Removals & Storage Insurance

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Financial Services Guide (FSG)

Ashtons Removals can assist you to obtain insurance to protect your goods while they are in transit or storage. This is because we are an authorised representative of Cowden (VIC) Pty Ltd (AFSL 245658), a licensed insurance broker.

This FSG describes the insurance services that Ashtons Removals can provide to you. It also covers the charges for those services, your rights as a client and how any complaints you may have will be dealt with.

How we can help with your insurance
We hold a Customer Goods in Transit and Storage insurance policy. On your behalf, we can arrange for this policy to cover you. Alternatively, you can obtain insurance from an insurance company of your own choice.

If you ask us to arrange Customer Goods in Transit and Storage insurance, we will give you a Product Disclosure Statement (PDS). This will describe the main features of the policy. You should read the PDS to decide if the policy suits your needs, objectives and financial situation before you decide whether to obtain it because we cannot advise you about your insurance needs.

Cowden (VIC) Pty Ltd is an insurance broker and is licensed to advise on and deal in General Insurance. If you need advice or your insurance needs are different from the cover available in our policy, we can refer you to Cowden (VIC) Pty Ltd on (03) 9686 6500 who will be able to assist you.

How we are paid
For arranging for you to be insured under our policy, we receive the difference between the amount you pay us for your insurance and the cost of the premium we pay for the policy (which is based upon our annual turnover) and the amount we pay for claims under $2,000. The amount you pay us is based on the value of the goods we are removing or storing on your behalf.

Our staff who arrange your insurance are paid a salary. They do not receive a bonus for arranging insurance for you.

In addition, Cowden (VIC) Pty Ltd received a commission of 0-20% for arranging our policy. They do not receive any amount when we arrange for the policy to cover you.

Complaints and disputes about our services
We are a member of the Australian Furniture Removers Association (AFRA). AFRA handles all complaints or disputes about our services. Contact the Executive Director at AFRA.

AFRA may be contacted at:

Unit 6/7 Packard Avenue,
BAULKHAM HILLS NSW 2153
T: 1800 671 806

If you have a concern, complaint or dispute about the policy which involves a claim, contact the Manager at Cowden (VIC) Pty Ltd on (03) 9686 6500. They will try to resolve your problem immediately. If they are unable to do so, you can request that your problem be considered by their internal dispute resolution process.

If you are not happy with their decision, you may take your complaint to the Financial Ombudsman Service Limited (FOS), an external dispute resolution. FOS can be contacted on 1300 780 808.

Professional Indemnity Insurance
Cowden (VIC) Pty Ltd has professional indemnity insurance in place which covers them, their employees and Ashtons Removals for any errors or mistakes relating to our insurance services. This insurance meets the requirements of the Corporations Act and meets claims relating to us, our employees or Cowden’s employees even after they cease to act for Cowden (VIC) Pty Ltd, provided that the insurer is notified of the claim when it arises and this is done within the relevant policy period.

Privacy Statement
We are committed to protecting your privacy. We use the information you provide to advise about and assist with your insurance needs. We provide your information to insurance companies and agents that provide insurance quotes and offer insurance terms to you or the companies that deal with your insurance claim (such as loss assessors and claims administrators). Your information may be given to an overseas insurer (like Lloyd’s of London) if we are seeking insurance terms from an overseas insurer, or to reinsurers who are located overseas. We will try to tell you where those companies are located at the time of advising you. We do not trade, rent or sell your information. If you do not provide us with full information, we can’t properly advise you, seek insurance terms for you, or assist with claims and you could breach your duty of disclosure. For more information about how to access the personal information we hold about you and how to have the information corrected and how to complain if you think we have breached the privacy laws, ask us for a copy of our Privacy Policy or visit our website: www.cowden.com.au under heading – Resources – sub section Forms.

Cowden (VIC) Pty Ltd holds Australian Financial Services License number 245658 and can be contacted on 03 9686 6500.

This FSG was prepared on 01/12/2014.

Distribution of this FSG has been authorised by Cowden (VIC) Pty Ltd.

Customer Goods in Transit and Storage –
Product Disclosure Statement (PDS)

Part 1 – About Your Insurance

This Product Disclosure Statement (PDS) provides information about the main features of Customer Goods in Transit and Storage Insurance

Why should I take out insurance?
Regardless of any contractual rights you may have against your Removal Company, there are many circumstances where they will not be liable to make good any loss or damage to your goods, for example where the goods are damaged as a result of an accident that is not the Company’s fault.

Customer Goods in Transit and Storage insurance can assist to fill this gap.

Who to contact about your policy
Your first point of contact about the policy should be your Removal Company. If they cannot answer your enquiry, you can contact our broker for whom we are an authorised representative. Cowden (VIC) Pty Ltd can be contacted on telephone: (03) 9686 6500, email: insurance.vic@cowden.com.au, facsimile: (03) 9686 3900 or letter: PO Box 33044, Melbourne, VIC 3004.

Insurer
A number of different insurers have combined together to provide the insurance in the Customer Goods in Transit and Storage Policy.

The first $2,000 of any claim is paid by your Removal Company.

Above this amount, the risks of fire, lightning, aircraft, earthquake, storm and tempest, flood, water from fixed pipes or systems, riots, strikes and civil commotion, explosion and impact damage while the goods are in storage are insured by CGU Insurance Limited (ABN 27 004 478 371 AFSL 238291) of 181 William Street Melbourne Vic 3000 and the rest of the transit and storage cover is insured by Zurich Australian Insurance Limited (ABN 13 000 296 640 AFSL 232507) of 505 Little Collins Street Melbourne Vic 3000.

Significant features and benefits of the policy
You may select from a number of alternative types of cover available under the policy for loss or damage to your goods.

Type of Risks
You have the option of ‘Full’ or ‘Restricted’ Cover. Full Cover insures you for most risks of loss or damage to your goods. However, Restricted Cover only insures you for accidental loss or damage which occurs as a result of:

• Fire, explosion, lightning, and flood
• Overturning and/or derailment of conveyance
• Collision of vessel, aircraft or conveyance
• Crashing or forced landing of aircraft
• Stranding, sinking, or contact of a vessel with any external object other than water
• Entry of water into any vessel, hold, container lift van or place of storage
• Discharge of goods at a port of distress
• Jettison of goods from a vessel
• Theft, Pilferage or Non delivery of an entire package or item

Alternatively, if you elect cover for storage only, this insures loss or damage to your goods during storage resulting from:

• Fire, lightning;
• Aircraft;
• Earthquake;
• Storm and tempest, flood, water from fixed pipes or systems;
• Riots, strikes and civil commotion;
• Explosion and impact damage

Basis of Settlement
You can choose to insure your goods on a “Replacement” basis or for “Market Value”. Under Replacement Cost cover, if your goods are lost or totally destroyed, you receive the new replacement cost provided the goods are less than 10 years old. Under Market Value cover, you only receive the current market value of the goods (i.e. the replacement cost less an allowance for age, condition wear, tear and depreciation). If the goods are damaged, both covers will cover the reasonable cost of repair.

Limits and exclusions from cover
The table below summarises the limits on the covers provided.

These are the major exclusions and limitations in the policy, however, there may be others. You can check the policy wording in Part 2 of the PDS for full details.

Cost of the policy
The amount you pay for the insurance depends on the value of the goods being removed or stored.

Other factors which determine the premium include:

• The type of insurance selected by you (market or replacement value, transit or storage)
• The distance the goods are transported or the period for which the goods are stored; and
• The insurance cover selected (Full Cover or Restricted Cover risks).

The amount you pay includes any stamp duty and GST.

Our quotation for your transit insurance is firm. Your Removal Company will give you one month’s notice of any change in the storage insurance rate.

How do I select the amount to be insured?
It is important that you insure your goods for their full value. This means that you should tell us about:

• For Replacement Cost Cover – The Cost to you to purchase new replacement items of the same type and quality (with no allowance for depreciation).
• For Market Value Cover – Replacement cost less an allowance for age, condition, wear and tear, and depreciation.

If the declared value of the goods is less than 80% of their actual value at the time of the loss or damage, the amount of the claim will be reduced in the same proportion as the declared value bears to 80% of the actual value.

How you pay for the insurance
The premium will be shown on the quotation for your Contract for Removal and Storage which your Removal Company will provide to you before your goods are removed. When you accept the quotation, your Removal Company will invoice you.

You pay for transit insurance when you pay your removal charges. Your Removal Company will invoice you for storage insurance at the same time as the storage charges.

Excess
The amount that you receive for a claim will be reduced by $200.00. This is known as an excess.

Conditions
Some conditions apply to your policy. Full details are set out in the policy wording in Part 2 of this PDS. The significant conditions are summarised below:

Duty of disclosure
When you apply for insurance we rely upon the information you provide to decide whether to insure you, and anyone else to be covered, and on what terms. You must answer the specific questions we ask relevant to our decision to insure you. When answering our questions you must be honest. If you do not answer all questions honestly we may reduce or refuse a claim, or cancel the policy.

If you answer our questions fraudulently, we may refuse to pay a claim and treat the policy as never having existed.

You do not have to tell us about any matter that diminishes the risk that is common knowledge, that we should know or should know in the ordinary course of our business or which we indicate we do not want to know.

Cooling off
You may return the insurance contract up to 20 days after the date of the invoice for the removal, storage and insurance (the cooling off period). However you may not return the insurance contract after the commencement of the work.

To return the contract, notify the removal company within the cooling off period. Any premium paid will be returned. The notification can be made by telephone or posted to the address detailed on the removal contract or invoice.

What do I do if I need to make a claim?
The policy wording in Part 2 of this PDS has detailed instructions about how to make a claim.

Financial claims scheme
You may be entitled to payment under the financial claims scheme in the event that CGU Insurance Limited or Zurich Australian Insurance Limited become insolvent. Access to the scheme is subject to eligibility criteria. Information about the scheme can be obtained from the Australian Prudential Regulation Authority (APRA) website at www.apra.gov.au and the APRA hotline on 1300 13 10 60.

Complaints and disputes about the policy
If you have a concern, complaint or dispute about the policy which involves a claim, contact the Manager at Cowden (VIC) Pty Ltd on (03) 9686 6500. They will try to resolve your problem immediately. If they are unable to do so, you can request that your problem be considered by their internal dispute resolution process.

If you are not happy with their decision, you may take your complaint to the Financial Ombudsman Service Limited (FOS), an external dispute resolution body. FOS can be contacted on 1300 780 808.

Schedule of insurance rates
All domestic insurances attract the GST of 10%. Overseas insurance in transit is GST free. All prices shown, except Overseas prices, are inclusive of GST.

This PDS was prepared on 01/12/2014.

Part 2 – Customer Goods in Transit and Storage Insurance
Policy Wording

This insurance will be arranged on your behalf by Ashtons Removals as an authorised representative of insurance brokers, Cowden (VIC) Pty Ltd (AFSL 245658).

DEFINITIONS
In this policy the following words have the meaning set out below:

Removal Company – PKK Transport Pty Ltd as Trustee for The PKK trust t/as Ashtons Removals.

Customer – Persons or entities who contract with the removal company to remove and/or store their goods.

Customers’ Goods – Physical property which a customer has asked the removal company to move and/or store including household goods and personal effects of every description including antiques, works of art, jewellery, vehicles, caravans, boats, and trailers; and office and factory contents of every description including computers and all ancillary equipment, plant and machinery.

Transit – All conveyances by road and/or rail and/or air and/or vessel to and from ports and or places anywhere in Australia or the world. Transit commences when goods are first moved and/or uplifted within the house, office or factory by the removal company for the purpose of transit and ceases when the goods are last moved by the removal company after delivery to their final destination or such other place as the receiver may instruct. Transit includes packing/unpacking of goods by the removal company at uplift or delivery and any storage which is incidental to the transit.

Storage – Any storage of customers’ goods at the customer’s request in an authorised warehouse or compound by the removal company prior to, during or after transit.

INSURERS
This insurance is provided by the following insurers: CGU Insurance Limited (ABN 27 004 478 371 AFSL 238291) – insures Australia wide perils storage of: fire, lightning, aircraft, earthquake, storm and tempest, flood, water from fixed pipes or systems, riots, strikes and civil commotion, explosion and impact damage. Zurich Australian Insurance Limited (ABN 13 000 296 640 AFSL 232507) – insures all other transit and storage risks.

RISKS COVERED
Where the customer has requested the removal company to insure the customer’s goods, depending on the risks and period of cover and basis of settlement selected by the customer and shown in the certificate of insurance, this policy insures the customer’s goods as set out below:

Full Cover insures loss or damage to the insured goods during transit from any external cause including accidental damage during packing, loading and unloading by the removal company or its representatives. However, regardless of which cover the customer selects, goods packed by the customer are insured only for restricted cover.

Restricted Cover insures loss or damage to the customer’s goods during transit resulting from:

• Fire and explosion;
• Lightning, flood;
• Overturning and/or derailment of conveyance;
• Collision of vessel, aircraft or conveyance;
• Crashing or forced landing of aircraft; stranding, sinking, or contact of vessel with any external object other than water;
• Entry of water into any vessel, hold, container liftvan or place of storage;
• Discharge of goods at a port of distress;
• Jettison of goods from a vessel;
• Theft, pilferage or non delivery of an entire package or item.

Storage Only Cover insures loss or damage to the customer’s goods during storage resulting from:

• Fire, lightning;
• Aircraft;
• Earthquake;
• Storm and tempest, flood, water from fixed pipes or systems;
• Riots, strikes and civil commotion;
• Explosion and impact damage.

Additional Risks Covered
In addition to the risks set out above, this policy insures the customer’s goods for loss or damage caused by or as a result of:

• war (sea and air transit risks) and strikes, riots and civil commotions in the terms of Institute of London Underwriters’ Clauses current at the time of shipment; and
• General Average and Salvage Charges adjusted or determined according to the removal contract and/or the governing law and practice, which are incurred to avoid or in connection with the avoidance of loss from any cause other than those excluded elsewhere in the policy.

BASIS OF SETTLEMENT
Depending on the Basis of Settlement selected by the customer and shown in the certificate of insurance, if loss or damage occurs as a result of an insured risk, the insurer will pay, up to the declared value of any item (and subject to the restrictions set out below):

Replacement Cost
In the event of damage, the reasonable cost of repairs or restoration. For any items totally lost or destroyed, full replacement cost provided that such items are no more than 10 years old or have been specifically declared and valued on the insurance declaration or removal contract. Regardless of which Basis of Settlement is selected, the insurer will only pay market value for the following items: goods more than 10 years old or which have not been declared; computers and computer accessories; clothing; motor vehicles, caravans, boats and trailers.

Market Value
In the event of damage, the reasonable cost of repairs or restoration. For any items totally lost or destroyed, their replacement cost less a reasonable allowance for age, condition, wear and tear and depreciation.

Office or Factory Goods, including Plant and Machinery
For office and factory goods, including plant and machinery, the insurers will only pay: the lesser of the market value and the declared value of the goods at the time of loss; and agreed charges for insurance, packing and freight.

Pairs and Sets
Where one or more articles in a pair or set (including lounge suites) are lost or damaged, the policy only covers the lost or damaged part or parts. The insurers will not pay more than a proportionate part of the insured value of the pair or set without reference to any special value which they may have as a pair or set or depreciation or loss of value.

Antique(s) – Works of Art
For antique(s) and works of art, the insurers will only pay the reasonable costs of repair/restoration and will not pay any depreciation or loss of value caused by the loss or damage.

Co-insurance
If the declared value of the goods is less than 80% of their actual value at the time of the loss or damage, the amount of the claim will be adjusted in the same proportion as the declared value bears to 80% of the actual value.

Excess
The removal company must pay the first $2,000 in respect of any one claim under this policy. The customer must contribute the Customer Excess shown in the removal contract/certificate or Product Disclosure Statement.

EXCLUSIONS FROM AND LIMITATIONS ON COVER
Motor Vehicles
This policy does not cover motor vehicles while they are being driven under their own power unless they are being driven by an authorised representative of the removal company for the purpose of loading or unloading.

Valuables
In the event of loss or damage, this policy does not cover any value in excess of $1,000 for each item or collection of items for any antique, curio, jewellery, plate, precious object, work of art, medal, money, coin, stamp, collection of items, fur, piece of precision equipment or professionally packed carton by the removal company unless specifically declared and valued on the list of items to be insured on the insurance declaration or removal contract.

Owner Packed Cartons
Non-delivery of an owner packed carton is limited to $500 unless an itemised valued list of contents is supplied prior to the commencement of the transit.

Other Excluded Risks
This policy does not cover loss or damage or expense caused by:

• delay, loss of use of property or any other form of consequential loss of any description;
• loss of data of any description from computer hardware or software;
• confiscation or detention by customs or other official or authorities;
• wear and tear, moths, vermin, infestation, normal atmospheric or climatic conditions, corrosion, contamination or deterioration;
• inherent vice or nature of the subject matter or vibration;
• mechanical, electrical or electronic breakdown or derangement of goods where there is no external evidence that an insured event has occurred;
• nuclear risks which means the use, existence or escape of nuclear weapons materials or ionizing radiation from or contamination by radioactivity from any nuclear fuel or nuclear waste from the combustion of nuclear fuel.

Terrorism Exclusion
This policy excludes any loss, damage, liability or expense arising from terrorism and/or steps taken to prevent, suppress, control or reduce the consequences of any actual, attempted, anticipated, threatened, suspected or perceived terrorism. For the purposes of this clause, terrorism means any act(s) of any person(s) or organisation(s) involving the causing, occasioning or threatening of harm of whatever nature and by whatever means or putting the public or any section of the public in fear in circumstances in which it is reasonable to conclude that the purpose(s) of the person(s) or organisation(s) concerned are wholly or partly of a political, religious, ideological or similar nature.

Notwithstanding any provision to the contrary contained in this policy, it is agreed that this policy covers loss or damage to the subject matter insured caused by any terrorist or any person acting from a political motive, from when the subject matter insured is first moved for the purpose of being conveyed to a destination outside the premises at which loading takes place and ends when the interest insured is last moved in being delivered at the destination, or at any earlier point where the ordinary course of transit is interrupted by the insured.

CLAIMS PROCEDURES
As soon as possible after the happening of any event which may give rise to a claim under the policy, the customer(s) must:

• Take all reasonable steps to prevent any further loss or damage;
• Note details of any loss or damage on the removal company’s inventory and/or condition report;
• Contact Ashtons Removals, 23 Jade Drive, Molendinar Qld 4214. Telephone: 07 5527 9700.
• Within 3 days of receipt of the goods, lodge a written claim with the removal company (using any form provided by the removal company).

The customer must not authorise the repair or replacement of the lost or damaged goods without the consent of the removal company or the insurer.

The removal company or the insurer, at their expense, may appoint a loss assessor to inspect damaged goods. The removal company may settle claims  under this policy under instructions from the insurer. If the claim is for more than the amount detailed in the excess, the removal company must send to the insurer the inventory and/or condition report, removal contract and full details of the items lost or damaged.

REASONABLE CARE
The insured must take all reasonable care to prevent or minimise any loss or damage covered under the policy.

SUBROGATION
The insurer is entitled to exercise any rights the insured may have against anyone else in relation to goods in respect of which the insurer has paid any amount under the policy. The insured and anyone else entitled to claim under the policy must cooperate fully with the insurer in exercising those rights and must give the insurer any information or assistance it may require.

SALVAGE IN THE EVENT OF A CONSTRUCTIVE OR TOTAL LOSS
Where the insurer or the removal company pay a claim in full for an item under this policy as a constructive or total loss for either it’s declared or market value, the insurer or removal company is entitled to take possession of the item and retain any salvage value. In the event that this clause is exercised it is agreed that the customer will have automatic first choice to purchase the salvaged item.

SPECIAL CONDITIONS
Premium
The amount payable by the customer for this insurance may be varied provided the customer receives one month’s prior notice of any change.

Duty of Disclosure
Before entering into a contract of general insurance with an insurer, the insured has a duty, under the Insurance Contracts Act 1984, to disclose to the insurer every matter that the insured knows, or could reasonably be expected to know, is relevant to the insurer’s decision whether to accept the risk of the insurance and, if so, on what terms.

The insured has the same duty to disclose those matters to the insurer before any renewal, extension, variation or reinstatement of a contract of general insurance.

The duty however does not require disclosure of matters:

• That diminish the risk to be undertaken by the insurer;
• That are common knowledge;
• That the insurer knows or, in the ordinary course of his business ought to know;
• As to which compliance with the duty is waived by the insurer.

Non Disclosure
If the insured fails to comply with the duty of disclosure, the insurer may be entitled to reduce its liability under the contract in respect of a claim or may cancel the contract. If the non-disclosure is fraudulent, the insurer may also have the option of avoiding the contract from its beginning.

Goods and Services Tax
If the insured is liable to pay goods and services tax (GST) in respect of any goods, services or other supply which are the subject of a claim under the policy the insurers will pay the insured for that GST liability. However:

• Where the insurers make a payment under this policy for the acquisition of goods, services or other supply the insurers will reduce the amount of the payment by the amount of any input tax credit the insured is or will be or would have been entitled under the Goods and Services Tax Act 1999 in relation to that acquisition whether or not the acquisition is actually made.
• Where the insurers make a payment under this policy as compensation for the acquisition of goods, services or other supply the insurers will reduce the amount of the payment by the amount of any input tax credit the insured would have been entitled to under the Goods and Services tax Act 1999 had the payment been applied to acquire such goods, services or supply.

Privacy
CGU Insurance Limited and Zurich Australian Insurance Limited are bound by the Privacy Act 1988 (Cth). Before providing us with any Personal or Sensitive Information (‘Information’) you should know that:

• We collect, use, process and store Personal Information and, in some cases, Sensitive Information about you in order to comply with our legal obligations, assess your application and, if your application is successful, to administer the products or services provided to you, to enhance customer service and/or product options or manage a claim (‘purposes’).
• If you do not agree to provide us with the Information, we may not be able to process your application, administer your policy or assess your claims.
• By providing us or your intermediary with your information, you consent to our use of this information which includes us disclosing your information where relevant for the purposes, to your intermediary, affiliates of CGU Insurance Limited and Zurich Australian Insurance Limited, other insurers and reinsurers, our services providers, our business partners or as required by law within Australia or overseas. CGU Insurance Limited and Zurich Australian Insurance Limited may obtain information from Government offices, and third parties to assess a claim in the event of loss or damage.
• For further information about the CGU Insurance Limited or Zurich Australian Insurance Limited Privacy Policies, a list of service providers and business partners that we may disclose your information to, a list of countries in which recipients of your information are likely to be located, details of how you can access or correct the information we hold about you or make a complaint or concerns about our privacy policies please refer to the privacy links on our website.
• CGU Insurance Limited – www.cgu.com.au/privacy or contact us by telephone on 13 15 32 or email us at privacy@cgu.com.au.
• Zurich Australian Insurance Limited – www.zurich.com.au or contact us by telephone on 13 26 87 or email us at privacy.officer@zurich.com.au.

Financial claims scheme
You may be entitled to payment under the financial claims scheme in the event that CGU Insurance Limited or Zurich Australian Insurance Limited becomes insolvent. Access to the scheme is subject to eligibility criteria. Information about the scheme can be obtained from the Australian Prudential Regulation Authority (APRA) website at www.apra.gov.au and the APRA hotline on 1300 13 10 60.

This Policy Wording was prepared 01/12/2014.

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