ALA Insurance providing GAP, payment protection and early termination insurance for owners of leased vehicles

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Retail 2 - Early Termination Insurance

Early Termination Insurance is arranged by Alexander Lauren Associates Limited with Haven Insurance Company Ltd.

Alexander Lauren Associates Limited is authorised and regulated by the Financial Services Authority and
Haven Insurance Company Limited is authorised and regulated by the Financial Services Commission.

SCHEDULE

Name Address
SAMPLE SAMPLE
Financier to whom benefit payable  
Policy Number Date of Policy Cover Term
[months]
Max. 48		 Premium
First Registered Monthly Repayment ETI Policy Start Date
Make & Model Declared Purchase Price Vehicle Registration
Number

This Policy has been sold to you by Alexander Lauren Associates Limited, Units 1&2, The Maltings, Castlegate, Malton, YO17 7DP.

The above Schedule is subject to the terms of this Policy

These Terms and Conditions (“Policy”) set out the details of your Insurance cover. Please read this Policy carefully and keep it in a safe place. The Policy is underwritten by Haven Insurance Company Ltd.
Authorised and regulated by the Financial Services Commission [“We” “Us” “Our”].

Definitions

Wherever the following words commence in capitals in the Policy they will have the following meanings:-

Administrator – Marketbalance Ltd, 3rd Floor, Heath House, 133 High Street, Tonbridge, Kent TN9 1DH.

Insured Vehicle means a vehicle used by You under the terms of a Finance Agreement. It does not include:

  • emergency vehicles, taxis, buses, trucks or heavy goods vehicles; or any form of hire or reward or
  • motor cycles or invalid carriers or vehicles with more than eight seats including the drivers seat; or
  • vehicles used for road racing, rallying, pace making, speed testing or any other competitive event; or
  • vehicles, which have been, modified except in accordance with the manufacturers specifications.

Date of Loss – The date of the incident which is insured by any of the benefits detailed.

Early Settlement Balance – The net balance payable to the Finance, Lease or Contract Hire Company at the Date of Loss less any rebates in respect of insurance and maintenance charges but excluding arrears.

End Date – The earliest of the following dates:

  • when Your Finance Agreement ends up to a maximum period of 4 years from the ETI policy start date as shown above; or
  • on the day on which all amounts, excluding any missed payments, are paid under the Agreement; or
  • On the day the Finance, Leasing or Contract Hire Company recovers possession of the Insured Vehicle under a Court order or otherwise by any other means; or
  • On the day that You sell the Insured Vehicle; or
  • When this Policy is terminated; or
  • When You return the Insured Vehicle to the Finance Company.

Finance Agreement – means the Agreement between You and the Finance Company for the use of the Insured vehicle [including Finance Leasing and Contract Hire Agreements] but excluding any secondary schedule that may be noted on the Finance Agreement relating to any debt other than for the purchase of the Insured Vehicle. The amount of credit must not exceed £40,000.

Finance Company – Any Finance Company or any other lender with whom You have a Finance Agreement.

Insured Value – Whichever is greater of

  • The sale price received for the Insured Vehicle; or
  • The market value of an Insured Vehicle of the same age, make, model and mileage as the Insured Vehicle by reference to CAP Book Clean Value.

Net Invoice Selling Price – means the price You have agreed to pay for the Insured Vehicle. This sum shall exclude any additional amount for finance or insurance products and shall not exceed the CAP Book Value of the Insured Vehicle at the time of purchase.

Period of Insurance – The period shown in the Schedule.

Self-employed/Self-employment – Paying the correct class of National Insurance Contributions and being liable to pay Income Tax under Schedule D of the Income and Corporation Taxes Act (or its successors). You will also be considered as self-employed for the purposes of this insurance if You are a director of, or have a shareholding in a private limited company that has an issued share capital of £1,000, or less.

Start Date – The date of Your Policy as shown in the Schedule.

Sum Insured - The difference between the Early Settlement Balance and the Insured Value (where the Insured Value is the lesser amount).

Territorial Limits – United Kingdom and Isle of Man.

Unemployment/Unemployed – Being out of Work and receiving the correct National Insurance credits by reason of Unemployment, unless You have been entitled to make reduced National Insurance contributions in the past or You are a woman who has reached the state retirement age of 65. You must be actively looking for Work. We will not consider You as Unemployed for any day You receive pay in lieu of notice.

We/Us – Haven Insurance Company Limited, Suite 913b, Europort, Gibraltar.

Work/Working – Working in paid employment for at least 28 hours or more a week in the U.K. This includes if You are Self-employed. You must also be paying the correct class of National Insurance contributions.

You/Your – The person who has entered into a Finance Agreement with a Finance Company and satisfies the eligibility requirements set out below.

Eligibility

You are covered under this policy if on the Start Date:

  • You are 21 and over and will be less than 60 at the End Date; and
  • The Insured Vehicle is 3 years old or under and registered in the United Kingdom; and
  • We have accepted Your application; and
  • You have paid the single premium including Insurance Premium Tax; and

You may not apply for cover under this Policy when the amount advanced under the Finance Agreement is over £40,000.

Benefits

Provided the correct Premium has been paid the benefits under this Policy are:

a) Instalment Waiver Benefit
In the event that You become unemployed for more than 30 days We agree to pay to the Finance Company on behalf of You up to 3 monthly instalments. (Maximum benefit payable is £1,000 per month). In the event of a subsequent early settlement of the Finance Agreement for a contingency Insured hereunder this amount will form part of the Maximum Combined Benefit.

b) Unemployment
If You are Working and become Unemployed after the Start Date and before the End Date and You sell the Insured Vehicle or return the Insured Vehicle to the Finance Company We will pay the Sum Insured.

c) Expatriation (not applicable to the self-employed)
If You are posted abroad by Your employer after the Start Date and Before the End Date and You sell the Insured Vehicle or return the Insured vehicle to the Finance Company We will pay the Sum Insured.

d) Life
If You die between the Start Date and the End Date and Your personal representative sells the Insured Vehicle or returns the Insured Vehicle to the Finance Company we will pay the Sum Insured.

e) Loss of Licence
If You have Your driving licence revoked or suspended by the relevant authority solely on medical grounds after the Start Date and before the End Date and You sell the Insured Vehicle or return the Insured Vehicle We will pay the Sum Insured.

Payment of Benefits
We will pay the benefits directly to Your Finance Company.

Maximum Combined Benefit
The maximum benefit payable under this Policy will not be more than £5,000.

Exclusions

General Exclusions
We will not pay benefit as a result of any of the following:

  • If the credit advanced under the Finance Agreement exceeds 90% of the Net Invoice Selling Price of the Insured Vehicle or in any event the credit advanced under the Finance Agreement exceeds £40,000; or
  • if the purchase price of the Insured Vehicle only represents part of the credit advanced under the Finance Agreement We will only pay the proportion of the credit advanced which relates to the purchase price; or
  • fraud or dishonesty, gross misconduct or drink or drug abuse; or
  • where the monthly payments under the Finance Agreement are 3 months or more in arrears at any time during the period; or
  • in respect of any vehicle not mentioned in CAP Book; or
  • If the interval from the start of the Finance Agreement for the Insured Vehicle to the first service and the intervals between subsequent services exceed the stipulated mileage by more than 1,000 miles or 14 days; or
  • pregnancy, whether for maternity allowance or any other reason; or
  • If you are currently within a probationary period of employment.

Instalment Waiver Exclusions
In addition to the General Exclusions mentioned above We will not pay Instalment Waiver Benefits:

  • If You resign or become Unemployed within 6 months of the Start Date; or
  • your dismissal is through gross misconduct.

Unemployment Exclusions
In addition to the General Exclusions mentioned above We will not pay Unemployment benefits:

  • If you resign for any reason from your current employment; or
  • if at the Start Date You knew You were going to be made Unemployed or had reason to believe that it was likely to happen; or
  • if Your employment ends or You are notified, verbally or in writing of Your employment ending within 6 months of the start date; or
  • if Your Work is seasonal, if Unemployment is a regular feature of Your Work or if You do not have a permanent contract of Employment; or
  • if You are Working on a specific project and this project finishes; or
  • if You Work on a fixed term contract which ends; or
  • as a result of Your gross misconduct.

Expatriation Exclusions
In addition to the General Exclusions mentioned above, We will not pay Expatriation benefits;

  • If at the Start Date You knew You were going to be posted abroad; or;
  • if You do not have a permanent contract of Employment; or
  • if You are working on a specific project and this project finishes; or
  • if You are Self-Employed; or
  • if You Work on a fixed term contract which ends.

Life Exclusions
In addition to the General Exclusions mentioned above We will not pay life benefit:

  • If Your death results from suicide or self inflicted injuries; or
  • if at the Start Date You knew, or there is reasonable evidence that You knew of any sickness, disease, condition or injury with a fatal prognosis.

Loss of Licence Exclusions
In addition to the General Exclusions mentioned above We will not pay Loss of Licence benefit:

  • If at the Start Date You knew or had reason to believe that Your licence was likely to be revoked or suspended; or
  • if the licence was revoked or suspended as a result of a traffic or motoring offence or incident; or
  • if the licence expires and is not renewed for any reason.

Cancellation
We hope you are happy with the cover this policy provides. However, if after reading this certificate, this insurance does not meet with your requirements, please return it to Alexander Lauren Associates Limited within 14 fourteen days of issue and we will refund your premium minus an administration charge.

The Insurer shall not be bound to accept renewal of any Insurance and may at any time cancel any insurance document by sending 14 days notice to the Insured at his last known address. Provided the premium has been paid in full the Insured shall be entitled to a proportionate rebate of premium in respect of the unexpired period showing on the Insurance.

Claims
In the event of a claim You should contact Market Balance Ltd , 3rd Floor, Heath House, 133 High Street, Tonbridge, Kent TN9 1DH on 01732 770722 to request a claim form.
Please complete the claim form fully and accurately and return it to Market Balance at the above address.
This claim form should be received by Market Balance within 30 days of the Date of Loss, or as soon as possible after this.
To make a claim You must give Us any proof We ask for otherwise We cannot pay any benefit. This is at Your own expense.

Conditions
The following conditions apply to this Policy:

  • Where the actual mileage of the Insured Vehicle exceeds the contracted mileage under the Finance Agreement on a pro rata basis at the time of loss by more than 10% then We reserve the right to reduce the claim proportionately by applying an excess mileage charge in line with CAP book.
  • if any claim under the Policy shall be in any respect fraudulent or if any fraudulent means or devices are used by You or anyone acting on Your behalf to obtain benefit under this Policy, all benefits hereunder shall be forfeited and We shall be entitled to recover all benefits paid hereunder directly or indirectly as a result of such fraudulent means or devices and
  • You shall not be entitled to any refund of Premium; and
  • Written notice of the facts on which a claim is based must be given to the Administrator within 30 days of the Date of Loss. If such notice shall not be given within such period or any extension agreed by Us, no benefits under this Policy will be granted.

Governing Law
This Certificate shall be governed by and construed in accordance with the Law of England and Wales unless the Certificate holder’s habitual residence (in the case of an individual) or central administration and/or place of establishment is located in Scotland in which case the law of Scotland shall apply. In the event of the place of establishment being situated in the Channel Islands the relevant law governing the Channel Islands shall apply.

Transfer
This Policy is not transferable.

Complaints Procedure
It is the intention to give you the best possible service but if you do have any questions or concerns about this Insurance or the handling of a claim you should in the first instance contact: -

Alexander Lauren Associates Limited, Units 1&2, The Maltings, Castlegate, Malton, YO17 7DP
Telephone: 01653 604300 Fax: 01653 692555 Email: info@ala.co.uk

Please ensure your policy number is quoted in all correspondence to assist a quick and efficient response.

In the event you remain dissatisfied and wish to make a complaint, you can do so by contacting the
following:

Head of Claims, Marketbalance Ltd, 3rd Floor, Heath House, 133 High Street, Tonbridge, Kent TN9 1DH.

If it is impossible to reach an agreement, you have the right to make an appeal to the Financial Ombudsman Scheme, this also applies if you are insured in a business capacity but have a group annual turnover of less than £1 million, or are a charity with an annual income of less than £1 million, or are a trustee of a trust with a net asset value of less than £1 million. You may contact the Financial Ombudsman Service at:

Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
Docklands
London E14 9SR

Tel; 0845 080 1800

This does not affect your statutory rights.

Compensation Scheme
Haven Insurance Company Ltd are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the scheme, if they cannot meet their obligations. This depends on the type of business and the circumstances of the claim. Most insurance contracts are covered for 100% of the first £2,000 and 90% of the remainder of the claim. You can get more information about compensation scheme arrangements from the FSCS.

Data Protection
The data supplied by you will only be used for the purposes of processing Your Policy of insurance including underwriting, administration and handling of any claim which may arise. The data supplied will not be passed to another than those which we have mentioned herein.
It is important that the data you have supplied is kept up to date. You should therefore notify Us promptly of any changes. You are entitled upon the payment of an administration fee to inspect the personal data which We are handling about you. If you wish to make such an inspection You should contact the Administrator.

We may respond to enquiries by the police concerning Your Policy in the normal course of their investigations. Where it is necessary to administer Your Policy effectively or to protect Your interest We may disclose the data you have supplied to other third parties such as solicitors, loss adjusters, motor garages, engineers, repairers, replacement companies, other insurers etc.

Alexander Lauren Associates Limited, Units 1&2, The Maltings, Castlegate, Malton, YO17 7DP
Telephone: 01653 604300 Fax: 01653 692555 Email: info@ala.co.uk