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Provision to Section 4
1. Limit of Indemnity
Our liability will not exceed the sum stated in the schedule or such greater sum as may be required by
the compulsory motor insurance legislation in the country in which the insured event occurs.

Section 5 – Damage to Vehicles

The Cover
We will indemnify you in respect of damage to the Vehicle and Accessories of the Vehicle.

This indemnity will not exceed the market value of the Vehicle immediately before such damage.

5.1 Continuing Hire Charges
If you become liable to pay for continuing hire charges incurred under a contract with the owner of a
motor vehicle on temporary hire to you as a direct result of damage caused to such motor vehicle and
which is the subject of indemnity under this section we will pay such charges for a period not
exceeding 120 days from the date of the event
Provided always that:

a) we will not be liable for the first 72 hours of such charges
b) the amount payable in respect of any one event will not exceed the amount stated in
the schedule.
5.2 Customs Duty
We will indemnify you against liability for the enforced payment of customs duty where such liability
arises directly from damage covered under this section.

5.3 New for Old
If any Vehicle within one year of first registration is:

a) damaged to the extent that the costs of repair would exceed 50% of the manufacturer’s
recommended retail price plus taxes

b) lost by theft and not recovered
we will replace it with a new Vehicle of the same manufacturer and of the same or like type
Provided always that:

i) you request it; and
ii) any other interested party known to us consents; and
iii) such a replacement is available.

5.4 Other Charges
We will indemnify you against general average contribution and salvage and sue and labour charges
incurred during the transportation of the Vehicle by sea.
Provided always that:
a) such Vehicle is covered against damage under this section

b) the contribution relates to the value of such Vehicle.

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