INSURANCE POSITION FOR THE INCA TRAIL AS AT FEBRUARY 2001

T.L. Clowes and Company are Lloyds' Insurance Brokers established in 1977. We specialise in placing unusual insurance risks but our account is primarily automotive related. We are recognised World Wide as the most experienced and knowledgeable motor sports broker, hence our connection with the forthcoming Inca Trail in 2001.

We have handled the insurance programmes for many other long distance motoring events and are looking forward to being of assistance to everyone involved in this event. We wish the organisers and competitors success on this great adventure.

The insurance details laid out below give an outline of the cover we are able to provide and full copies of the relevant wordings are available on request. We will also be happy to deal with any other questions you may have.

The Organisers will purchase the following cover for each participant for the period of the event. This cover will commence at signing on, on the 5^th October 2001:

• Accidental Death £100,000
• Accident Permanent Total Disablement £100,000
• Accident Temporary Total Disablement £500 per week up to 52 weeks in excess of 7 days after the completion of the event
• Accident and Illness Medical Expenses and Repatriation £50,000 with an excess of £250 each and every loss

Benefits shown are per person.

CANCELLATION INSURANCE

The organisers have arranged a policy to cover their net ascertained loss in the event of the cancellation prior to the commencement of the event, or the abandonment of the event whilst it is being run due to future unforeseen circumstances. This ensures that participants would receive a refund of their entry fee should the event be cancelled, or a partial refund based on the distance covered should the event be abandoned.

The main perils excluded (but not limited to ) are war, civil commotion, customs seizure or government or civil intervention. However we are currently negotiating on behalf of the organisers to obtain an additional policy to reinstate these perils.

INSURANCE AVAILABLE TO COMPETITORS

The following insurance options will be available from ourselves for the event. Full details of the finalised covers including the confirmed prices will be issued to all participants once our negotiations with Insurers have been completed

ADDITIONAL PERSONAL ACCIDENT MEDICAL AND REPATRIATION EXPENSES

As detailed previously, the Organisers provide a level of Medical Expenses and Personal Accident cover within the entry fee. This insurance includes medical expenses and repatriation cover up to £50,000, providing cover for a hospital stay; airline seats back to the country of origin; worldwide medical emergency assistance available 24 hours, who will suggest appropriate means of emergency recovery, i e helicopter rescue where there is a genuine emergency. This insurance will also provide cover for injuries as a result of crime, riots, local violence outbreaks, etc. However, it may not be enough to cover both medical and repatriation expenses if a private medically equipped aircraft is necessary. All participants have the benefit of this cover. Should you wish to supplement the levels of cover provided the following additional cover will be available. All personal accident, medical and repatriation cover will start as soon as the competitor signs on at the start of the event.

The Medical Expenses section may be increased to cover you for additional Medical Expenses up to £1,000,000 in excess of the £50,000 which has been arranged by the Organisers.

The Accidental Death and Permanent Disability sections may also be increased up to £300,000 from the £100,000 arranged by the Organisers.

For those participants who have their own Annual Travel policy or Personal Accident policy it is important to check whether this type of event will be included under the terms and conditions of their policies. Some such policies will exclude ‘Motor Trials or Rallying’, however, it may be possible to extend the cover at a small additional cost.

We anticipate that the premium in respect of the additional medical expenses will be £100 per person and the personal accident cover will be £100 per person per additional £100,000 of cover purchased.

THIRD PARTY INSURANCE

We are currently working with South American Insurance Companies to secure compulsory local primary Third Party Insurance for each of the six countries. We are also working with London Insurers to supplement these local insurance covers.

This insurance cover is the equivalent of the Compulsory Road Traffic Act Third Party Insurance that all vehicles in the UK and Europe must obtain before being allowed on the highways. It will be compulsory for you to arrange this type of insurance cover.

At the present time we are awaiting confirmation from the individual companies as to the full conditions and premiums for each country. By dealing with the insurance companies in each country we can guarantee that the correct insurance cover will be in force.

ACCIDENTAL DAMAGE FIRE AND THEFT

We are currently in negotiation with the underwriters who insured the London to Cape Town event and hope that the premium per vehicle will be significantly less than 10% of the vehicle value.

NON APPEARANCE INSURANCE

This type of cover protects your entry fee and expenses (including vehicle preparation costs which are dependant on its residual value) and would pay your net ascertained loss in the event that you or your crew is unable to commence the 2001 Inca Trail due to accident or illness. Currently the regulations for the event allow for a refund of all fees paid to date apart from £3,000, which HERO would keep. This applies until 31 July 2001; after this date no fees will be refunded. Cover can be extended to include your withdrawal prior to the event due to death, accident or illness to a family member and damage or theft of your car.

As this type of cover mirrors the needs of each participant, policies are individually tailored to each person depending on circumstances. HERO strongly advises participants to take out this cover as soon as possible as no refunds will be offered after 31 July. Full details are available from T.L. Clowes by contacting us directly.

MARINE TRANSIT INSURANCE

This type of insurance will cover your vehicle from the time it is containerised in your home country until you collect it from the docks in Rio de Janeiro. The policy will be re-instated once you deliver it back to the docks for the return transit and will cease when the vehicle is unloaded either at your home or the docks in your home country.

Should you be forced to withdraw during the event the transit insurance will re-instate at any point of withdrawal once the vehicle is loaded onto a transporting vehicle.

T.L. CLOWES AND COMPANY LIMITED

52, LIME STREET
LONDON EC3M 7NJ
Telephone: +44 (020) 7220 7878
Facsimile: +44 (020) 7220 7879
www.tlclowes.com

E-mail: [email protected]

Contacts: Tom Ellis/James Martin/Margaret Sussex