferrari, FPV, Honda, NSX, HSV, Jensen, Lada, Lamborghini, Lancia, Lotus, Maserati, Mayback, Mazda RX8, Mazda Diesel, CX5, CX7, CX9, McLaren, Morgan, Nissan GTR, Rolls Royce, TVR, Tesla, Rotary powered vehicles.

Period of Cover means the period referred to in the Policy Schedule, from the Commencement Date to the Renewal Date.

Policy means the Policy Schedule & Policy Wording.

Policy Schedule means the schedule the Company issues to you the insured, outlining the full details of cover provided under the Policy & the Policy Wording.

Premium(s) means the amount set out in the Policy Schedule for you to pay.

Renewal Date means that date referred to in the Policy Schedule.

Stand down Period– means 21 days following the Start Date during which the Company will not recognise a claimable event occurring during that period.

Start Date means the date set out in the Policy Schedule.

Vehicle means the Motor Vehicle ordinarily driven by you, which is insured under this Policy.

Regulatory Information and Financial Strength Rating

Beneficial Insurance Limited is licensed to carry on insurance business in New Zealand under the Insurance (Prudential Supervision) Act 2010. This means we meet the regulatory requirements set by the Reserve Bank of New Zealand for insurers, giving you confidence that we are a legitimate and supervised insurance provider in NZ.

All licensed insurers are required to have a financial strength rating (FSR) from a rating agency authorised by the Reserve Bank of New Zealand. Beneficial Insurance Limited has been rated B++ Outlook Stable by AM Best Company. The AM Best Company FSR scale is as follows:

Secure:  A++, A+ (Superior), A, A- (Excellent), B++, B+ (Good)

Vulnerable:  B, B- (Fair), C++, C+ (Marginal), C, C- (Weak), D (Poor), E (Under Regulatory Supervision)

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