Auto Drive Train Warranty

Terms and Conditions

 Auto Drive Train Warranty
This product provides you with a mechanical and/or electrical breakdown warranty that covers 15 components outlined in this policy
when there has been a break in cover from the Original Equipment Manufacturer (O.E.M.) plan, or upon expiry of a non-O.E.M.
warranty.
Please note that your policy does not cover every eventuality and that you need to fully familiarise yourself with the cover provided
by your policy.

Important information
Premium payments
We will deduct your premium on the date that we agreed on. If your deduction date falls on a Sunday or public holiday, your debit
order may be deducted on an earlier date.
If your premium is not received on your preferred deduction date, an attempt will be made to collect your premium on a more
suitable deduction date, so that you are covered. If your premium is not received on the due date(s) as stated on the schedule, you
will not have any cover for the period that you did not pay.
You are allowed a 15-day period of grace from the due date to pay any outstanding premiums in the event of a claim. This period of
grace does not apply if the unpaid premium, was the first premium due on inception of the policy. If payment is not received for
three consecutive months, the policy will be immediately cancelled.
If you decide, or instruct your bank, to stop your debit order, the policy will be immediately cancelled.
When cover is interrupted because we did not receive your payment, we have the right to debit your account again the following
month to reinstate your cover. You must make a payment for the cover to recommence.
Policy changes, cancellations and reviews
Any change or cancellation that you make will be effective from the time and date agreed on. If you cancel your policy during an
insured month, the premium paid for the rest of that month will not be refunded to you. You will, however, have cover for the
remainder of the month. There will be no refund due if a claim has been paid under your policy.
We may change or cancel your policy by giving you 31 days’ notice. If we become aware of any information that materially affects
the risk to the extent that the risk is no longer acceptable, or if we would not have issued a policy had we been aware of this
information, we may cancel your policy from the date of the actual change in risk or from policy inception, whichever happened the
earliest. We may give notice electronically or by post to your last known address.
Your policy may be annually reviewed on the anniversary date. Any changes made to your policy prior to the review date will also
be subject to the annual review. We will give you 31 days’ notice of such review and its outcome.
How to claim
If you know which component has failed, first check if the component is listed in the breakdown benefits table. In the event of a
mechanical and/or electrical failure of a covered component, which is likely to result in a claim, you or the motor repair centre must
inform us telephonically on 0860 10 51 13.
All repair work must be authorised by us in advance. Failure to obtain prior authorisation before repair work starts may invalidate
your claim.
Repair work must be done by an accredited repair centre. We will recommend an authorised dealer in your area, if required.
What you pay when you claim
You are responsible for covering any excesses listed in your schedule whenever you claim.
Complaints process
You may contact our Internal Dispute Resolution Department in the following ways in order to lodge your dispute regarding a claim,
or any general complaint:
Email: [email protected]
Telephone Number: 0860 004 294
Physical Address: 1 Telesure Lane, Auto & General Park, Riverglen, Dainfern, 2191
In accordance with the Policyholder Protection Rules, you will as a first step have 90 days to dispute the outcome of your claim by
contacting our Internal Dispute Resolution Department. Immediately following this 90-day period you have a further six months to
serve summons on us. If you do not do so within this time period, your right to challenge the decision will be forfeited.
We guarantee that your dispute will be dealt with in an efficient manner and will be reviewed by way of an impartial review process.
We encourage you to first make use of our Internal Dispute Resolution Department in an attempt to resolve your dispute promptly.
Once our Internal Dispute Resolution Department has dealt with your dispute and should the outcome of the dispute not be in your
favour, then you may within a further period of six months contact the Short-term Insurance Ombudsman.
For any compliance / non-compliance matters relating to FAIS or the financial services rendered, you may contact the
FAIS Ombudsman.
Sharing of information
To offer you our services, we need to process your personal information. We do so according to our business requirements and
legal obligations. By taking out this policy, you accept that your personal information may be verified and/or processed for
insurance, financial services and risk-management purposes, by the TIH Group of Companies, against any other reasonable and
legitimate sources or databases. This is to ensure the accuracy and completeness of any personal information provided on an
ongoing basis.
For more information on how we process your personal information, have a look at your policy schedule or visit our website.
You may access your personal information that we hold and may object to the processing of your personal information, request us
to correct any errors, or delete this information if there is no legitimate reason for us to maintain it.
Jurisdiction
Your policy is subject to South African law and to the jurisdiction of a South African court. We are not liable for any legal costs and
expenses that are not incurred in the Republic of South Africa. This policy is in addition to, and does not detract from, any
contractual rights under Statute or Common Law.

Terms and conditions

This section of your policy explains your responsibilities. Failure to comply with these conditions could result in a claim against your
policy being rejected and/or your policy being cancelled.

Definitions
You/your
The term you or your refers to the person whose name and address appears in your schedule, who is also the owner of your car.
We/us
This refers to the insurance company.
Your car
Your car refers to any motor or light delivery vehicle (LDV) that is registered in South Africa and specified in the schedule.
Accredited repairer
A mechanical repairer registered with the Retail Motor Industry (RMI) or Automobile Association of South Africa (AASA).
Mechanical breakdown
Mechanical breakdown refers to the unforeseen failure of any of the components specifically listed, arising from mechanical and/or
electrical failure, causing a sudden stoppage of their functions and necessitating repair and/or replacement.
Manufacturer
The manufacturer refers to the entity that manufactured/supplied your car as specified in your schedule.
Betterment
Betterment is referred to as the condition relating to older or original component on your car, when having been damaged in an
accident which may be replaced with new components. The resulting improved condition of your car is known as betterment.
Normal wear and tear
Normal wear and tear is defined as deterioration arising through the use or age of your car which does not result in actual
mechanical failure.
Private use
Your car is used for social, domestic and recreational purposes. You also use your car or motorbike for traveling between your
residential address and work address, attending meetings, or visiting clients.

Conditions
Cover term
This cover applies to vehicles older than 10 but less than 14 years, with a full-service history. The cover term of the Auto Drive Train
Warranty will be up to 20 years or 400 000km from the date of first registration or O.E.M. warranty start date, whichever comes first.
The age and distance covered by your car at the time your policy becomes effective, will determine the cover type you qualify for.

Waiting period
You may not claim for any benefit during the first 90 days after the policy start date, unless you have opted to waive the waiting
period by carrying out our recommended inspection.
The waiting period will also apply if there was a break in warranty cover from the O.E.M. plan, or there was a gap within your car
service history.
Inspection
If you wish to waive the waiting period, you can do so by doing an inspection (110-point check) through one of our recommended
repair centres. The cost of the inspection will be for your account.
If any vehicle component fails the check, your policy will exclude this component and all related components from cover until you
can prove that the failed component has been fixed by an accredited repair centre.
Important time limits
In the event of a claim, we will only indemnify you if you:
• submit the claim to us as soon as you become aware of damage but not more than 30 days after becoming aware of an
incident;
• give us any documents that you receive in connection with any claim within 14 days of receiving such documents; and
• provide us with any information, proof, documentation and co-operation that we ask for within 14 days of our request.

Fraud and dishonesty

If you or anyone acting on your behalf submits a claim or provides information or supporting documentation relating to the claim
that is in any way fraudulent, false, dishonest or inflated, you will lose all rights to the claim. We also reserve the right to claim
repayment from you for any amount we have paid towards settlement of your claim, irrespective of whether the claim itself was
fraudulent or not. We may void or cancel your policy and lay criminal charges against you. Some examples of fraudulent behaviour
include:
• giving inaccurate or incomplete information about your risk profile;
• supplying inaccurate or false information regarding a loss that occurred;
• submitting a claim for a fictitious loss that didn’t occur;
• providing false documents to substantiate your claim;
• claiming for damages that didn’t occur or items you didn’t own;
• inflating a legitimate claim;
• submitting a claim that you know to be false, fraudulent or exaggerated; and
• hindering the outcome of a legal dispute.

Service requirements and roadworthiness

Your car must have a full-service history upon inception to be accepted for the policy. Your car’s service history must be kept
regular in accordance with the manufacturer’s standards. If no service interval is specified for your car type, your car must be
serviced every 10 000km or 12 months, whichever comes first. We may request proof of the service and the invoice in the event of
a claim.
If at claim stage it is found that during the policy cover period your car has missed a certain number of services, the following will
apply:
• One (1) service, an additional excess will apply as stipulated in the schedule, and your car will need to be serviced within 30
days from the date of claim for your car to remain on cover.
• Two (2) or more missed services, the claim will be repudiated and your car will need to be serviced within 30 days from the
date of the claim for cover to recommence.

In the case of diesel cars, the diesel pump and injectors must be calibrated and serviced as per the manufacturer’s specifications. A
failure resulting from incorrect calibration will result in rejection of the claim.
Your car must be kept in a roadworthy condition and the components required to drive it must be complete. This means that all the
components installed at manufacture stage must always be present in your car.
Limit of indemnity
The maximum amount payable per claim for each item is reflected in your schedule.
Where the damage or loss to a covered component is caused by the failure of a covered component, the higher of the two benefits
will apply.
Where the damage or loss to a non-covered component is caused by the failure of a covered component, only the benefit of the
covered component will apply.
Where the damage or loss to a covered component is caused by the failure of a non-covered component, the failure will be covered
under the covered component benefit.
The total claim aggregate shall not exceed the current trade value of your car
Dual insurance
If the breakdown is also covered by another product or insurer, we will only indemnify you for our rateable portion of the cost.
Inspection
We reserve the right to assess your car before authorising a claim.
After the work has been completed, you must inspect your car to ensure that the repairs were completed as authorised.
Eligible vehicles
Your car must:
• be a South African registered motor vehicle, light delivery vehicle (LDV), pick-up truck, microbus or similar vehicle with a gross
mass of 3 500kg or less;
• have a full-service history in place, as per manufacturer’s specifications; and
• be in a sound mechanical condition and be roadworthy.

Covered components
Your policy covers the repair and/or replacement of the below components if damaged due to mechanical and/or electrical failure
during the period of insurance.

Area Covered components Components not Covered

Engine All internal lubricated components: pistons, Decarbonisation: the removal of carbon
piston rings, piston pins, crankshaft and from the piston crown and combustion
main bearings, connecting rods and rod chamber roof; failures caused by build-up
bearings, thrust washers, camshaft and of carbon; burnt or bent valves, pulleys or
bearings, chains, tensioners and gears, external tensioners; external securing
rocker arms, valves, valve springs, valve bolts, corroded bolts; routine cam belt
cotters, valve spring retainers, valve guides replacements, exhaust gas recirculation
and seats, push rods, cam followers, valve, damage caused by oil leaks or oil
hydraulic lifters and oil pump, cylinder leaks themselves.
head(s), exhaust manifolds, intake
manifolds. Engine block and cylinder bores
are covered only if damage occurs due to
failure of the covered parts.

Gearbox/Transmission (Manual/Automatic) (Manual Transmission)

All internal lubricated components Clutch Plate, pressure plate, clutch fork,
(including torque converter, flex plate and clutch cable; external damage to
transmission sensors). transmission or transfer cases; external
securing bolts.
(Manual Transmission)
(Automatic Transmission)
Gears, shafts, synchro hubs and rings,
bearings, bushes and internal shift External damage to transmission or
selectors, external shift linkage, transfer transfer case(s); external securing bolts,
box components, clutch master cylinder, damage caused by oil leaks or oil leaks
clutch slave cylinder, seals and gaskets. themselves.
(Automatic Transmission) External damage to actuators and sensors.
Torque converter, gears, clutches, brake
bands, drums, servos, vacuum modulator,
solenoids, bearings, bushes, oil pump,
shafts and valve body, oil cooler, external
shift linkage, transfer box components,
transmission mounts, seals and gaskets.
The transmission case is covered only if
the damage is due to failure of a part in the
manual/automatic transmission box.

Transaxle All internal lubricated components and External damage to the transfer case;
actuators/sensors: external securing bolts, damage caused by
oil leaks or oil leaks themselves.
Gears, shafts, crown wheel and pinion,
pinion bearings, spider gears, thrust
washers, carrier housing and carrier
bearings, seals and gaskets. The trans-
axle case is covered only if the damage is
due to failure of a covered axle part.
Differential All internal lubricated components and diff External damage to axle housing(s);
actuators/sensors (internal and external) external securing bolts, damage caused by
crown wheel and pinion, pinion bearings, oil leaks or oil leaks themselves.
spider gears, thrust washers, pins, carrier
housing and carrier bearings, half shafts, External damage to actuators and sensors.
seals and gaskets. The drive axle housing
is covered only if the damage is due to
failure of a listed differential part.

4x4 Front Differential Unit All internal lubricated components and diff External damage to axle housing(s);
actuators/sensors (internal and external) external securing bolts, damage caused by
crown wheel and pinion, pinion bearings, oil leaks or oil leaks themselves.
spider gears, thrust washers, pins, carrier
housing and carrier bearings, half shafts, External damage to actuators and sensors.
locking hubs, seals and gaskets.
The drive axle housing is covered only if
the damage is due to failure of a listed
differential part.

Transfer Box All internal lubricated components and External damage to axle housing(s);
actuators/sensors: external securing bolts, damage caused by
oil leaks or oil leaks themselves.
Gears, shafts, synchro hubs and rings,
bearings, bushes, internal shift selectors, External damage to actuators and sensors.
external shift linkage, transfer box
components, seals and gaskets.
The transfer case is covered only if the
damage is due to failure of a covered
transfer box part.

Differential Lock All internal components and External damage to axle housing(s);
actuators/sensors (internal and external). external securing bolts.
External damage to actuators and sensors.

Cooling System Welsh plugs, thermostat, thermo-switch, Radiator cap, expansion tank cap, blocked
heater radiator and gearbox, engine oil radiators, hoses, corroded pipes, pulleys
cooler and auxiliary water pump. and belts or fan blades; external damages
or losses caused by external damage;
foreign matter blocking or entering the
cooling system.

Water Pump Water pump unit. External damage to axle housing(s);

external securing bolts.

Radiator Engine cooling radiator only. No external damage, blockage and lack of
maintenance, lack of or no antifreeze in
coolant.

Wheel Bearings Front and rear hub assemblies, front and Failure because of accident damage or
rear wheel bearings, seals and gaskets. lack of lubricant resulting from lack of
maintenance as OEM specification.

Free Wheel Hubs Complete unit and 4x4 actuator (applicable Failure because of accident damage or
to 4x4 vehicles only). lack of lubricant resulting from lack of
maintenance as OEM specification.

Prop Shaft and couplings U-joints and centre bearings (including Clutch plate, pressure plate, clutch fork,
balancing). Propeller shaft-tube, universal clutch cable; external damage to
joints, front yoke, rear flange and centre transmission or transfer cases and external
support bearing. securing bolts.

Front Wheel Drive Unit External driveshafts, couplings, hubs, Failure because of accident damage or
bearings and drive flanges for 4x4 vehicles lack of lubricant resulting from lack of
only. maintenance as OEM specification. Failure
resulting from damaged CV joint boots.

CV Joints and driveshaft Including dust covers and all internal The protective rubber boots; failure of the
lubricated parts of the CV joints, universal CV joints if the protective boots were
joints and half shafts. Half shafts are damaged and therefore exposed to
 covered only if the damage is due to failure elements. Failure resulting from damaged
of a covered part. CV joint boots.

Car Hire The car rental offers a convenient 3-day No mechanical or electrical breakdown,
car rental in the event of a mechanical benefit will not apply. Not to be used as a
repair of your car. car health or routine maintenance check.

Strip and Quote Cover the cost to diagnose, strip and No mechanical or electrical breakdown,
provide the quote to repair mechanical and benefit will not apply. Not to be used as a
electrical breakdown on the covered car. If car health or routine maintenance check.
your car claim is rejected due to
breakdown not being covered under the
policy the cost for the diagnostics will still
be covered by the Warranty product.

Additional Component Cover Once off payment to cover any motor No mechanical or electrical breakdown,
vehicle related items or any standard benefit will not apply. Not to be used as a
services that is not covered by policy. car health or routine maintenance check.
failure because of accident damage,
operation outside of OEM specification, no
wear and tear, damage caused by oil leaks
or oil leaks themselves.

Your obligations
You must:
• provide us with true and complete information;
• comply with all our reasonable requests;
• inform us if any of the policy details or declarations are incorrect, or if any of these details or declarations change;
• report all claims to us as soon as you become aware of a possible component failure. If failure occurs after hours, over a
weekend or a public holiday the claim must be reported to us on the next working day;
• regularly service your car as per the requirements defined under the section “service requirements”;
• take all reasonable steps to maintain your car and keep it in a proper and efficient state of repair and in the event of any
mechanical and/or electrical failure, you must use all reasonable means to protect your car from further loss or damage; and
• minimise a loss by not continuing to use your car if you become aware of a possible component failure, e.g. if your car
overheats and you continue to drive it, it could cause further damage.

Territorial limits
Your policy is valid only within the territorial limits of South Africa, Botswana, Namibia, Lesotho, Mozambique, Zimbabwe
and Swaziland.
Transferability
This policy is non-transferable.

Automatic extensions
The maximum limits of indemnities under these extensions are stated in the schedule.
Diagnostics/disassembly and re-assembly
Diagnostics is an added benefit in the Warranty that will cover the reasonable cost of diagnostics and stripping. A quote will then be
drafted to repair the mechanical or electrical breakdown on your car. The cost of the diagnostic will still be honoured irrespective of
your car claim rejected, subject to policy obligations and conditions.
Additional component cover
A once-off payment is applicable, up to the amount specified in your schedule, to cover any motor vehicle related item or any
standard services that are not covered by your warranty policy.
Car hire
If you have a valid claim and your car will be in the workshop for longer than two days, we will provide you with a hired car (Group
B/Economy class) through our preferred supplier, while your car is being repaired, up to a maximum of three days. You will be
responsible for the fuel deposit, excess and additional driver costs.
Breakdown assistance
The Breakdown assistance benefits are applicable if you are stranded within the borders of the Republic of South Africa with the
covered car. These benefits are limited to three callouts in a 12-month period.
You must call our Assist call centre on 0860 10 42 11 for assistance. If you don’t, then all charges will be for your own account.
The Breakdown assistance benefits include:
• Towing and storage
The reasonable cost to store (up to a maximum of 3 days) or to tow your car to the closest repairer. You will be personally
responsible for the cost of the towing and storage of your car if you do not call the towline number and use the approved
towing operator we appoint. This cover is not applicable for accident-related events.
• Locksmith
Cover for the call-out fee plus one hour’s labour for a vehicle locksmith if keys are locked in your car.
• Flat tyre and battery
Cover for the call-out fee plus one hour’s labour when assistance with a flat tyre/battery is required.
• Emergency fuel delivery
Emergency delivery of 10 litres of petrol or diesel (charged at cost for policyholder’s account).
• Notification and message service for family or business
If you are stranded with the insured car more than 100 km from your home and your car needs to be towed to a repairer, we
will arrange:
o Courtesy transport for you and a maximum of six persons to one nominated destination, or
o Hotel accommodation for you and a maximum of six persons if there is an overnight delay, or
o Car hire for a 24-hour period, subject to provision of a credit card guarantee and limited to rental charges, delivery,
and collection of the hired car, the first tank of fuel and surrender of the car on arrival at the destination.

We will also pay towards the cost of collecting the car and returning it to its normal place of residence once it is repaired.

Exclusions
Your policy does not cover:
• any components not specifically named in this policy;
• repairs undertaken without our consent;
• damage caused by theft, hijacking, an accident, misuse or neglect, fire or impact with your car;
• damage if your car was operating in conditions for which it was not designed, or your car was overloaded;
• damage due to mishandling, abuse, over-revving, and sabotage;
• resultant and/or consequential damage of any kind;
• civil commotion, labour disturbances, riot, strikes, war, terrorism, and similar events;
• damage resulting from the fitting of experimental units or modifications, other than those approved by your car’s
original manufacturer;
• standard services and service components required during routine maintenance procedures;
• repairs, should it be discovered that the odometer has been disconnected or tampered with;
• gradual reduction in operating performance commensurate with the age and kilometres covered by your car;
• normal wear and tear;
• claims for repair, replacement or alterations not accompanied by a valid, fully completed and detailed VAT invoice;
• mechanical and/or electrical failure that is recoverable under any other insurance policy;
• loss or damage resulting from any water, foreign substances, incorrect or contaminated fuel, defective products or
poor workmanship;
• any pre-existing damages or failures;
• oil leaks of any nature and/or damage caused as a result thereof;
• hoses, pipes, auxiliary belts, fan blades and CV rubber boots or dust covers;
• re-gassing of the air conditioner;
• exotic vehicles, rebuilt vehicles (Code 3), or vehicles that were modified to improve performance;
• cars that are used to carry fare-paying passengers, for hiring or driving instructions or for any other commercial purpose;
• cars that are used for any purpose other than private use;
• cars used in any type of race, competition, rally, time trial or at a track day; and
• cars used to carry out your trade, such as plumbers, electricians, builders, garden services, farmers, etc.

Breakdown Assist
0860 10 42 11
Sales, Admin and Claims
0860 10 51 13

Budget Insurance Company Ltd is a licensed non-life insurer and financial services provider.