Pay by the Month Conditions

Pay by the Month Administration Fee

If you choose to Pay by the Month using the direct debit method, an annual fee of $66.00 may apply which equates to $5.50 per month. Administration fees do not apply to an annual electronic single direct debit, which is an option you may care to consider. If you have more than one policy, for example, a household and motor vehicle policy, and payment is collected from one source (ie the same bank account or credit card account), then only a single monthly administration fee applies. Please note, our premium discounts do not apply to such fees.

Completing the application

You will need some brief information about your account. If you have a non-passbook, card-type savings account, the BSB and Account numbers are often shown on the personalised deposit and withdrawal slips. In other cases, they will be shown on a separate statement or record card. Direct debiting is not available on all accounts. If in doubt, or if you require more information, please contact your bank or financial institution.

Annual renewal process

You will be sent a renewal notice prior to the expiry of your policy so you can check the details. Monthly (or annual) instalments will continue to be debited to your account unless you notify us in writing to vary these arrangements. Of course, the choice of whether to use our direct debit service is entirely up to you. But it certainly saves you the worry and risk of being uninsured.

Returned or dishonoured direct debits

If debits are returned unpaid by your Financial Institution we will either attempt to debit from your nominated account again or we will contact you to arrange another way of paying. We reserve the right to cancel the Direct Debit arrangement if 3 or more debits are returned unpaid by your Financial Institution.

Direct Debit Request Service Agreement 

You have requested RACQ Insurance (User ID Number 045108) (we or us) to debit, through the Bulk Electronic Clearing System (BECS), any payments for your insurance contract(s) that may from time to time become payable from the account nominated in your Direct Debit Request. We advise you: a) That direct debiting through BECS may not be available on some accounts. Additional charges may be applied by your Financial Institution for direct debits. b) To confirm the account details by checking a recent statement from your Financial Institution; and c) That your request must be signed in the same way as the account signing instruction held by your Financial Institution. If you are uncertain about any of these items please check with your Financial Institution before completing your Direct Debit Request. You are responsible for ensuring that the account you nominated has sufficient cleared funds available to pay each debit when it becomes due. You must tell us if you close or change the account you nominated.

Non business days

Where the due date falls on a non-business day in Sydney and Melbourne, we will debit the amount on the next business day. If you are uncertain when the debit will be processed to your account, you should contact your Financial Institution directly.

Stopping or cancelling 

You may cancel your Direct Debit Request, stop or defer an individual debit amount by writing to us at Reply Paid 4, RACQ Insurance Limited, Pay by the Month, Springwood Q 4127. We must receive your notification at least 14 days prior to the next debit due date to process your request in time. If you believe that a debit has not been correctly processed you should contact us immediately on 13 1905. If you are not satisfied with our reply, you should contact your own Financial Institution. We will keep all information relating to your account  private and confidential. You consent to us using or releasing your account information to investigate any claims relating to possible incorrect debits. You fully indemnify us against any losses, costs, damages and liability that we suffer as a result of you giving us incorrect or false information in your Direct Debit Request. Your indemnity continues after this Agreement is ended. These arrangements are subject to change. We will provide 14 days notice of any changes.

Important information

The information below also forms part of our Product Disclosure Statements:

• Participation in the pay by the month scheme is available only through the electronic direct debit system. Payment by any other means will not be accepted.
• The following terms and conditions are included and form part of your policy when you elect to pay your premium by this direct debit method.
• If your bank account details change you will need to tell us not less than 14 days before your next monthly instalment is due. If your credit card details change you must contact us not less than 2 business days before your next monthly instalment is due.
• When you have paid the first instalment, insurance cover commences on and from the first effective date and time shown on your Policy Certificate.
• If any instalment payment is overdue for a period of at  least 14 days, we may refuse to pay a claim.
  If an instalment of the premium remains unpaid for a period of at least one month, the policy is automatically cancelled.
• If you wish to cancel your policy, we will require your notification in writing 14 days before your next instalment is due to avoid an unnecessary deduction.
• If, because of damage or loss, the total sum insured (less any applicable excess) is paid, then the policy will come to an end. In that case, we will deduct all the remaining instalment premiums for the insurance term from the settlement amount.
• On renewal you will be sent a notice prior to the expiry date of this policy.  At that time, unless you need to make any changes,  you need take no action as your policy will be automatically renewed.
• Your direct debit amount may vary if you make any policy alterations.