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Race Car Cover Insurance
Terms and Conditions
[ 3.11.2003 ]
I. Insured Object
The present policy covers damage to the insured vehicle (partial or complete destruction) arising from an accident or fire damage directly due to an accident that occurs within the agreed period of insurance during official training or test runs and during the race (free training, qualifying heat, warm-up, race laps or laps of honour) on a closed-off race or rally track.
An accident is an incident in which a sudden mechanical force is directly exerted by an external source (e.g. collision with other vehicles, running off course, somersault, and impact) that results in material damage to or destruction of the insured vehicle.
II. Extent of Cover
The insurer undertakes to reimburse the policyholder for any insured accidental damage to the insured vehicle that may arise during the agreed period of insurance at the agreed place of insurance (race or rally track) subject to the following conditions and exclusions.
The limits of liability and deductibles stated in the insurance policy/cover note shall apply. Should the policyholder or insured party have a right to compensation for the same damage from another insurance contract, the right under the present policy shall be reduced to the compensation not otherwise recoverable, less the deductible agreed in each case.
Insofar as the agreed insurance sum exceeds 50% of the replacement costs of the insured vehicle, the insurer shall pay compensation at first risk in waiver of Article 75 VVG (German Insurance Contract Act).
Unless otherwise stipulated in the following provisions and the attached parts list, the insurer shall reimburse the policyholder for damage up to the replacement value of the vehicle or its parts on the day the damage is incurred. The replacement value is the purchase price that the policyholder would have to pay for an equivalent used vehicle or equivalent parts.
The limit of liability is in all cases the agreed insurance sum. Insured residual and old parts remain with the policyholder. Their residual (salvage) value will be deducted from the paid compensation.
In the event of damage to the vehicle, the insurer shall reimburse the necessary costs of replacement up to the agreed insurance sum. The same shall apply in the event of destruction of or damage to insured parts of the vehicle. An appropriate deduction for age and wear will be made from the cost of replacement parts and paintwork (new for old).
The insurer will not reimburse the insured party for any modifications, improvements, repairs due to wear, decrease in value, exterior appearance or performance, transport and registration costs, loss of use or expenses incurred for a replacement car and fuel.
Only 70% of the costs of any work incurred or estimated will be reimbursed.
Appraisers' fees will be paid only if the appraiser has been appointed by the insurer.
The total compensation paid by the insurer for all claims within one racing season shall be limited to twice the insurance sum stated in the insurance policy/cover note.
III. Exclusions
Unless otherwise specifically agreed in the insurance policy or endorsements thereon, the following are excluded from insurance cover:
- All third-party claims on the insurer ensuing from the accident.
- Financial losses incurred to the policyholder due to the accident (e.g. loss of prize money, decline in value).
- Costs of salvaging the wrecked vehicle and all expenses for haulage from the racing circuit to another place, including parking and storage costs.
- Costs of scrapping and disposal of a wrecked vehicle or damaged parts.
- Haulage and transport costs for replacement of the insured vehicle or parts thereof (all shipping options such as Royal Mail, TNT, FedEx, etc.) or loss of use.
- Destruction or damage caused by a structural fault in the vehicle or failure to perform.
- Destruction or damage due to an engine or vehicle fire that is not the direct result of an accident.
- Destruction or damage occurring in the course of work on the vehicle or which could have been caused by such, including scratches and other damage to the paintwork or finish.
- Damage caused by wear and tear, cracks, aging and increasing deterioration of the vehicle.
- Damage to the engine and/or transmission due to "overrevving" or incorrect gear changing, as well as damage to tyres and wheel rims.
- Destruction and damage caused by:
- Ionising radiation or radioactive contamination from any form of nuclear fuel or due to a leak in connection with nuclear fuels.
- Radioactivity, toxicity, explosiveness or any other reaction due to the combined effect of nuclear fuels.
- War, civil war, terrorist attacks, internal unrest, use of biological or chemical weapons. Damage caused by game and/or other animals is not insurable.
- Loss or damage directly caused either by pressure waves from aeroplanes or other supersonic devices, or by crashing piloted or pilotless flying objects.
- Labour costs for the removal and replacement of mechanical wearing parts, also costs of regular servicing.
- Paintwork beyond the first coat, as well as decorative paintwork or stickers.
- Loss of the vehicle due to misappropriation, in particular theft, unauthorised use by outsiders, robbery and fraudulent conversion.
The same applies to the loss, destruction of or damage to the vehicle due to a criminal offence by a third party or an attempted criminal offence.
- Destruction of or damage caused to a broken-down vehicle by a third party if the policyholder/driver has not provided for prompt removal from the race track.
IV. Terms and Conditions
- Coverage under this insurance contract and the ensuing obligation of the insurer to compensate in the event of a claim shall exist only if the policyholder has paid the full premium invoiced by the insurer or insurance broker prior to the agreed inception of insurance cover and the insurer or insurance broker has issued a written cover note.
Both the insurer and the insurance broker shall be authorised to take receipt of the insurance premium. The premium shall be deemed paid if it has been tendered in cash against receipt or in the case of bank transfer has been credited to the account of the payee. Payments by cheque shall be deemed received when the amount of the check has been credited to the payee's account.
- The insurer may revoke the cover note without stating reasons upon serving written notice of seven calendar days to the policyholder and his/her insurance broker prior to the inception of insurance cover. The determining factor for adherence to the deadline shall be receipt by the authorised recipient.
- In the event of a cessation of interest on the part of the policyholder, the statutory provisions set forth in Article 80 VVG shall apply.
- The insurer shall be entitled to have the damage assessed at its own expense by a publicly appointed, sworn appraiser it has selected.
- Upon receipt of the appraiser's report by the insurer, claims for repairs up to the limits set by the appraiser shall be settled within 21 days, provided the policyholder is able to submit evidence in the form of an invoice that the repairs have been effected. In the case of persons who are not eligible to deduct input tax, the submission of the original invoice shall be required for the refund of VAT.
- Settlements in the case of total loss will be made on the basis of the appraisal within 21 days of submission.
- In the event that the insured vehicle has been confiscated or kept in police custody as a result of an insured accident, the insurer shall pay compensation on the basis of the appraisal within 21 days of submission under the express proviso that the amount be reimbursed if it is determined that the damage is a consequence of illegal action on the part of the policyholder/driver.
- These terms and conditions, including the attached parts list, form an integral part of the insurance contract. For all other purposes, the German Insurance Contract Act (VVG) shall be applicable.
- Jodexnis Versicherungsmakler GmbH shall be authorised to accept notices, declarations of intent and payments from the policyholder and is duty-bound to pass these on to the insurer without delay. Receipt by the brokers' office is legally equivalent to delivery to the insurer. The same applies to notices, declarations of intent and payments by the insurer to the policyholder.
V. Duties of the policyholder in the event of a claim
- In the event of a claim the policyholder shall notify his/her broker by fax or otherwise in writing within 48 hours of the occurrence of an accident. The policyholder shall use the claim form handed to him/her together with the cover note. He/she shall fill it in correctly and completely and to the best of his/her knowledge. An official confirmation of the policyholder's accident by the organiser must be enclosed/submitted.
- Following an accident for which a claim is to be submitted to the insurer, the policyholder must take all practical measures to avoid any further loss or damage and to comply with the insurer's instructions.
- Should it be necessary to carry out repairs on the damaged vehicle in order to start/continue the racing event, as far as circumstances permit the policyholder must obtain instructions from the insurer.
In the event that instructions are not forthcoming from the insurer or an inspection by an appraiser appointed by the insurer has not taken place, the policyholder must take the following steps:
- Prior to starting repairs, the policyholder shall arrange for a detailed photographic record to be made of the damage, showing its nature and extent.
- The damaged parts must be carefully kept and placed at the disposal of the appraiser appointed by the insurer.
- The policyholder must make the vehicle available for inspection by the appraiser appointed by the insurer and provide all the assistance necessary to determine the extent of the damage.
- In the event that the policyholder breaches his/her obligations, under the terms of the German Insurance Contract Act (VVG) the insurer shall be released from its obligation to pay compensation.
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