Terms and Conditions

Mechanical Breakdown Insurance Policy Terms and Conditions

This policy contains a clause which may limit the amount payable.

1A. INSURED POLICY STATEMENT: We will pay a benefit in the event that Your Approved Vehicle suffers a Mechanical Breakdown during the Term, all subject to the terms, conditions, limitations, and exclusions in the Policy. Obligations under this Policy are fully insured and guaranteed by:

Lloyd’s Underwriters as per Unique Market Reference Number B118403196CA3196

200 Bay Street, Suite 2930 Toronto, Ontario M5J 2J2

1B. ADMINISTRATION: All obligations under this Policy are administered by:

Claims

QBE Services Inc.
333 Bay St. Suite 520, Toronto, ON M5H 2R2
Toll-Free Number: 1-855-255-6274

Policy Enquiries including Cancels/Transfers

Repair Ventures Canada, Inc. (“Olive”)
1 Dundas Street West, Suite 2500, Toronto M5G 1Z3
Toll-Free Number: 1-833-654-8322

2. ENTIRE POLICY: The Policy Terms and Conditions which includes the Declaration Page is the complete and exclusive statement of the Policy and is the understanding between You and Us regarding the Policy and related benefits for Your Approved Vehicle.

3. DEFINITIONS: In this Policy, the following capitalized terms have the meanings assigned to them:

Administrator means QBE Services Inc. You may contact the Administrator’s office at any time to have coverage questions answered or receive assistance in filing a claim under this Policy at 1-855-255-6274.

Approved Vehicle means the vehicle identified by the VIN on the Declaration Page.

Coverage means the Coverage You selected for the Approved Vehicle as fully described under Section 5. COVERAGES.

Covered Part:  if you purchased the olive Powertrain Coverage or the olive Powertrain Plus Coverage, Covered Parts are the parts installed at the time of the manufacturing of the Approved Vehicle that are specifically listed after each component group heading of the Coverage plan purchased, subject to the exclusions listed in Section 8. EXCLUSIONS. Any part not listed on the Coverage You purchased is not covered, regardless of the cause for its failure. If you purchased the olive Complete Care Coverage, all mechanical and electrical operating parts installed at the time of the manufacturing of the Approved Vehicle are covered, except for those parts and services found in Section 8. EXCLUSIONS of this Policy. Repairs needed to a non-covered part caused by the Mechanical Breakdown of a Covered Part will also be covered under the olive Complete Care Coverage.

Deductible: means the amount shown in SECTION B- TYPE OF COVERAGE on the Declaration Page for which You are responsible to pay each time You go to a repair facility in the event of a claim being covered by this Policy. This does not include any non-covered repairs or expenses which You will be responsible for.

Effective Date means the date on which Your Policy will become effective for the selected Coverage, as indicated on the Declaration Page.

Emergency Repair means a necessary repair to Your Approved Vehicle at a repair facility when the Administrator’s offices are closed.

Expiration Date means the date shown on the Declaration Page on which this Policy will expire, even if the Expiration Mileage has not been reached.

Expiration Mileage means the maximum total mileage stated on the Declaration Page being indicated on the Approved Vehicle’s odometer, upon which this Policy will automatically expire, even if the Expiration Date has not been reached.

Mechanical Breakdown means the failure of a Covered Part to perform its intended function due to defects in materials or faulty workmanship in its manufacturing. This does not include the normal reduction in operating performance of a Covered Part due to normal wear and tear, including parts in which wear tolerances that are outside the manufacturer’s specifications are exceeded that are not due to defect in material or faulty workmanship in the manufacturing of a Covered Part.  (Please refer to Section 8. EXCLUSIONS for other exclusions that may apply). A leak of a Covered Part will only be considered a Mechanical Breakdown if it is an active leak to a drip. Seepage and/or buildup is considered normal and will not be covered.

Policy means this complete Mechanical Breakdown Insurance Policy, which includes the Declaration Page, that shows a specific duration to perform the repair, replacement, or maintenance for operational or structural failure due to a defect in materials or workmanship of Covered Parts.

Premium means the purchase price You paid for this Policy, as stated on the Declaration Page.

Retail Value of the Vehicle means the retail value of the Approved Vehicle at the time of repair or service, as determined by CBB (https://www. canadianblackbook.com) taking into consideration the location, mileage, and condition of the Approved Vehicle.

Term means the period beginning on the Effective Date and ending the earlier of the Expiration Date or the Approved Vehicle reaching the Expiration Mileage.

Vehicle Identification Number (VIN) means the 17-character alphanumeric identifier assigned to a motor vehicle by the manufacturer.

We, Us, and Our means Lloyd’s Underwriters, as per Unique Market Reference Number B118403196CA3196, the insurer under the Policy, located at 200 Bay Street, Suite 2930 Toronto, Ontario M5J 2J2 1.877.455.6937.

You and Your means the purchaser of this Policy, being the insured under the Policy, specified on the Declaration Page.

4. HOW TO MAKE A CLAIM

1. If the Approved Vehicle is inoperable, and to prevent any further damage, immediately stop the Approved Vehicle and call for towing or roadside assistance. It is Your responsibility to use all reasonable means and precautions to protect the Approved Vehicle from further damage. Continued operation of the Approved Vehicle after any Mechanical Breakdown shall constitute failure to protect the Approved Vehicle. Any damage from failure to protect the Approved Vehicle shall not be recoverable.
2. Prior to starting repairs, the repair facility must contact the Administrator’s claims office at 1-855-255-6274 with diagnosis and estimate of repairs. If You experience an Emergency Repair when a covered Mechanical Breakdown occurs when the Administrator’s office is closed, You must have the repair facility contact the Administrator during the next business day. Failure to contact the Administrator and report the claim on the next business day may result in nonpayment (see Section 8. EXCLUSIONS).
3. You must authorize Your chosen authorized repair facility to inspect and diagnose the Mechanical Breakdown, as necessary, to determine the cause of failure and the cost of parts and labour to repair. IMPORTANT: You must call the Administrator prior to any engine or transmission disassembly. You are responsible for the cost of disassembly in the event the Mechanical Breakdown is NOT payable under this Policy (see Section 8. EXCLUSIONS).
4. If requested, permit inspection of the Approved Vehicle by the Administrator BEFORE repairs are performed.
5. Upon request, provide proof of maintenance (see Section 7. YOUR RESPONSIBILITIES).
6. You must pay the Deductible and any other non-covered expenses as applicable.
7. Payment for covered Mechanical Breakdowns will be made to either the repair facility or to You in accordance with the Policy provisions within thirty (30) days after receipt by Us of the repair order. Repair orders must be received by the Administrator within ninety (90) days of completion of repairs and the repair order must be signed by You. Failure to sign a repair order may cause delays in processing Your claim.

   Claims mailed in without prior authorization from the Administrator will be denied.

5. COVERAGES

olive Powertrain Coverage

If You elected the olive Powertrain Coverage, the following parts listed after each component group heading are covered:

Engine:  Engine block; cylinder head; rotor housing (rotary engine); oil pan; valve cover; timing cover; all internally lubricated parts contained within the engine block, cylinder head, or rotor housing; oil pump; timing chain, timing chain gears and timing chain tensioners; timing belt and timing belt tensioner; balance belt; variable valve camshaft actuator (not the variable valve solenoid); intake and exhaust manifolds (If the catalytic converter is permanently attached to the exhaust manifold, the exhaust manifold will not be covered if the mechanical breakdown is the catalytic converter.); harmonic balancer; engine mounts; water pump;  flywheel or flexplate.

Transmission, transaxle, and transfer case: Case housings, housing covers and pans; all internally lubricated parts contained within the housings; torque converter; viscous couplings; vacuum modulator; transmission mounts; transfer case shift/encoder motor; transmission/transaxle range position sensor/switch.

Drive axle (includes FWD, 4WD and AWD vehicles): Front and rear drive axle housings and covers; all internally lubricated parts contained within the drive axle housings; axle shafts; constant velocity joints and boots; driveshafts; universal joints; flex discs; driveshaft center support bearing; driveshaft yokes; 4WD engagement actuators and motors; 4WD manual locking hubs.

Air and Fuel System: Fuel pumps; supercharger/turbocharger housing and all internal parts of the housings (does not include wastegates or other attaching parts).

Seals and Gaskets: Seals and Gaskets are covered for only the parts listed in this section.

olive Powertrain Plus Coverage

If You elected the olive Powertrain Plus Coverage, your Coverage includes olive Powertrain Coverage and the additional parts listed after each component group heading are covered for olive Powertrain Plus Coverage:

Odometer & Speedometer: Odometer and speedometer and their cables and connectors.

Steering: Steering gear assembly; rack and pinion housing all internally lubricated parts contained within the housing; power steering pump and its reservoir; seals and gaskets for the steering gear assembly and the rack and pinion housing; power steering pump pulley; steering column shafts, their couplings, and bearings; tie rod ends; pitman arm, idler arm, and all other steering linkages; power steering metal lines.

Front Suspension: MacPherson struts; upper and lower control arms; control arm shafts and bushings; upper and lower ball joints; Front wheel hub and bearing; steering knuckles and spindles; stabilizer bar, stabilizer bar bushings and links; coil springs; torsion bars.

Brakes: Master cylinder, vacuum, or hydro booster; calipers; wheel cylinders; equalizer and distributing valves, proportioning valve.

Interior Climate Control: A/C Compressor, compressor clutch and its pulley; accumulator; receiver dryer; evaporator; condenser; serpentine belt tensioner and idler pulley; expansion valve; orifice tube; A/C pressure switches, blower motor and blower motor resistor.

Electrical: Alternator; voltage regulator; starter motor; starter solenoid; manually operated electrical switches; ignition switch; wiper motors; electronic ignition control module; radiator fan relay; wiring harnesses; and electrical components of a heated back glass defroster. NOTE: Heated back glass coverage is for electrical components only and does not include general glass or other physical damage.

Seals and Gaskets: Seals and Gaskets are covered for only the parts listed in this section

olive Complete Care Coverage

If You elected the olive Complete Care Coverage, all mechanical and electrical operating parts installed at the time of the manufacturing of the Approved Vehicle are covered, except for those parts and services found in Section 8. EXCLUSIONS section of this Policy. Repairs needed to a non-covered part caused by the Mechanical Breakdown of a Covered Part will also be covered under the olive Complete Care Coverage.

6. ADDITIONAL BENEFITS

Towing Reimbursement:

If towing is necessary because a covered Mechanical Breakdown occurs or services provided by Your Coverage are required, We will reimburse You for towing costs up to $125 per covered claim occurrence.

Car Rental:

If Your Approved Vehicle becomes inoperative due to a Mechanical Breakdown that is covered by this Policy or any repair being covered under a manufacturer’s warranty, We will pay for Car Rental reimbursement up to $100 per day, not to exceed 5 days for a total of $500 for any one (1) period. Car Rental will be based on the number of labour hours approved for the Mechanical Breakdown repair. Each eight (8) hours or portion thereof of approved labour is eligible for one (1) day Car Rental. In the event that we determine that the Approved Vehicle needs to be inspected by Us, We will pay up to an additional two (2) days Car Rental to accommodate any delay in the Approved Vehicle being returned to You. Car Rental is not provided for delays because of shop scheduling or for work not covered by this Policy. Car Rental will be reimbursed only upon receipt of an invoice from a licensed car rental agency.

7. YOUR RESPONSIBILITIES

To obtain coverage or reimbursement under this Policy, You must: (i) properly operate the Approved Vehicle, (ii) provide proof of scheduled maintenance services in respect of the Approved Vehicle, and (iii) maintain automobile insurance over the Approved Vehicle as required by law. Proof of scheduled maintenance services includes maintenance records that show mileage, date of maintenance service, VIN and the maintenance that was performed.

Scheduled maintenance service requires periodic service checks based on mileage and/or time intervals based on the year, make and model of Your Approved Vehicle. Please review the Owner’s Guide for Your Approved Vehicle for the scheduled maintenance service requirements. If You perform Your own scheduled maintenance services, You must maintain a log including date, mileage and description of each maintenance service and provide corresponding receipts for purchases of parts and fluids. Covered Parts that require replacement at certain time and/or mileage intervals are not covered due to scheduled maintenance service requirements.  In the event a Covered Part was not replaced at its prescribed replacement interval it will not be covered in the event a Mechanical Breakdown occurs, nor will any consequential damage caused by the failure of that Covered Part.

8. EXCLUSIONS

The following are excluded from coverage under the Policy:

1. Any claim submitted without the authorization of the Administrator prior to starting any repairs (see Section 4. HOW TO MAKE A CLAIM).
2. Any Mechanical Breakdown or damage resulting from continued operation of the Approved Vehicle, such as not stopping Your Approved Vehicle immediately or having it towed or caused by Your failure to take reasonable precautions to prevent further damage when an apparent problem exists (see Section 4. HOW TO MAKE A CLAIM).
3. The repair or replacement of any Covered Part if a Mechanical Breakdown has not occurred.
4. Any costs incurred for diagnostics or disassembly work if a Mechanical Breakdown is not covered by this Policy (see Section 12. PAYMENT OF COVERED REPAIRS).
5. Any pre-existing conditions (a condition that already existed on the Approved Vehicle when You purchased Your Policy) or any Mechanical Breakdown occurring prior to the Effective Date of the Policy, whether it be known or unknown.
6. Any repair or replacement of a Covered Part that has failed due to normal wear and tear and not due to a defect in material or faulty workmanship in the manufacturing of a Covered Part.
7. Repair or replacement of an engine due to oil consumption, loss of compression or misfires (which may cause a check engine light), if the only problem is due to normal wear and tear such as worn piston and/or piston rings, lining up of piston rings, worn engine block, worn valves, worn valve guides or valve guide seals, or carbon/sludge build up on these parts.
8. Any environmental surcharges, waste disposal fees, shop supplies, and other similar miscellaneous charges.
9. For olive Powertrain Coverage and olive Powertrain Plus Coverage: Any part that is not listed for coverage is not covered.
10. Any non-covered parts or services, including, but not limited to, the performance of normal maintenance services as set forth in the owner’s guide for the Approved Vehicle, scheduled replacement of parts and wear items, and parts and services such as: adjustments of any type unless required with a repair being  covered  by  this  Policy;  all rubber,  plastic and metal lines, hoses and  tubes;  fittings  and connectors for lines, hoses and tubes; spark plugs; tune-ups; fan, engine, and serpentine belts; all filters; oil drain plug and oil filter housing caps and covers; glow plugs; engine block plugs (also called Welch or freeze plugs); adjustments to carburetors or fuel injection systems; complete exhaust systems including catalytic converters and particulate filters; brake rotors; brake drums; brake shoes; brake pads; brake springs and other brake mounting hardware; all batteries; external charging stations or systems; battery cables and connectors; fuses and circuit breakers; clutch slave and master cylinder; clutch disc, pressure plate, throw-out (release) bearing, dry clutch assemblies for automatically shifted manual transmissions, and pilot bearings; body and frame mounts; wheel alignments; wheel balance; tires, wheels and rims; flushing or cleaning of any system; wiper blades and arms; clamps; attaching hardware; grommets; glass; mirror glass; body parts; body and glass seals; paint/trim; soft trim; moldings; bright metal and chrome; door and window weather stripping; upholstery; fabric; convertible top frames and upholstery; electronic device software; digital video and compact audio discs; all HID, LED, halogen bulbs and standard incandescent bulbs; headlight, taillight, turn light and all other all other lighting assemblies; freight and core charges; any part that was not originally installed by the manufacturer; oil, coolant, additives, and refrigerants or other fluids, except in conjunction with the repair of a Covered Part (this is limited to necessary amounts required to refill the system one (1) time for the repair of the Covered Part); nuts, bolts, and fasteners except when required to complete a covered repair on a Covered Part.
11. Any part that a repair facility or manufacturer recommends or requires to be repaired, replaced, or is an update (including updated software or programming), and is not a Mechanical Breakdown. This includes modifications, replacement or alteration of existing parts or systems necessitated by the replacement of an obsolete, superseded, or unavailable part, and improper maintenance or repair.
12. Any Mechanical Breakdown or damage resulting from misuse; abuse; negligence; damage due to overcharging; jump starting; allowing an electric or hybrid drive vehicle’s high voltage drive battery to reach zero or near zero; exposing the vehicle to temperatures above 50 degrees Celsius over 24 hours or -25 degrees Celsius for over 7 days; use of any electric or hybrid vehicle charger not recommended by the manufacturer.
13. Any Mechanical Breakdown or damage resulting from collision or upset; fire or smoke; theft or attempted theft; vandalism; riot or civil commotion; acts of war or invasion; terrorism; explosion; lightning; earthquake; freezing; rust or corrosion; windstorm; hail; water or flood; acts of God; salt; pollution or contamination; environmental and road hazard damage; chemical or nuclear incident; ionizing radiations or contamination by radioactivity from any irradiated nuclear fuel.
14. Any Mechanical Breakdown caused by a lack of required maintenance as set forth under Section 7. YOUR RESPONSIBILITIES; contaminants or contaminated fluids, fuel, coolants, oils, and lubricants; foreign objects; improper amounts or types of lubricants, fuels, or coolants; sludge and/or varnish.
15. Any loss or expense that is a direct result of a mechanical or structural defect for which a manufacturer has announced a recall or other announcement for the purpose of correcting a defect, or the repair or replacement of any part covered by a manufacturer’s or dealer’s warranty required by law in respect of emissions control systems.
16. Any Approved Vehicle that currently has or at any time has had an altered, or inoperative odometer that has been left unrepaired, whether such repair is covered by this Policy or not.
17. Any Approved Vehicle modified or altered with, but not limited to, high performance, off-road equipment, and/or battery/electrical system that is not original factory equipment, done before or after the Effective Date of this Policy. Any Approved Vehicle used for any type of competitive driving or racing.
18. Any Approved Vehicle that is used or equipped with any of the following: Any tire or wheel sizes and/or offsets not recommended by the manufacturer. Any Approved Vehicle equipped with a lift kit or has any parts that are used to lift a vehicle or its suspension.
19. Mechanical Breakdown or failure as a result of spinning of tires or over revving.
20. Any Approved Vehicle used for pulling a trailer, unless the Approved Vehicle was properly equipped beforehand for this purpose as recommended by the manufacturer.
21. Any Approved Vehicle that: is reconstructed from salvage; is declared a total loss; is a manufacturer or dealer buyback; has had its Vehicle Identification Number changed or altered; or for which the original manufacturer’s warranty has been voided for any reason.
22. Any loss or expense if Your Approved Vehicle is used for the following: Any commercial or business use (full or part time), including, but not limited to, delivery services, taxi, livery, or ride share services; municipal, volunteer, or professional emergency services; fleet or pool services; towing a trailer whose weight exceeds the manufacturer’s recommendations for that vehicle; or use of the Approved Vehicle for any snowplowing.
23. Any Approved Vehicle that has the following characteristics: step-van; high-cube van; box body; cab and chassis or other incomplete vehicle; right hand steering; any vehicle that has business related equipment permanently mounted to the chassis or bed of the vehicle; or that have special bodies designed for construction, hauling or delivery.
24. Any Approved Vehicle not originally manufactured to be sold in Canada meeting Canadian specifications, commonly known as a grey market vehicle.
25. Consequential damages to non-covered parts caused by the failure of a Covered Part are excluded from Coverage unless You have purchased the olive Complete Care Coverage.
26. Any Mechanical Breakdown covered by any limited warranty, manufacturer’s warranty, manufacturer’s and/or dealer customer assistance program, repairer’s guarantee, road club, or any other guarantee, warranty, or insurance policy, whether collectible or not. It is Your responsibility for making sure that all remaining manufacturer’s original warranties are transferred to You.
27. Any loss, damage, cost, expense, or any other sum otherwise payable under this Policy of whatever nature directly or indirectly caused by, resulting from or in connection with:
28. any actual or threatened unauthorized, malicious, or criminal act, or series of actual or threatened unauthorized, malicious, or criminal acts, or any hoax relating to any of these; or
29. any failure to act, error, omission or accident or series of related failures to act, series of related errors, series of related omissions or series of related accidents; or
30. partial or total unavailability or failure, or series of related partial or total unavailability or failures, involving or affecting the use or operation of, access to, or the processing of any computer, hardware, software, data, information technology and communications system, electronic device, server, cloud, or microcontroller including any similar system or any configuration of the aforementioned, and including any associated input, output, or data storage device.
31. Our liability for incidental and consequential damages including, but not limited to, personal injury, physical damage, property damage, loss of use of Your Approved Vehicle, loss of time, inconvenience, and commercial loss resulting from the operation, maintenance, or use of Your Approved Vehicle is expressly excluded.

9. LIMIT OF LIABILITY

This Policy is limited to the repair or replacement of a failed Covered Part, due to a covered Mechanical Breakdown, only to restore the Approved Vehicle to the same or like condition prior to the Mechanical Breakdown. The aggregate total of all claims paid will not exceed the Retail Value of the Vehicle at the time of a current claim. Once this limit has been reached no further claims will be payable.

10. PARTS REPAIR AND REPLACEMENT

Replacement of parts shall be made with parts of like kind and quality, which may include new, remanufactured, rebuilt, refurbished, reconditioned, or used parts. Aftermarket parts that meet original equipment specification may also be used. At times it may be necessary to request repair facilities to send out parts for refurbishing at special facilities. You may also request a betterment offer in which You may pay the difference between the part We authorize and the part You wish to use (Example: We will authorize a rebuilt part but You wish to use a new part. We will pay the amount that we would authorize towards the new part and You will pay the difference).

11. REPAIRERS GUARANTEE

Any repair facility repairing Your Approved Vehicle for a Mechanical Breakdown covered by this Policy is fully responsible for that repair for the warranty period indicated on the repair order or verbally given to Us at the time of the claim (minimum ninety (90) days is required). This Policy has no liability for similar repairs to the same part(s) during the warranty period. If more than one mechanical breakdown contract or insurance policy can be applied to a Mechanical Breakdown covered by this Policy, then this Policy shall be excess over all other contracts or policies, regardless of collectability.

12. PAYMENT OF COVERED REPAIRS

We will pay for the reasonable cost or reimburse You for the reasonable cost to repair a covered Mechanical Breakdown (diagnostic and repair time are allowed only for Covered Repairs and as indicated in a current edition of a Mitchell or AllData labour guides, or in the event there is a Technical Service Bulletins (TSB) We will use that published time listed on the TSB), when repaired by a licensed repair facility or, if necessary, We will arrange for the repair of such covered Mechanical Breakdown at Our expense. The payment of sales tax on repairs covered by this Policy will be made in accordance with the regulations of the taxing authority in the province or territory where Your Approved Vehicle has been repaired. Payment of covered Mechanical Breakdowns will only be released upon the receipt of a verifiable invoice signed by You or the person to whom this Policy was properly transferred, indicating that the authorized repairs were properly performed and completed. Failure to sign the repair order may cause delays in processing Your claim. In the event We will be reimbursing You for repairs, reimbursement will be made via electronic fund transfer and We will contact You with instructions for this. The determination of whether We pay the repairer directly or reimburse You for the cost of repairs is made by the repairer.

13. DEDUCTIBLE

The Deductible that You must pay for each repair visit is the amount stated on the Declaration Page.

14. GENERAL PROVISIONS

1. Dispute Resolution & Arbitration
   Any controversy or claim arising out of or relating to this Policy or the breach thereof, may be settled by mutually agreed upon arbitration in accordance with the Arbitration Rules of the Canadian Arbitration Association and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Unless both parties agree otherwise, arbitration will take place in the municipality in which the address shown in the Declaration Page is located.  Local rules of law relating to procedure and evidence will apply.
2. Fraud or Misrepresentation
   This Policy is issued in reliance upon the truth of all representations made by You.  We will not pay a claim where You have made any misrepresentations, omissions, concealment of fact or made incorrect statements that were fraudulent or were material in either Our acceptance of the risk or hazard.
3. Transferability
   You may transfer the remaining coverage of this Policy if You or the new Approved Vehicle owner initiates the transfer process and provides the following items to Us, within thirty (30) days of the Approved Vehicle sale:
   (i) a statement of the mileage on the Approved Vehicle at the time of transfer; and
   (ii) the name, address, and phone number of the transferee.
   You may not transfer coverage if the Approved Vehicle becomes ineligible for coverage or is repossessed. Transferred Policies may not be cancelled by You.
4. Legal Action Against Us
   No suit or action may be brought against Us unless there has been full compliance with all terms of this Policy.
5. Right to Recover
   If anything is paid under this Policy and You have the right to recover from another party, Your rights became subrogated to Us up to the amount paid by this Policy.  You must do whatever is necessary to enable Us to enforce these rights.
6. No Benefit to Bailee
   We do not cover, directly or indirectly, any person or organization transporting or holding property for a fee.
7. Non-Renewal
   We are under no obligation to renew this Policy. Once We choose to non-renew this Policy or condition its renewal upon changes of limits or elimination of any Coverages, We shall mail or deliver written notice to You at least thirty (30) days before the end of the Policy’s Expiration Date. The notice of non-renewal or conditional renewal shall include the reason for non-renewal or conditional renewal, which may be based on Your involvement in an accident, a change in, or addition of, a vehicle or an insured; a change in the location of the use or storage of the Approved Vehicle, payment of claims filed by You or someone else, or other reasons that are both lawful and not unfairly discriminatory.
8. Entire Policy
   This Policy represents the entire agreement between You and Us.  No person has the authority to change this Policy or to waive any provisions.
9. Territory
   This Policy applies to a Mechanical Breakdown that has occurred within Canada or the United States of America. A Mechanical Breakdown that occurs outside of Canada or the United States of America is not covered.

15. CANCELLATIONS

1. You may cancel this Policy by returning it to Us; or by notifying Us in writing when, at a future date, cancellation is to take effect.
2. We may only cancel this Policy for the following reasons:
   (i) Nonpayment of Premium.
   (ii) Fraud by You.
   (iii) Material misrepresentation or omission by You.
   (iv) Negligent acts or omissions by You which substantially increase the hazards insured against; or
   (v) Physical changes in the Approved Vehicle causing it to be uninsurable.

   If We cancel due to nonpayment of Premium, We will give You at least ten (10) days advance written notice.  If We cancel because of fraud or material misrepresentation by You, We will give You at least twenty (20) days written notice.  If We cancel for any other reason, We will give You at least thirty (30) days advance written notice.

   Notice of cancellation shall state the reason for cancellation.  Proof of mailing will be sufficient proof of notice. A lienholder or financer of this Policy, if any, may cancel this Policy for nonpayment or if the Approved Vehicle is declared a total loss or is repossessed by providing written notice of cancellation at least ten (10) days before the effective date of cancellation. If the Policy is canceled for any of these reasons, any refunds will be issued to the lienholder on behalf of Your account.

16. REFUNDS

If We receive a written cancellation request, including a copy of Your Declaration Page and proof of payment on or before the 30th day from the signature date or Effective Date and no claims have been filed under this Policy, We will cancel this Policy and refund in full any Premium paid either to You, or if there is a lienholder or financer, back to the lienholder or financer.

If We receive a written cancellation request, including a copy of Your Declaration Page and proof of payment after the 30th day or if a claim has been filed at any time during the Term of this Policy from the signature date or Effective Date, We will refund Your premium on a pro rata basis either to You, or if there is a lienholder or financer, back to the lienholder or financer.

17. LLOYD’S CLAUSES

1. Severable liability
   Each member of the Lloyd’s syndicate (rather than the syndicate itself) is an insurer. Each member has underwritten a proportion of the total shown for the syndicate (that total itself being the total of the proportions underwritten by all the members of the syndicate taken together). The liability of each member of the syndicate is several and not joint with other members. A member is liable only for that member’s proportion. A member is not jointly liable for any other member’s proportion. Nor is any member otherwise responsible for any liability of any other insurer that may underwrite this contract. The business address of each member is Lloyd’s, One Lime Street, London EC3M7HA. The identity of each member of a Lloyd’s syndicate and their respective proportion may be obtained by writing to Market Services, Lloyd’s, at the above address.
2. Insure In Canada a Risk
   For purposes of the Insurance Companies Act (Canada), this document was issued in the course of Lloyd’s Underwriters’ insurance business in Canada.
3. Notice Concerning Personal Information
   By purchasing Insurance from certain Underwriters at Lloyd’s of London (“Lloyd’s”), a customer provides Lloyd’s with his or her consent to the collection, use and disclosure of their personal information, including that previously collected, in accordance with Lloyd’s personal information protection policy, and for the following purposes,
• communication with Lloyd’s policyholders
• communication with brokers or agents, dealers, repair centres, and other similar entities
• the underwriting of policies
• the evaluation of claims
• the detection and prevention of fraud
• the analysis of business results
• purposes required or authorized by law
• to keep You informed about Your Policy and other products
• collecting amounts that You owe to Us, Our brokers or agents, or to repair centres.
  Your personal Information may be disclosed to Lloyd’s related or affiliated organisations or companies, their agents/mandataries, and to certain non-related or unaffiliated organisations or companies who are contractually obligated to keep personal information confidential, and to use it only for the purposes for which We disclose it to them. Your personal information may be transferred to or accessed by Our offices, affiliates and service providers based outside Canada in the United Kingdom and in the United States of America, and may be subject to access by the government, courts, law enforcement or regulatory agencies of those jurisdictions. Further information about Lloyd’s personal information protection policy may be obtained from Your broker or agent, Olive, at 1-833-654-8322 or through info@olive.com or by contacting Lloyd’s at 514-861-8361, 1.877.455.6937 or through info@lloyds.ca.
4. Lloyd’s Policyholders’ Complaint Protocol
   Lloyds strives to enhance your customer experience with Approved Vehicle through superior service and innovative insurance products.
   We have developed a formal complaint handling protocol in accordance with the Insurance Companies Act (Canada) to ensure Your concerns as Our valued customer are addressed expeditiously by Our representatives. This protocol will assist You in understanding the steps We will undertake to help resolve any dispute which may arise with Our product or service. All complaints will be handled in a professional manner. All complaints will be investigated, acted upon, and responded to in writing or by telephone by a Lloyd’s representative promptly after the receipt of the complaint. If You are not satisfied with our products or services, You can take the following steps to address the issue:
• Firstly, please contact Olive, who arranged the insurance on Your behalf, about Your concerns so that it may have the opportunity to help resolve the situation.
• If Olive as Your broker or agent is unable to help resolve Your concerns, We ask that you provide us in writing an outline of Your complaint along with the name of Your broker or agent and Your Policy number. Please forward Your complaint to:

  Lloyd’s Underwriter
  Attention: Complaints Officer
  200 Bay Street, Suite 2930 Toronto, Ontario M5J 2J2 Tel: 1-877455-6937 Fax: (514) 861-0470
  Email: info@lloyds.ca

  Your complaint will be directed to the appropriate business contact for handling. They will write to You within two business days to acknowledge receipt of Your complaint and to let You know when You can expect a full response. If need be, We will also engage internal staff in Lloyd’s Policy Holder and Market Assistance Department in London, England, who will respond directly to You, and in the last stages, they will issue a final letter of position on Your complaint.In the event that Your concerns are still not addressed to Your satisfaction, You have the right to continue Your pursuit to have Your complaint reviewed by the following organizations:

• General Insurance Ombud Service (GIO): assists in the resolution of conflicts between insurance customers and their insurance companies. The GIO can be reached at: Toll Free Number: 1-877-225-0446 or on -line at www.giocanada.org
• Autorité des marchés financiers (AMF): For Québec clients only. The regulation of insurance companies in Quebec is administered by the AMF. If You remain dissatisfied with the manner in which Your complaint has been handled, or with the results of the complaint protocol, You may send Your complaint to the AMF who will study Your file and who may recommend mediation, if it deems this action appropriate and if both parties agree to it. The AMF can be reached at: Toll Free Number: 1-877-525-0337.
• Financial Consumer Agency of Canada (FCAC): provides consumers with accurate and objective information about financial products and services and informs Canadians of their rights and responsibilities when dealing with financial institutions. The FCAC also ensures compliance with the federal consumer protection laws that apply to banks and federally incorporated trust, loan, and insurance companies. The FCAC does not get involved in individual disputes. The FCAC can be reached at:427 Laurier Avenue West, 6th Floor, Ottawa ON K1R 189
  Services in English: 1-866-461-3222. Services in French: 1-866-461-2232.
  On-line at www.fcac-adc.gc.ca
5. Service of Suit Clause (Canada)
   In any action to enforce the obligations of the Underwriters liable hereunder they can be designated or named as “Lloyd’s Underwriters” and such designation shall be binding on the Underwriters liable hereunder as if they had each been individually named as defendant. Service of such proceedings may validly be made upon the Attorney in Fact in Canada for Lloyd’s Underwriters, whose address for such service is:
   200 Bay Street, Suite 2930 Toronto, Ontario M5J 2J2.
6. Sanction Limitation and Exclusion Clause
   We shall not provide cover nor be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose Us or any member of Our group to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws, or regulations of any country.

18. LIMITATION

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act.

19. STATUTORY CONDITIONS

Misrepresentation.

1. If a person applying for insurance falsely describes the property to the prejudice of the insurer or misrepresents or fraudulently omits to communicate any circumstance that is material to be made known to the insurer in order to enable it to judge the risk to be undertaken, the contract is void as to any property in relation to which the misrepresentation or omission is material.

Property of Others

2. The insurer is not liable for loss or damage to property owned by a person other than the insured unless

(a) otherwise specifically stated in the contract, or

(b) the interest of the insured in that property is stated in the contract.

Change of interests

3. The insurer is liable for loss or damage occurring after an authorized assignment under the Bankruptcy and Insolvency Act (Canada) or a change of title by succession, by operation of law or by death.

Material change in risk

4(1) The insured must promptly give notice in writing to the insurer or its agent of a change that is

(a) material to the risk, and

(b) within the control and knowledge of the insured.

(2) If an insurer or its agent is not promptly notified of a change under subparagraph (1) of this condition, the contract is void as to the part affected by the change.

(3) If an insurer or its agent is notified of a change under subparagraph (1) of this condition, the insurer may

(a) terminate the contract in accordance with Statutory Condition 5, or

(b) notify the insured in writing that, if the insured desires the contract to continue in force, the insured must, within 15 days after receipt of the notice, pay to the insurer an additional premium specified in the notice.

(4) If the insured fails to pay an additional premium when required to do so under subparagraph (3)(b) of this condition, the contract is terminated at that time and Statutory Condition 5(2)(a) applies in respect of the unearned portion of the premium.

Termination of insurance

5(1) The contract may be terminated

(a) by the insurer giving to the insured 15 days’ notice of termination by registered mail or 5 days’ written notice of termination personally delivered, or

(b) by the insured at any time on request.

(2) If the contract is terminated by the insurer,

(a) the insurer must refund the excess of premium actually paid by the insured over the prorated premium for the expired time, but in no event may the prorated premium for the expired time be less than any minimum retained premium specified in the contract, and

(b) the refund must accompany the notice unless the premium is subject to adjustment or determination as to amount, in which case the refund must be made as soon as practicable.

(3) If the contract is terminated by the insured, the insurer must refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time specified in the contract, but in no event may the short rate premium for the expired time be less than any minimum retained premium specified in the contract.

(4) The 15 day period referred to in subparagraph (1) (a) of this condition starts to run on the day the registered letter or notification of it is delivered to the insured’s postal address.

Requirements after loss

(1) On the happening of any loss of or damage to insured property, the insured must, if the loss or damage is covered by the contract, in addition to observing the requirements of Statutory Condition 9,

(a) immediately give notice in writing to the insurer,

(b) deliver as soon as practicable to the insurer a proof of loss in respect of the loss or damage to the insured property verified by statutory declaration,

(i) giving a complete inventory of that property and showing in detail quantities and cost of that property and particulars of the amount of loss claimed,

(ii) stating when and how the loss occurred, and if caused by fire or explosion due to ignition, how the fire or explosion originated, so far as the insured knows or believes,

(iii) stating that the loss did not occur through any wilful act or neglect or the procurement, means or connivance of the insured,

(iv) stating the amount of other insurances and the names of other insurers,

(v) stating the interest of the insured and of all others in that property with particulars of all liens, encumbrances and other charges on that property,

(vi) stating any changes in title, use, occupation, location, possession or exposure of the property since the contract was issued, and

(vii) stating the place where the insured property was at the time of loss,

(c) if required by the insurer, give a complete inventory of undamaged property showing in detail quantities and cost of that property, and

(d) if required by the insurer and if practicable,

(i) produce books of account and inventory lists,

(ii) furnish invoices and other vouchers verified by statutory declaration, and

(iii) furnish a copy of the written portion of any other relevant contract.

(2) The evidence given, produced or furnished under subparagraph (1) (c) and (d) of this condition must not be considered proofs of loss within the meaning of Statutory Conditions 12 and 13.

Fraud

7. Any fraud or wilfully false statement in a statutory declaration in relation to the particulars required under Statutory Condition 6 invalidates the claim of the person who made the declaration.

Who may give notice and proof

Notice of loss under Statutory Condition 6 (1) (a) may be given and the proof of loss under Statutory Condition 6 (1) (b) may be made

(a) by the agent of the insured, if

(i) the insured is absent or unable to give the notice or make the proof, and

(ii) the absence or inability is satisfactorily accounted for, or

(b) by a person to whom any part of the insurance money is payable, if the insured refuses to do so or in the circumstances described in clause (a) of this condition.

Salvage

9(1) In the event of loss or damage to insured property, the insured must take all reasonable steps to prevent further loss or damage to that property and to prevent loss or damage to other property insured under the contract, including, if necessary, removing the property to prevent loss or damage or further loss or damage to the property.

(2) The insurer must contribute on a prorated basis towards any reasonable and proper expenses in connection with steps taken by the insured under subparagraph (1) of this condition.

Entry, control, abandonment

After loss or damage to insured property, the insurer has

(a) an immediate right of access and entry by accredited representatives sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and

(b) after the insured has secured the property, a further right of access and entry by accredited representatives sufficient to enable them to appraise or estimate the loss or damage, but

(i) without the insured’s consent, the insurer is not entitled to the control or possession of the insured property, and

(ii) without the insurer’s consent, there can be no abandonment to it of the insured property.

In case of disagreement

(1) In the event of disagreement as to the value of the insured property, the value of the property saved, the nature and extent of the repairs or replacements required or, if made, their adequacy, or the amount of the loss or damage, those questions must be determined using the applicable dispute resolution process set out in the Insurance Act, whether or not the insured’s right to recover under the contract is disputed, and independently of all other questions.

(2) There is no right to a dispute resolution process under this condition until

(a) a specific demand is made for it in writing, and

(b) the proof of loss has been delivered to the insurer.

When loss payable

12. Unless the contract provides for a shorter period, the loss is payable within 60 days after the proof of loss is completed in accordance with Statutory Condition 6 and delivered to the insurer.

Repair or replacement

(1) Unless a dispute resolution process has been initiated, the insurer, instead of making payment, may repair, rebuild or replace the insured property lost or damaged, on giving written notice of its intention to do so within 30 days after receiving the proof of loss.

(2) If the insurer gives notice under subparagraph (1) of this condition, the insurer must begin to repair, rebuild or replace the property within 45 days after receiving the proof of loss, and must proceed with all due diligence to complete the work within a reasonable time.

Notice

14(1) Written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or head office of the insurer in the province.

(2) Written notice to the insured may be personally delivered at, or sent by registered mail addressed to, the insured’s last known address as provided to the insurer by the insured.

Mechanical Breakdown Insurance will be available in Manitoba Soon.

Sign up to be notified when coverage is available.

Mechanical Breakdown Insurance Policy Terms and Conditions.

This policy contains a clause which may limit the amount payable.

1A. INSURED POLICY STATEMENT: We will pay a benefit in the event that Your Approved Vehicle suffers a Mechanical Breakdown during the Term, all subject to the terms, conditions, limitations, and exclusions in the Policy. Obligations under this Policy are fully insured and guaranteed by: 

Lloyd’s Underwriters as per Unique Market Reference Number B118403196CA3196 

200 Bay Street, Suite 2930 Toronto, Ontario M5J 2J2 

1B. ADMINISTRATION: All obligations under this Policy are administered by: 

Claims 

QBE Services Inc. 

333 Bay St. Suite 520, Toronto, ON M5H 2R2  

Toll-Free Number: 1-855-255-6274 

Policy Enquiries including Cancels/Transfers 

Repair Ventures Canada, Inc. (“Olive”) 

1 Dundas Street West, Suite 2500, Toronto M5G 1Z3   

Toll-Free Number: 1-833-654-8322 

2. ENTIRE POLICY: The Policy Terms and Conditions which includes the Declaration Page is the complete and exclusive statement of the Policy and is the understanding between You and Us regarding the Policy and related benefits for Your Approved Vehicle.   

3. DEFINITIONS: In this Policy, the following capitalized terms have the meanings assigned to them: 

Administrator means QBE Services Inc. You may contact the Administrator’s office at any time to have coverage questions answered or receive assistance in filing a claim under this Policy at 1-855-255-6274. 

Approved Vehicle means the vehicle identified by the VIN on the Declaration Page. 

Coverage means the Coverage You selected for the Approved Vehicle as fully described under Section 5. COVERAGES. 

Covered Part:  if you purchased the olive Powertrain Coverage or the olive Powertrain Plus Coverage, Covered Parts are the parts installed at the time of the manufacturing of the Approved Vehicle that are specifically listed after each component group heading of the Coverage plan purchased, subject to the exclusions listed in Section 8. EXCLUSIONS. Any part not listed on the Coverage You purchased is not covered, regardless of the cause for its failure. If you purchased the olive Complete Care Coverage, all mechanical and electrical operating parts installed at the time of the manufacturing of the Approved Vehicle are covered, except for those parts and services found in Section 8. EXCLUSIONS of this Policy. Repairs needed to a non-covered part caused by the Mechanical Breakdown of a Covered Part will also be covered under the olive Complete Care Coverage. 

Deductible: means the amount shown in SECTION B- TYPE OF COVERAGE on the Declaration Page for which You are responsible to pay each time You go to a repair facility in the event of a claim being covered by this Policy. This does not include any non-covered repairs or expenses which You will be responsible for. 

Effective Date means the date on which Your Policy will become effective for the selected Coverage, as indicated on the Declaration Page. 

Emergency Repair means a necessary repair to Your Approved Vehicle at a repair facility when the Administrator’s offices are closed.  

Expiration Date means the date shown on the Declaration Page on which this Policy will expire, even if the Expiration Mileage has not been reached.  

Expiration Mileage means the maximum total mileage stated on the Declaration Page being indicated on the Approved Vehicle’s odometer, upon which this Policy will automatically expire, even if the Expiration Date has not been reached. 

Mechanical Breakdown means the failure of a Covered Part to perform its intended function due to defects in materials or faulty workmanship in its manufacturing. This does not include the normal reduction in operating performance of a Covered Part due to normal wear and tear, including parts in which wear tolerances that are outside the manufacturer’s specifications are exceeded that are not due to defect in material or faulty workmanship in the manufacturing of a Covered Part.  (Please refer to Section 8. EXCLUSIONS for other exclusions that may apply). A leak of a Covered Part will only be considered a Mechanical Breakdown if it is an active leak to a drip. Seepage and/or buildup is considered normal and will not be covered. 

Policy means this complete Mechanical Breakdown Insurance Policy, which includes the Declaration Page, that shows a specific duration to perform the repair, replacement, or maintenance for operational or structural failure due to a defect in materials or workmanship of Covered Parts.  

Premium means the purchase price You paid for this Policy, as stated on the Declaration Page. 

Retail Value of the Vehicle means the retail value of the Approved Vehicle at the time of repair or service, as determined by CBB (https://www. canadianblackbook.com) taking into consideration the location, mileage, and condition of the Approved Vehicle. 

Term means the period beginning on the Effective Date and ending the earlier of the Expiration Date or the Approved Vehicle reaching the Expiration Mileage. 

Vehicle Identification Number (VIN) means the 17-character alphanumeric identifier assigned to a motor vehicle by the manufacturer. 

We, Us, and Our means Lloyd’s Underwriters, as per Unique Market Reference Number B118403196CA3196, the insurer under the Policy, located at 200 Bay Street, Suite 2930 Toronto, Ontario M5J 2J2 1.877.455.6937. 

You and Your means the purchaser of this Policy, being the insured under the Policy, specified on the Declaration Page. 

4. HOW TO MAKE A CLAIM 

1. If the Approved Vehicle is inoperable, and to prevent any further damage, immediately stop the Approved Vehicle and call for towing or roadside assistance. It is Your responsibility to use all reasonable means and precautions to protect the Approved Vehicle from further damage. Continued operation of the Approved Vehicle after any Mechanical Breakdown shall constitute failure to protect the Approved Vehicle. Any damage from failure to protect the Approved Vehicle shall not be recoverable. 
2. Prior to starting repairs, the repair facility must contact the Administrator’s claims office at 1-855-255-6274 with diagnosis and estimate of repairs. If You experience an Emergency Repair when a covered Mechanical Breakdown occurs when the Administrator’s office is closed, You must have the repair facility contact the Administrator during the next business day. Failure to contact the Administrator and report the claim on the next business day may result in nonpayment (see Section 8. EXCLUSIONS). 
3. You must authorize Your chosen authorized repair facility to inspect and diagnose the Mechanical Breakdown, as necessary, to determine the cause of failure and the cost of parts and labour to repair. IMPORTANT: You must call the Administrator prior to any engine or transmission disassembly. You are responsible for the cost of disassembly in the event the Mechanical Breakdown is NOT payable under this Policy (see Section 8. EXCLUSIONS). 
4. If requested, permit inspection of the Approved Vehicle by the Administrator BEFORE repairs are performed. 
5. Upon request, provide proof of maintenance (see Section 7. YOUR RESPONSIBILITIES).  
6. You must pay the Deductible and any other non-covered expenses as applicable. 
7. Payment for covered Mechanical Breakdowns will be made to either the repair facility or to You in accordance with the Policy provisions within thirty (30) days after receipt by Us of the repair order. Repair orders must be received by the Administrator within ninety (90) days of completion of repairs and the repair order must be signed by You. Failure to sign a repair order may cause delays in processing Your claim. 

Claims mailed in without prior authorization from the Administrator will be denied. 

5. COVERAGES 

olive Powertrain Coverage 

If You elected the olive Powertrain Coverage, the following parts listed after each component group heading are covered: 

Engine:  Engine block; cylinder head; rotor housing (rotary engine); oil pan; valve cover; timing cover; all internally lubricated parts contained within the engine block, cylinder head, or rotor housing; oil pump; timing chain, timing chain gears and timing chain tensioners; timing belt and timing belt tensioner; balance belt; variable valve camshaft actuator (not the variable valve solenoid); intake and exhaust manifolds (If the catalytic converter is permanently attached to the exhaust manifold, the exhaust manifold will not be covered if the mechanical breakdown is the catalytic converter.); harmonic balancer; engine mounts; water pump;  flywheel or flexplate. 

Transmission, transaxle, and transfer case: Case housings, housing covers and pans; all internally lubricated parts contained within the housings; torque converter; viscous couplings; vacuum modulator; transmission mounts; transfer case shift/encoder motor; transmission/transaxle range position sensor/switch. 

Drive axle (includes FWD, 4WD and AWD vehicles): Front and rear drive axle housings and covers; all internally lubricated parts contained within the drive axle housings; axle shafts; constant velocity joints and boots; driveshafts; universal joints; flex discs; driveshaft center support bearing; driveshaft yokes; 4WD engagement actuators and motors; 4WD manual locking hubs. 

Air and Fuel System: Fuel pumps; supercharger/turbocharger housing and all internal parts of the housings (does not include wastegates or other attaching parts). 

Seals and Gaskets: Seals and Gaskets are covered for only the parts listed in this section. 

olive Powertrain Plus Coverage 

If You elected the olive Powertrain Plus Coverage, your Coverage includes olive Powertrain Coverage and the additional parts listed after each component group heading are covered for olive Powertrain Plus Coverage: 

Odometer & Speedometer: Odometer and speedometer and their cables and connectors. 

Steering: Steering gear assembly; rack and pinion housing all internally lubricated parts contained within the housing; power steering pump and its reservoir; seals and gaskets for the steering gear assembly and the rack and pinion housing; power steering pump pulley; steering column shafts, their couplings, and bearings; tie rod ends; pitman arm, idler arm, and all other steering linkages; power steering metal lines. 

Front Suspension: MacPherson struts; upper and lower control arms; control arm shafts and bushings; upper and lower ball joints; Front wheel hub and bearing; steering knuckles and spindles; stabilizer bar, stabilizer bar bushings and links; coil springs; torsion bars. 

Brakes: Master cylinder, vacuum, or hydro booster; calipers; wheel cylinders; equalizer and distributing valves, proportioning valve. 

Interior Climate Control: A/C Compressor, compressor clutch and its pulley; accumulator; receiver dryer; evaporator; condenser; serpentine belt tensioner and idler pulley; expansion valve; orifice tube; A/C pressure switches, blower motor and blower motor resistor. 

Electrical: Alternator; voltage regulator; starter motor; starter solenoid; manually operated electrical switches; ignition switch; wiper motors; electronic ignition control module; radiator fan relay; wiring harnesses; and electrical components of a heated back glass defroster. NOTE: Heated back glass coverage is for electrical components only and does not include general glass or other physical damage. 

Seals and Gaskets: Seals and Gaskets are covered for only the parts listed in this section 

olive Complete Care Coverage 

If You elected the olive Complete Care Coverage, all mechanical and electrical operating parts installed at the time of the manufacturing of the Approved Vehicle are covered, except for those parts and services found in Section 8. EXCLUSIONS section of this Policy. Repairs needed to a non-covered part caused by the Mechanical Breakdown of a Covered Part will also be covered under the olive Complete Care Coverage. 

6. ADDITIONAL BENEFITS 

Towing Reimbursement: 

If towing is necessary because a covered Mechanical Breakdown occurs or services provided by Your Coverage are required, We will reimburse You for towing costs up to $125 per covered claim occurrence. 

Car Rental: 

If Your Approved Vehicle becomes inoperative due to a Mechanical Breakdown that is covered by this Policy or any repair being covered under a manufacturer’s warranty, We will pay for Car Rental reimbursement up to $100 per day, not to exceed 5 days for a total of $500 for any one (1) period. Car Rental will be based on the number of labour hours approved for the Mechanical Breakdown repair. Each eight (8) hours or portion thereof of approved labour is eligible for one (1) day Car Rental. In the event that we determine that the Approved Vehicle needs to be inspected by Us, We will pay up to an additional two (2) days Car Rental to accommodate any delay in the Approved Vehicle being returned to You. Car Rental is not provided for delays because of shop scheduling or for work not covered by this Policy. Car Rental will be reimbursed only upon receipt of an invoice from a licensed car rental agency. 

7. YOUR RESPONSIBILITIES 

To obtain coverage or reimbursement under this Policy, You must: (i) properly operate the Approved Vehicle, (ii) provide proof of scheduled maintenance services in respect of the Approved Vehicle, and (iii) maintain automobile insurance over the Approved Vehicle as required by law. Proof of scheduled maintenance services includes maintenance records that show mileage, date of maintenance service, VIN and the maintenance that was performed. 

Scheduled maintenance service requires periodic service checks based on mileage and/or time intervals based on the year, make and model of Your Approved Vehicle. Please review the Owner’s Guide for Your Approved Vehicle for the scheduled maintenance service requirements. If You perform Your own scheduled maintenance services, You must maintain a log including date, mileage and description of each maintenance service and provide corresponding receipts for purchases of parts and fluids. Covered Parts that require replacement at certain time and/or mileage intervals are not covered due to scheduled maintenance service requirements.  In the event a Covered Part was not replaced at its prescribed replacement interval it will not be covered in the event a Mechanical Breakdown occurs, nor will any consequential damage caused by the failure of that Covered Part. 

8. EXCLUSIONS 

The following are excluded from coverage under the Policy: 

1. Any claim submitted without the authorization of the Administrator prior to starting any repairs (see Section 4. HOW TO MAKE A CLAIM). 
2. Any Mechanical Breakdown or damage resulting from continued operation of the Approved Vehicle, such as not stopping Your Approved Vehicle immediately or having it towed or caused by Your failure to take reasonable precautions to prevent further damage when an apparent problem exists (see Section 4. HOW TO MAKE A CLAIM). 
3. The repair or replacement of any Covered Part if a Mechanical Breakdown has not occurred. 
4. Any costs incurred for diagnostics or disassembly work if a Mechanical Breakdown is not covered by this Policy (see Section 12. PAYMENT OF COVERED REPAIRS). 
5. Any pre-existing conditions (a condition that already existed on the Approved Vehicle when You purchased Your Policy) or any Mechanical Breakdown occurring prior to the Effective Date of the Policy, whether it be known or unknown. 
6. Any repair or replacement of a Covered Part that has failed due to normal wear and tear and not due to a defect in material or faulty workmanship in the manufacturing of a Covered Part. 
7. Repair or replacement of an engine due to oil consumption, loss of compression or misfires (which may cause a check engine light), if the only problem is due to normal wear and tear such as worn piston and/or piston rings, lining up of piston rings, worn engine block, worn valves, worn valve guides or valve guide seals, or carbon/sludge build up on these parts. 
8. Any environmental surcharges, waste disposal fees, shop supplies, and other similar miscellaneous charges. 
9. For olive Powertrain Coverage and olive Powertrain Plus Coverage: Any part that is not listed for coverage is not covered. 
10. Any non-covered parts or services, including, but not limited to, the performance of normal maintenance services as set forth in the owner’s guide for the Approved Vehicle, scheduled replacement of parts and wear items, and parts and services such as: adjustments of any type unless required with a repair being  covered  by  this  Policy;  all rubber,  plastic and metal lines, hoses and  tubes;  fittings  and connectors for lines, hoses and tubes; spark plugs; tune-ups; fan, engine, and serpentine belts; all filters; oil drain plug and oil filter housing caps and covers; glow plugs; engine block plugs (also called Welch or freeze plugs); adjustments to carburetors or fuel injection systems; complete exhaust systems including catalytic converters and particulate filters; brake rotors; brake drums; brake shoes; brake pads; brake springs and other brake mounting hardware; all batteries; external charging stations or systems; battery cables and connectors; fuses and circuit breakers; clutch slave and master cylinder; clutch disc, pressure plate, throw-out (release) bearing, dry clutch assemblies for automatically shifted manual transmissions, and pilot bearings; body and frame mounts; wheel alignments; wheel balance; tires, wheels and rims; flushing or cleaning of any system; wiper blades and arms; clamps; attaching hardware; grommets; glass; mirror glass; body parts; body and glass seals; paint/trim; soft trim; moldings; bright metal and chrome; door and window weather stripping; upholstery; fabric; convertible top frames and upholstery; electronic device software; digital video and compact audio discs; all HID, LED, halogen bulbs and standard incandescent bulbs; headlight, taillight, turn light and all other all other lighting assemblies; freight and core charges; any part that was not originally installed by the manufacturer; oil, coolant, additives, and refrigerants or other fluids, except in conjunction with the repair of a Covered Part (this is limited to necessary amounts required to refill the system one (1) time for the repair of the Covered Part); nuts, bolts, and fasteners except when required to complete a covered repair on a Covered Part. 
11. Any part that a repair facility or manufacturer recommends or requires to be repaired, replaced, or is an update (including updated software or programming), and is not a Mechanical Breakdown. This includes modifications, replacement or alteration of existing parts or systems necessitated by the replacement of an obsolete, superseded, or unavailable part, and improper maintenance or repair. 
12. Any Mechanical Breakdown or damage resulting from misuse; abuse; negligence; damage due to overcharging; jump starting; allowing an electric or hybrid drive vehicle’s high voltage drive battery to reach zero or near zero; exposing the vehicle to temperatures above 50 degrees Celsius over 24 hours or -25 degrees Celsius for over 7 days; use of any electric or hybrid vehicle charger not recommended by the manufacturer. 
13. Any Mechanical Breakdown or damage resulting from collision or upset; fire or smoke; theft or attempted theft; vandalism; riot or civil commotion; acts of war or invasion; terrorism; explosion; lightning; earthquake; freezing; rust or corrosion; windstorm; hail; water or flood; acts of God; salt; pollution or contamination; environmental and road hazard damage; chemical or nuclear incident; ionizing radiations or contamination by radioactivity from any irradiated nuclear fuel. 
14. Any Mechanical Breakdown caused by a lack of required maintenance as set forth under Section 7. YOUR RESPONSIBILITIES; contaminants or contaminated fluids, fuel, coolants, oils, and lubricants; foreign objects; improper amounts or types of lubricants, fuels, or coolants; sludge and/or varnish. 
15. Any loss or expense that is a direct result of a mechanical or structural defect for which a manufacturer has announced a recall or other announcement for the purpose of correcting a defect, or the repair or replacement of any part covered by a manufacturer’s or dealer’s warranty required by law in respect of emissions control systems.  
16. Any Approved Vehicle that currently has or at any time has had an altered, or inoperative odometer that has been left unrepaired, whether such repair is covered by this Policy or not. 
17. Any Approved Vehicle modified or altered with, but not limited to, high performance, off-road equipment, and/or battery/electrical system that is not original factory equipment, done before or after the Effective Date of this Policy. Any Approved Vehicle used for any type of competitive driving or racing. 
18. Any Approved Vehicle that is used or equipped with any of the following: Any tire or wheel sizes and/or offsets not recommended by the manufacturer. Any Approved Vehicle equipped with a lift kit or has any parts that are used to lift a vehicle or its suspension. 
19. Mechanical Breakdown or failure as a result of spinning of tires or over revving. 
20. Any Approved Vehicle used for pulling a trailer, unless the Approved Vehicle was properly equipped beforehand for this purpose as recommended by the manufacturer. 
21. Any Approved Vehicle that: is reconstructed from salvage; is declared a total loss; is a manufacturer or dealer buyback; has had its Vehicle Identification Number changed or altered; or for which the original manufacturer’s warranty has been voided for any reason. 
22. Any loss or expense if Your Approved Vehicle is used for the following: Any commercial or business use (full or part time), including, but not limited to, delivery services, taxi, livery, or ride share services; municipal, volunteer, or professional emergency services; fleet or pool services; towing a trailer whose weight exceeds the manufacturer’s recommendations for that vehicle; or use of the Approved Vehicle for any snowplowing.  
23. Any Approved Vehicle that has the following characteristics: step-van; high-cube van; box body; cab and chassis or other incomplete vehicle; right hand steering; any vehicle that has business related equipment permanently mounted to the chassis or bed of the vehicle; or that have special bodies designed for construction, hauling or delivery. 
24. Any Approved Vehicle not originally manufactured to be sold in Canada meeting Canadian specifications, commonly known as a grey market vehicle. 
25. Consequential damages to non-covered parts caused by the failure of a Covered Part are excluded from Coverage unless You have purchased the olive Complete Care Coverage. 
26. Any Mechanical Breakdown covered by any limited warranty, manufacturer’s warranty, manufacturer’s and/or dealer customer assistance program, repairer’s guarantee, road club, or any other guarantee, warranty, or insurance policy, whether collectible or not. It is Your responsibility for making sure that all remaining manufacturer’s original warranties are transferred to You. 
27. Any loss, damage, cost, expense, or any other sum otherwise payable under this Policy of whatever nature directly or indirectly caused by, resulting from or in connection with: 
28. any actual or threatened unauthorized, malicious, or criminal act, or series of actual or threatened unauthorized, malicious, or criminal acts, or any hoax relating to any of these; or 
29. any failure to act, error, omission or accident or series of related failures to act, series of related errors, series of related omissions or series of related accidents; or 
30. partial or total unavailability or failure, or series of related partial or total unavailability or failures, involving or affecting the use or operation of, access to, or the processing of any computer, hardware, software, data, information technology and communications system, electronic device, server, cloud, or microcontroller including any similar system or any configuration of the aforementioned, and including any associated input, output, or data storage device. 

Our liability for incidental and consequential damages including, but not limited to, personal injury, physical damage, property damage, loss of use of Your Approved Vehicle, loss of time, inconvenience, and commercial loss resulting from the operation, maintenance, or use of Your Approved Vehicle is expressly excluded. 

9. LIMIT OF LIABILITY 

This Policy is limited to the repair or replacement of a failed Covered Part, due to a covered Mechanical Breakdown, only to restore the Approved Vehicle to the same or like condition prior to the Mechanical Breakdown. The aggregate total of all claims paid will not exceed the Retail Value of the Vehicle at the time of a current claim. Once this limit has been reached no further claims will be payable. 

10. PARTS REPAIR AND REPLACEMENT 

Replacement of parts shall be made with parts of like kind and quality, which may include new, remanufactured, rebuilt, refurbished, reconditioned, or used parts. Aftermarket parts that meet original equipment specification may also be used. At times it may be necessary to request repair facilities to send out parts for refurbishing at special facilities. You may also request a betterment offer in which You may pay the difference between the part We authorize and the part You wish to use (Example: We will authorize a rebuilt part but You wish to use a new part. We will pay the amount that we would authorize towards the new part and You will pay the difference). 

11. REPAIRERS GUARANTEE 

Any repair facility repairing Your Approved Vehicle for a Mechanical Breakdown covered by this Policy is fully responsible for that repair for the warranty period indicated on the repair order or verbally given to Us at the time of the claim (minimum ninety (90) days is required). This Policy has no liability for similar repairs to the same part(s) during the warranty period. If more than one mechanical breakdown contract or insurance policy can be applied to a Mechanical Breakdown covered by this Policy, then this Policy shall be excess over all other contracts or policies, regardless of collectability. 

12. PAYMENT OF COVERED REPAIRS 

We will pay for the reasonable cost or reimburse You for the reasonable cost to repair a covered Mechanical Breakdown (diagnostic and repair time are allowed only for Covered Repairs and as indicated in a current edition of a Mitchell or AllData labour guides, or in the event there is a Technical Service Bulletins (TSB) We will use that published time listed on the TSB), when repaired by a licensed repair facility or, if necessary, We will arrange for the repair of such covered Mechanical Breakdown at Our expense. The payment of sales tax on repairs covered by this Policy will be made in accordance with the regulations of the taxing authority in the province or territory where Your Approved Vehicle has been repaired. Payment of covered Mechanical Breakdowns will only be released upon the receipt of a verifiable invoice signed by You or the person to whom this Policy was properly transferred, indicating that the authorized repairs were properly performed and completed. Failure to sign the repair order may cause delays in processing Your claim. In the event We will be reimbursing You for repairs, reimbursement will be made via electronic fund transfer and We will contact You with instructions for this. The determination of whether We pay the repairer directly or reimburse You for the cost of repairs is made by the repairer.  

13. DEDUCTIBLE 

The Deductible that You must pay for each repair visit is the amount stated on the Declaration Page. 

14. GENERAL PROVISIONS 

1. Dispute Resolution & Arbitration 
   Any controversy or claim arising out of or relating to this Policy or the breach thereof, may be settled by mutually agreed upon arbitration in accordance with the Arbitration Rules of the Canadian Arbitration Association and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Unless both parties agree otherwise, arbitration will take place in the municipality in which the address shown in the Declaration Page is located.  Local rules of law relating to procedure and evidence will apply. 
2. Fraud or Misrepresentation This Policy is issued in reliance upon the truth of all representations made by You.  We will not pay a claim where You have made any misrepresentations, omissions, concealment of fact or made incorrect statements that were fraudulent or were material in either Our acceptance of the risk or hazard. 
3. Transferability 
   You may transfer the remaining coverage of this Policy if You or the new Approved Vehicle owner initiates the transfer process and provides the following items to Us, within thirty (30) days of the Approved Vehicle sale: 
   (i) a statement of the mileage on the Approved Vehicle at the time of transfer; and 
   (ii) the name, address, and phone number of the transferee.

   You may not transfer coverage if the Approved Vehicle becomes ineligible for coverage or is repossessed. Transferred Policies may not be cancelled by You. 

4. Legal Action Against Us 
   No suit or action may be brought against Us unless there has been full compliance with all terms of this Policy.   
5. Right to Recover 
   If anything is paid under this Policy and You have the right to recover from another party, Your rights became subrogated to Us up to the amount paid by this Policy.  You must do whatever is necessary to enable Us to enforce these rights. 
6. No Benefit to Bailee 
   We do not cover, directly or indirectly, any person or organization transporting or holding property for a fee. 
7. Non-Renewal 
   We are under no obligation to renew this Policy. Once We choose to non-renew this Policy or condition its renewal upon changes of limits or elimination of any Coverages, We shall mail or deliver written notice to You at least thirty (30) days before the end of the Policy’s Expiration Date. The notice of non-renewal or conditional renewal shall include the reason for non-renewal or conditional renewal, which may be based on Your involvement in an accident, a change in, or addition of, a vehicle or an insured; a change in the location of the use or storage of the Approved Vehicle, payment of claims filed by You or someone else, or other reasons that are both lawful and not unfairly discriminatory. 
8. Entire Policy 
   This Policy represents the entire agreement between You and Us.  No person has the authority to change this Policy or to waive any provisions. 
9. Territory
   This Policy applies to a Mechanical Breakdown that has occurred within Canada or the United States of America. A Mechanical Breakdown that occurs outside of Canada or the United States of America is not covered. 

15. CANCELLATIONS 

1. You may cancel this Policy by returning it to Us; or by notifying Us in writing when, at a future date, cancellation is to take effect. 
2. We may only cancel this Policy for the following reasons: 
   (i) Nonpayment of Premium. 
   (ii) Fraud by You.  
   (iv) Material misrepresentation or omission by You.  
   (iv) Negligent acts or omissions by You which substantially increase the hazards insured against; or  
   (v) Physical changes in the Approved Vehicle causing it to be uninsurable.

   If We cancel due to nonpayment of Premium, We will give You at least ten (10) days advance written notice.  If We cancel because of fraud or material misrepresentation by You, We will give You at least twenty (20) days written notice.  If We cancel for any other reason, We will give You at least thirty (30) days advance written notice. 

   Notice of cancellation shall state the reason for cancellation.  Proof of mailing will be sufficient proof of notice. A lienholder or financer of this Policy, if any, may cancel this Policy for nonpayment or if the Approved Vehicle is declared a total loss or is repossessed by providing written notice of cancellation at least ten (10) days before the effective date of cancellation. If the Policy is canceled for any of these reasons, any refunds will be issued to the lienholder on behalf of Your account. 

16. REFUNDS 

If We receive a written cancellation request, including a copy of Your Declaration Page and proof of payment on or before the 30th day from the signature date or Effective Date and no claims have been filed under this Policy, We will cancel this Policy and refund in full any Premium paid either to You, or if there is a lienholder or financer, back to the lienholder or financer. 

If We receive a written cancellation request, including a copy of Your Declaration Page and proof of payment after the 30th day or if a claim has been filed at any time during the Term of this Policy from the signature date or Effective Date, We will refund Your premium on a pro rata basis either to You, or if there is a lienholder or financer, back to the lienholder or financer.  

17. LLOYD’S CLAUSES 

1. Severable liability
   Each member of the Lloyd’s syndicate (rather than the syndicate itself) is an insurer. Each member has underwritten a proportion of the total shown for the syndicate (that total itself being the total of the proportions underwritten by all the members of the syndicate taken together). The liability of each member of the syndicate is several and not joint with other members. A member is liable only for that member’s proportion. A member is not jointly liable for any other member’s proportion. Nor is any member otherwise responsible for any liability of any other insurer that may underwrite this contract. The business address of each member is Lloyd’s, One Lime Street, London EC3M7HA. The identity of each member of a Lloyd’s syndicate and their respective proportion may be obtained by writing to Market Services, Lloyd’s, at the above address. 
2. Insure In Canada a Risk 
   For purposes of the Insurance Companies Act (Canada), this document was issued in the course of Lloyd’s Underwriters’ insurance business in Canada.
3. Notice Concerning Personal Information 
   By purchasing Insurance from certain Underwriters at Lloyd’s of London (“Lloyd’s”), a customer provides Lloyd’s with his or her consent to the collection, use and disclosure of their personal information, including that previously collected, in accordance with Lloyd’s personal information protection policy, and for the following purposes,  
• communication with Lloyd’s policyholders 
• communication with brokers or agents, dealers, repair centres, and other similar entities 
• the underwriting of policies 
• the evaluation of claims 
• the detection and prevention of fraud 
• the analysis of business results 
• purposes required or authorized by law 
• to keep You informed about Your Policy and other products 
• collecting amounts that You owe to Us, Our brokers or agents, or to repair centres.
  Your personal Information may be disclosed to Lloyd’s related or affiliated organisations or companies, their agents/mandataries, and to certain non-related or unaffiliated organisations or companies who are contractually obligated to keep personal information confidential, and to use it only for the purposes for which We disclose it to them. Your personal information may be transferred to or accessed by Our offices, affiliates and service providers based outside Canada in the United Kingdom and in the United States of America, and may be subject to access by the government, courts, law enforcement or regulatory agencies of those jurisdictions. Further information about Lloyd’s personal information protection policy may be obtained from Your broker or agent, Olive, at 1-833-654-8322 or through info@olive.com or by contacting Lloyd’s at 514-861-8361, 1.877.455.6937 or through info@lloyds.ca.

4. Lloyd’s Policyholders’ Complaint Protocol 
   Lloyds strives to enhance your customer experience with Approved Vehicle through superior service and innovative insurance products.We have developed a formal complaint handling protocol in accordance with the Insurance Companies Act (Canada) to ensure Your concerns as Our valued customer are addressed expeditiously by Our representatives. This protocol will assist You in understanding the steps We will undertake to help resolve any dispute which may arise with Our product or service. All complaints will be handled in a professional manner. All complaints will be investigated, acted upon, and responded to in writing or by telephone by a Lloyd’s representative promptly after the receipt of the complaint. If You are not satisfied with our products or services, You can take the following steps to address the issue:

   Firstly, please contact Olive, who arranged the insurance on Your behalf, about Your concerns so that it may have the opportunity to help resolve the situation. 

   If Olive as Your broker or agent is unable to help resolve Your concerns, We ask that you provide us in writing an outline of Your complaint along with the name of Your broker or agent and Your Policy number. Please forward Your complaint to:Lloyd’s Underwriter 
   Attention: Complaints Officer
   200 Bay Street, Suite 2930 Toronto, Ontario M5J 2J2 Tel: 1-877455-6937 Fax: (514) 861-0470
   Email: info@lloyds.ca 

    

   Your complaint will be directed to the appropriate business contact for handling. They will write to You within two business days to acknowledge receipt of Your complaint and to let You know when You can expect a full response. If need be, We will also engage internal staff in Lloyd’s Policy Holder and Market Assistance Department in London, England, who will respond directly to You, and in the last stages, they will issue a final letter of position on Your complaint. 

    

   In the event that Your concerns are still not addressed to Your satisfaction, You have the right to continue Your pursuit to have Your complaint reviewed by the following organizations: 
   

• General Insurance Ombud Service (GIO): assists in the resolution of conflicts between insurance customers and their insurance companies. The GIO can be reached at: Toll Free Number: 1-877-225-0446 or on -line at www.giocanada.org 
• Autorité des marchés financiers (AMF): For Québec clients only. The regulation of insurance companies in Quebec is administered by the AMF. If You remain dissatisfied with the manner in which Your complaint has been handled, or with the results of the complaint protocol, You may send Your complaint to the AMF who will study Your file and who may recommend mediation, if it deems this action appropriate and if both parties agree to it. The AMF can be reached at: Toll Free Number: 1-877-525-0337.
• Financial Consumer Agency of Canada (FCAC): provides consumers with accurate and objective information about financial products and services and informs Canadians of their rights and responsibilities when dealing with financial institutions. The FCAC also ensures compliance with the federal consumer protection laws that apply to banks and federally incorporated trust, loan, and insurance companies. The FCAC does not get involved in individual disputes. The FCAC can be reached at:427 Laurier Avenue West, 6th Floor, Ottawa ON K1R 189
  Services in English: 1-866-461-3222. Services in French: 1-866-461-2232.
  On-line at www.fcac-adc.gc.ca 

5. Service of Suit Clause (Canada)
   In any action to enforce the obligations of the Underwriters liable hereunder they can be designated or named as “Lloyd’s Underwriters” and such designation shall be binding on the Underwriters liable hereunder as if they had each been individually named as defendant. Service of such proceedings may validly be made upon the Attorney in Fact in Canada for Lloyd’s Underwriters, whose address for such service is:
   200 Bay Street, Suite 2930 Toronto, Ontario M5J 2J2.

6. Sanction Limitation and Exclusion Clause
   We shall not provide cover nor be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose Us or any member of Our group to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws, or regulations of any country. 

18. LIMITATION 

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act. 

 19. STATUTORY CONDITIONS 

MISREPRESENTATION      

1   If a person applying for insurance falsely describes the property to the prejudice of the insurer or misrepresents or fraudulently omits to communicate any circumstance that is material to be made known to the insurer in order to enable it to judge the risk to be undertaken, the contract is void as to any property in relation to which the misrepresentation or omission is material. 

PROPERTY OF OTHERS      

2   The insurer is not liable for loss or damage to property owned by a person other than the insured unless 

(a)    otherwise specifically stated in the contract, or
(b)    the interest of the insured in that property is stated in the contract. 

CHANGE OF INTEREST      

3   The insurer is liable for loss or damage occurring after an authorized assignment under the Bankruptcy and Insolvency Act (Canada) or a change of title by succession, by operation of law or by death. 

MATERIAL CHANGE IN RISK     

4(1) The insured must promptly give notice in writing to the insurer or its agent of a change that is 

(a)    material to the risk, and
(b)    within the control and knowledge of the insured. 

(2)  If an insurer or its agent is not promptly notified of a change under subparagraph (1) of this condition, the contract is void as to the part affected by the change. 

(3)  If an insurer or its agent is notified of a change under subparagraph (1) of this condition, the insurer may 

(a)    terminate the contract in accordance with Statutory Condition 5, or
(b)    notify the insured in writing that, if the insured desires the contract to continue in force, the insured must, within 15 days after receipt of the notice, pay to the insurer an additional premium specified in the notice. 

(4)  If the insured fails to pay an additional premium when required to do so under subparagraph (3)(b) of this condition, the contract is terminated at that time and Statutory Condition 5(2)(a) applies in respect of the unearned portion of the premium. 

TERMINATION OF INSURANCE     

5(1) The contract may be terminated 

(a) by the insurer giving to the insured 15 days’ notice of termination by recorded mail or 5 days’ written notice of termination personally delivered, or
(b)    by the insured at any time on request. 

(2)  If the contract is terminated by the insurer, 

(a)    the insurer must refund the excess of premium actually paid by the insured over the prorated premium for the expired time, but in no event may the prorated premium for the expired time be less than any minimum retained premium specified in the contract, and
(b)    the refund must accompany the notice unless the premium is subject to adjustment or determination as to amount, in which case the refund must be made as soon as practicable. 

(3)  If the contract is terminated by the insured, the insurer must refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time specified in the contract, but in no event may the short rate premium for the expired time be less than any minimum retained premium specified in the contract. 

(4)  The 15‑day period referred to in subparagraph (1)(a) of this condition starts to run on the day the recorded mail or notification of it is delivered to the insured’s postal address

REQUIREMENTS AFTER LOSS     

6(1)  On the happening of any loss or damage to insured property, the insured must, if the loss or damage is covered by the contract, in addition to observing the requirements of Statutory Condition 9, 

(a)    immediately give notice in writing to the insurer,
(b)    deliver as soon as practicable to the insurer a proof of loss in respect of the loss or damage to the insured property verified by statutory declaration 

(i)    giving a complete inventory of that property and showing in detail quantities and costs of that property and particulars of the amount of loss claimed, 

(ii)    stating when and how the loss occurred, and if caused by fire or explosion due to ignition, how the fire or explosion originated, so far as the insured knows or believes, 

(iii)    stating that the loss did not occur through any wilful act or neglect or the procurement, means or connivance of the insured, 

(iv)    stating the amount of other insurances and the names of other insurers, 

(v)    stating the interest of the insured and of all others in that property with particulars of all liens, encumbrances and other charges on that property, 

(vi)    stating any changes in title, use, occupation, location, possession or exposure of the property since the contract was issued, and 

(vii)    stating the place where the insured property was at the time of loss, 

(c)    if required by the insurer, give a complete inventory of undamaged property showing in detail quantities and cost of that property, and 

(d)    if required by the insurer and if practicable, 

(i)    produce books of account and inventory lists, 

(ii)    furnish invoices and other vouchers verified by statutory declaration, and 

(iii)    furnish a copy of the written portion of any other relevant contract. 

(2)  The evidence given, produced or furnished under subparagraph (1)(c) and (d) of this condition must not be considered proofs of loss within the meaning of Statutory Conditions 12 and 13. 

FRAUD      

7   Any fraud or wilfully false statement in a statutory declaration in relation to the particulars required under Statutory Condition 6 invalidates the claim of the person who made the declaration. 

WHO MAY GIVE NOTICE AND PROOF      

8   Notice of loss under Statutory Condition 6(1)(a) may be given and the proof of loss under Statutory Condition 6(1)(b) may be made 

(a)    by the agent of the insured if 

(i)    the insured is absent or unable to give the notice or make the proof, and 

(ii)    the absence or inability is satisfactorily accounted for, or 

(b)    by a person to whom any part of the insurance money is payable, if the insured refuses to do so, or in the circumstances described in clause (a) of this condition.

SALVAGE      

9(1)  In the event of loss or damage to insured property, the insured must take all reasonable steps to prevent further loss or damage to that property and to prevent loss or damage to other property insured under the contract, including, if necessary, removing the property to prevent loss or damage or further loss or damage to the property. 

(2)  The insurer must contribute on a prorated basis towards any reasonable and proper expenses in connection with steps taken by the insured under subparagraph (1) of this condition. 

ENTRY, CONTROL, ABANDONMENT      

10   After loss or damage to insured property, the insurer has 

(a)    an immediate right of access and entry by accredited representatives sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and 

(b)    after the insured has secured the property, a further right of access and entry by accredited representatives sufficient to enable them to appraise or estimate the loss or damage, but 

(i)    without the insured’s consent, the insurer is not entitled to the control or possession of the insured property, and 

(ii)    without the insurer’s consent, there can be no abandonment to it of the insured property.

IN CASE OF DISAGREEMENT      

11(1)  In the event of disagreement as to the value of the insured property, the value of the property saved, the nature and extent of the repairs or replacements required or, if made, their adequacy, or the amount of the loss or damage, those questions must be determined using the applicable dispute resolution process set out in the Insurance Act whether or not the insured’s right to recover under the contract is disputed, and independently of all other questions. 

(2)  There is no right to a dispute resolution process under this condition until 

(a)    a specific demand is made for it in writing, and 

(b)    the proof of loss has been delivered to the insurer. 

WHEN LOSS PAYABLE      

12   Unless the contract provides for a shorter period, the loss is payable within 60 days after the proof of loss is completed in accordance with Statutory Condition 6 and delivered to the insurer. 

REPAIR OR REPLACEMENT      

13(1) Unless a dispute resolution process has been initiated, the insurer, instead of making payment, may repair, rebuild or replace the insured property lost or damaged, on giving written notice of its intention to do so within 30 days after receiving the proof of loss. 

(2)  If the insurer gives notice under subparagraph (1) of this condition, the insurer must begin to repair, rebuild or replace the property within 45 days after receiving the proof of loss and must proceed with all due diligence to complete the work within a reasonable time. 

NOTICE      

14(1) Written notice to the insurer may be delivered at, or sent by recorded mail to, the chief agency or head office of the insurer in the province. 

(2)  Written notice to the insured may be personally delivered at, or sent by recorded mail addressed to, the insured’s last known address as provided to the insurer by the insured. 

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