In the event of a Loss without Recovery, Cartrack undertakes to pay to the Client a lump sum on the following terms and conditions:

1 Payment:

1.1 The amount of the lump sum shall be the book value of the vehicle, computed as the average of the trade and retail value of the vehicle as per the ITC Auto Dealers Guide as at the month of the theft, limited to a maximum amount of R150 000 inclusive of VAT; and
1.2 Payment shall be made within 60 (sixty) days of receipt by Cartrack from the Client of the documents referred to in 2.4 if no Recovery has yet been made; and
1.3 Should the stolen vehicle be recovered by any party after payment by Cartrack has been made, then the Client shall be obligated to inform Cartrack in writing and reimburse Cartrack the Recovered Value within seven days of the recovery. The “Recovered Value” shall mean the lesser of the warranty payment made by Cartrack to the Client or the market value of the vehicle in its recovered condition.

2 Conditions and Limitations:

2.1 This warranty shall only apply to the Cartrack products which provide the Stolen Vehicle Recovery Service, with the exception of mobile devices, and which are sold and installed after 1 September 2012 and until such date as Cartrack may decide to terminate the offer of such warranty on notice to the Client, and where the Fees for the service are paid for at the retail prices published from time to time; and
2.2 This warranty shall be valid for a period of 3 (three) years from date of installation, whereafter it shall lapse;
2.3 Should the Client be insured by an insurer or through a broker who has accepted this warranty on behalf of the Client under an arrangement with Cartrack whereby the Client receives a direct or indirect benefit from such warranty in terms of the Client’s insurance policy, then Cartrack shall have no obligation whatsoever to the Client in respect of this warranty. In such case, it shall be the Client’s responsibility to determine from the insurer or broker what benefits will accrue to the Client under his policy;
2.4 It is the responsibility of the Client to:
2.4.1 Advise Cartrack in writing of the details of the insurer and vehicle financier, if any, and update Cartrack with any changes in such details; and
2.4.2 To inform Cartrack in writing if the Client has any stolen vehicle recovery service contracts concurrently in force with service providers other than Cartrack; and
2.4.3 Report the loss to the law enforcement agency and to provide Cartrack promptly with the case reference number and details of the enforcement agency where the theft was reported; and
2.4.4 Provide Cartrack with either proof of payment of the insurance claim by the insurer, if insured, or a sworn affidavit attested by a member of the South African Police Service confirming that the Client is not insured for the vehicle against theft; and
2.4.5 Regularly test the Unit to ensure it is operational and, if notified by Cartrack that the unit is faulty, to take the vehicle to an Installation Centre for repair within 3 working days of establishing the fault; and
2.4.6 Keep the Client’s emergency contact details up to date and to ensure there are sufficient emergency contact persons so that at least one contact is available to receive a call from the control room in the event of a theft incident.
2.4.7 This warranty does not cover the loss of contents of the vehicle or damage to a vehicle if recovered, including any consequential damages as a result of the Loss; and
2.4.8 The Client hereby authorises Cartrack to do whatever investigations Cartrack deems necessary to evaluate a claim under this warranty, including liaising with any insurer or third party and obtaining reports in respect of the loss, and to publish the warranty paid out, if any.

3. Exclusions: This warranty shall be invalid if:

3.1 The Client is in breach of any of the terms and conditions of this Agreement entered into by the Client in respect of the Service; or
3.2 The vehicle was not within the borders of the Republic of South Africa at the time of the incident or notification of the loss to Cartrack; or
3.3 Cartrack has contacted the Client following receipt by the control centre of a theft alert signal and the Client has confirmed that the vehicle is secure, but the vehicle has in fact been stolen; or
3.4 It is established with reasonable probability that fraud was involved in relation to the loss; or
3.5 The vehicle was insured and the insurer has not paid out the Loss claim;
or
3.6 The account of the Client was in arrears at the date of the theft and/or the Client is in arrears with any existing financial contract; or
3.7 The vehicle had been previously stolen and recovered, but not subsequently referred to Cartrack by the Client for checking of the installation and revalidation of the warranty prior to being stolen again and not recovered; or
3.8 There has been any undue delay in reporting the loss to Cartrack if such delay was material to the non-Recovery. A loss must be reported within 6 (six) hours of the theft incident; or
3.9 The unit has been established to be faulty in terms of 2.4.5 and the vehicle was stolen while the unit was faulty; or
3.10 The Client contact details were incorrect to the extent that Cartrack was unable to make telephonic contact with the Client or the Client’s alternate emergency contacts at the time of the theft; or
3.11 The vehicle is operated as a mini bus.

4 Except as set forth herein, no other recovery warranties are expressed or implied.