The idea of the property damage reimbursement endorsement - this applies to Section A - third party liability coverage. The signing of this endorsement means the insured agrees to reimburse the insurance company a stated amount or the actual amount of loss or damage, whichever one is the least, in respect of loss or of damage to property arising out of each and every accident with respect to which the policy responds under Section A.

This endorsement usually appears on a policy when the underwriter wants to diminish the overall cost of a Section A loss. There is no charge for this endorsement.

If there is a driver in your household who is considered to be of high risk then you may say the insurance company requesting that this form be signed. If this person drives the vehicle and has an accident then the owner of the policy, you, will have to pay back the amount of loss or damage.

If you are asked to sign this form then do discuss the implications with your agent or broker. This is a very serious request.


(Section A only)

In consideration of the premium charged, the Insured agrees to reimburse the insurer in the sum of $—— or the actual amount of the loss or damage, whichever is the lesser, in respect of loss of or damage to property arising out of each and every accident with respect to which indemnity is provided under Section Aof this policy.

It is understood and agreed that upon the occurrence of an accident involving loss of or damage to property of others:

(a) irrespective of the amount of loss or damage, notice shall be given to the Insurer in accordance with Statutory Condition 3 of this policy;

(b) the Insurer shall investigate such accidents and negotiate and pay resulting claims or judgments arising there from and the Insured shall reimburse the Insurer upon demand for any amount up to the extent herein provided;

(c) the limit of the Insured's liability for repayment hereunder shall be the amount stated above applying to each accident regardless of the number of claims arising therefrom.

If more than one automobile is insured under this policy, this endorsement shall apply only to the automobile(s) described under item(s) number of the schedule of automobiles attached to and forming part of this policy.

Signature of Insured

Except as otherwise provided in this endorsement, all limits, terms, conditions, provisions, definitions and exclusions of the policy shall have full force and effect.

Attached to and forming part of Policy (Number) with (insurance company).
Issued to (insured's name). This endorsement shall be effective from 12:01 A.M. Standard Time (date).