Common use of By Replacement Clause in Contracts

By Replacement. If we decide your ATV must be replaced because of its loss, settlement will be as follows: (a) If the loss or damage happens within the first 24 months from the date you took delivery of the ATV and you choose a brand new ATV of the same make and model with similar equipment (colour may vary), we will replace your ATV. If the same model year is not available, we will replace your vehicle with the next model year available. (b) If you choose a different make or model that is brand new with a value lower than shown on the Summary of Coverage page, we will only pay you our cost to replace the ATV with a new ATV of your choice. (c) If you choose a different make or model that is brand new with a higher value than shown on the Summary of Coverage page, or this is a leased vehicle, we will only pay you up to the original purchase price of the ATV as shown on the Summary of Coverage page. (d) If the loss or damage happens and we cannot replace the ATV covered because the same or similar make and model are no longer produced or manufactured, we will pay you the original purchase price (including applicable taxes).