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NIG Sovereign Motor Policy Document

Introduction
Thank you for choosing NIG as your motor insurer. We were founded over 100 years ago and are one of the leading UK motor insurers.

We are proud to have won Best Private Motor Insurer in The Insurance Industry Awards of 1996, 1997 and 1998. In 1998 we also won Best Private Motor Claims and in 1999 we won Best Personal Lines Claims Service.

Please read this policy, your certificate of insurance, and your schedule carefully to make sure you have all the cover you need. You should keep all these documents in a safe place.

NIG is the trading name of The National Insurance and Guarantee Corporation Plc which is registered in England and Wales with No. 42133 (Registered Office: Crown House, 145 City Road, London EC1V 1LP) and is a member of the Association of British Insurers and the Personal Insurance Arbitration Scheme.

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Sovereign Policy

Contents

	Page
Introduction	1
Our insurance contract with you	3
Policy cover	3
Loss or damage (part 1)	4
Liability to others (part 2)	6
Personal accident benefits (part 3)	8
Personal belongings (part 4)	9
Medical expenses (part 5)	9
No claim bonus (part 6)	9
Foreign use (part 7)	10
General exceptions	11
Conditions	13
Endorsements	17
Notes for your information and complaints procedure	18

Our insurance contract with you

This policy is a contract between us and you.

The proposal and declaration you made form the basis of this policy.

We will provide insurance as shown in this policy, schedule and certificate of motor insurance, which is the proof of motor insurance you need by law. You must read all of these documents to make sure you have all the cover you need.

The insurance applies throughout the United Kingdom except where we say otherwise.

Signed for The National Insurance and Guarantee Corporation PLC by:

Managing Director

Policy cover

If the cover shown in your schedule is:

comprehensive - all parts of the policy apply;
third party fire and theft - part 1 applies when it relates to loss or damage resulting from fire or your car being stolen, and parts 2, 6 and 7 apply; or
third party only - parts 2, 6,and 7 only apply.

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Loss or damage (part 1)

What is insured?

Your car if it is damaged, stolen or taken without your permission.

Accessories and spare parts fitted to your car or in your private garage if they are damaged, stolen or taken without your permission.

We will:

pay for the damage to be repaired;
or replace what is stolen or damaged;
or pay the amount of the loss or damage.

Other parts, which will have a warranty from their manufacturers and our approved repairers, may be fitted during repairs.

If we cannot get a replacement part or accessory, we will pay the manufacturer's last list price.

The most we will pay is the market value of your car at the time the loss or damage happened. We will not pay more than the amount for which you insured it. We will not pay any costs which increase the market value of your car.

We will also pay the reasonable cost of taking your car to the nearest repairer and returning it to your address after the repairs have been carried out.

If your car is under a hire-purchase or leasing agreement, we will make any payment for the total loss of your car to the hire purchase or leasing company.

You may authorise repairs if the estimated cost is not more than £250, but you must send us a detailed estimate immediately.

If you have comprehensive cover and you claim only for broken glass in your car windscreen or windows or scratched bodywork caused by the broken glass, it will not reduce your no claim bonus.

How to claim - please see the notes for your information on page 18

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Loss or damage (part 1)

What is not insured?

Loss of use, loss of market value for any reason, deterioration or wear and tear,
Mechanical, electrical, electronic or computer failures or breakdowns.
Damage to tyres from braking or by punctures, cuts or bursts.
Loss of or damage to your car resulting from someone taking it by fraud or trickery.
Loss of your car or accessories or spare parts if it is left unattended at any time if:
- The ignition key has not been removed and all doors windows and other openings have not been closed and locked; or
- You have agreed with us that a specially-fitted locking device, tracking device, immobiliser or alarm must be fitted, or we have given you a discount from your premium for this, and the equipment has not been set.
More than £500 for permanently fitted audio, telecommunication and navigational equipment unless it is standard equipment for your car when built and your policy cover is comprehensive.
More than £250 for permanently fitted audio or telecommunication equipment, if the policy cover is third party fire and theft.
The first amount of any claim shown under endorsements added to the schedule.

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Liability to others (part 2)

What is insured?

We will insure you for all amounts you legally have to pay for causing the death of or injury to any person or damage to their property as a result of an accident caused by you using or driving any car which your certificate of motor insurance allows you to drive or use. This includes towing a trailer, caravan or broken-down motor car. This towing must be allowed by law and the vehicle being towed must be properly attached to your car.

We will provide the same insurance to the following people.

Anyone you allow to drive your car if they are allowed by your certificate of motor insurance.
The employer of anyone you allow to drive your car if they are allowed by your certificate of motor insurance.

If you ask, we will provide the same insurance to the following people in the event of an accident.

Anyone you allow to use (but not drive) your car for social, domestic and pleasure purposes.
Anyone travelling in or getting into or out of your car.

If your certificate of motor insurance allows it (and you are not in the motor trade or car hire business) we will also insure you, for your liability to others, while you are driving a motor car or motor cycle you do not own and which you have not hired under a hire-purchase or leasing agreement. You must have the owner's permission. We will not insure you if you no longer have your car or if it has been damaged and it would cost more than its value to repair. We will not insure loss or damage to the vehicle you are driving.

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Liability to others (part 2)

We will insure the estate of anyone insured by this policy against any liability covered by this policy they may previously have had if they die.

As long as the claim is insured by this policy, we will, with our agreement, pay for a solicitor or barrister to:

represent anyone insured under this policy at a coroner's inquest or fatal accident inquiry; or
defend anyone insured under this policy in a court.

If there is an accident insured by this policy, we will pay for emergency medical treatment that must be provided under the Road Traffic Acts. This will not reduce your no claim bonus.

How to claim - please see the notes for your information on page 18

What is not insured?

Liability for death of or injury caused to any person in the course of their employment by anyone insured by this policy unless the accident is on a road as defined in the Road Traffic Acts.
Anyone who is insured by any other policy.
Liability for loss of or damage to property which belongs to, or is in the charge of, any person who is insured by this policy.
Liability for loss or damage caused in a place where aircraft land, park or move, including the associated service roads, refuelling areas, and ground equipment parking areas.
Liability for pollution or contamination unless it is caused by a sudden and identifiable event which is accidental and unexpected.

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Personal accident benefits (part 3)

If you are in an accident while travelling in or getting into or out of any motor car and this is the only cause of your death, loss of limb, or total and permanent loss of sight in one or both eyes, we will pay a personal accident benefit of £5,000.

The most we will pay after the accident is £5,000.

We will pay the benefit direct to you or to your legal personal representative.

We will not pay the benefit in the following circumstances.

If your death, loss of limb, or total and permanent loss of sight in one or both eyes happens more than three months after the accident.
If you are 75 or over, or under 18.
If your death or bodily injury is the result of suicide or attempted suicide.
If you have insurance under more than one motor policy with us for the same accident, we will pay under one policy only.
If as a result of an accident you are convicted of any drink-related or drug-related offence.
If this policy is in the name of a company or firm.

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Personal belongings (part 4)

We will pay up to £100 for personal belongings in your car if they are lost or damaged by an accident, fire, theft or attempted theft.

We will not cover loss of or damage to:

money, stamps, tickets, documents, cheques or share or bond certificates; or
goods, samples or equipment you or anyone insured by this policy carry in connection with any trade or business.

Medical expenses (part 5)

We will pay up to £100 in medical expenses for each person being carried in your car if they are injured in an accident involving your car.

No claim bonus (part 6)

If no claim is made under this policy, we will reduce the premium you pay when you renew it according to our current scale of no claim bonus. You cannot transfer this bonus to another person.

If you have not paid all the premiums you owe, we will not issue proof of your no claim bonus.

Guaranteed bonus

If this is shown in your schedule, you will be allowed a no claim bonus according to the guaranteed bonus rate in force even if you make claims.

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Foreign use (part 7)

This policy provides the minimum cover you need by law to use any car covered in:

EC
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Holland, Italy, Luxembourg, Portugal, Republic of Ireland, Spain and Sweden;
Other European countries
The Czech Republic, Hungary, Iceland, Norway, Slovakia and Switzerland; or
any other country whose arrangements follow EU insurance directives and are approved by the Commission of the EU.

If you want us to extend the policy beyond the minimum insurance you need by law, you must give us full details including who will drive and what your car will be used for, and pay an extra premium. This will cover your car while it is in and being transported between any countries shown in the International Motor Insurance Card (Green Card) or the United Kingdom.

If you cannot drive the car because of loss or damage covered by this policy, we will also pay the reasonable cost of delivering it to your address in the United Kingdom. We will also pay the amount of customs duty you have to pay as a result of the loss or damage.

If you need cover for foreign use, please see the notes for your information on page 18

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General exceptions

This policy does not provide insurance when any car covered is:
1. being driven by, or in the charge of, anyone not covered by your certificate of motor insurance;
2. being used for purposes that are not shown in your certificate of motor insurance;
3. being driven, with your permission, by anyone who you know has not got a driving licence or who you know is disqualified from holding or getting a licence; or
4. being driven by or in the charge of anyone who does not keep to the conditions of their driving licence.

Any cover you have for loss of or damage to your car continues while the car is being repaired or serviced by a member of the motor trade.

If you receive a mileage allowance or money from your passengers to cover the cost of petrol only, and make no profit while car sharing, we will not treat this as use for hire or reward.

This policy does not insure liability which anyone covered by this policy has as a result of an agreement or contract unless they would have had that liability if the agreement or contract did not exist.
This policy does not insure any loss or damage caused by war, revolution or any similar event.

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General Exceptions

This policy does not provide insurance except under part 2 (Liability to others) for any accident, injury, loss or damage caused by:
1. an earthquake; or
2. riot or civil commotion if it happens outside Great Britain, the Isle of Man or the Channel Islands.
This policy does not provide insurance for any loss, damage or liability caused directly or indirectly by:

- ionising radiation or contamination by radiation from any irradiated nuclear fuel or from any nuclear waste from burning nuclear fuel; or
- the radioactive, toxic, explosive or other dangerous properties of any explosive nuclear equipment or any part of it.
This policy does not provide insurance for proceedings or a court judgement made in any court outside England and Wales, unless the proceedings or judgement result from the use of your car in a country which we have agreed this policy will cover.

If you live in the Isle of Man, any legal disputes will be dealt with according to the laws of the Isle of Man.

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Conditions

You must immediately send us a filled-in report form or report fully to us, quoting your policy number, if there is an event which could lead to a claim being made against you or by you under this policy. You must do this even if you do not plan to claim personally under this policy or if damage to your car is not covered by this policy. You must also send us any letter, writ or communication connected with any claim arising out of any event. We will contact the people who wrote to you.

If you know about any possible future prosecution, inquest or fatal accident enquiry, you must write and tell us immediately. Our address is: NIG, Crown House, 145 City Road, London EC1V 1LP.

You must not pay or agree to settle any claim without our written permission.
We are entitled to:
1. take over and carry out the defence or settlement of any claim in your name, or in the name of any other person insured by this policy;
2. take proceedings in your name, or in the name of any other person insured by this policy, to get back any money we have paid under this policy,
3. any information and help we need from you or any other person insured by this policy.

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Conditions

We or your insurance adviser may cancel this policy by giving you seven days' notice by recorded delivery. We or your insurance adviser will send notice of cancellation to your last known address. You must then send us or your insurance adviser the certificate of motor insurance.

You may cancel this policy by writing to us or your insurance adviser and returning your certificate of motor insurance. If you or others have not made a claim under this policy, we will refund part of the premium using the following scale.

Length of time you had the insurance	Percentage of premium we will refund
1 month	80%
2 months	70%
3 months	60%
4 months	50%
5 months	40%
6 months	30%
7 months	20%
8 months	10%

We will not give you a refund if we provide over eight months' insurance.

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Conditions

If you pay your premium by instalments under our credit agreement, you must pay each instalment when it is due. If you miss an instalment and do not pay it within the time shown in our letters, you will have to pay all the money you owe along with any charges. If we do not receive this payment by the date shown in our letter we will cancel this policy from the date of the first instalment you missed. You must then send us any certificates of motor insurance which are still in force. If you or others have not made a claim under the policy, we will refund part of your premium using the scale shown above.
You must do everything possible to:
1. keep your car in an efficient, safe and roadworthy condition; and
2. protect it from loss or damage.
If a claim is made under this policy and there is another policy that covers the claim, we will pay only our share of the claim unless we say otherwise anywhere in this policy.
If you make or report a claim under this policy which is in any way fraudulent, you will lose all benefit and the premiums you have paid. You may also have to repay money we have already paid to you.
You must allow us to examine your car at any reasonable time.

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Conditions

Under the laws of any country where this policy applies, we may have to make payments which are not insured by this policy. You or the person who caused the accident must repay us any money which we have paid because of the law of the country in which this policy applies which we would not otherwise have paid.

You or the person who caused the accident must also repay us any money we have to pay because of any agreement with the Motor Insurer's Bureau.
We will only provide the insurance described in this policy if you and any person claiming protection have kept to all the conditions and endorsements.

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Endorsements

001	No Cover for drivers under 25 No cover applies whilst your car is being driven, or if not being driven, is in the charge of any person under 25 years of age.
002	No cover if driver hasn't held licence for 12 months No cover applies whilst your car is being driven, or if not being driven, is in the charge of any person who has not held a full UK driving licence for 12 months.
003	No cover for drivers under 30 No cover applies whilst your car is being driven, or if not being driven, is in the charge of any person under 30 years of age.
004	No cover if driver hasn't held licence for 2 years No cover applies whilst your car is being driven, or if not being driven, is in the charge of any person who has not held a full UK driving licence for 2 years.
005	No cover for drivers under 25 except named No cover applies whilst your car is being driven, or if not being driven, is in the charge of any person under 25 years of age except those named on the Certificate of Insurance.
006	No cover for drivers with licence < 12 months except named No cover applies whilst your car is being driven, or if not being driven, is in the charge of any person who has not held a full UK driving licence for 12 months except those named on the Certificate of Insurance
007	No cover for drivers under 30 except named No cover applies whilst your car is being driven, or if not being driven, is in the charge of any person under 30 years of age except those named on the Certificate of Insurance
008	No cover for drivers with licence < 2 years except named No cover applies whilst your car is being driven, or if not being driven, is in the charge of any person who has not held a full UK driving licence for 2 years except those named on the Certificate of Insurance
009	Guaranteed Bonus wording Guaranteed Bonus; regardless of any claims the Company will allow a discount off each renewal premium in accordance with the Guaranteed Bonus rate then in force.
010	Careful driver benefits PA £5000 PE £200 The amounts referred to in Part 3 of this policy are increased to £5,000, and the amount referred to in Part 4 is increased to £200.
011	Suspension in Full This policy is suspended in full. Provided that the period of suspension is not less than 28 days the Company will make an allowance of the pro rata premium for the said period.
012	Reinstatement of Cover This policy is reinstated in full
013	N.C.B. Amended The No Claim Bonus at inception or renewal of this policy on the date shown is now amended As indicated on the schedule.
014	Replacement Car Clause If, within one year of registration as new in your name, your car is stolen and not recovered or is damaged and the cost involved in the repair will exceed 60% of the manufacturer's list price (including Car Tax and Value Added Tax) at the time of loss or damage, we will replace your car with a new car of the same make and model provided that one is available.
016	Economy -Audio£250 PA£1000 PE£50 ME£50 Cover for loss of, or damage to, your permanently fitted audio/telecommunication equipment is limited to £250. The amount of cover for Personal Accident benefits referred to in Part 3 of this policy. The amount of cover for Personal Belongings referred to in Part 4 of this policy is amended to £50. The amount of cover for Medical Expenses referred to in Part 5 of this policy is amended to £50.
017	Guaranteed Bonus Benefits PA £5000 PE £200 The amounts referred to in Part 3 of this policy are increased to £5,000, and the amount referred to in Part 4 is increased to £200.
019	Windscreen Excess If the only claim is for breakage of the car windows or windscreen or if the bodywork is scratched by the breakage you will pay the first £50. This will not apply if the breakage is repaired and not replaced.
020	Accidental Damage Excess You will pay the amount stated on the schedule towards damage to your car, except for damage caused by Fire, Theft, Attempted Theft or Malicious Damage. This amount will be in addition to any other amount shown that you are required to pay for damage to your car.
021	Theft and Malicious Damage Excess You will pay the amount stated on the schedule towards loss or damage to your car caused by theft, attempted theft or malicious damage.
022	Young and Inexperienced Drivers Excess When your car is being driven, or if not being driven, is in the charge of ;- any person under the age of 21 you will pay the first £300 for damage to your car. any person aged 21 or over but under the age of 25 you will pay the first £250 for damage to your car. any person aged 25 or over who holds a provisional licence, or, has not held for a period of :- one year a licence other than a provisional licence, or, two years a licence issued outside Great Britain, Northern Ireland, the Isle of Man or the Channel Islands to drive a vehicle of the same group as the insured vehicle, you will pay the first £200 for damage to your car. The person referred to must be permitted to drive by your Certificate of Motor Insurance.
023	Theft Excess You will pay the amount stated on the schedule towards loss of or damage to your car caused by theft or attempted theft.
024	Fire Excess You will pay the amount stated on the schedule towards loss of or damage to your car caused by fire.
027	Ownership Endorsement We have noted that a person or company other than you owns the car insured by this policy. We will take the interest of that person or company into account in the event of a claim on this policy.

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Notes for your information

(This is not part of your policy)

1 Accidents and losses

You must report all accidents and losses immediately. Either telephone Claim Call on 08701 515596 or ask your insurance adviser for a report form. Legal procedures now make it vital that you report any incident at once. Delay can involve in higher costs which may go against your driving record. If the delay is extreme, we may refuse to cover you.

If your car is damaged in a way which is insured under the policy, ask for details of the nearest approved repairers so that you can get your car back on the road as soon as possible.

Please do not admit that any accident was your fault.

Please try to get the names and addresses of witnesses.

Please take photographs of the accident scene if at all possible.

Please send us immediately any letters, summonses, writs or notices you receive and do not answer them.

2 Changes to the insurance

Please tell your insurance adviser about the following before you need cover.

If the owner of your car changes.
If you replace your car or modify it.
If the drivers or how you use your car change.

Please tell your insurance adviser about the following before the next renewal date.

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Notes for your information

Accidents, thefts or losses (whether covered by insurance or not and regardless of blame) where these have not been previously reported to your insurance adviser.
Motoring convictions, (including fixed penalty offences) or prosecutions you expect or outstanding police enquiries. Criminal convictions or charges for a criminal offence. Physical or mental impairments.

Please tell your insurance adviser about changes of address or occupation as soon as you can.

3 Travel abroad

If you are going abroad, please:

give your insurance adviser 14 days notice whenever possible; and
read carefully 'Information for travellers abroad' which we will send you with your International Motor Insurance Card (Green Card).

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Notes for your information

4 Complaints

If you have a complaint about your policy, contact your insurance adviser, or us. Please give your policy number.

You can contact the insurance Brokers Registration Council (IBRC) at:
15 St Helens Place, London EC3A 6DS.

If you are not satisfied with the way your complaint has been dealt with, please write to our
Managing Director at our Head Office:
NIG Skandia, Crown House, 145 City Road, London EC1V 1LP.

You can also contact the Association of British Insurers for help.
Their address is:
Consumer Information Department, Association of British Insurers,
51 Gresham Street, London EC2V 7HQ.

If you are still not satisfied, we offer an arbitration service under the Personal Insurance Arbitration Scheme run by the Chartered Institute of Arbitrators at the:

International Arbitration Centre, 24 Angel Gate, City Road, London EC1V 2RS.

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