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Understanding our new Product Disclosure Statements

Insurance is designed to protect you when you need it most, and we’re committed to continuing to providing you with great products, so we’ve introduced all new RACQ Insurance Product Disclosure Statements (PDS) for Motor Vehicle, Caravan & Trailer, Boat, Household, Pet and Body Corporate policies renewing on or after 29 March 2021.

We have also made some changes to your policy – we have added and changed cover to some of our products and we have added and changed exclusions and conditions to others. The below FAQs will help you understand these more.

We’ve redesigned our PDS for you

We want to provide certainty and clarity in your time of need so we’ve changed the layout of the PDS to help make it easier to understand.

Some of the key changes include

  • Clearer breakdown of product inclusions, exclusions and benefits,
  • New, fresh, modern look and feel with a simplified design, and
  • Coloured tabs to help make reading the PDS easier.

The PDS is an important legal document that contains details of the product you purchase so please be sure you read it carefully and check it’s suitable for your insurance needs.

My Certificate of Insurance says ‘Based on your vehicle’s agreed value this level of cover may not be suitable for your insurance needs”. What does this mean?

This warning indicates that based on the value of your vehicle, there may be a level of cover more suitable for you, such as Comprehensive Car Insurance. If you would like to understand more about this cover and what's included, please contact us on 13 1905.

My policy has changed to an agreed value, what was this value based on?

Previously your policy was on a sum insured valuation method and the value you had nominated in your last insurance term is what your new agreed value is.

Please be sure to review the amount shown on your Certificate of Insurance to ensure it provides you the right amount of cover. You can contact us to change this amount at any time.

My Certificate of Insurance says ‘Your Comprehensive Car Insurance does not include coverage for tools of trade, stock in trade or loss of income’. What does this mean?

This information is there to help you understand parts of our insurance cover that may not be right for you. In this example, if you use your vehicle for business purposes, it is important that you know that this insurance will not cover items related to your business, such as tools of trade, if your vehicle was involved in an incident. For more information please refer to your PDS and any applicable SPDS.

My Certificate of Insurance says “You have accepted that there may be a level of cover more suitable for your insurance needs when considering the cost of insurance, premiums and all excesses, and your vehicle’s value.” What does this mean?

This warning indicates that based on the value of your vehicle, there may be a level of cover more suitable for you. On renewal of your policy, we have assessed all your information and have provided you this alert for your review and to consider if the level of cover is suitable for you. If you have any questions about your policy or what you are covered for, please call us on 13 1905.

My Certificate of Insurance says ‘Your Comprehensive Car Insurance policy provides limited cover for your Motorhome's contents under the Personal property benefit only”, am I able to increase the amount?

This information is there to help you understand parts of our insurance cover that may not be right for you. For Motorhomes, we cover Personal Property up to $500. Please know that this cover amount cannot be increased. Exclusions apply, for more information please refer to your PDS and any applicable SPDS.

My motorcycle riding gear is now covered as standard for up to $500, am I able to increase the amount?

Please know that this benefit limit cannot be increased. For policies starting or renewing on or after 29th March 2021, motorcycle riding gear is covered under the Personal property benefit up to $500 if the insured Motorcycle is involved in an incident. Exclusions apply, for more information please refer to the PDS and any applicable SPDS.

How might the General Exclusion for diseases impact my Motor Insurance policy?

For most circumstances that might result in a claim, this general exclusion is expected to have minimal impact. Some examples of when you would not be able to claim on your Motor Vehicle Insurance policy are:

  • You have a passenger in your vehicle who is later confirmed as having a disease e.g. COVID-19. Your vehicle is involved in an accident. Your vehicle requires a deep clean to ensure it is not contaminated before the damage can be assessed for repair. You are not able to claim for this cleaning.
  • You have had a passenger in your vehicle and it is later confirmed that you have had COVID-19. Your passenger also then contracts the virus from being in the vehicle with you. The passenger is not able to claim under the Section of ‘Third Party Liability Cover’.

I use my vehicle for my business, if there was an incident, do I have to pay an additional excess for any of my unlisted drivers under 25 years of age?

Yes. The age excesses and inexperienced driver excess do not apply if an incident happens and the driver of your vehicle:

  • holds a current learner’s licence, and
  • is using your vehicle to get supervised on road driving experience, and
  • the supervisor holds a current and appropriate class of licence in line with the law and the relevant road transport authority.

These excesses also do not apply if the driver of your vehicle:

  • if using your vehicle to road test it after they service or repair it and they work for a business that offers motor vehicle repairs or services motor vehicles for the public on a full time commercial basis.

Can I claim under ‘Hire car where another driver is entirely responsible’ if I am hit by another car while my car is parked in a carpark?

This benefit provides cover where your vehicle is involved in a collision and another driver is entirely responsible. If your vehicle is damaged while parked, this would not be covered. All the details of this benefit can be found on page 32 of the Motor Vehicle Insurance PDS.

Can I claim under ‘Hire car where another driver is entirely responsible’ if my car is maliciously damaged?

This benefit provides cover where your vehicle is involved in a collision and another driver is entirely responsible. This may not extend to malicious damage if the person causing the damage is unknown or is not driving their own vehicle at the time malicious damage occurred. For more information on where you might be covered if your car is maliciously damaged, please read your Motor Vehicle Insurance PDS or call us on 13 1905.

Can RACQ arrange alternative transport for me under the Hire Car benefits (so I don’t have to pay for the costs upfront)?

If you do not wish to use a hire car, we will cover the costs of alternative transport, up to $75 per day. If you need to make a claim and wish to use alternative transport, we will discuss payment options with you during the claim lodgement process.

At claim time, can I choose what hire car I get?

We pay for you to have a hire car chosen by us, for up to $75 a day. If you have any specific health or personal circumstances which would inhibit your use of a particular vehicle, please discuss this with your Claims Management Officer. There is also the option of having us cover the cost of alternative transport if you don't want a hire car. Exclusions apply, for more information please refer to the PDS and any applicable SPDS.

A recent storm event damaged the paintwork on my house, what can I claim for?

You can claim for storm damage to the external coatings of your home in certain situations. An example of this might be where the storm has damaged your external paintwork as well as creating further damage to your home that is related to the same storm. Please read the PDS, any applicable SPDS and Key Facts Sheet to ensure you are aware of what you are covered for and any changes.

How will my claim be settled?

If your Home or Contents suffer loss or damage from an insured event described in the PDS, we will settle your claim in one of 3 ways. 1) Repair or rebuild; 2) Replace the damaged items; or 3) Pay you a cash settlement based on the cost to repair, rebuild or replace (in some instances, we may be required to pay your mortgagee or credit provider first).

If I have a claim, what happens if I decide I want my own builder to do the repairs on my home?

We will always work with you to help you repair or rebuild your damaged property.

Where we can source a contractor to do the work, we will pay to have the work done to a standard that is “as new”. And where we have authorised the repair to be done by a contractor, we will provide you with a lifetime guarantee on the repairs. If we can’t source a contractor to do the work and we decide to provide you with a cash settlement to have the work done by your own builder, we will make sure the amount we pay you will be sufficient to have the work completed based on your builder’s quote. However if you decide you do not want us to arrange the repairs/rebuild on your behalf, we can provide you with a cash settlement based on what it would have cost us to have the repairs/rebuild done for you. You can then arrange your own repairs with your own builder, but the cash settlement amount may be less than it will cost you to arrange the repairs yourself. Also, the lifetime guarantee on the repairs does not apply in this situation.

How might the General Exclusion for disease impact my Household Insurance policy?

For most circumstances that might result in a claim, this general exclusion is expected to have minimal impact.

Here is an example of when you would not be able to claim on your Household Insurance policy:

  • You have a guest stay in your second bedroom who is later confirmed as having a disease e.g. COVID-19. The window in this room is broken by a storm. The room requires a deep clean, to ensure it is not contaminated, before the damage can be assessed for repair. You are not able to claim for this cleaning.

My home is currently uninsured. There is a bushfire in my area, and I need to arrange insurance cover to protect my home – can I still get a policy?

It will depend on your circumstances. For instance, if you are just buying the home now (eg signing the contract to buy the home today), and haven’t had a chance to insure the home previously because you didn’t own it, then we may be able give you cover. But if you’ve owned the home for a period of time, and left it uninsured, we may not be able to cover you until the fire danger has passed.

Do I have to keep my home in 'as new' condition for my policy to be valid?

No. We realise that even the best maintained home will suffer from some degree of wear and tear over time just through normal everyday use. But we do ask you to maintain your home in good condition to try and minimise the need for you to have to make a claim for loss or damage; or to keep the cost of any loss or damage as low as possible. We have a definition of “good condition” in the PDS, and it includes things like: keeping your home structurally sound, keeping it safe for guests who may visit, and keeping it free from pest infestations.

What happens if I have a visitor come to stay in my home, and some of their belongings are stolen whilst staying with me?

We do cover your visitor’s contents. It doesn’t matter if your visitor has their own contents insurance or not. You can include the cost of your visitor’s stolen items in your claim with us. Please know that there is a limit of up to $500 per incident for claims for your visitor’s contents.

What do I need to do if I’m going away for a while and my home will be unoccupied?

If you are just going away for a few days or a few weeks, that’s fine. But if you believe your home will be unoccupied for more than 60 days, you need to contact us before you leave. This is so we can talk to you about what arrangements you might need to put in place to keep your home safe and secure while you are away, and to make sure we can continue to keep you covered. Call us on 13 1905 to discuss.

My policy has changed to an agreed value, what was this value based on? 

Previously your policy was based on a sum insured value. However, your policy is now based on agreed value. That is, the value you had nominated in your last insurance term is what your new agreed value is.

Please be sure to review the amount shown on your Certificate of Insurance to ensure it provides you the right amount of cover. You can contact us to change this amount at any time. Call us on 13 1905 to discuss.

How might the General Exclusion for diseases impact my Boat Insurance policy?

For most circumstances that might result in a claim, this general exclusion is expected to have minimal impact. Some examples of how you would not be able to claim on your boat policy are:

  • You have a passenger in your boat who is later confirmed as having a disease e.g. Coronavirus. You want to have your boat cleaned to ensure it is not contaminated. You are not able to claim for this cleaning.
  • You hit a third party’s boat and during the incident you contracted Coronavirus from the other person and will now have to go into mandatory hotel quarantine. You are not able to claim under the Section ‘Temporary accommodation’.
  • You have had a passenger in your boat, and it is later confirmed that you have had the Coronavirus. Your passenger also then contracts the virus from being in the boat with you. The passenger is not able to claim under the Section of ‘Third Party Liability Cover’.

My fishing equipment gear is now covered as standard for up to $5,000, am I able to increase the amount? 

Yes. If you have fishing equipment that is valued at more than $5,000, any amount that is above $5,000 will contribute to your overall agreed value. For example, if your boat is valued at $15,000 and you have $6,000 worth of fishing equipment, $5,000 of your fishing equipment would be covered under the included benefit, and the extra $1,000 would be included in the agreed value that contributes to how much you pay for your cover (which would now be $16,000). For more information please refer to your PDS and any applicable SPDS.

My water sports equipment gear is now covered as standard for up to $5,000, am I able to increase the amount?

Yes. If you have water sports equipment that is valued at more than $5,000, any amount that is above $5,000 will contribute to your overall agreed value. For example, if your boat is valued at $15,000 and you have $6,000 worth of water sports equipment, $5,000 of your water sports equipment would be covered under the included benefit, and the extra $1,000 would be included in the agreed value that contributes to how much you pay for your cover (which would now be $16,000). Refer to your PDS and any applicable SPDS for more information.

My mandatory safety equipment gear is now covered as standard, am I able to cover any optional cover safety items?

Yes. If you have other safety equipment, this will contribute to your overall agreed value that contributes to how much premium you pay. For more information please refer to your PDS and any applicable SPDS.

Do I have to individually list every accessory on my boat?

The value of all your boat accessories should be listed to ensure they are covered by your Boat Insurance for policies starting or renewing on or after 29th March 2021. Please know this is with the exception of the mandatory safety equipment that is needed on your boat - you do not need to list that, but it will be covered under the Safety equipment benefit. For more information please refer to your PDS and any applicable SPDS.

I previously had a lot of accessories listed but can no longer see them on my Certificate of Insurance.

If you previously had accessories listed that may fit one of the new policy benefit categories, we have re-categorised your boat accessories and re-calculated your boat’s total insured value in accordance with the new policy’s included benefits.

Where your accessories were considered mandatory safety equipment, we no longer need to know about them individually. And your policy has an included benefit of unlimited cover for all your mandatory safety equipment.  These have been removed from your boat’s total insured value as well.

This provides better value for you, as you will not be paying a specific premium towards items that are now automatically included in your policy.

My personal property is now covered as standard for up to $5,000, am I able to increase the amount?

Yes. If you have personal property that is valued at more than $5,000, we can list this Extra Personal property, and this will show on your Certificate of Insurance. Any amount that is above $5,000 will contribute to your overall agreed value. For example, if your boat is valued at $15,000 and you have $6,000 worth of personal property, $5,000 of your personal property would be covered under the included benefit, and the extra $1,000 would be included in the agreed value that contributes to how much you pay for your cover (which would now be $16,000). For more information please refer to your PDS and any applicable SPDS.

Does my RACQ Pet Insurance policy include 'lifetime cover' for my pet?

We will continue to provide your pet with illness and injury cover for its lifetime. As long as we:

  • continue to offer this pet insurance product, and
  • you renew and pay your premium for your policy each year.

What's covered with RACQ Pet Insurance?

With RACQ Pet Insurance, your pet is covered for:

  • 80% of vet costs, less any relevant excess, up to the $12,000 annual limit, to treat your pet if it suffers an illness or injury during the period of insurance after any waiting period that applies. If your pet continues to require treatment this will be covered during the next period of insurance, as we offer lifetime cover. This applies as long as we continue to offer this pet insurance product, and you renew and pay your premium for your policy each year.

We can even consider a waiver on the exclusion for your pet’s pre-existing condition if your pet has been free from their injury or illness for 18 months.

Please read the PDS, and any applicable SPDS  to ensure you are aware of what you are covered for and any changes.

What happens if my Vet is not exactly sure what has caused my Pet’s illness?

If your Vet is genuinely not aware of the exact cause, we can still consider your claim if your Vet can at least diagnose what the most likely cause might be. We will not force you to go and get a second opinion from another vet.

Am I covered for any of my pet’s pre-existing medical conditions?

No. Your policy only covers you for vet costs for illness and injuries your pet suffers after your policy starts. However, in some circumstances, if your pet has been free of the condition for at least 18 months, and your vet can provide supporting medical history, we can consider waiving the exclusion for that condition.

Am I covered for all of my pet’s illness or injuries right from the start of the policy?

You are covered for an injury that happens after your policy starts. There is no waiting period for injuries that your pet suffers.

However, there is a 21 day waiting period for any illness that your pet suffers, after your policy first starts.

Can the RACQ Pet Insurance waiting period be waived if I’m currently insured elsewhere?

If you have a current in-force pet insurance policy elsewhere and want to insure with RACQ, we may be able to waive applicable waiting periods. Please refer to your PDS, and any applicable SPDS for more information about this process.

If you have RACQ Household Pet Cover on your contents insurance and want to transfer to RACQ Pet Insurance cover, we may also be able to waive the waiting periods. Call us on 13 1905 to discuss.

Insurance products (excluding Travel Insurance and the Life and Income Protection Insurance suite of products) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the PDS and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.