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 Our motor vehicles have become a major part of our lives and can be the second largest purchase we ever make.
We purchase Motor Insurance to protect ourselves for the potential of a claim be it through an Accident, Fire or Theft. But a Motor Insurance policy only pays the market value at the time of loss and does not insure any depreciation of the vehicle.
From major market research, Shortfallcover, albeit a major product in the Motor Trade, is virtually unknown by the general public. In the Motor Trade it is known as Guaranteed Asset Protection (GAP) or Vehicle Replacement Protection (VRP).
 The premiums through dealers can vary from the low hundreds for lower value vehicles to thousands for higher value vehicles.
The reason a high number of owners purchase this cover is its inherent value in protecting the depreciation of a vehicle over a 1, 2, 3 or 4 year period.
As soon as you purchase a new or secondhand Motor Vehicle you are losing money through depreciation.
Your financial loss is even greater if you have a Total Loss through an Accident Fire or Theft, and the Motor Insurer pays you the market value at the time of loss.
This is nearly always a lot lower than expected.
Shortfallcover allows you to guarantee today's value.
"Shortfallcover will provide you with protection against the difference between the Insurance Valuation at time of total loss and the agreed value of your vehicle when taking out the policy."
The agreed value is based on -
Privately owned Motor Vehicle - The valuation from Parkers Guide (see below) at date of the Shortfallcover Insurance is purchased.
New Motor Vehicle purchased from a Motor Dealer - The Motor Dealer Invoice (within 120 days from the date of purchase).
Secondhand Motor Vehicle purchased from a Motor Dealer - The Motor Dealer Invoice (within 120 days from the date of purchase).
Parkers Guide - Industry Motor valuation specialist used by the Motor Trade and the general public www.parkers.co.uk.
Shortfallcover Valuation - This is calculated by valuing the Motor Vehicle from 'Parkers Guide'. Category 'Private Good' and current mileage of the Motor Vehicle.
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POLICY SUMMARY
Policy Summary
Name of Insurer
The insurer is IGI Insurance Company Limited, 10th Floor, Market Square House, St. James’s Street, Nottingham NG1 6FG. Financial Services Authority No. 202189.
Key Features and Benefits
The insurance policy, for which you will pay a single premium and which is for the period agreed at the time of purchase, will pay You the shortfall between the settlement received from your motor insurance company (Insured Value) and the Purchase Price of the Vehicle if purchased from a dealer or the finance Settlement Figure whichever is the greater or the ‘Private Good’ Parkers guide value at the date of purchase of this policy , up to the Sum Insured, following the total loss of your Vehicle due to fire, theft or accident.
Eligibility
You can apply for cover under this policy if at inception:
_ Your Vehicle is less than 10 years old
_ You are the owner or the registered keeper of the Vehicle, or in respect of contract hire, contract purchase and any leasing contracts for the authorised user for the Vehicle
_ Your Vehicle as specified on the Proposal/Policy Schedule is listed in the Parkers ’ Guide and principally used in the UK having a maximum net invoice price of £180,000 unless agreed in advance by the Administrator.
_ You are covered under a comprehensive Motor Insurance Policy for Your Vehicle
_ You are named as the customer in the Finance Agreement on the vehicle
_ The term of the Finance Agreement is less than or equal to 60 months
Exclusions
_ Vehicles modified from the manufacturers specification (1.1).
_ Vehicles used for competition, racing, pace making, hire or reward, off road use or driving school (1.3).
_ Vehicles owned temporarily by a business formed for the purpose of selling or servicing motor vehicles (1.2).
_ Total loss occurring outside Great Britain, Northern Ireland, Isle of man, Channel Islands, Member Countries of the European Community, and any other country for which an international motor insurance Green Card in respect of the Vehicle is effective at Date of Loss (15).
_ Any excess deducted on Your Motor Insurance Policy (3).
_ Any Total Loss which is not subject to an indemnity under the accidental damage, fire or theft sections of a Motor Insurance Policy (7).
_ Additional costs within the settlement of the Finance Agreement for anything other than the purchase of Your Vehicle. This includes but is not limited to administration charges, option to purchase charges, late payment charges and arrears, early settlement charges etc and interest charged thereon (9)
_ Unless included in the Vehicles’ manufacturer’s original specification (i.e. any option fitted at the factory), any additional options are excluded from cover and will not form part of the Purchase Price of the Vehicle, as confirmed in the invoice of sale, when assessing a claim under this Policy. Additional options include but are not limited to; Road Fund Licence, insurance premiums, including this Policy, and dealer fitted extras totalling more than £1500 (11)
_ Any finance carried across on to Your Vehicle from previous finance arrangements (12)
_ Any amount of the Purchase Price You paid for the Vehicle by which it exceeds 110% of the Parkers Guide Retail or if purchased privately the ‘private good’ valuation at the time of purchase (14)
_ If You decline an offer of a replacement vehicle under the terms of Your Motor Insurance Policy then We will settle Your claim based on the value of the replacement vehicle and not the settlement figure offered under Your Motor Insurance Policy.
_ Vehicles over 3500kg gross weight.
Duration of Cover and Claim Limit
As shown on the Proposal/Policy Schedule (You may consider reviewing this policy periodically to ensure that it meets your requirements on an ongoing basis).
Cancellation
Cancellation – Cooling Off Period
You have the right to cancel this cover within 14 days of the vehicle purchase date without giving any reason. If this happens We will refund your premium in full. After this 14 day cooling off period You may cancel this Policy by sending 14 days notice in writing to the Administrator by recorded delivery. If You cancel this policy after the 14 day cooling off period there will be no refund.
Cancellation by Us
In exceptional circumstances (i.e. You fail to pay premiums, You are guilty of material misrepresentation whilst applying for this insurance) We may cancel this policy by writing to You at Your last known address advising that all cover will end 14 days after the date of the letter. If there has been no claim (or claim pending) during the current Period of Insurance We will calculate the Premium for the period the Insured Customer has been insured and refund any balance. If a claim has been submitted during the current Period of Insurance no refund will be given.
What to do in the event of a claim
All claims should be notified within 30 days of the total loss to the Claims Office by telephone on 0844 800 2632. You should notify the Claims Office prior to accepting any settlement from your motor insurer.
What to do if you have a complaint
If you wish to register a complaint please contact your supplier or alternatively the policy Administrator, J.D. Concepts Ltd, 70 Eastbourne Road,
Southport, PR8 4DU. Telephone: 0844 800 2632.
If Your complaint is one of the few that cannot be resolved You should write to:
The Managing Director, IGI Insurance Company Limited 10th Floor, Market Square House, St. James’s Street, Nottingham NG1 6FG Who will review the details of Your case and You will be kept informed of the progress. If the insurers have given You their final response and You are still
dissatisfied You may refer Your case to the Financial Ombudsman Service, an independent body that arbitrates on complaints about general insurance products.
Please note You have six months from the date of the final response in which to refer Your complaint to the Ombudsman. The contact details are:
The Financial Ombudsman, South Quay Plaza, 183 Marsh Wall, London E14 9SR Telephone No: 0845 080 1800.
Customer Compensation
IGI Insurance Company Limited is covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if the insurer is unable to meet its obligations. This depends on the type of business and the circumstances of the claim. Further information about the compensation scheme arrangements is available from the FSCS at www.FSCS.org.uk or telephone 020 78927300.
IT IS RECOMMENDED THAT YOU READ THE FULL TERMS AND CONDITIONS
Terms & Conditions | Purchase
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