eBay VPP – Changes to Insurance Policy Terms and Conditions

This document provides a summary of the key changes to insurance cover which has been arranged by eBay International AG ("eBay") with American Home Assurance Company Limited ("AIG") under an insurance policy issued to eBay (the "Master Policy") the benefit of which Master Policy extends to certain eligible purchasers of Eligible Vehicles, as that term is defined in the Master Policy.

These changes will apply to Eligible Vehicles listed for sale on the eBay website after 4.01pm New South Wales standard time on 30 July 2007. Please refer to the Terms and Conditions, the full policy wording dated 19 May 2006 ("Policy Wording") and the policy endorsement dated 9 July 2007 ("Policy Endorsement") for further details of the cover provided under the Master Policy. Unless otherwise defined herein, all capitalised terms have the meaning set out in the Policy Wording or the Policy Endorsement.

In the event of any inconsistency between this summary and the Master Policy or the Policy Endorsement, the provisions of the Master Policy as amended by the Policy Endorsement will prevail and apply.

1. Transitional arrangements

   The Policy Endorsement and the changes to cover described below will apply to Eligible Vehicles listed for sale on the eBay website after 4.01pm New South Wales standard time on 30 July 2007.

   These changes will not apply to and AIG will continue to provide cover on the original terms of the Master Policy in force prior to 30 July 2007 in respect of Eligible Vehicles that were listed for sale on the eBay website prior to 4.01pm New South Wales standard time on 30 July 2007, regardless of when the purchase of these Eligible Vehicles is completed. For the avoidance of doubt, and by way of illustration, the original terms of the Master Policy in force prior to 30 July 2007 will be applicable in the following circumstances:

1. where the Eligible Vehicle was listed for sale prior to 4.01pm New South Wales standard time on 30 July 2007 and the purchase of the Eligible Vehicle was also completed by this time;
2. where the Eligible Vehicle was listed for sale prior to 4.01pm New South Wales standard time on 30 July 2007 but the purchase of the Eligible Vehicle is not completed until a later later; and
3. where the Eligible Vehicle was listed for sale prior to 4.01pm New South Wales standard time on 30 July 2007 but a claim arising out of the purchase of the Eligible Vehicle is not received by the claims adjuster, Marsh Pty Ltd ("Marsh") until after this date.
2. Classified Ads

   Cover is now provided for Eligible Vehicles listed for sale on the eBay website using the 'Classified Ad' format (in addition to the 'Auction' and 'Buy-It-Now' listing formats), including where an offer to purchase the Eligible Vehicle is made to the Seller via the "Submit Best Offer" option and where the Seller makes a counter-offer to the same Buyer, subject to certain eligibility criteria being met.

3. Insuring Agreements (2)(d)

   Insuring Agreements (2)(d) has been amended to clarify that no cover will be provided in respect of the Buyer's inability to register a certificate of title to an Eligible Vehicle resulting from the condition or roadworthiness of the Eligible Vehicle.

4. Exclusions
   • 4.1 Exclusion 2 has been amended to clarify that cover will not be provided in respect of inspection costs, warranty premiums or fees or other expenses incurred as a result of meeting the requirements of lodging a claim under the policy.
   • 4.2 Exclusion 3 has been amended to clarify that cover will not be provided in respect of exterior damage to an Eligible Vehicle or damaged or missing interiors or interior features in an Eligible Vehicle that was or were disclosed to the Buyer by the Seller, or that in eBay's opinion, should have been noticed upon reasonable physical inspection by the Buyer prior to paying the Purchase Price to the Seller.
   • 4.3 Exclusion 8 has been amended to clarify that cover will not be provided in respect of loss incurred as a result of a Seller's misrepresentation, breach of warranty or fraud by the Seller in respect of master keys, locks or replacement locks.
   • 4.4 A new Exclusion 13 has been introduced to make it explicit that no cover will be provided for costs or expenses arising as a result of the Buyer's inability to register a certificate of title to an Eligible Vehicle resulting from the condition or roadworthiness of the Eligible Vehicle, unless the costs or expenses are incurred as a direct result of a Seller's fraud, breach of warranty or misrepresentation contained in or omitted from a Listing or a Classified Ad which falls within Insuring Agreements (1)(a) to (1)(f).
5. Conditions

   Condition 13 has been amended to clarify that cover will not be provided in the following circumstances:

   1. where eBay removes a Seller's Listing or removes a Seller's Classified Ad;
   2. where the Seller ends the Listing early or withdraws a Classified Ad;
   3. where a Buyer submits a Best Offer in respect of an Eligible Vehicle listed for sale in a Classified Ad which is not accepted by the Seller (even if the Seller later agrees to sell the Eligible Vehicle to the same Buyer for the same price as that Buyer's original offer);
   4. where a Seller makes a counter-offer to a Buyer who has made a Best Offer in respect of an Eligible Vehicle listed for sale in a Classified Ad, which is not accepted by the Buyer (even if the same Buyer later agrees to purchase the Eligible Vehicle from the Seller for the same price as the Seller's counter-offer);
   5. where the Buyer and Seller agree to transact privately outside of the eBay Site.