Consumer Credit & Insurance Services – Finance Gap Insurance
Finance GAP Insurance Policy
1. Insurer Information
Your Finance GAP Insurance Policy has been arranged by Vanarama Insurance Services, a trading style of Autorama UK Ltd, with Advent Insurance PCC Ltd – Autorama Cell (C52394).
Advent Insurance PCC Ltd – Autorama Cell (C52394) is a Protected Cell Company authorised and regulated by the Malta Financial Services Authority (MFSA), and licensed to transact general insurance business. Please refer to the Financial Services Register on the Malta Financial Services Authority website for more information on www.mfsa.com.mt. Any liability attributable to the Autorama Cell is solely a liability of the cellular assets of the Autorama Cell; the non-cellular assets of the company may be used to meet losses incurred by the cells in excess of their assets.
The following words have the meanings given below wherever they appear in this document in bold type:
“We/Us/Our means Advent Insurance PCC Ltd – Autorama Cell, The Landmark, Level 1, Suite 2, Triq l-Iljun, Qormi QRM3800, Malta.
“You/Your/Yourself” is the individual or company specified on the Application who/which has applied for insurance hereunder and paid the appropriate premium.
“Administrator” means Premia Solutions Limited, 3 Corunna Court, Corunna Road, Warwick CV34 5HQ. Customer Services Tel: 01296 622600
“Agent” means Autorama UK Ltd t/as Vanarama Insurance services, Vanarama, Marylands Avenue,
Hemel Hempstead, HP2 7DE. Tel: 01442 835768
“Application” means any signed proposal form and declaration together with any additional information You may have supplied Us in support of Your Application for this insurance.
“Company” means Advent Insurance PCC Ltd – Autorama Cell (C52394)
“Date of Commencement” means the Policy Start Date shown in the Policy Schedule.
“Date of Loss” means the date of the incident to the Insured Vehicle in respect of which a claim for Total Loss is subsequently paid under the Motor Insurance Policy.
“Finance Agreement” means the agreement (if any) between You and the Finance Company for the lease of the Insured Vehicle but excluding any secondary schedule that may be noted on that agreement.
“Finance Company” means any finance company or other lender with whom You have agreed a credit agreement.
GAP means the amount if any by which the Insured Value is less than the amount You require to settle Your Finance Agreement as at the Date of Loss.
Glass’s Guide means a monthly trade publication recognised and used extensively throughout the motor vehicle industry to value used vehicles.
“Insured Value” means the amount You received under Your Motor Insurance Policy in respect of the Insured Vehicle as a result of a Total Loss or the market value of the Insured Vehicle by reference to the Glass’s Guide retail value at the Date of Loss whichever is greater.
“Insured Vehicle” means the vehicle specified in the Policy Schedule.
“ Market Value” means by reference to Glass’s Guide Retail Value the cost of replacing the Insured Vehicle with another of the same make, model specification (for example, the level of equipment found in the Insured Vehicle excluding dealer fitted options), age, mileage and condition of the Insured Vehicle just before the loss or damage You are claiming for. We reserve the right to have an independent valuation undertaken should the specification not be available within Glass’s Guide or it is suspected that the condition of the Insured Vehicle is such that this would affect the guide value.
“Motor Insurance Policy” means a comprehensive policy of motor insurance issued by a motor insurer authorised to carry out and effect motor insurance policies in the UK which insures against accidental loss of or damage to the Insured Vehicle and which is maintained in Your name or that of a person who is a driver nominated/authorised by You.
“Net Invoice Selling Price” means the sale price of the Insured Vehicle (including factory fitted accessories) including any discount given, but excluding warranty charges, insurance premiums, road fund licence, and dealer fitted extras and accessories unless specified on the manufacturer’s price list. “New Vehicle Provision” means where You are eligible for a new vehicle under the terms of Your Motor Insurance Policy in the event of a Total Loss.
“Period of Insurance” means the period from the Date of Commencement to the Policy End Date shown in Your Policy Schedule, or, if earlier, to the date on which the Insured Vehicle is sold or transferred to a new owner.
“Policy” means this contract of insurance between You and Us. This is based upon the information
You provided as part of the application process and includes any insurance documents issued to You in relation to the contract, including but not limited to this wording, the schedule which contains Your personal details – including Your name and address – and any amendments or variations which have been issued by Us in writing.
“Policy Schedule” means the document accompanying this Policy confirming Your details, the Insured Vehicle, Period of Insurance, and Policy Type
“Territorial Limits” means Great Britain, Northern Ireland, Ireland, Isle of Man, Channel Islands, member countries of the European Community.
“Total Loss” means the Insured Vehicle being the subject of accidental damage, fire or theft to the extent that the Insured Vehicle is forfeited to the insurer under the Motor Insurance Policy and a claim is paid as full and final settlement under the Motor Insurance Policy.
3. About Your Policy
In return for payment of Your premium, We will insure You for the Period of Insurance shown on Your Policy Schedule, which is attached to this document, subject to the terms and conditions of this Policy and any variations or amendments confirmed in writing by Us to You.
It is important that You check Your Policy Schedule to ensure that the information that You have provided to Us is accurate and that the Policy meets Your requirements. If the information is not correct or the Policy does not meet Your needs please contact Your Agent within 30 days. Please take the time to read the contents of this Policy to ensure that You understand the cover We are providing You, and that You comply with Our terms and conditions. This Policy and Your Policy Schedule are important documents; please keep them in a safe place in case You need to refer to them for any reason.
4. What is Covered?
If within the Period of Insurance an incident occurs which results in the Insured Vehicle being classed as a Total Loss by the Motor Insurance Policy underwriter. We will, in consideration of the payment of the premium and subject to the other provisions of this Policy, pay: –
– the GAP to the extent the GAP does not exceed the sum insured stated in Your Policy Schedule,
– Your excess under Your motor insurance policy to a maximum of £250.
– the deposit that You paid under your Finance Agreement to a maximum of £3,000.
For the avoidance of doubt once a claim has been paid under this Policy You can make no further claims under this Policy.
5. Are You Eligible for Cover?
It is important that You check that You meet all the eligibility criteria shown below. If You are not sure if You are eligible for cover, please contact Your Agent. You must take care to supply accurate and complete answers to all the questions that We ask You, and to make sure that all information supplied to Us is true and correct. Failure to answer questions truthfully and accurately may mean that Your Policy is invalid and that it does not operate in the event of a claim.
On the Policy Start Date You warrant that
- The Insured Vehicle is the subject of a Finance Agreement arranged on Your behalf by Autorama UK Ltd
- The Insured Vehicle ‘s Net Invoice Selling Price does not exceed £125,000, or £75,000 if the
Finance Agreement is for a period of one year or less.
- You are the registered keeper and owner of the Insured Vehicle;
- You or a driver nominated/authorised by You, are the insured person and named as the policyholder in the Motor Insurance Policy for the Insured Vehicle, and will remain so until the date of any Total Loss;
- Your Insured Vehicle is less than or equal to 6 years old and conforms to a vehicle description in Glass’s Guide;
- the Insured Vehicle does not exceed 3.5 tonnes, and will remain so until the date of any Total Loss, and is registered and principally used in the United Kingdom, Channel Islands or Isle of Man;
- the Insured Vehicle is not, and will not during the Period of Insurance be, used as an emergency vehicle, taxi, or bus, nor for the purposes of a driving school;
- You are not, and will not be during the Period of Insurance, a business formed for the purposes of selling or servicing motor vehicles;
- the price You paid or will pay to acquire the Insured Vehicle (including factory and dealer fitted accessories) does not exceed the Maximum Vehicle Price stated in the Policy Schedule;
- The term of the Finance Agreement on the Insured Vehicle is less than or equal to 60 months.
If any of these warranties is untrue We shall be entitled to deny any claim and to cancel this Policy.
6. What is not Covered
This Insurance Policy does not cover any claim:
- if the Insured Vehicle had been stolen by any person who has access to the keys of the Insured Vehicle;
- as a result of Total Loss which occurred before the inception of this insurance;
iii. in respect of any Total Loss which is not the subject of an indemnity under the accidental damage, fire or theft sections of a Motor Insurance Policy, or which occurs while the Insured Vehicle is being used for pace making, racing, rallying, speed testing or reliability trials, hiring (including private hire and taxis) or is being driven by any person not holding a valid current licence to drive the Insured Vehicle;
- if the Insured Vehicle has been modified in any way from the manufacturer’s specification;
- in respect of any Total Loss arising from an accident which occurred when the driver of the Insured Vehicle was intoxicated by alcohol or under the influence of drugs not prescribed by a registered medical practitioner where the driver thereby commits an offence under UK legislation (or would have done so if the accident had occurred in the UK), or is under the influence of drugs prescribed by a registered medical practitioner in respect of which a warning against operating a motor vehicle is given;
- arising from war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, terrorism, revolution, insurrection, military or usurped power or confiscation or nationalisation or requisition or destruction of or damage to property by or under the order of any government or public or local authority;
vii. directly or indirectly caused by or contributed to or arising from ionising radiation contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel or the radioactive toxic explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof;
viii. if any misrepresentation or concealment is made by or on behalf of You in obtaining this Policy or in support of any claim thereunder;
- if the premium is not paid when due;
- if the Total Loss occurs outside the Territorial Limits;
- any amount other than the GAP;
xii. to the extent an excess greater than £250 is deducted under the Motor Insurance Policy;
xiii. if the GAP is covered by any other insurance or warranty;
xiv. if any of the warranties given under the section headed Are You Eligible for Cover?
- to the extent the GAP is caused or increased by payments which are in arrear under the Finance Agreement at the Date of Loss;
xvi. The extent the amount required to settle Your Finance Agreement at the Date of Loss exceeds the Net Invoice Selling Price where the Finance Agreement allows for delayed payments, irregularly scheduled payments or payments less frequently than every 3 calendar months;
xvii. VAT where You are VAT registered and able to reclaim the VAT from HM Revenue and Customs;
xviii. arising from any malicious damage claim which is not accompanied by a valid and substantiated crime reference number;
xix. to the extent the GAP exists or is increased either as a result of any finance due under the Finance Agreement being carried across from previous finance arrangements and/or as a result of the amount advanced under the Finance Agreement exceeding the Net Invoice Selling Price of Your Insured Vehicle.
7. Making a Claim
If a Total Loss occurs or appears likely to have occurred, You are required to report Your claim as soon as is reasonably possible using the following procedure:
- Please contact Our Administrator Premia Solutions Limited, 3 Corunna Court, Corunna Road, Warwick CV34 5HQ, Tel 01296 622600
- You must provide Us with details of the Motor Insurance Policy and the cause of Total Loss;
iii. no benefit shall become payable under this Policy until We have received proof to Our satisfaction of:
- Your GAP Policy number and Insured Vehicle details
- payment of all premium due in respect of the Policy as though the Policy had continued in force to the Policy End Date set out in the Policy Schedule
- the payment of the claim for Total Loss under the Motor Insurance Policy
- evidence of the Total Loss and the Insured Value as at the Date of Loss
- cause of Total Loss
- valid crime reference in the case of malicious damage or theft
- details of the outstanding amount under the Finance Agreement including the outstanding Finance balance, remaining term, interest charges etc.
8. Claims Conditions
You must comply with the following conditions to have the full protection of Your Policy. If You do not comply with them, We may at Our option cancel the Policy, refuse to pay Your claim, or reduce the amount of the claims payment:
- all claims must be notified as soon as is reasonably possible after the Total Loss in accordance with the procedure outlined in Section 7 – Making a Claim
ii. You must take all reasonable steps to safeguard the Insured Vehicle in the event of any damage occurring to it;
iii. in the case of malicious damage and theft You must report the incident to the Police and advise Us of Your crime reference number.
iv. We accept no liability for the responsible disposal of the Insured Vehicle or its salvage in any event. We reserve the right to instruct an independent engineer to inspect the Insured Vehicle before authorising any claim. Any decision on liability will be withheld until this report is received. When this right is exercised, We shall have no liability for any loss to You arising from any possible delay.
v. We may at Our sole option take any steps in Your name against any person including but not limited to Your Motor Insurance Policy insurer to recover any money We pay in settlement of Your claim. You must give Us all assistance necessary.
- We may also at Our option take over negotiations with Your Motor Insurance Policy underwriter with respect to Your Total Loss claim.
vii. You must not accept a settlement offer under the Motor Insurance Policy without first contacting the Administrator.
viii. This policy will not pay any claim where You have the option to receive New Vehicle Provision under the terms of Your Motor Insurance Policy in respect of the Total Loss of Your Insured Vehicle;
- ii) in the event that Your Motor Insurance Policy provides a new vehicle under their New Vehicle Provision and there being no claim paid under this insurance policy, We will on Your instruction transfer any unexpired Period of Insurance under this policy to Your new vehicle. You will need to contact Our Agent to request this transfer;
9. Policy Conditions
- Any payment of benefit under this Policy is conditional upon You being insured under a Motor Insurance Policy in respect of the accident, theft or fire giving rise to the Total Loss, and the underwriter of that Motor Insurance Policy being obliged under the terms of that policy to pay the Insured Value.
ii. It is a condition of this Policy that if We pay a claim in respect of any GAP to you under this Policy that You undertake to pay all that payment to the Finance Company. You undertake to indemnify Us against any loss or additional cost or expense, such as an additional liability to insurance premium tax, which We incur as a result of Your failure to comply with that undertaking to pay the Finance Company.
iii. If You accept an offer of settlement from the insurer of the Motor Insurance Policy of less than the current market value of the vehicle then We reserve the right to assess the GAP at the current market value of the vehicle at the Date of Loss.
- If any claim under the Policy shall be in any respect fraudulent or if any fraudulent means or devices are used by You or anyone acting on Your behalf to obtain benefit under this Policy, all benefit hereunder shall be forfeited and We shall be entitled to recover all benefits paid hereunder
- directly or indirectly as a result of such fraud or fraudulent means or devices.
- Save as provided in Section 12 You shall not be entitled to any refund of premium.
vii. The benefit of this Policy is not transferable to any subsequent owner of the Insured Vehicle.
viii. If You elect to pay the premium by monthly instalments, in the event of a claim any outstanding premiums including premium which would be payable if this Policy continued in force to the Policy End Date specified in the Policy Schedule will be deducted from the benefit payable under this Policy.
10. Governing Law
Unless some other law is agreed in writing; this Policy is governed by English law. If there is a dispute, it will only be dealt with in the courts of England or of the country within the United Kingdom in which Your main residence is situated.
11. Changes in Your Circumstances
You must tell our Agent as soon as possible if any of the following occurs:
- You change Your address;
- You change Your occupation or trade;
- You are no longer a permanent and lawful resident within the Territorial Limits;
- You are convicted of a criminal offence or receive a police caution.
Failure to advise Us of any of the changes above may mean that Your Policy is invalid and that it does not operate in the event of a claim.
If You decide that for any reason, this Policy does not meet Your insurance needs then please return it to Your Agent within 30 days of the Date of Commencement. On the condition that no claims have been made, or are pending, We will then refund Your premium in full.
If You wish to cancel Your Policy more than 30 days after the policy start date and, on the condition, that no claims have been made, or are pending, You will be entitled to a pro rata refund subject to an administration fee of £35.
The Insurer may at any time cancel this Policy by sending 14 days’ notice to You at Your last known address. Valid reasons may include but are not limited to; non-compliance with Policy terms and conditions; non-payment of premium; threatening or abusive behavior. If We cancel Your Policy provided that the premium has been paid in full You will be entitled to a proportionate rebate of premium paid in respect of the unexpired Period of Insurance.
13. Payment by Direct Debit
You have the right to pay Your premium by direct debit. If Our Administrator is unable to collect an instalment they will write to You and represent the payment request to Your bank. if the premium is still not paid they will write to You with another direct debit mandate. If the instalment remains unpaid We will cancel the Policy with immediate effect without refunding any premiums that You have paid and write to You accordingly.
14. Complaints Procedure
We aim to provide excellent service.
If You are unhappy with the service provided by Our Agent for any reason or have cause for complaint and are unable to resolve it with the person with whom You are dealing please contact them on 01442 835768 or write to their Customer Services Manager as soon as possible at Vanarama Insurance Services, Vanarama, Marylands Avenue, Hemel Hempstead, HP2 7DE.
If You are unhappy with the service provided by Our Administrator, including the way that Your claim has been dealt with, for any reason or have cause for complaint and are unable to resolve it with the person with whom You are dealing please contact them on 01926 622600 or write to their Customer Services Manager as soon as possible at Premia Solutions Limited, 3 Corunna Court, Corunna Road, Warwick CV34 5HQ
If our Agent or Administrator, as appropriate, cannot resolve the matter to Your satisfaction, You can refer Your complaint to the Complaints Manager , Advent Insurance PCC Ltd – Autorama Cell, The Landmark, Level 1, Suite 2, Triq l-Iljun, Qormi QRM3800, Malta who will provide You with a final response so that You can, if You wish, refer the matter to the Financial Services Ombudsman, 183 Marsh Wall, South Quay Plaza, Docklands, London E14 9SR: Tel 0845 0801 800 or to the Office of the Arbiter for Financial Service, First Floor, St Calcedonius Square, Floriana FRN 1530, Malta email@example.com, Telephone (+356) 21249245
Making a complaint to the Financial Services Ombudsman or the Officer of the Arbiter for Financial Services does not affect Your right to take legal proceedings.
15. Financial Services Compensation Scheme
Advent Insurance PCC Ltd – Autorama Cell is covered by the Financial Services Compensation Scheme (FSCS) You may be entitled to compensation from the scheme if Advent Insurance PCC Ltd – Autorama Cell cannot fulfill its financial obligations. This depends on the type of business and the circumstances of the Claim. Most insurance contracts are covered for 90% of the claim with no upper limit. You can get more information about compensation scheme arrangements from the FSCS –
http www.fscs.org.uk or Financial Services Compensation Scheme,7th Floor, Lloyds Chambers,
1 Portsoken Street, London, E1 8BN, or from the Company at the address above.
16. Data Protection Notice regarding the Personal Information You provide
Advent Insurance PCC Limited – Autorama Cell and Autorama UK Ltd t/as Vanarama Insurance Services (the Agent) are the joint data controllers (as defined in the Data Protection Act 2018 (DPA) and fully accept the responsibility of protecting the privacy of customers and the confidentiality and security of personal information provided to either party. In this notice, Personal Information is personal data (as defined in the DPA) and means any information that identifies an individual solely for the purpose of this insurance contract
Where this notice refers to You or Your Personal Information, this will include any information that identifies another person whose information You have provided to Us and the Agent. We and the Agent will assume that they have appointed You to act for them. You agree to receive on their behalf any data protection notices from Us or the Agent.
Your Personal Information will be Used for the purpose of providing insurance services. By providing Personal Information, You consent that Your Personal Information will be Used by Us, the Agent, services providers/business partners, and other agents for administration, customer service, claims handling, and for management and audit of our business operations. We or the Agent may also pass Your Personal Information to other insurers and regulatory and law enforcement bodies for the prevention of fraud, financial crime or where the law requires Us or the Agent to do so. Your personal data will not be passed to third parties for marketing purposes.
If You ask Us or the Agent, what Personal Information is held about You, it will be provided to You in accordance with applicable law. No fee will be charged for this. Any Personal Information which is found to be incorrect will be corrected promptly.
You have the right to withdraw Your consent to Us or the Agent processing any of Your Personal Information at any time, if it is not specifically required for Us or the Agent to provide and administer the product or service that You have purchased or registered for.
We and the Agent may monitor and/or record Your communication with Us or the Agent, either ourselves or using reputable organisations selected by Us, to ensure consistent servicing levels and account operation. We or the Agent will keep information about You only for as long as it is appropriate. We will not Use Your personal details in order to provide You with marketing, unless You have given Your explicit consent to allow Us to use this information for these purposes. If You wish to unsubscribe from Our marketing communications please contact the Agent
The Agent has a Data Protection Officer who You can contact for any queries relating to this policy, to exercise any of Your rights under data protection regulations including: data subject access requests, correcting Your information, making a complaint. If You believe We are holding inaccurate information about You or wish to request a copy of Your information, You should contact The Data Protection Officer, Autorama UK Ltd, Vanarama, Maylands Avenue, Hemel Hempstead, HP2 7DE, United Kingdom who will provide the information that You have requested in a suitable format to meet Your requirements.
If the Agent cannot resolve the complaint to Your satisfaction, You can contact the Information Commissioner’s Office which is the Supervisory Authority in the UK for protecting the rights of individuals under current Data Protection regulations via their Website – https://co.org.uk/for-the-public/raising-concerns or by phone – 0303 123 1113
17. Consumer Insurance Act 2012
You are required by the provisions of the Consumer Insurance (Disclosure and Representations) Act 2012 to take care to supply accurate and complete answers to all the questions in the declarations that You made when purchasing this policy and to make sure that all information supplied is true and accurate. You must tell Us of any changes to the answers You have given as soon as possible. Failure to advise Us of a change to Your answers may mean that Your policy is invalid and that it does not operate in the event of a claim.