ACE Seguros - ACE Mexican Insurance

ACE Seguros

TOURIST AUTO INSURANCE POLICY FOR MEXICO V.1.2 – 06/05 2

SECTION 1.5 – DEDUCTIBLE FOR SPECIAL EQUIPMENT

The deductibles described in the Sections 1.1 and 1.2 regarding Collision and Total Theft respectively apply to this section.

SECTION 1.6 PLATINUM ENDORSEMENT

When shown as covered in the Declarations Page of the Policy, the following section will modify and/or extend coverage to the following sections for the risks described below.

Section 1.1 Collision

This section is expanded to include: 1. Vandalism Vandalism, meaning willful and malicious damage to or destruction of the Insured Vehicle. The deductibles established in Section 1.1 Collision apply to this coverage. 2. Increased Cost of Repair The labor rate per hour will be increased for damages to the insured vehicle only and when the insured opts to repair the vehicle in the United States of America or Canada. The maximum labor rate per hour that is covered for the various vehicle types will be specified on the Specification of Risks Page of the policy and is shown in US Dollars. If the cost of repair to the vehicle exceeds 60% of the value of the insured vehicle, the vehicle will be considered a total loss in accordance with Clause 10a – Valuation & Indemnification of Losses described subsequently in this document. The specific deductible that applies for this section will be shown on the Specification of Risks Page/ Declarations Page of the policy.

Section 1.2 Total Theft

This section is expanded to include: 1. Partial Theft This endorsement will oblige the insurer to indemnify the theft of parts and accessories, only that are permanently attached to the Insured vehicle, excluding sound reproduction, video, and recording equipment such as but not limited to AM/FM radios, Cassette and CD players/recorders, televisions, video game consoles, and CB, UHF, and VHF radio unless such equipment was installed as original equipment by the manufacturer of the insured vehicle. The specific deductible that applies for this section will be shown on the Specification of Risks Page of the policy. By means of this endorsement, Exclusion “J” is eliminated from Clause 2 – General Exclusions

Sección 1.3 Medical Payments

This section is expanded to include: 1. Increased Medical Payments Coverage This endorsement will increase the sum insured for each event for Medical Payments to occupants of the insured vehicle and will increase according to the amount shown on the Specifications of Risks page of the policy. 2. Increased Medical Payments for accidents with at-fault Uninsured Motorist In the event that the insured is not at fault in an accident that results in injuries to the occupants of your vehicle and the driver of the atfault vehicle is Uninsured, the sum insured for Medical Payments to Occupants will increase according to the amount stipulated in the Specification of Risks Page of the Policy. Section 1.4 - Civil Liability For Damage To Property Of Third Parties This section is expanded to include: 1. Increased Civil Liability for Property Damage and for Bodily Injury to Third Parties By means of this endorsement, the sum insured for this coverage is increased in accordance to the amount stipulated in the Specification of Risks page of the policy.

SECTION 1.7 BOATS & TRAILERS

When shown as covered on the Declarations Page of the policy, this sections covers:

A) PERSONAL TRAILERS “Personal Trailers” shall be construed to mean a boat trailer, camping trailer, utility trailer, house trailer excluding household articles and personal belongings contained therein; Personal Trailers will be covered for the risks contained in the following sections: - Section 1.1 Collision (even if the vehicle is unhitched from the power unit) - Section 1.2 Total Theft (even if the vehicle is unhitched from the power unit) - Section 1.4 Civil Liability For Damage To Property Of Third Parties (Only when the trailer is hitched to the insured vehicle)

IN NO CASE IS COVERAGE AFFORDED TO ANY VEHICLE PULLING MORE THAN ONE TRAILER.

B) BOATS Boat shall be construed to mean the vessel specified on the Declarations Page of the policy and the platform or trailer on which it is transported, as a single unit. A boat shall only be covered while on the platform or personal trailer on which it is mounted and attached to the motor vehicle. Boats are covered for the risks outlined in this policy. The Company's responsibility ceases the moment the boat and its trailer are separated from the towing vehicle. The limit of liability under Section 1.4 (Civil Liability For Damage To Property Of Third Parties) does not apply if the boat is unhitched from the power unit. Collision and Total Theft is covered even if the boat is unhitched from the insured vehicle. The limit of liability for third parties shall not be increased by virtue of the inclusion of boats and/or trailers but only an extension of coverage is afforded.

THIS INSURANCE WILL NOT COVER DAMAGES SUFFERED OR CAUSED BY THE BOAT DURING THE LOADING OR UNLOADING FROM ITS TRAILER OR PLATFORM AND/OR WHILE IT IS IN THE WATER. DEDUCTIBLES FOR PERSONAL BOATS & TRAILERS

The same deductibles and criteria in Section 1.1 and 1.2 for Collision and Total Theft apply to this section.

C) COMMERCIAL TRAILERS This policy does not cover commercial/business use trailers unless specifically described in the declarations page of this policy and the appropriate premium has been paid. The only coverages that apply to Commercial Trailers are Section 1.1 and 1.2 of this policy DEDUCTIBLE – COMMERCIAL TRAILERS The same deductibles and criteria in Section 1.1 and 1.2 for Collision and Total Theft apply to this section.

SECTION 1.8 MOTORCYCLES

When shows as covered on the Declarations page of the policy and specifically described, is covered. Motorcycles are covered only when specifically described on the Declaration Page of the policy, and a limit of liability is stated for them, and the appropriate premium has been charged. “Motorcycle” is understood to mean a two-wheeled motor vehicle intended for street use and is considered “street legal”. Without exception, the only coverage provided for dirt bikes, ATVs, Quads, Mopeds, or Dune Buggies or any other motorcycle that does not fit the definition above, is Section 1.4 - Civil Liability For Damage To Property Of Third Parties. The limit of liability under Section 1.4 - Civil Liability For Damage To Property Of Third Parties of this policy shall not be increased but only an extension of coverage is provided under this policy

THE INSURER DOES NOT PROVIDE COVERAGE UNDER THE FOLLOWING CIRCUMSTANCES:

- MEDICAL PAYMENT COVERAGE IS STRICTLY EXCLUDED FOR ALL MOTORYCLES - FOR ANY MOTORCYCLE PULLING A SIDE CAR - THERE IS NO COVERAGE FOR A MOTORCYCLE THAT IS ATTACHED TO THE OUTSIDE OF A VEHICLE EXCEPT IF IT IS SECURED IN THE BED OF A PICKUP TRUCK.

CLAUSE 2ª.

GENERAL EXCLUSIONS THE FOLLOWING ARE STRICTLY EXCLUDED:

a. ANY HARM, EXPENSE, LOSS OR INDIRECT DAMAGE SUFFERED BY THE INSURED FROM THE LOSS OF USE OF THE VEHICLE.

b. INJURIES/DAMAGES TO OCCUPANTS OF THE INSURED VEHICLE FOR WHICH THE INSURED IS LIABLE AND SUCH LIABILITY IS DERIVED FROM COMMERCIAL RISKS OR PENAL LIABILITY

c. CIVIL LIABILITY FOR DEATH OF BODILY INJURY SUSTAINED BY RELATIVES OR MEMBERS OF THE HOUSEHOLD OF THE INSURED OR PERSONS WHO ARE IN HIS EMPLOY.

d. LOSS OR DAMAGE SUSTAINED OR CAUSED IN THE OPERATION OF THE INSURED VEHICLE OFF CONVENTIONAL ROADS OR ON ROADS WHOSE CONDITION IS IMPASSABLE.

e. LOSS OR DAMAGE SUSTAINED OR CAUSED IN THE COURSE OF DIRECT PARTICIPATION BY THE VEHICLE IN A RACE OR ANY OTHER CONTEST OF SPEED OR RESISTANCE.

f. DAMAGES SUSTAINED OR CAUSED BY THE INSURED VEHICLE WHEN IT IS BEING USED FOR THE PURPOSE OF DRIVING INSTRUCTION OR TEACHING.

g. DAMAGES SUSTAINED TO OR CAUSED BY THE INSURED VEHICLE WHEN IT IS BEING USED TO TOW VEHICLES, TRAILERS OR BOATS UNLESS THE TOWED VEHICLE, TRAILER, OR BOAT IS SPECIFICALLY DESCRIBED ON THE DECLARATION PAGE OF THE POLICY AND THE CORRESPONDING PREMIUMS ARE PAID.

h. DAMAGES SUSTAINED TO OR CAUSED BY THE INSURED LACKING A VALID AND APPROPRIATE DRIVERS LICENSE VALID IN MEXICO OR ITS EQUIVALENT FROM THE INSURED’S HOME COUNTRY TO DRIVE THE INSURED VEHICLE. UNLESS THE INSURED IS FREE OF FAULT, NEGLIGENCE, OR INEXPERIENCE FOR THE LOSS.

i. DAMAGES CAUSED TO OR CAUSED BY THE VEHICLE, WHEN DRIVEN BY A PERSON UNDER THE INFLUENCE OF ALCOHOL OR DRUGS UNLESS PRESCRIBED MEDICALLY

j. THEFT OF PARTS OR ACCESSORIES, UNLESS AS A DIRECT RESULT OF THE TOTAL THEFT OF THE INSURED VEHICLE.

k. VANDALISM IS STRICTLY EXCLUDED UNLESS THE INSURED HAS PURCHASED THE OPTIONAL “SPECIAL BROADENING ENDORSEMENT” FOR THIS POLICY AND SAME IS NOTED ON THE DECLARATION PAGE OF THE POLICY.

l. ANY DIRECT LOSS INCURRED BY THE INSURED OR ANY OCCUPANTS OF THE VEHICLE PLUS ANY EXPENSES RESULTING FROM SAID LOSS, INCLUDING BUT NOT LIMITED TO LODGING, MEALS, TRANSPORTATION, TELEPHONE CALLS, AUTOMOBILE RENTAL, OR THE LOSS OF USE OF THE INSURED VEHICLE, OR OTHER SIMILAR EXPENSES, UNLESS SPECIFICALLY PROVIDED IN THIS POLICY.

m. DAMAGES SUFFERED BY THE INSURED VEHICLE CAUSED BY OPERATING IT WITH AN INSUFFICIENT AMOUNT OF OR LOSS OF OIL IN ANY COMPONENT, OR LOSS OF WATER, OR RESULTING FROM IMPROPER MAINTENANCE.

n. MECHANICAL BREAKDOWN OR FAILURE OF ANY PART OF THE INSURED VEHICLE UNLESS DIRECTLY CAUSED BY ANY OF THE RISKS INSURED HEREIN. LOSS OR DAMAGE DUE TO NATURAL WEAR AND TEAR OF THE INSURED VEHICLE AND THE COMPONENTS THEREOF, INCLUDING DEPRECIATION IN VALUE AS A RESULT OF SAME

o. LOSS OR DAMAGE TO THE INSURED VEHICLE AS A CONSEQUENCE OF WAR-LIKE OPERATIONS WHETHER ARISING OUT OF FOREIGN OR CIVIL WAR, INSURRECTION, REBELLION, EXPROPRIATION, REQUISITION, CONFISCATION, SEIZURE, OR DETENTION BY THE LEGALLY RECOGNIZED AUTHORITIES IN THE PERFORMANCE OF THEIR DUTIES OR FOR ANY OTHER SIMILAR REASON. LIKEWISE, THIS INSURANCE DOES NOT COVER LOSS OR DAMAGE CAUSED TO THE INSURED VEHICLE WHEN BEING USED BY OR FOR ANY MILITARY SERVICE, WITH OR WITHOUT THE CONSENT OF THE INSURED.

p. ANY LOSS OR DAMAGE CAUSED BY THE NORMAL ACTION OF TIDE, EVEN WHEN FLOODING OCCURS, AS A CONSEQUENCE OF THE INSURED VEHICLE BEING EXPOSED TO THE TIDE.

q. ANY DAMAGE SUFFERED OR CAUSED BY THE INSURED VEHICLE DUE TO OVERLOADING OR SUBJECTING IT TO EXCESSIVE STRAIN FOR ITS STRENGTH AND CAPACITY. SIMILARLY, THE COMPANY SHALL NOT BE LIABLE FOR ANY DAMAGES CAUSED TO ANY VIADUCTS, BRIDGES, SCALES, OR ANY OTHER PUBLIC THOROUGHFARE AND UNDERGROUND OBJECTS AND INSTALLATIONS DUE TO VIBRATIONS OR THE WEIGHT OF THE VEHICLE AND ITS LOAD.

r. CIVIL LIABILITY FOR DAMAGES CLAIMED BY A PERSON AS A RESULT OF BODILY INJURY OF DEATH SUFFERED BY ANOTHER PERSON, INCLUDING BUT NOT LIMITED TO CLAIMS OF LOSS OF CONSORTIUM AND CLAIMS OF EMOTIONAL DISTRESS

s. INJURIES AND DAMAGE TO A DRIVER OF THE INSURED VEHICLE WHEN THE VEHICLE IS USED FOR SUICIDE OR ANY ATTEMPT THEREOF, OR VOLUNTARY MUTILATION, EVEN WHEN THE DRIVER IS IN A STATE OF MENTAL DERANGEMENT.

t. THE OBLIGATIONS OF THE COMPANY STIPULATED IN THIS POLICY SHALL BECOME AUTOMATICALLY NULL AND VOID IF THE INSURED OR ANY OF HIS/HER REPRESENTATIVES ENTER INTO ANY AGREEMENT WITH THE PERSONS INVOLVED IN ANY ACCIDENT WITHOUT THE COMPANY'S WRITTEN CONSENT.

u. MEDICAL EXPENSES COVERAGE IS SPECIFICALLY EXCLUDED FOR ANY PERSON RIDING IN AN OPEN BED OF A TRUCK OF ANY KIND.

v. VEHICLES THAT ARE DEEMED AS “PUBLIC TRANSPORTATION” OR THAT ARE USED TO DELIVER CARGO OR MERCHANDISE.

w. FOR COVERAGES UNDER COLLISION AND TOTAL THEFT, COVERAGE WILL BE STRICTLY EXCLUDED IF THE OPERATOR/OWNER OF THE VEHICLE DOES NOT HAVE PHYSICAL DAMAGE COVERAGE FOR THE VEHICLE IN THEIR HOME COUNTRY FROM A LEGALLY ESTABLISHED INSURER AND SUCH COVERAGE IS IN EFFECT WHILE THE VEHICLE OPERATES IN THE MEXICAN REPUBLIC.

IF YOUR POLICY FROM THE HOME COUNTRY HAS A LAY-UP PROVISION TO YOUR POLICY DURING YOUR STAY, OR IF THE INSURED PURCHASES A POLICY FOR SIX MONTHS OR LONGER AND PAYS THE APPROPRIATE SURCHARGE CORRESPONDING TO MEXICAN RESIDENTS, THIS EXCLUSION (W) WILL NOT APPLY.

Lay Up: Defined as a period of time the insured declares that the insured will not use the vehicle in the home country.

CLAUSE 3ª. DEFINITIONS

For the effects of this policy, the following words and phrases will have the following definition unless the context of the policy requires a different interpretation.

1. Insured Insured is understood to mean any person who drives the insured vehicle with the specific consent of the owner.

2. Insurer Refers to ACE Seguros, S.A.

3. General Average According to Law of Mexican Navigation, Article 115, General Average signifies an act that is carried out, intentionally and reasonably, any sacrifice or additional expense for the sake of communal security and safeguarding of the vessel, with the objective to preserve property from dangers inherent in navigation.

4. Policy Signifies the present insurance contract, including the addendums, declarations page or certificate of insurance, certificates and endorsements registered by the Insurer, as well as application of insurance and any surveys, all of which constitute a proof of contract between the insured and the insurer.

5. Named Risk Policy An insurance contract where the only risks specifically described in the policy are covered.

6. All Risks Policy An insurance contract where all risks are covered in the policy unless it is specifically excluded.

7. Insured Vehicle It is understood to mean a means of motorized transportation covered by the insurer that travels on conventional roads inside the Mexican Republic like:

Private Passenger Cars (Sedans)

Pickup trucks

SUV (Sport Utility Vehicle)

Motor Homes or RV

Minivans

Motorcycles

Trailers

Vans

In the text of the policy, the term “insured vehicle” is invariably used and the term may refer to one or more of the vehicles insured under this policy.

CLAUSE 4ª. INSURED SUMS

It is the Insured's responsibility to establish the appropriate amounts insured under each coverage shown on the Declarations Page and these amounts shall constitute the insurer’s maximum limit of liability in case of an accident and must be in accordance with the following:

1. For coverages under Section1.3 Medical Payments and 1.4 - Civil Liability for Damage to Property of Third Parties, the sum insured is established by common accord between the insured and the insurance company.

2. For coverages under Section 1.5 Special Equipment, the sum insured must be established based on a fair value supported by a valuation from a competent party or an invoice.

3. For coverages under Section 1.1 Collision and Section 1.2 Total Theft of Physical Damage or Total Theft for private passenger cars, pickup trucks, RVs, and motorcycles, the sum insured is declared by the Insured. In case of a loss, Physical damage losses will be adjudicated on Actual Cash value at the time of loss subject to the limits set forth in the Declarations and/or Specification of Risks Page of the policy.

CLAUSE 5ª. REINSTATEMENT OF POLICY

All payments by the Company shall reduce the insured amount by the same sum for any and all coverages affected by the loss. Said insurance may be reinstated at the discretion of the Company upon the request of the Insured and by payment of the additional premium.

CLAUSE 6ª. CURRENCY

The payment of the premium as well as the loss payments will be paid in US dollars or its equivalency in Mexican Pesos according to the current monetary law.