MECHANICAL BREAKDOWN INSURANCE POLICY

DECLARATIONS
A. Policy Holder Information

INSURED INFORMATION
Name Telephone Number POLICY NUMBER
«insured_name» «insured_phone_number» «policy_number»

Address Deductible Policy Premium (Inc. Tax)

«insured_address» $100.00 (plus tax) «premium_and_tax»

INSURED VEHICLE INFORMATION

«TableStart:vehicles»
Year Make Model VIN
«model_year» «trade_name» «model» «vin»

Odometer (km) New / Used Date of Purchase

«odometer» «new_used» «purchased»

POLICY PERIOD
Policy Period Selected: Date of Purchase:

Effective Date From Effective Date To 12:01 a.m. standard time at the address of Insured
«effective_date» «expiry_date» OR <<KM distance>> (whichever occurs first)

B. Administrator- Obvi Inc. 400, 534 17th Avenue SW Calgary, AB, T2S 0B1. 1-844-712-2054. Claims@obvi.ca.
Please contact Obvi for any claims or questions regarding your policy.

C. Coverage section- the reasonable cost to repair or replace any part of Your Vehicle where a Failure has
occurred, except for those items listed in the exclusions section of Your Policy.

D. Insurer- This Insurance Policy is underwritten by Arch Insurance Canada Ltd. We may be contacted in writing
at 77 King Street West, Suite 3600, PO Box 308, M5K 1K2

These Declarations and the Policy with endorsements, if any, shall constitute the entire contract between
the Insured and Arch Insurance Canada Ltd.

THIS POLICY CONTAINS CLAUSES WHICH MAY LIMIT THE AMOUNT PAYABLE.

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Contact Information

Please try to have your policy details at hand.

Contact the Administrator Obvi Inc. at the below:

Phone: 1-844-712-2054

e-Mail: claims@obvi.ca

Mail to: Obvi Inc. 400, 534 17 Ave SW, Calgary, AB T2S 0B1

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 The following Terms and Conditions together with Declaration Pages
constitute Your Policy.

Section I – Definitions
Administrator refers to Obvi Inc. We may be contacted in writing at 400, 534 17 Ave SW, Calgary, AB T2S 0B1. Or
by Email at info@obvi.ca

Coverage refers to the component protection You have chosen, as provided in this policy.

Claim refers to the Failure of a covered part under normal service. A covered part has Failed when it can no longer
perform the function for which it was designed solely due to its condition, and not due to the action or inaction of
any non­covered parts. In addition, a Failure will be deemed to have occurred when a covered part has worn
beyond the manufacturer’s tolerances allowed for the particular Vehicle at the odometer reading when the
problem occurs.

Declaration Pages refers to the policy declaration page which becomes part of this Policy. It gives information
about You, Your Vehicle chosen and other significant data issued at the point of sale

Deductible refers to the Deductible type and amount You will need to pay, as shown on the Declaration Pages, for
covered Failures.

Failure refers to a part that can no longer perform the function for which it was designed solely due to its
condition, and not due to the action or inaction of any non­covered parts. In addition, a Failure will be deemed to
have occurred when a covered part has worn beyond the manufacturer’s tolerances allowed for the particular
Vehicle at the mileage when the problem occurs.

In Service Date Means the first date the Vehicle was sold new from the original manufacturer or its authorized
dealer

New Vehicle means a vehicle (Automobiles, SUV’s and Trucks up to ¾ ton) that, at the time you acquired it, had
never been owned by any person other than the manufacturer and its authorized dealers, had fewer than 1000
kilometers on the odometer at time of purchase, and was attributed to the then current or immediately previous
model year.

Policy refers to this Mechanical Breakdown Insurance (MBI) Policy which You purchased from Obvi Inc. to protect
Your Vehicle.

We, Us, Our means Arch Insurance Canada Ltd, the insurer issuing this Policy. We may be contacted in writing at
77 King Street West, Suite 3600, PO Box 308, M5K 1K2. For any claims, please contact the program Administrator
at 1-844-712-2054.

Total Loss means an incident of accidental damage, theft, fire or other incident that results in the Underlying
Primary Insurer classifying the Insured Vehicle as lost or beyond repair and for which the Underlying Primary
Insurer pays you a claims payment for total loss under your Underlying Primary Physical Damage Insurance policy.

Used Vehicle means a vehicle that at the time you acquired it was attributed to the then-current model year or
any of the immediately preceding model years but that is not a New Vehicle.

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Vehicle refers to the Vehicle which is described on the Declaration Pages, which cannot be used for rental,
emergency or for­hire purposes.

You, Your means the registered owner or lessee of the insured vehicle, as applicable, named in the declaration
pages of this policy.

Section II- Policy Period

Coverage under this Policy begins upon expiry of the manufacturers full comprehensive warranty and will expire
according to the time/mileage of the Policy selected, whichever occurs first, as shown on the Declaration Page. The
Policy time period of a New or Used Vehicle will be calculated from the original first In-Service Date. Where a
customer has purchased a Used Vehicle and cannot determine the original in-service date, January 1st of the
model year will be considered the first In-Service Date. This Policy will expire on:

a) the expiry date or,

b) once Your Vehicle has reached the maximum kilometer distance indicated, whichever occurs first.

Section III- Territory

This Policy is limited to Failures which occur, and repairs that are made, within Canada and the Continental United
States of America.

Section IV- Limit of Liability

a) The Maximum limit of liability per loss shall be $10,000 for any one claim.

b) The Aggregate limit of liability for each Policy shall not exceed the purchase price of the Vehicle.

Once the aggregate maximum limit of liability for Your Policy has been reached, this Policy, its transfer and
cancellation rights, terminate. Actual cash values will be based on the Canadian Black Book.

Section V- Eligibility
To be eligible for coverage under this Policy, the following eligibility criteria must be met at the time of application:

a) Vehicles must have a minimum of 30 days or 1,000 kilometers of original manufacturers full
comprehensive warranty remaining at time of purchase.
b) The Vehicle must have less than 100,000 kilometres and be no more than 5 model years old
c) the vehicle must be listed in the Canadian Black Book;
d) You must provide a copy of your original purchase documents upon request;
e) Additional limits of eligibility are set out in section XVIII-Exclusions.

Section VI- Failure of Covered Parts

We will pay the repair facility of Your choice or reimburse You for reasonable costs to repair or replace
any Failure of a part included in Your Coverage. Replacement parts may be new, remanufactured or
replacement parts of like kind and quality. Sales tax will be authorized for covered Failures only when
required by the applicable province where repair is taking place.

Section VII- Our Right to Recovery

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If We pay anything under this Policy and You have a right to recover from another party, Your rights will
become Our rights up to the amount We paid. You will do whatever is necessary to enable Us to enforce
these rights.

Section VIII- Transfer of Your Policy

You may apply to transfer Your Policy to a private party whom You sell or otherwise transfer Your Vehicle
to while this Policy is still in force. You must submit the following, to the Administrator within thirty (30)
days of the date the Vehicle ownership is changed:
a) A fully completed Transfer Application (available from the Administrator), and
b) A $100.00 (plus tax) transfer fee payable to the Administrator, and
c) A Bill of Sale showing sale date and mileage at time Vehicle was sold, and
d) Proof of transfer of the remaining manufacturer’s warranty, if applicable, and
e) The original policy holder must fulfill any outstanding insurance premium finance contract amounts
payable and any other outstanding amounts payable attached to the policy.

If Your Vehicle is traded, sold or put on consignment to an individual or entity engaged in the wholesale
or retail sale, leasing or rental of vehicles coverage will be suspended until the vehicle has been resold to
an individual new owner and the vehicle has been driven for 2,000km’s. The Original individual owner
will be required to submit the following, to the administrator within 30 days of the date the Vehicle was
sold:
a) A fully completed Transfer Application (available from the Administrator), and
b) A Bill of Sale showing sale date and mileage at time Vehicle was sold, and
c) Proof of transfer of the remaining manufacturer’s warranty, if applicable, and
d) The original policy holder must fulfill any outstanding insurance premium finance contract amounts
payable and any other outstanding amounts payable attached to the policy.
The new individual owner will be required to submit the following to the administrator within 30 days of the date
the Vehicle was purchased:
e) A fully completed Dealer Transfer Application (available from the Administrator), and
f) A Bill of Sale showing sale date and mileage at time Vehicle was purchased, and
g) Proof of transfer of the remaining manufacturer’s warranty, if applicable and
h) The $100 (plus tax) Transfer fee payable to the Administrator.

Section IX- Maintenance Requirements

You must have Your Vehicle checked and serviced according to the manufacturer’s recommendations as
outlined in the owner’s manual. Your owner’s manual has separate required maintenance schedules for
“normal” and “more severe” operating conditions. You are required to follow the maintenance schedule
that applies to Your conditions. You must be sure only the proper grade of lubricants and coolants, as
recommended by the manufacturer, are used in Your Vehicle. You must keep verifiable receipts for all parts,
materials and services performed on Your Vehicle as You may be required to provide this documentation at
the time of a claim. Unlicensed or self performed maintenance and repairs are not permitted under this

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Policy. We reserve the right to see all original maintenance receipts and bills of sale, before any claim(s)
is/are processed

Section X- Deductible
In the event of a Failure covered by this Policy a $100 deductible (plus taxes) will apply to each covered
Failure repair. Should a covered Failure require more than one visit to repair, only one Deductible will apply
to that Failure.

Section XI- Payment Plans

If Your Policy was purchased on a payment plan and You file a claim before Your Policy is paid in full, the
total sum of any remaining payments will become due. This amount will be deducted from any claim
payments used to pay the total cost of Your Policy.

Section XII- Arbitration

If We and You do not agree on the settlement of any claim, either party may make a written request for
arbitration. In this event, each party shall select an arbitrator. The two arbitrators shall select a third. If they
cannot agree on a third within thirty (30) days, either may request that the selection be made by a judge of
a court having jurisdiction. Each party shall pay the expenses they incur and bear the expenses of the third
party arbitrator equally. A decision agreed to by any two of the arbitrators shall be binding on both parties.

Section XIII- Coverage

We will pay a licensed repair facility of Your choice for the reasonable cost to repair or replace any part
of Your Vehicle where a Failure has occurred, except for those items listed in Section XVIII- Exclusions of
Your Policy.
In addition, the following coverages are included in Your plan:
a) CAR RENTAL REIMBURSEMENT: In the event of a claim covered by this Policy, We will pay or reimburse
You for receipted expenses You incur to rent replacement transportation (from a Dealer or licensed
rental agency) while Your Vehicle is undergoing repair. This benefit is calculated based on the number
of hours of labour necessary to complete a covered repair. If Your Vehicle requires the replacement of
a major component defined as, engine, transmission or drive axle, this benefit will be paid for up to a
maximum of 3 days for parts delay, providing authorization is first obtained from the Administrator.
Except as outlined above, this benefit will not be paid for time waiting for parts or other delays beyond
the control of the repair facility. The limit for this benefit is $50 for each 8 hours of labour or parts
delay of a major component, or portion thereof, up to a maximum of $250 dollars, per occurrence.
b) TRAVEL EXPENSES:
In the event a Failure covered by this Policy occurs more than one hundred fifty (150) kilometres from
Your home, We will reimburse You for receipted motel/restaurant expenses You have incurred, up to

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 ninety dollars ($90) per day for up to three (3) consecutive calendar days. The date of Failure will be
considered the first calendar day of the three (3) day maximum period.

c) EMERGENCY ROADSIDE ASSISTANCE:

In the event Your Vehicle is disabled or unable to continue under its own power due to a failure
covered under this Policy Your Vehicle may be towed to a location of Your choosing. We will pay the
first $75 for any roadside assistance requested. Any additional Emergency Roadside Assistance costs
exceeding $75 are Your responsibility and payment will be expected at the time service is rendered.
Coverage: You are entitled to one (1) service per 72-hours. We will pay the first $75 for any of the
following requested services: towing; battery jumpstart; essential fluid delivery (You are responsible for
the actual cost of the delivered fluids i.e. gas, oil, water, etc.);
Reimbursement: In the event Your Vehicle is disabled, and You contracted for any of the above
covered services on Your own, You will be able to submit Your original receipted road service expenses
for reimbursement consideration. Reimbursement will only be considered when properly licensed and
insured providers provide a covered service; private citizen services are not reimbursable. Your
reimbursement for any of the above roadside services is $75. You must send Your original receipted
roadside bills along with a completed claim form to Administrator. Claim forms may be obtained from
Administrator.

Section XIV- Claims/What to do in the Event of a Failure

All claim payments shall be paid in Canadian currency.

If Your Vehicle incurs a breakdown take the following steps to file a claim:

1. Prevent Further Damage ­ You should use all reasonable means and precautions to protect Your
Vehicle from further damage. This Policy will not cover damage caused by not securing a timely
repair of the failed component or failing to protect the vehicle from further damages by continued
operation.
2. If Your Vehicle breaks down, take Your Vehicle to the licensed repair facility of Your choice or
contact the Administrator for assistance.
3. Instruct the repair facility that they must obtain authorization from the Administrator prior to
proceeding with repairs. The amount so authorized is the maximum that will be paid. Any additional
amounts need prior approval. All covered repairs must be authorized by the Administrator prior to
the commencement of work on the repair.
4. In some cases, You may be required to authorize the repair facility to inspect/diagnose or tear down Your
Vehicle to determine the cause and cost of the repair. You will be responsible for these charges if the Failure

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 is not covered by this Policy. We reserve the right to require an inspection of Your Vehicle prior to any repair
being authorized and performed.
5. After the Administrator has been contacted, review with the repair facility what will be covered by this
Policy.
6. The Administrator will reimburse the repair facility, by credit card/eft/cheque, or You for the cost of
authorized repairs performed on Your Vehicle, less any applicable Deductible or amount owing on your
policy. All repair orders and necessary documentation must be submitted to the Administrator within thirty
(30) days to qualify for payment.

If You have any questions regarding Your Coverage or procedures, please contact the Administrator at (844)712-
2054 (Toll Free) or claims@obvi.ca

Section XV- Repair Facility Guidelines for Claims Handling

Follow these steps when handling a claim:

1. All covered repairs must be authorized by the Administrator prior to the commencement of
work on the repair.
2. Obtain Policy holder’s authorization to inspection/tear down of the Vehicle to determine the
cause of the Claim and cost to repair. Save all components, including fluids and filters, should the
Administrator require outside inspection. Notify the Policy Holder that the cost of the tear down
will not be paid if it is determined that the Claim is not covered under this Policy.
3. Determine the cause of mechanical breakdown, correction required, and cost of the repairs.
4. Contact the Administrator’s Claims Advisor at claims@obvi.ca or 1-844-712-2054 to obtain
authorization to proceed with the claim. Be prepared with the following when placing the
call:
a. Customer’s Name and Policy Number.
b. Cause of Failure and recommended correction.
c. Cost of repair.
5. The Claims Advisor will verify Coverage and do one of the following:
a. Approve the Claim ­ If approved, You will be given an authorization number to be recorded on
the repair order. The authorized amount is the maximum that will be paid. Any additional
amounts must receive prior approval from the Administrator.
b. Require Additional Evaluation, Inspection or Tear Down – the Administrator may require an
inspection prior to the repair being completed. If a tear down is required to determine the
cause of the Failure, the Policy holder must authorize this cost. Notify Policy holder that if the
repair is not covered by the Policy, the Policy holder will be responsible for cost of the tear
down. Repair facility should save all components requiring inspection, including fluids,
lubricants and filters. The Administrator’s Claims Advisor will arrange for the inspection. If the
inspection is not made within forty eight (48) hours, contact the Claims Advisor.
c. Deny the claim and provide the reason for the denial.

6. Review the Administrator’s findings with Policy holder as well as what will be covered by Policy
and what portion of the repairs, if any, will not be covered.

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 7. Obtain Policy holder’s authorization to complete repairs. All repair orders must have customer’s
signature to qualify for payment.
8. Submit repair order(s) which should contain Policy number, authorization number, authorized
amount and customer’s signature to Claims Administrator within thirty (30) days at the
following address. For immediate claim payment, ask about Our credit card payment plan.

Section XVI- Cancellation and Termination of Policy

Provided you are the original policy holder and have not made a claim, if You cancel this Policy, you may be
entitled to a refund of Premium provided that written notice of cancellation is received by the
Administrator.
1. If this Policy is so cancelled by You within the first sixty (60) days and no claim has been filed, the
Administrator will refund to You 100% of the total amount paid by you for this Policy less a $150
administration fee. After sixty (60) days an amount of the unearned Policy charge will be refunded
to You calculated according to the pro-rata method as being the lesser of: (i) 75% of the total
Premium payable under this Policy; and according to the pro-rata method reflecting the greater of
the days in force or the mileage elapsed based on the term of the Policy. Elapsed time and mileage
shall be measured from Policy sale date and zero (0) kilometres.
2. We may cancel this Policy for nonpayment of the Policy charge, or for intentional
misrepresentation/non-disclosure in obtaining this Policy or in submitting a claim. If this Policy has
been financed, the lienholder may cancel this Policy for non-payment.
3. Notwithstanding the foregoing and without prejudice to any of the Administrators rights herein,
the Administrator may in its sole discretion cancel this Policy if the Vehicle is written-off or deemed
a total loss by Your insurer and issue a refund, if any, according to the unearned premium
calculation in Part 1 above.

Section XVII- Other Insurance

This Policy provides coverage only in excess of other applicable and valid policies of insurance (including all
warranties and service contracts) which you have or upon which you can recover from third parties. The
benefits may duplicate express manufacturers or seller’s warranties and/or implied warranties that come
with the vehicle purchase, but this Policy only provides coverage in excess of such warranties regardless of
whether such warranties are honoured.

Section XVIII- Exclusions

This Mechanical Breakdown Policy Provides NO Coverage or Benefits for the following:

1. These parts: carburetor, battery; battery/battery pack on hybrid or electric vehicles ; shock
absorbers; manual transmission clutch assembly; friction clutch disc and pressure plate; throw out

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 bearing; manual and hydraulic linkages; distributer cap and rotor; safety restraint systems
(including air bags); glass; lenses; sealed beams; bulbs; HID’s, Light Emitting Diodes (LED’S); Brake
Hardware; weather strips; rubber mouldings; body sheet metal and panels; all trim, moldings,
handles, knobs, dials; exterior body parts/ornamentation; paint; upholstery and carpet; tires;
wheels/rims; tire pressure monitoring systems; any autonomous driving assemblies/components or
devices.
2. All exhaust and emissions components except the following emissions related components which
are covered: Air fuel ratio sensor; Anti-knock sensor; Fuel sensor; Idle air control valve; Intake air
temperature sensor; Intake manifold; Manifold air pressure (MAP) sensor; Mass air flow sensor;
Oxygen sensor; Powertrain control module (PCM); Exhaust manifold; EGR Valve; DPFE Valve; and
Throttle body assembly (MFI).
3. Maintenance services and parts described in your vehicle’s owner’s manual as supplied by the
manufacturer and other normal maintenance services and parts including, but not limited to:
alignments; wheel balancing; tuneups; spark plugs and spark plug wires; glow plugs; hoses; drive
belts; brake pads; linings and shoes; brake rotors and drums and wiper blades. Filters, lubricants,
coolants, fluids and refrigerants will be covered only if replacement is required due to a covered
failure.
4. Shop supply charges; hazardous waste disposal fees; special order parts shipping cost; parts locator
research fee.
5. Any component not covered by the vehicle manufacturer for the full term of the vehicle warranty.
6. Any failure resulting from collision; impact; internal or external fire; theft; vandalism; riot;
explosion; lightning; earthquake; freezing; rust or corrosion; windstorm; hail; water or flood; acts
of god; salt; environmental damage; contamination or loss of fluids, fuels, coolants or lubricants.
7. Any failure caused by misuse; abuse; negligence; lack of normal maintenance required by the
manufacturer’s maintenance schedule for your vehicle; improper servicing by you after the
effective date of this policy; sludge build­up or not maintaining proper levels of lubricants and/or
coolants; or not protecting the vehicle from further damage when a failure has occurred.
8. Any repair or replacement of a covered part if a failure has not occurred regardless of repair
facility recommendations or if the wear on that part has not exceeded the field tolerances
permitted by the manufacturer.
9. If any alterations have been made to your vehicle or you are using, or have used, your vehicle in a
manner not recommended by the manufacturer. This will include, but not be limited to, the
failure of any custom or add­on part; any frame or suspension modifications; lift kits;
oversized/undersized tires or wheels; trailer hitches; and or modifications to the engine,
emissions or exhaust systems.
10. If your odometer has ceased to work and repairs have not been immediately made; the odometer
has been altered in any way subsequent to purchase; or if vehicle’s true kilometres driven cannot
be determined.

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11. Any liability for property damage, or for injury to or death of any persons arising out of the
operation, maintenance or use of your vehicle, whether or not related to the parts covered. Loss of
time, profit, inconvenience, or any other loss that results from a failure (except as provided under
the benefits or coverages herein).This policy does not provide coverage for damages for bad faith,
punitive or exemplary damages, personal injury including bodily injury, and attorney’s fees.
12. Repairs to seized or damaged engines due to continued operation (regardless of cause) or without
Sufficient lubricants or coolant. You are responsible for making certain that the oil and
temperature warning lights/gauges are functioning properly. You must pull off the road
immediately, discontinue vehicle operation and arrange to have your vehicle towed to the
nearest repair facility when either of these lights/gauges indicates inadequate protection or
performance. Continued use of the vehicle when these indicators are on may cause your claim to
be denied.
13. Salvaged title vehicles; when responsibility for a repair is covered by an insurance
policy; warranty from the manufacturer including extended drive train, major
component or full coverage warranties; a repairer’s guarantee/warranty; or
failures for which the manufacturer has announced its responsibility through any
means, including recall campaigns and factory service bulletins.
14. If your vehicle is used for towing a trailer or other object or vehicle without being
equipped with a factory installed or authorized tow package.
15. If your vehicle is used for commercial purposes, including, but not limited to,
rental, taxi, limousine, ride sharing, Uber/Lyft, delivery service, livery or shuttle,
towing or road repair, construction, farming or agricultural purposes, job site
activities, hauling, police or emergency services, principal off road use, racing,
competitive driving, snow removal, route­work, service or repair.
16. Any failure occurring prior to the policy effective date, or if information provided
by you or a repair facility cannot be verified as accurate or is found to be
deceptively inaccurate.
17. Any failure occurring outside of the continental United States of America or Canada.
18. Damage caused by pre­ignition detonation, pinging, improper/contaminated fuel or improper engine
adjustments.

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