Document ID: chunk:federal_register_of_legislation:F2015L00299:reg:5:p7
Version: federal_register_of_legislation:F2015L00299
Segment Type: reg
Provision Reference: reg 5 (pt 7/7)
Character Range: 16324–18763

– FUSION OF ELECTRICAL MOTORS
Your ducted air conditioner unit's motor is damaged due to fusion.  The fusion was not caused by an event.  You have had a service call that has determined the cause of the damage and seek our agreement to obtain quotes for the cost of repairing the air conditioner unit's motor.  The cost of repairing the air conditioner unit's motor is $1,000.  There is no excess that applies to this claim.

HOW MUCH WE PAY
                 Cost of quotes (with prior agreement from us)  $1,000
                 Cost of repairing the air conditioner unit     $1,000
                 No excess applies                              Nil
                 Total amount of claim                          $2,000

EXAMPLE 4 – LEGAL LIABILITY
You have a claim made against you by a third party who falls and injures themselves whilst delivering a parcel to your home.  The third party makes a claim against you for failing to properly light the external pathway.  The third party engages a lawyer and seeks recovery of medical expenses ($2,500), lost earnings ($1,000) and legal costs ($5,000).  We agree that you are liable.

HOW MUCH WE PAY
                 Third party damages        $3,500
                 Third party's legal costs  $5,000
                 No excess applies          Nil
                 Total amount of claim      $8,500

EXAMPLE 5 – STRATA TITLE HOMES
You own a unit in a strata titled complex that has body corporate insurance. There is damage to an internal wall as a result of a leak from the upstairs unit. The body corporate insurance does not cover damage to internal walls. The cost of repairs is $5,000.

HOW MUCH WE PAY
Cost to repair internal wall                $5,000
Amount covered by body corporate insurance  Nil
No excess applies                           Nil
Total amount of claim                       $5,000

EXAMPLE 6 – DEATH OF YOU OR YOUR FAMILY
Your spouse dies as a from injuries suffered as a result of a vehicle colliding with your home.  Your spouse's death occurs as a direct result of the impact and within 90 days of the event insured under the policy.  You incur costs associated with the funeral of $4,500.

HOW MUCH WE PAY
                 Compensation upon death              $10,000
                 Funeral expenses                     $4,500
                 Limit of cover for funeral expenses  $2,500
                 Total amount of claim                $12,500