GAP

What is GAP Insurance?

This policy is designed to protect you against unexpected losses that may be payable following the "Write off" of your vehicle due to Fire, Accident or Theft. (A write off means that in the motor insurers view the vehicle is damaged beyond economical repair or the vehicle has been stolen and not recovered.)

In the event of a "Write off" your comprehensive motor insurance policy will only pay the market value of your vehicle at the time of loss. If these circumstances occur the contract hire company will require settlement of the agreement and the money offered by your motor insurer may not be enough to clear the termination charge. Lease GAP Insurance will pay for the shortfall.

Who is eligible for cover?

You will be eligible for Lease GAP Insurance provided:
• The purchase price of your vehicle does not exceed £100,000.
• Your monthly Contract Hire repayment amount is not more than £1000 per month excluding VAT.
• The vehicle is under 8 years of age and registered in the United Kingdom.
• Your vehicle is covered by a UK comprehensive motor insurance policy.
• Your vehicle is not an Emergency vehicle, Taxi, Bus, Truck or Heavy Goods Vehicle.
• Your vehicle does not exceed 3.5 tonnes.
• Your vehicle is on a Personal/Business Contract Hire, Lease Hire or Contract Hire Agreement.
• Your vehicle is shown in Glass's Guide.

Benefits:

• In the event of an incident due to Fire, Accident or Theft of the vehicle, this policy will pay the difference between the comprehensive motor insurance settlement figure and the early termination costs or unexpired months, whichever is the lesser. The Early Termination costs relate to the net balance payable to the Lease Company at the date of the Total Loss less any rebates but excluding arrears or any balloon payments which exceeds that noted in Glass's Guide to future residual values at the inception date. The Early Termination Cost will, where applicable, exclude all maintenance, insurance premiums, road tax, excess mileage charges, dealer fitted accessories and recoverable VAT.
• In the event of a claim the maximum the policy will pay will be shown in your schedule.

What is PPI?

Payment Protection Insurance

What type of cover is available under the insurance policy?

The cover you have selected will be shown on your policy schedule. We offer cover for:

• Accident Sickness and Unemployment

How does the Policy work?

• You choose the type of cover you need and level of benefit that is suitable to your demands and needs
• You pay the premium as it fall due
• We will not pay out more than 12 monthly benefit payments as specified in your policy documents.
• We will not pay out more than the total monthly benefit as specified in your schedule

What cover do you get?

This policy will protect you in the event you are unable to work due to one of the following:

• Accident and Sickness (known as Disability)
• Involuntary Unemployment.

Significant features and benefits:

Accident

• If your Doctor certifies that you have been unable to work for 30 consecutive days due to an Accident we will pay one month’s benefit. After this we will continue to pay the benefit you are entitled to monthly in arrears.

Sickness

• If your Doctor certifies that you have been unable to work for 30 consecutive days due to a Sickness we will pay one month’s benefit. After this we will continue to pay the benefit you are entitled to monthly in arrears.

Unemployment

• If you have not been working for 30 consecutive days due to Involuntary Unemployment we will pay one month’s benefit. After this we will continue to pay the benefit you are entitled to monthly in arrears.

What is the duration of the policy?

This policy is arranged on a monthly basis and is in force whilst the premium is being paid.

When does cover end?

Cover ends when:

• You die;
• You retire or reach the statutory retirement age whichever is the earlier;
• You stop residing or working in the United Kingdom;
• You default on your monthly premium;
• You have no monthly mortgage or loan repayments;
• You or we cancel this Policy.

What does it cover?

In the event an individual is out of work due to sickness, an accident or redundancy, Payment Protection will cover the monthly re-payments on the vehicle until the insured returns to work, or for up to 24months depending on the cover selected.

For Example:
Your client is paying £390 per month for their vehicle over a 3 year period. 18 months into their agreement they are notified of redundancy. Payment Protection will help support them by paying the £390 per month and therefore removing the stress of keeping up their re-payments, or even worse, forcing them to cancel their contract early.

Available covers:

• Life, Accident, Sickness & Unemployment
• Accident, Sickness & Unemployment
• Accident & Sickness only.

Why is this protection important?

The Prospect of redundancy during uncertain times
According to Government statistics, 755,000 people were made redundant in the UK between June 2002 and May 2003 - the equivalent of over 3,000 every working day. A payment protection policy could have helped many through a financially difficult time.

Savings are often insufficient
According to the Institute of Fiscal Studies, nearly half of us do not save regularly and a third have no savings at all. This lack of saving could cause financial hardship in the event of sickness, accident or unemployment.

Accidents do happen
Over 320,000 people were killed or injured on UK roads in 2000* Nearly 3 million people suffered injuries at home in 2000 that warranted a visit to A&E* Over 47,000 employees suffered major injuries at work in 2001, with 736 resulting in death** These accidents could leave people unable to work for long periods of time.

Ill-health can be a problem
When in good health, may people find it hard to envisage suffering from a major or critical illness but, if you are borrowing money, thinking about this now could save financial problems in the future.

*Royal Society of the Prevention of Accidents (Rospa) **Health and Safety

Does the customer have to wait before they can make a claim?

Yes. You cannot claim for Unemployment during the first 60 days of the cover. For Accident and Sickness claims you are covered from day one. When you make a claim there is a waiting period of 30 days, which means that you have to wait for 30 days until you receive your first payment, providing you are still unable to work after 30 days.

‘Balgores Leasing Ltd is an Appointed Representative of ITC Compliance Ltd who are Authorised and Regulated by the Financial Services Authority.’