VERY UNHAPPY

Dear MFC,

Last week Tuesday the 13-03-2018 I took my vehicle to Auto Glen BMW for repairs. I forwarded my MFC Advanced Extended & Pre-Owned Warranty to the Service Consultant; Franscois Van Rensburg at Auto Glen BMW.

Upon doing diagnosis on my vehicle multiple faults were found - and a quote with the faulty components listed was sent through for assessment and approval: REF WIP Number: 34822.

The quote was approved for only R 8999 from the quote that amounted to R 63 068.01.

I called the Innovation Group to establish how they had come to that conclusion that my claim should only be approved for the R 8999, and I was given the run around.

My vehicle was standing at Auto Glen BMW until Tuesday 20-03-2018 where I had to pay R 2228.47 to get my vehicle released because the Warranty I have don’t want to pay for the claim. I can’t comprehend that I have a valid warranty with a valid claim as all components listed below are covered but, my service provider refuse to pay?

I feel very betrayed by MFC for not honouring their side of the agreement, this experience really left a bad taste in my mouth. I can’t believe such a big organisation can treat their clients with such disrespect.

From my understanding in my contract I signed with MFC I came across the following:

THE INTENTION OF THIS PRODUCT IS: To provide you, the customer, with a mechanical and/or electrical failure product that covers a range of components outlined in the section “Components Covered”. Please note that your Policy does not cover every eventuality and hence you need to fully understand what cover is provided under your Policy.

“Cost of Repair”: refers to the usual and reasonable charges for components and/or labour required to repair or replace the damaged components.

Pre-Owned Warranty: Motor-Drive 2. (see “Limits of Liability” table). Please note: In order to qualify for Moto-Drive 2, the vehicle must be less than 10 years old from date of original registration and have less than 200 000 km's recorded on the odometer.

1. WARRANTY BENEFITS Your Policy covers the repair and/or replacement of components specifically listed under the “Components Covered” section, arising from the mechanical and/or electrical failure during the cover period of your Policy and is subject to the terms, conditions and exclusions set out herein. All repair work must be authorised in advance and carried out by an Authorised Dealer as recommended by the Administrator in the “Claim Procedure” section.

1. Engine: All internal lubricated components. 2. Gearbox: (Manual / Automatic) All internal lubricated components. (Including torque converter and flex plate). 3. Differential: All internal lubricated components. 4. Differential Lock: All internal components. 5. Transaxle: All internal lubricated components. 6. Transfer Box: All internal components. 7. Management System: Engine and transmission management control units, crankshaft sensor, camshaft sensor and lambda (O2) sensor only. 8. Turbo Assembly: Original Manufacturer fitted turbo charger, intercooler and superchargers only. 9. Front Wheel Drive Unit: External driveshaft’s, couplings, hubs, bearings and drive flanges for 4x4 vehicles only. 10. Casings: Engine block, cylinder head, gearbox, differential, drive unit, inlet and exhaust manifolds are covered in the event of damage being caused by the failure of a covered component. 11. Electronic Ignition: Distributor and coil packs. 12. Air Conditioner: Compressor only. 13. Cooling System: Water pump, welsh plugs, thermostat, thermo-switch, and heater radiator only. 14. Free Wheel Hubs: Complete unit. (Applicable to 4x4 vehicles only). 15. CV Joints: Excluding dust covers and rubbers. 16. Propshafts & Driveshafts: U-joints and centre bearings. 17. Steering Mechanism: All internal components of steering box or steering rack. (Including power steering pump). 18. Braking System: Master cylinder, servo unit, wheel cylinders and ABS control unit and all sensors. Vacuum pump on diesel vehicles only. (Excluding all friction materials). 19. Fuel System: Mechanical and electrical fuel pumps, injectors, fuel injection control and sensor units. (Excluding all calibration and serviceable components and any incorrect or contaminated fuel). 20. Electrical Components: Alternator, starter motor, front and rear windscreen wiper motors and electric window motors, electric seat motors. 21. Electrical Winch: Electric motor only. (Applicable to 4x4 vehicles only). 22. Clutch: Clutch plate, pressure plate, clutch cable, clutch fork, master and slave cylinder, release bearing, pilot bearing and flywheel are covered against mechanical failure only. 23. Suspension: Upper and lower wishbones with associated ball joints, bushes and springs are covered against mechanical failure only. 24. Wheel Bearings: All wheel bearings are covered. 25. Radiator: Engine cooling radiator only. 26. Catalytic Converter: Catalytic Converter only. 27. Drive Pulleys: Crankshaft, camshaft, tensioners, and jockey pulleys are covered in the event of mechanical failure. 28. Cylinder Head Gasket: Cylinder Head Gasket only. 29. Viscous and Electrical Fan: Engine cooling only. 30. Central Locking: Pump and Door actuator only. 31. Electric Sunroof Motor and Convertible Roof Motor: Original Manufacturer fitted units only. 32. Electric Mirrors: Motor only. 33. GPS Navigation System: Navigation display unit, navigation control module and navigation system wiring harness. (Applicable only to factory fitted units). 34. Entertainment System: LCD screen (10' or less) RF modulator, digital video disc player, compact disc player and power converter. (Applicable only to original Manufacturer fitted units). 35. Phone System: Charger, cradle, microphone and speakers. (Applicable only to original Manufacturer fitted units). 36. Transponder Key: Original Manufacturer fitted unit only and functional failure only. 37. Alarms and Immobiliser: Original Manufacturer fitted units only. 2. ADDITIONAL BENEFITS 1. Overfuelling: Engine failure as a result of overfueling 2. Overheating: Breakdown as a result of overheating 3. Cambelt Failure: Cambelt and tensioner. (Excluding routine maintenance).

7. CLAIM LIMITS The individual claim limit that applies to your Policy is clearly stipulated under the “Limits of Liability” section. The total claim aggregate shall not exceed the current trade value of your vehicle.

Limits of Liability: Covered Components Pre-Owned Motor-Drive 2 1. Engine R 35 000 2. Gearbox R 25 000 3. Differential R 25 000 4. Differential lock R 9 000 5. Transaxle R 9 000 6. Transfer box R 9 000 7. Management system R 9 000 8. Turbo Assembly R 9 000 9. Front wheel drive unit R 6 000 10. Casings R 6 000 11. Electronic Ignition R 6 000 12. Air- conditioner R 6 000 13. Cooling System R 6 000 14. Free wheel hubs R 5 000 15. CV Joints R 5 000 16. Propshaft &Drive Shaft R 5 000 17. Steering Mechanism R 5 000 18. Braking System R 5 000 19. Fuel System R 5 000 20. Electrical Components R 5 000 21. Electrical Winch R 5 000 22. Clutch R 5 000 23. Suspension R 5 000 24. Wheel Bearings R 5 000 25. Radiator R 5 000 26. Catalytic Converter R 7 500 27. Drive pulleys R 5 000 28. Cylinder head Gasket R 5 000 29. Viscous & Electrical fans R 3 000 30. Central Locking R 3 000 31. Electrical sunroof motor R 3 000 32. Electric Mirrors R 2 000 33. GPS Navigation System R 2 500 34. Entertainment System R 2 500 35. Phone System R 2 500 36. Transponder Key R 1 500 37. Alarms & Immoboliser R 1 500 Additional Benefit Cover Extended Pre-Owned Motor-Drive 2 1. Overfueling R 7 500 2. Overheating R 7 500 3. Cambelt Failure R 5 000

Claim Limits (including VAT) The maximum amount payable per claimable occurrence for each item is clearly reflected in the “Limits of Liability”. Any number of failures that occur or reported simultaneously will be treated as one claim. In this instance the liability will not exceed the amount of the major component benefit.

1. TERMS AND CONDITIONS Your Policy will be cancelled for excessive claims within your Policy duration.