POLICY TERMS & CONDITIONS

PACKAGE POLICY WORDINGS FOR PRIVATE CAR AND COMMERCIAL VEHICLE

Whereas the insured by a proposal and declaration dated as stated in the electronic in this electronic notification which shall be the basis of a contract and is deemed to be incorporated herein has signed up to SORPI-SORPI for hourly or milage comprehensive insurance cover hereinafter contained, and has paid the premium mentioned in the electronic notification receipt as consideration for such insurance in respect of accidental loss or damage occurring during the period of insurance.

NOW THIS POLICY WITNESSETH

That subject to the Terms Exceptions and Conditions contained herein or endorsed or expressed hereon;

SECTION I. LOSS OF OR DAMAGE TO THE VEHICLE INSURED

1. SORPI-SORPI will indemnify the insured against loss or damage to the vehicle insured hereunder and / or its accessories whilst thereon

  1. By fire explosion, self-ignition or lightning;
  2. By burglary, housebreak-in or theft;
  3. By riot and strike;
  4. By earthquake (fire and shock damage);
  5. By flood, typhoon, hurricane, storm, tempest inundation, cyclone, hailstorm frost;
  6. By accidental external means;
  7. By malicious act;
  8. By terrorist activity;
  9. Whilst in transit by road rail inland-waterway lift elevator or air;
  10. By landslide rockslide.

Subject to a deduction for depreciation at the rates mentioned below in respect of parts replaced:

For all rubber/ nylon / plastic parts, tires, and tubes, batteries and air bags - 50%
For fibre/glass components 30%
For all parts made of glass - Nil

Rate of depreciation for all other parts including wooden parts will be as per the following schedule.

AGE OF VEHICLE PER YEAR OF MANUFACTURE % OF DEPRECIATION
Not exceeding 6 months Nil
Exceeding 6 months but not exceeding 1 year 5%
Exceeding 1 year but not exceeding 2 years 10%
Exceeding 2 years but not exceeding 3 years 15%
Exceeding 3 years but not exceeding 4 years 25%
Exceeding 4 years but not exceeding 5 years 35%
Exceeding 5 years but not exceeding 10 years 40%
Exceeding 10 years 50%
Rate of Depreciation for Painting: In the case of painting, a depreciation rate of 50% shall be applied only on the material cost of total painting charges. In case of a consolidated bill for painting charges, the material component shall be considered as 25% of the total painting charges for the purpose of applying the depreciation.
  1. The Company shall not be liable to make any payment in respect of:
    • Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures or breakages
    • Damage to tires and tubes unless the vehicle is damaged at the same time in which case the liability of the company shall be limited to 50% of the cost of replacement.
    • Any accidental loss or damage suffered whilst the insured or any person driving the vehicle with the knowledge and consent of the insured is under the influence of intoxicating liquor or drugs.
  2. In the event of the vehicle being disabled by reason of loss or damage covered under this Policy
    • For Private Cars, the Company will bear the reasonable cost of protection and removal to the nearest repairer and redelivery to the insured but not exceeding GH₵1,000 in respect of any one accident.
  3. The insured may authorize the repair of the vehicle necessitated by damage for which the Company may be liable under this Policy provided that:
    • The estimated cost of such repair including replacements, if any, does not exceed ` GH₵5,000 once within a 365-day period.
    • The Company is furnished forthwith with a detailed estimate of the cost of Repairs:
    • The insured shall give the Company every assistance to see that such repair is necessary, and the charges are reasonable.
    • In the event that the insurer is not liable under this Policy the insurer may refuse to grant a refund.
  4. SUM INSURED, INSURED'S DECLARED VALUE (IDV)
    • The Insured's Declared Value (IDV) of the vehicle will be deemed to be the 'SUM INSURED' for the purpose of this policy which is fixed at the commencement of each policy period for the insured vehicle.
    • The IDV of the vehicle (and accessories if any fitted to the vehicle) is to be fixed on the basis of the manufacturer's listed selling price of the brand and model as the vehicle insured at the commencement of insurance/renewal and adjusted for depreciation (as per schedule below) or market value for used vehicles whichever one is lower
  5. The schedule of age-wise depreciation as shown below is applicable for the purpose of Total Loss/Constructive Total Loss (TL/CTL) claims only.

    • SCHEDULE OF DEPRECIATION FOR FIXING IDV OF THE VEHICLE

      AGE OF THE VEHICLE % OF DEPRECIATION FOR FIXING IDV
      Not exceeding 6 months 5%
      Exceeding 6 months but not exceeding 1 year 15%
      Exceeding 1 year but not exceeding 2 years 20%
      Exceeding 2 years but not exceeding 3 years 30%
      Exceeding 3 years but not exceeding 4 years 40%
      Exceeding 4 years but not exceeding 5 years 50%
      • IDV of vehicles beyond 5 years of age and of obsolete models of the vehicles (i.e. models which the manufacturers have discontinued manufacture) is to be determined on the basis of an understanding between the insurer and the insured with the reference point being the market value.
      • IDV shall be treated as the 'Market Value' throughout the policy period without any further depreciation for the purpose of Total Loss (TL) / Constructive Total Loss (CTL) claims.
      • The insured vehicle shall be treated as a CTL if the aggregate cost of retrieval and / or repair of the vehicle, subject to terms and conditions of the policy, exceeds 50% of the IDV of the vehicle.
  6. AVOIDANCE OF CERTAIN TERMS AND RIGHT OF RECOVERY
    • Nothing in this Policy or any endorsement hereon shall affect the right of any person indemnified by this Policy or any other person to recover an amount under or by virtue of the provisions of the Motor Vehicles Act 1958 (No. 42) but the insured shall repay to the Company all sums paid by the Company which the Company would not have been liable to pay but for the said provisions.
  7. GENERAL EXCEPTIONS

    8. (Applicable to all Sections of the Policy)

    • The Company shall not be liable under this Policy in respect of liability:
      1. to third parties be it property damage, bodily injury or death
      2. Any accidental loss or damage and/or liability caused sustained or incurred outside the geographical area;
      3. Any claim arising out of any contractual liability.
      4. Any accidental loss damage and/or liability caused sustained or incurred whilst the vehicle insured herein is
        • Being used otherwise than in accordance with the limitations as to use, or
        • Being driven by or is for the purpose of being driven by him/her in the charge of any person other than a Driver as stated in the Driver's Cl
      5. Any accidental loss or damage to any property whatsoever
      6. Any loss or expense whatsoever resulting or arising therefrom or any consequential loss
      7. Any liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purpose of this exception combustion shall include any self- sustaining process of nuclear fission.
      8. Any accidental loss or damage or liability directly or indirectly caused by or contributed to by or arising from nuclear weapons material.
      9. Any accidental loss damage and/or liability directly or indirectly or proximately or remotely occasioned by or contributed to by or traceable to or arising out of or in connection with war, invasion, the act of foreign enemies, hostilities or warlike operations (whether before or after declaration of war) civil war, mutiny rebellion, military or usurped power or by any direct or indirect consequence of any of the said occurrences and in the event of any claim hereunder, the insured shall prove that the accidental loss damage and/or liability arose independently of and was in no way connected with or occasioned by or contributed to by or traceable to any of the said occurrences or any consequences thereof and in default of such proof, the Company shall not be liable to make any payment in respect of such a claim.
  8. DEDUCTIBLE
    • The Company shall not be liable for each and every claim under Section -I (loss of or damage to the vehicle insured) of this Policy in respect of the deductible stated in the schedule.
  9. CONDITIONS
    • This Policy and the Schedule shall be read together and any word or expression to which a specific meaning has been attached in any part of this Policy or of the Schedule shall bear the same meaning wherever it may appear.
    • Notice shall be given in writing to the Company immediately upon the occurrence of any accidental loss or damage in the event of any claim and thereafter the insured shall give all such information and assistance as the Company shall require. Every letter, claim, writ, summons and/or process or copy thereof shall be forwarded to the Company immediately on receipt by the insured. Notice shall also be given in writing to the Company immediately the insured shall have knowledge of any impending prosecution, inquest, or fatal inquiry in respect of any occurrence which may give rise to a claim under this policy.
  10. In case of theft or criminal act which may be the subject of a claim under this Policy, the insured shall give immediate notice to the police and cooperate with the Company in securing the conviction of the offender.
    • No admission offer, promise of payment or indemnity shall be made or given by or on behalf of the insured without the written consent of the Company which shall be entitled if it so desires to take over and conduct in the name of the insured the defense or settlement of any claim or to prosecute in the name of the insured for its own benefit, any claim for indemnity or otherwise and shall have full discretion in the conduct of any proceedings or in the settlement of any claim and the insured shall give all such information and assistance as the Company may require.
    • The Company may at its own option repair, reinstate or replace the vehicle or part thereof and/or its accessories or may pay in cash the amount of the loss or damage and the liability of the Company shall not exceed:
      1. For total loss / constructive total loss of the vehicle - the Insured's Declared Value (IDV) of the vehicle (including accessories thereon) as specified in the Schedule less the value of the wreck.
      2. For partial losses, i.e. losses other than Total Loss/Constructive Total Loss of the vehicle, actual and reasonable costs of repair and/or replacement of parts lost/damaged subject to depreciation as per limits specified.
    • The insured shall take all reasonable steps to safeguard the vehicle from loss or damage and to maintain it in efficient condition and the Company shall have at all times free and full access to examine the vehicle or any part thereof or any driver or employee of the insured. In the event of any accident or breakdown, the vehicle shall not be left unattended without proper precautions being taken to prevent further damage or loss and if the vehicle be driven before the necessary repairs are effected any extension of the damage or any further damage to the vehicle shall be entirely at the insured's own risk.
    • The Company may cancel the policy by sending notice by text message, WhatsApp, email or any other electronic communication to the insured at insured's last known phone number or email and in such event will return to the insured the premium paid less the pro rata portion thereof for the period the Policy has been in force or the policy may be cancelled at any time by the insured provided no claim has arisen during the currency of the policy, the insured shall be entitled to a return of premium less premium at the Company's Short Period rates for the period the Policy has been in force. Return of the premium by the company will be subject to retention of the minimum premium.
    • If at the time of occurrence of an event that gives rise to any claim under this policy, there is in existence any other insurance covering the same liability, the Company shall not be liable to pay or contribute more than its ratable proportion of any compensation, cost or expense.
    • If any dispute or difference shall arise as to the quantum to be paid under this policy (liability being otherwise admitted), such difference shall independent of all other questions be referred to the decision of a sole arbitrator to be appointed in writing by the parties to the dispute or if they cannot agree upon a single arbitrator within 30 days of any party invoking Arbitration, the same shall be referred to a panel of three arbitrators comprising two arbitrators one to be appointed by each of the parties to the dispute / difference, and a third arbitrator to be appointed by such two arbitrators who shall act as the presiding arbitrator and Arbitration shall be conducted under and in accordance with the provisions of the Arbitration and Conciliation Act, 1996.
    • It is clearly agreed and understood that no difference or dispute shall be referable to Arbitration as hereinbefore provided, if the Company has disputed or not accepted liability under or in respect of this policy.
    • It is hereby expressly stipulated and declared that it shall be condition precedent to any right of action or suit upon this policy that the award by such arbitrator/ arbitrators of the amount of the loss or damage shall be first obtained.
    • It is also hereby further expressly agreed and declared that if the Company shall disclaim liability to the insured for any claim hereunder and such claim shall not, within twelve calendar months from the date of such disclaimer have been made the subject matter of a suit in a court of law, then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.
    • The due observance and fulfillment of the terms, conditions and endorsements of this Policy in so far as they relate to anything to be done or complied with by the insured and the truth of the statements and answers in the said proposal shall be conditions precedent to any liability of the Company to make any payment under this Policy.
    • In the event of the death of the sole insured, this policy will not immediately lapse but will remain valid for until the expiry of this policy.
    • The Policy and schedule shall be read together and any word or expressions to which a specific meaning has been attached in any part of the policy or to the schedule shall bear the same meaning wherever it may appear.
      1. Notice shall be given electronically to the Company immediately upon the occurrence of any accident or loss or damage and in the event of any claim and thereafter the Insured shall give all such information and assistance as the Company shall require.
    • No admission, offer , promise, payment or indemnity shall be made or given by or on behalf of the insure without the written consent of the Company which shall be entitled if it so desires to take over and conduct in the name of the Insured the defense or settlement of any claim or to prosecute in the name of the Insured for its own benefit any claim for indemnity or damages or otherwise and shall have full discretion in the conduct of any proceedings or in the settlement of any claim and the insured shall give all such information and assistance as the Company may require.
    • At any time after the happening of any event giving rise to a claim on this policy the Company may pay to the insured the full amount of the Company's liability under the Section and relinquish the conduct of any defence settlement or proceedings and the Company shall not be responsible for any damage alleged to have been caused to the insured in consequence of any alleged action or omission of the Company in connection with such defence settlement or proceeding or of the Company relinquishing such conduct, nor shall the Company be liable for any costs or expenses whatsoever incurred by the insured or any claimant or other person after the