The material parts of the insurance contract are the insurance policy (hereinafter policy), the certificate, and these Terms and Conditions of Vehicle Warranty Insurance (hereinafter Terms and Conditions). Before concluding the insurance contract, the policyholder must make sure that the information specified in the policy is correct and that the scope of insurance coverage is appropriate, and read through the terms and conditions.
The insured vehicle specified in the insurance contract (including on the insurance certificate) is insured at the level of completeness of the vehicle's manufacturing plant.
Vehicle warranty – an unexpected and unforeseen technical failure of the insured object caused by a manufacturing defect occurring during normal use of the object and in regard to which the damage is not covered by the manufacturer's warranty (including the extended warranty) or sales warranty and/or if the compensation of the corresponding damage is not excluded by clause 4 of the terms and conditions of the insurance contract.
Roadside assistance – primary assistance provided for passenger cars and vans with a registered weight of up to 3,500 kg and for motorcycles, if as a result of an unexpected and unforeseen event it is not possible to use the vehicle or continue driving. Roadside assistance is provided on the following conditions:
- roadside assistance is available 24 hours a day;
- towing service required in the course of the roadside assistance service is provided to the nearest storage location or repair shop, except within Estonia, where the vehicle will be transported to the location specified by the policyholder;
- roadside assistance service is provided on the territory specified in the policy;
- passengers in the vehicle (including the driver of the vehicle) are transported to their destination or their home within Estonia, Latvia and Lithuania, if necessary;
- roadside assistance service is provided only if it has been requested on LHV's roadside assistance telephone line 680 1122;
- no deductible is applied to the roadside assistance service;
- the roadside assistance service is not provided if the need for the service was foreseeable (e.g. repeated use of roadside assistance service due to the same issue).
LHV shall not indemnify claims related to the following circumstances or objects:
- damage excluded under the terms of the manufacturing plant warranty;
- the mileage agreed in the insurance policy has been exceeded;
- if the damage is subject to indemnification on the basis of any other insurance contract;
- routine maintenance, configurations, adjustments, lubrication, addition and cleaning of oils and fluids;
- maintenance accessories and/or consumables: brake and clutch linings, bushes, drive belts, tensioners, fuses, filament lamps/bulbs, spark plugs, wiper blades, filters, batteries (including high voltage batteries), tires, fasteners and retainers;
- if the regular maintenance prescribed by the manufacturer is lacking during the warranty period or is not performed on time (according to the tolerance allowed by the factory – the maximum may be up to 1 month and/or 1,500 km);
- overloading, improper maintenance and repair; if the construction or electrical scheme of the vehicle has been changed (including tuning); errors and damages resulting from negligent use, misuse or accidents;
- damage caused by participation in competitions or training;
- damage to air or hydro-pneumatic suspension and/or shock absorber(s) and related control systems(s) if distance travelled is more than 50,000 km;
- damage caused to the wheel bearing if the distance travelled exceeds 50,000 km;
- damage caused to a vehicle used as a taxi, courier service car, first-responder vehicle or short-term rental vehicle;
- malfunctions or injuries resulting from the non-use of original vehicle manufacturer's spare parts or spare parts of equivalent quality, or the use of fuel or lubricants not intended for vehicle operation;
- malfunctions and disturbances that occur when driving in extreme conditions;
- very low level of noise or vibration which does not impair the quality and operation of the vehicle;
- a small amount of oil leaking from the seals, provided that this does not lead to a significant and critical drop in oil level;
- damage to the body, paintwork, chrome, glass and exterior and interior finishes;
- external damage and corrosion caused by stones, gravel, de-icing salt, freezing etc.;
- the damage arises from a circumstance or event of which the policyholder and/or the insured person was aware or should have been aware before concluding the insurance contract;
- damage for which the manufacturer or seller is liable;
- repair, maintenance, installation, dismantling and transport by third parties or unauthorized companies;
- damage due to long-term adverse factors: wear, mould, mildew, sewage, decay, corrosion, accumulation of water or steam condensation, moisture, dust, smoke, soot, noise, light;
- the lack of possibility to use the insured object, including costs or inconveniences related to the use of a replacement product while the product is being repaired;
- LHV has no obligation to indemnify if the person who has entered into the insurance contract or the person entitled to receive the insurance indemnity is the subject to international financial sanctions;
- military action, terrorism, popular unrest, insurrection, riot, strike, coup d'état, state of emergency, expropriation, confiscation, use of nuclear energy for any purpose or uncontrolled nuclear energy, radioactive radiation and contamination, use of chemical, biological, biochemical or electromagnetic weapons, earthquake, flood.
Release of LHV from obligations to perform insurance contract
LHV shall be partially or fully released from the obligation to perform the insurance contract if:
- the insured person has intentionally or due to gross negligence breached at least one obligation set forth in the insurance contract and violation of said obligation has an effect on the occurrence of damage or amount of damage or determination of the extent of the loss;
- the policyholder or the insured person has knowingly submitted false information regarding the circumstances of the loss or the extent of the loss;
- the insured event occurred due to the intent or gross negligence of the policyholder, the insured person or a person equivalent to them;
- the policyholder or the insured person waives their claim against the person who caused the damage or if the exercise of LHV's right of recourse proves impossible due to the policyholder or the insured person (expiry of the term for submitting a claim, failure to submit necessary documents) or if the circumstances were not documented by the policyholder in a manner allowing them to be substantiated;
- the damage was compensated by a third party;
Insurance period and insurance territory
The insurance period is the period of validity of the vehicle warranty insurance specified in the insurance contract and the insurance certificate.
The insurance coverage is valid only for insured events that occurred during the term of the insurance period.
Insurance coverage ends:
- On the expiry date of the insurance coverage specified on the insurance certificate;
- upon exceeding the agreed distance travelled;
- if the insured object is replaced after an insured event or by the manufacturer during the warranty period;
- in other situations which, according to law, give rise to the expiry/termination of the insurance contract.
The insurance territory is specified in the insurance policy and LHV is obliged to indemnify only for events occurring in the insurance territory specified in the policy. If the insurance contract does not specify the insurance territory, the place of insurance is the geographical part of Europe.
Deductible or excess is the sum that pursuant to agreement in the insurance contract is to be borne by the policyholder/insured person in each individual case.
The sum insured is the repurchase value of the insured vehicle (market price in Estonia immediately before the insured event).
Rights and obligations of the policyholder and the insured person
The policyholder and the insured person are obliged to:
- operate the vehicle in accordance with the manufacturer's instructions and/or restrictions.
- explain the rights and obligations arising from the insurance contract to all persons deemed the equivalent of the policyholder/insured person, as well as to persons who work under the policyholder/insured person and who are used by the policyholder/insured person in their economic activities;
- provide notice as soon as possible if there is a possibility of an increase in the insurance risk.
In the event of an insured event, the policyholder is obliged to:
- contact the dealership approved by the vehicle manufacturer immediately;
- notify LHV of the insured event as soon as possible, but not later than within seven working days after learning of the insured event. If it is not possible to determine the exact time of the insured event, it shall be considered to be the time when the policyholder should have learned of the insured event.
- submit the damaged insured vehicle or its remnants to LHV for inspection in the condition it was in after the insured event. The policyholder may not, without the prior consent of LHV, start restoring or disposing of the insured vehicle;
- assist LHV in ascertaining the circumstances necessary for claims adjustment and collecting relevant evidence, including, if necessary, issuing a power of attorney to LHV;
- provide LHV all the information in its possession that is necessary to determine LHV's obligations, including all documents on the causes of damage and the amount of damage, as well as to authorize LHV to obtain the necessary information and documents;
- notify LHV at the earliest opportunity, in a form that can be reproduced in writing, of compensation for damage by a third party or of the waiver of a claim for damages submitted to LHV.
The policyholder and the insured person have the right to:
- require LHV to clarify these terms and conditions.
LHV's rights and obligations
LHV has the right to:
- involve third parties in the claims adjustment process, if necessary.
LHV is obliged to:
- introduce to the policyholder the documents related to the insurance contract before concluding the insurance contract and keep secret all information which has become known to LHV in connection with the insurance contract;
- to start the claims adjustment process immediately after receiving the notice of loss from the policyholder or insured person and to determine the amount of loss to be indemnified;
- register the notice of loss and explain the principles of resolving damage to the policyholder or the insured person;
- make a decision on indemnifying loss or refusal to do so within ten working days after receiving all required documents and determination of the amount of damage and the circumstances in which it occurred.
Insurance indemnity, methods and procedure of indemnification
LHV has the right to decide whether the method of compensation for the property is restoration or replacement with an equivalent and to choose the respective service provider under the following conditions:
- In the event of an insured event, LHV never pays monetary indemnity; instead, the method of indemnification is the restoration (through a service provider selected by LHV) or replacement of the insured object.
- The insurance indemnity per one insured event is limited to the sum insured.
- If the property is replaced, the ownership of the damaged vehicle must be transferred to LHV (i.e. if the vehicle is a total loss and in a situation where the form of compensation is replacement of the property, the precondition for compensation is the transfer of the damaged vehicle to LHV).
- The policyholder/insured person is obliged to return the insurance indemnity to LHV as soon as possible if, after the indemnification of the damage, circumstances precluding the indemnification have arisen or if the damage has been compensated by a third party.
- After indemnification of the insured event, the right of claim of the policyholder and the insured person against the person responsible for the occurrence of the damage shall be transferred to LHV in the extent of the indemnity paid. At the request of LHV, the policyholder and the insured person are required to transfer the right of ownership or the right of claim in the form of a written agreement.
Handling client complaints and resolving disputes
An attempt shall be made to resolve disputes arising from the insurance contract by agreement, and if no agreement is reached, the parties have the right to go to court:
- If the policyholder/insured person is not satisfied with LHV's actions, he or she has the right to file a complaint with LHV. An expression of client dissatisfaction submitted in a form that can be reproduced in writing shall be registered as a complaint. LHV shall inform the client as soon as possible of the deadline for responding to the complaint.
- In order to resolve disputes, the policyholder may turn to the insurance conciliation body at the Association of Estonian Insurance Companies in accordance with the procedure of that body.
LHV has the right to submit additional requirements in order to reduce the insurance risk. Additional requirements become part of the insurance contract, unless the policyholder submits an application for withdrawal from the insurance contract within ten working days after receipt of the respective requirements.
During the insurance period, LHV has the right to inspect the insured object and, in the event of increased insurance risk, demand that the policyholder implement additional security measures and/or increase the insurance premium.
Data processing and data protection
LHV is entitled to process personal data related to the insurance contract on the basis of LHV's Principles of Processing Client Data and to disclose information related to the insurance contract to a third party whose right to receive information arises from LHV's Principles of Processing Client Data.
LHV has the right to retain recordings obtained by telecommunication or other means in connection with the performance of the insurance contract and, if necessary, use them to prove the declarations of intent submitted by the policyholder.
If there are any inconsistencies in the documents of the insurance contract, the interpretation shall be based on the order of importance of the following documents, where the previous document takes precedence over the following: special conditions – insurance policy and insurance certificate – conditions of vehicle warranty insurance. In case of disputes, the Estonian-language terms and conditions of the vehicle warranty insurance shall always be followed.