Quantum Savvy Pty Ltd, is recognized by the Australian Securities and Investments Commission (ASIC) as an Authorised Representative of both Eric Insurance Ltd ABN 18 009 129 793 AFSL 2387279, Suncorp Metway Insurance Pty Ltd ABN 80 000 886 680 AFSL 229869, Davantage Group Pty Ltd ABN 35 161 967 166 AFSL 438157 & LFI Group Pty Ltd ABN 31 138 903 581 AFSL 413 613.

This information may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it.

© Quantum Savvy Pty Ltd / ABN 12 134 138 686 / ACL 414426 / Savvy is a trade mark of Quantum Savvy Pty Ltd.

Shortfall Protection

SHORTFALL BENEFIT

If your Vehicle is declared a Total Loss by your Comprehensive Vehicle Insurer then, following the Total Loss Payout being made to your Financier by your Comprehensive Vehicle Insurer, we will in the event that there is a Shortfall or debt remaining under your Finance Contract, pay the Financier the amount of the Shortfall up to the maximum Shortfall benefit payable.

EARLY PAYOUT OF YOUR FINANCE CONTRACT

If you have paid out the Finance Contract prior to its scheduled completion date, your insurance cover will continue for the remaining Period of Insurance and you will still be eligible to claim for private expenses.

PRIVATE EXPENSES BENEFIT

In the event of a Total Loss settlement by your Comprehensive Vehicle Insurer, you can lodge a claim for private expenses directly incurred as a result of the Total Loss. The maximum amount we will pay in relation to private expenses will depend on the level of cover you have selected and whether or not a Shortfall exists.

Examples of private expenses you can claim include:

Incidental Expenses
  • Travel Accommodation
  • Taxis
  • Car hire
  • Meals
  • Phone calls
 Personal Items
  • CDs and DVDs
  • Laptops/Tablets
  • Phones
  • Sunglasses
  • Baby seats
  • Clothing
  • Golf clubs
  • Luggage/Handbags
  • Tennis/squash racquets
  • Handheld Navigation
  • Devices
  • Fishing gear
  • Umbrellas
  • Ski gear
  • Toys
  • Portable DVD Player
  • Surfing equipment

Shortfall Protection

- Example

CLAIM EXAMPLE 1

You have an accident and the Vehicle is assessed as a Total Loss by your Comprehensive Vehicle Insurer at $22,500. The balance owing under your Finance Contract as at the date of the Total Loss is $27,500. This leaves a Shortfall under the Finance Contract as at the date of the Total Loss of $5,000. Upon acceptance of your claim, we will pay $5,000 to your Financier.

Balance owing to Financier  $27,500
Total Loss  $22,500
Shortfall  $5,000

CLAIM EXAMPLE 2

Your Vehicle catches fire and your Comprehensive Vehicle Insurer assesses your Vehicle as a Total Loss at $17,900. The balance owing under your Finance Contract as at the date of the Total Loss is $16,500. As the Total Loss Payout is more than the balance owed to the Financier, there is no Shortfall.

Balance owing to Financier  $16,500
Total Loss  $17,900
Shortfall  $NIL

However, as you are entitled to claim for private expenses incurred as a result of the Total Loss, you submit receipts for travel, meals and accommodation costs amounting to $1,205. Upon acceptance of your claim, we will pay $1,205 to you.

CLAIM EXAMPLE 3

Your Vehicle has been stolen and your Comprehensive Vehicle Insurer settles your claim as a Total Loss. As you have paid out your Finance Contract early there is no Shortfall, however you incurred private expenses as a direct result of the Total Loss. During the time you were without your Vehicle you needed to hire a car and several items in your Vehicle were damaged, including a laptop and luggage. You submit receipts for these expenses amounting to $1,750. Upon acceptance of your claim, we will pay $1,750 to you.

Shortfall Protection

What is LFI Vehicle Equity Insurance?

LFI Vehicle Equity Insurance is designed to help you pay off your Loan and meet other costs associated with the Total Loss (writeoff) of your Vehicle.

Vehicle Equity Insurance pays the following benefits in the following circumstances:

Shortfall Benefit:

If your vehicle is a Total Loss and you receive a Comprehensive Insurance Payout that is less than the amount owing on your Loan, we will pay the Shortfall to your Lender (up to your Maximum Shortfall Benefit); and

Replacement Benefit:

If your Vehicle is a Total Loss and your Comprehensive Insurer pays your claim or replaces your Vehicle, we will pay you a lump sum Replacement Benefit to help meet expenses associated with the replacement of your Vehicle. We will not require proof of these expenses.

Vehicle Equity Insurance only pays benefits if your Comprehensive Insurer declares your Vehicle a Total Loss. If your Comprehensive Insurer replaces your Vehicle during the Period of Cover, your Vehicle Equity Insurance continues in relation to the replacement Vehicle until the end of the Period of Cover.

We will pay a maximum of two Replacement Benefits and only one Shortfall Benefit. If you wish to cancel your Comprehensive Insurance, you should also cancel your Vehicle Equity Protection and obtain a refund of unused premium

These benefits are subject to other limits and exclusions which are explained under Policy exclusions on page 4 and When am I covered? on page 7 of the Vehicle Equity Insurance PDS.

Shortfall Protection

- Example

Example – Total loss payout

During the Period of Cover, your Vehicle is declared a Total Loss by your Comprehensive Insurer and your Loan payout is $30,000 but your Comprehensive Insurer only pays your Vehicle’s market value which is $20,000. This leaves you with a $10,000 shortfall on your Loan. If you chose Cover level 2, with a Maximum Shortfall Benefit of $15,000, we would pay the Shortfall of $10,000 to your Lender, covering the shortfall. In addition, you will receive a Replacement Benefit of $4,000 toward your out of pocket expenses, with no proof required. Your Policy and the Period of Cover end after payment of these benefits.

Example – Replacement vehicle declared a Total Loss

During the Period of Cover your Vehicle is declared a Total Loss by your Comprehensive Insurer, which provides you with a replacement vehicle. If you chose Cover level 2, you will receive a Replacement Benefit of $4,000 toward your out of pocket expenses, with no proof required. Your Policy continues in relation to your replacement vehicle. If your replacement vehicle is declared a Total Loss during the Period of Cover, we will pay any Shortfall to your Lender (up to $15,000 with Cover level 2) and a further Replacement Benefit. Your Policy and the Period of Cover end after payment of these benefits.

Return to Invoice

- Example 1

If Your Vehicle Purchase Invoice Price was $32,000, Your Return To Invoice Policy had a Sum Insured of $10,000 and Your Vehicle was written off and the motor comprehensive insurance payout figure was $25,500, then in this example, the Return to Invoice Policy would pay You a Claimable Amount of $6,500.

Return to Invoice

- Example 2

Using Example1, the Financier has an outstanding balance of $7,000 after taking into account the Total Loss Payout. We would pay the Financier the Claimable Amount of $6,500 and You would be required to pay the Financier the balance still owed on the vehicle, in this case being $500.

Loan Termination Insurance

If, during the Period of Insurance, and subject to the terms and conditions of our agreement with you, you are unable to perform your Employment for a period of greater than 30 days because you experience one of the following events:

  • Disability as certified by a Medical Practitioner; or
  • Involuntary Unemployment as a result of you being made redundant, retrenched, or your employer ceases to operate;
then you may choose to:
  • Receive a Monthly Payment Option Benefit; and/or
  • Handback your Vehicle to a Dealer.

MONTHLY PAYMENT OPTION BENEFIT

You may choose to use the Monthly Payment Option Benefit as an alternative to Handback of the Vehicle to contribute towards your Monthly Repayments under your Finance Contract, allowing you to retain your Vehicle.

The Monthly Payment Option Benefit can be used to cover up to a maximum of 6 Monthly Repayments (Cover limited by the level of cover selected) during the Period of Insurance, subject to your ongoing Disability or Involuntary Unemployment.

All payments made under the Monthly Payment Option Benefit will be made in accordance with your documentation provided and may include part payments in circumstances such as partial return to work. Where this applies, we will pay 1/30th of your Monthly Repayment for every day you are unable to perform your Employment.

Following any use of the Monthly Payment Option Benefit you may choose to Handback the Vehicle should you remain unable to perform your Employment in accordance with the terms of this insurance cover.

VEHICLE HANDBACK

Where you choose to Handback your Vehicle to a Dealer and experience a Shortfall as a result of the Handback, then we will pay the Shortfall to the Financier.

The Financier must agree to facilitate clear title in respect of the Vehicle before any claim payment for Handback under this Insurance cover is made.

Any benefits payable under this insurance cover will be made directly to the Financier.

Loan Termination Insurance

- Examples

CLAIM EXAMPLE 1

You have Level 1 Cover and you suffer from a Disability during the Period of Insurance.

You have been advised that you will be unable to work for approximately 365 days. You can elect to Handback the Vehicle after you have been Disabled for 30 days or you can elect to claim for payment under the Monthly Payment Option Benefit for the period you are Disabled in excess of 30 days, up to a maximum of 6 Monthly Repayments or $30,000, whichever is the lesser.

You decide to use the Monthly Payment Option Benefit. Each Monthly Repayment is $1,000. Eric pays to the Financier $3,000 as a lump sum payment covering 3 Monthly Repayments as per the certification provided. After the 3 month period covered by this payment has elapsed you continue to remain unable to work. At this point instead of continuing with the Monthly Payment Option Benefit, you elect to Handback your Vehicle to the Dealer.

The value of the Vehicle as reasonably determined by us is $22,000* and the Payout Figure is $35,000 (as at the completion of the period covered by the latest Monthly Payment Option Benefit payment). You have a Shortfall of $13,000.

We will pay the Financier $13,000 being the lesser of the Shortfall and Level 1 Cover of $30,000.

*Vehicle value is determined in accordance with the trade value of the current edition of the Glass’s AutoEdge, for a Vehicle which is the equivalent age, make, condition and model as your Vehicle.

CLAIM EXAMPLE 2

You have Level 3 Cover and six months after buying the Vehicle you have a fall, and your Medical Practitioner advises that you will be unable to perform your Employment for an undetermined period.

You decide to use the Monthly Payment Option Benefit to continue to pay your Monthly Repayments of $709.52 under the Finance Contract whilst unable to perform your Employment.

After your 6th Monthly Repayment, your Medical Practitioner advises you that you will not be able to return to work for a further 6 months. You decide to Handback your Vehicle to a Dealer, who appraises the Vehicle and buys it for $33,100. We determine the Vehicle value to be $34,300 based upon Glass’s AutoEdge. The Payout Figure to the Financier is $38,916.20, leaving a Shortfall of $4,616.20 (the difference between the Payout Figure and the greater of Glass’s AutoEdge value and the price paid by the Dealer).

We pay the Shortfall to the Financier, leaving an outstanding balance on your Finance Contract of $1,200 (the difference between what the Dealer has paid for the Vehicle and the Glass’s AutoEdge value).

Monthly Repayments (x6) $ 4,257.12

Payout Figure   $38,916.20
Value of the Vehicle   $33,100.00* (paid to Financier)
Balance owed to Financier   $5,816.20
Shortfall   $4,616.20 (paid by us to Financier)
Balance owing on loan   $1,200.00 (you pay Financier)
Total claim payments   $ 8,873.32 (paid by us to Financier) (being the 6 Monthly Repayments plus the Shortfall)

Repayment Cover (Loan Protection)

You can choose from the following options:

  • Disability Cover only; or
  • Disability and Involuntary Unemployment Cover.

Type of Cover Maximum monthly benefit   Maximum benefit all claims
Disability Up to $2,500    Unlimited
Involuntary Unemployment Up to $2,500    $10,000

If you choose to purchase this insurance, the cover option(s) applicable to you will be shown on the Policy Schedule.

DISABILITY COVER

If you suffer a Disability as certified by a Medical Practitioner during the Period of Insurance and as a result, you are unable to perform your Employment for a period of greater than 21 days, we will pay 1/30th of your Monthly Repayment for each day you are Disabled (excluding the Excess Period), up to the maximum benefit limit. For example, if your Monthly Repayment is $600, the benefit you receive is $20 per day.

Subject to the terms and conditions of your insurance cover, an unlimited number of claims may be made.

A 21 day Excess Period applies to this cover.

INVOLUNTARY UNEMPLOYMENT COVER (if chosen)

In addition to Disability cover, your insurance will provide you with the following benefit.

If you become Involuntarily Unemployed during the Period of Insurance and you are unable to perform your Employment for a period of greater than 21 days, we will pay 1/30th of your Monthly Repayment for every day you are Unemployed (excluding the Excess Period), up to the benefit limit. For example, if your Monthly Repayment is $750, the benefit you receive is $25 per day.

The benefits paid will be limited to a maximum period of 150 days in respect of any one claim during any one continuous period of Involuntary Unemployment.

Subject to the terms and conditions of your insurance cover, an unlimited number of claims may be made up to the maximum benefit limits.

A 21 day Excess Period applies to this cover.

All benefits provided under the insurance cover:

  • Are not affected by payments you may receive under Worker’s Compensation or Social Security; and
  • Will be paid directly to the Financier named in the Policy Schedule.

Repayment Cover (Loan Protection)

CLAIM EXAMPLE 1

You become Involuntary Unemployed during the Period of Insurance and remain unemployed for a period of 40 days. On submission and acceptance of your claim we pay 1/30th of your Monthly Repayment for each day you are Involuntarily Unemployed excluding the first 21 days (Excess Period).

Monthly Repayment $725.00
Daily amount @ 1/30th $24.17
Total days 19 (40 – 21)
Claim amount paid $459.23 ($24.17 x 19)

CLAIM EXAMPLE 2

You suffer a Disability and your Medical Practitioner advises that you are unable to work for a period of 240 days. On submission and acceptance of your claim we pay 1/30th of your Monthly Repayment for each day you are Disabled excluding the first 21 days (Excess Period).

Monthly Repayment $725.00
Daily amount @ 1/30th $24.17
Total days 219 (240 – 21)
Claim amount paid $5,293.23 ($24.17 x 219)

Warranty

- Additional Benefits

Warranty covers the major components of your car – both electrical and mechanical. From engine and transmission to electronics such as LED screens, on-board computers etc which can be very costly to fix.

The warranty you are considering is often called an exclusion warranty as its easier to explain what it doesn’t cover.

The components not covered include:

Paint, Panels, trim, exhaust and wheels. It also doesn’t cover wear and tear items (no warranty will ever cover these items)

There is a 90 day wait period before you can make your first claim. After that you don’t have to wait and you can make unlimited claims during the term of the warranty up to the market value of the car.

So in the event of mechanical or electrical/electronic breakdown, once approved by the insurer, your car will be fixed without having to pay any excess.

The policy comes with additional benefits which include:

  • Unlimited claims: up to the purchase price of your car
  • Choice of warranty for 1,2,3,4 or 5 years
  • No excess on claims: parts and labour are fully covered
  • Cover for over 4,000 car components
  • Accommodation: up to a maximum $300 per day and you are > 100kms from your home address
  • Car Rental: up to $50 per day and subject to an overall maximum of $300 per accepted claim
  • Locksmith Service: up to $100 for the services of a professional locksmith - $300 per claim
  • Towing: up to $100 for any one claim, and subject to a Policy limit of $300
  • Total Loss Expenses: costs incurred as a result of total loss eg travelling costs, meals etc
  • Can transfer warranty to a new owner

Warranty

- Additional Benefits

Fully Protected

- Confirmation

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Standard

- Confirmation

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Basic

- Confirmation

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Single

- Confirmation

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