A.M.P. moves to cut car liability

Press, 2 August 1989, Page 5

A.M.P. moves to cut car liability

The A.M.P. General Insurance Company has added a clause to its motor > vehicle policies covering second-hand car imports, telling clients it has experienced recent parts and repair problems.

The clause gives the company the discretionary power to refuse liability for freight or associated charges in obtaining parts from overseas.

It also covers any addded costs through repairers being unable to match paint, and the replacement cost of any trim, moulding or part not available through the vehicle manufacturer’s franchise outlet.

The company’s maximum liability for any part not available in New Zea-

land is the lesser of the last known New Zealand list price or the price of the component’s closest New Zealand equivalent. The company’s South Island manager, Mr Steve Brooker, said the new clause was aimed primarily at second-hand Japanese imports, but also covered similar imports from other countries. It Was not aimed at new overseas-built cars sold through New Zealand dealerships. The clause is being included in all the company’s newly-issued policies and is being added to existing policies on renewal.

The company, in a notice to clients highlighting the addition to the policy, said it was forced to apply the clause to

cover situations where parts were not available in New Zealand.

“The only other alternative , would be to increase premiums generally or to adjust' excesses as accidents to these types of vehicles can greatly increase claims expenses,” it said.

The company gave two recent examples on claims, one in which two damaged mag wheels needed replacing. All four wheels had to be replaced to give the car matching wheels.

The other example involved damage to a car and parts available in New Zealand would not fit. A part to fit was obtained from overseas, costing extra in freight and handling.