This will cover the following areas q q

This will cover the following areas: q q q q q Our insurance policy Selling Insurance Why Insure? Tips in discussing Insurance What is Easycover & Standard Cover Key discussion points Structure of an Insurance sale The Insurance brochure 14 Day Accommodation Warranty details Competitor Offers/Summaries

The psychology behind insurance - RISK Risk remains constant in a reasonable persons life and they in turn manage that risk. Reasonable people do not insure because they think something will happen, they insure against the “risk” of something happening. 95% OF THE PEOPLE WHO INSURE THEIR CAR NEVER HAVE AN ACCIDENT. YET THE FIRST THING THEY WILL DO WHEN THEY REPLACE THEIR CAR IS TO INSURE AGAIN. “Where there is a risk there is a need for protection!”

WHY INSURE? “You’re insuring against the risk of an unforseen event occurring that will impact your goods”

These pictures show what can happen to containers in heavy seas, when a ship rolls.

Why is Insurance important to our company? INSURANCE DOLLARS For every $100 we sell, $75 goes straight on the bottom line. vs. REMOVALS For every $100 we sell, only $8 goes to the bottom line.

WHY INSURE? You NEED to know this statement “As good as Grace is, you’re insuring against the risk of an unforseen event occurring that will impact your goods”

Home & Contents Values • Try to find out what they currently have the goods insured for. Clients often under-insure. If you know this value you can cross reference the amount they declare on our insurance proposal Remember: Customers are already believers.

Our Insurance Brochure Read the brochure and fully understand the difference between Easycover and Standard Cover

Our Insurance Discussion Process • • Find the values of their goods first Ask about items of interest/value/concern Make yourself compliant – PDS & FSG Suggest this: “Most of our customers take insurance, we recommend some type of insurance” Explain Easycover and its benefits Explain Standard Cover and its benefits Get a commitment/preference Explain your follow-up process will include getting the insurance just right for them

Grace Insurance Options Get familiar with the Grace insurance brochure, particularly this section.

Grace Easycover Explained (Our preferred insurance offering) • “It’s Easycover because it’s so easy” • Sign at the bottom and everything is covered • It’s worked out/calculated by the volume of the goods to give you a total insured value • It covers you for all risks, breaks, tears, scratches, bruises etc and also covers you for the big three (Mechanical & Electrical derangement, Pairs & Sets, Mould & Mildew). Explain these to the customer in detail. • There are no additional costs. It is easy and comprehensive (except for valuables).

Grace Easycover Explained (Con’t) (Our preferred insurance offering) • • • Insures clothing and computers for replacement value Insures jewellery Provides Pairs & Sets coverage for the full declared value Provides Mould & Mildew coverage for the full declared value Provides electrical and mechanical derangement cover for the full declared value Customers can extend the period of insurance to accommodate for unplanned storage Customers can insure effects at destination prices, not country of origin $0 excess when making a claim Provides for up to 14 days of temporary accommodation cover for no additional charge (Explained in further detail later)

Grace Standard Cover Explained • “This is where you itemise everything that is going and put a replacement value beside it and tally the values to find a total insured value. ” • As much as possible, all items/cartons need to be listed and valued. Do not suggest in any way that items can be “selected” for insurance. We do not do this. TIP! Replacement Cost may be referred to as ‘New for Old” as this may have more meaning to the customer.

Pricing Insurance Easy cover- ULTIMATE COVER Replacement Minimum (GST Exclusive) Local Intrastate International Store 2% 3% 4% 4. 5% 0. 08% $400 $630 $4. 00 / week Cover is based on a minimum of $3, 500 per cubic meter Cover is based on a minimum of $2, 500 per cubic meter Coverage Available Note: The minimum premium we will accept on an Easycover move within Australia is $440. 00 (GST Inclusive). E. g. Whether a customer is moving 4 m 3 or 2 m 3, the premium will be $440. 00 within Australia. Only when the meterage is over 4 m 3 does the premium adjust higher. This gives the customer $10, 000 worth of cover for their goods. However, if they only value their goods at $8, 000, give them $8, 000 worth of cover. The premium still stays at $440. 00 STANDARD COVER Local Intrastate International Store 1% 2% 3% 3. 5% 0. 07% $200 $20, 000 $200 $10, 000 $200 $6, 600 $250 $7, 143 $4. 00 / week MOTOR VEHICLES Local Intrastate International Store ( Market Value Only) Cover By Carrier 3. 50% Cover By Carrier Replacement Minimum Charge (GST Exclusive) Coverage Up to Note: The minimum premium we will accept on an standard cover move is $220. 00 within Australia (GST Inclusive). For example, on an intrastate move, a $220. 00 premium will give them up to $10, 000 coverage. A customer can take out $8, 000 worth of coverage, however the premium will remain $220. 00 (the minimum premium available. ) Please ensure that you ask customers that all goods are itemised and valued on the policy, not just specific items selected for cover.

Valuables Note: Packing & Moving costs can be insured as well • Note – With Easycover, only itemise valuables if they constitute our definition of a valuable and are valued over $5, 000, as they are already covered by our policy • With Standard Cover, itemise all goods and valuables.

14 Day Accommodation Warranty Grace Easycover - How does this work? What is the intent of the offer? • To separate us from every other mover - this is unique to the industry - a significant point of difference • We pay the majority of these claims now after the event, so this just allows us to get the recognition in advance. How will we determine claims to be paid? • For insured events as detailed in the following slides • Where through our mistake we fail to meet the contracted delivery date for the whole consignment • Where there is a significant event causing delay in delivery of the whole consignment by rail/sea/air (as opposed to the insured event where damage must occur) • Delay in delivery to part of a consignment - short sent / left of load etc. - essential items such as beds where it was our mistake (as opposed to an insured event)

14 Day Accommodation Warranty Grace Easycover - How does this work? THE RULES: • Applies to Easycover customers only • Only applicable to fixed date deliveries where we have agreed to the delivery day in advance of delivery. Most likely this will be at the time of booking - The exception being removals ex store where we have agreed a delivery day in advance - that too would be covered • Shipments under 4 meters don't qualify for Easycover or this warranty • Applies to Goods (plural) not good (singular) - i. e. the whole consignment must be delayed not part thereof • Partial damage does not trigger payment • Motor vehicles, boats, trailers and caravans must be insured and be part of a household goods shipment and the whole shipment must be delayed • Very unlikely that Sets & Pairs cover would trigger a payment as Pairs & Sets very rarely prevents delivery • Very unlikely that Mechanical Derangement cover would trigger a payment as mechanical derangement very rarely prevents delivery

14 Day Accommodation Warranty Grace Easycover - How does this work? THE RULES: • Pay only on insured events (and delays caused by us in some circumstances). Insured events are: Ø Total loss of consignment - noting exclusions - terrorism, war etc Ø Significant damage causing delay in delivery by rail/sea/air. (Derailment, sinking ship etc. ) Ø Mould and mildew preventing delivery Ø Fire, lightening, earthquake, riot resulting in significant damage and causing delay in delivery Exclusions • Delay as a result of goods for which a lien is issued, are seized or confiscated by a third party - Customs, duty, tax finance etc. • Delay as a result of customs and biosecurity processes • Delay as a result of us holding goods due to non payment of our charges • Force majeure • Delay as a result of terrorism, war or riot • Delay in delivery to part of a consignment - short sent / left of load • etc.

14 Day Accommodation Warranty Grace Easycover - How does this work? Basis of settlement • Up to $AUD 150. 00 inclusive of all accommodation charges including tax, per night for a maximum of 14 nights or the first day on which delivery is offered by Grace. • The settlement offer will be based on the earlier of the two – delivery or 14 days. • The payment is for accommodation only, all other charges such as meals, telephone, refreshments are excluded. • The Total Loss of a shipment will see us pay a maximum of 14 days accommodation or up until settlement is made prior to the 14 day period lapsing - whichever comes first

Tips for International Insurance • Discuss General Averaging with client (Discuss with your manager) • International moves have greater risks involved. Longer times, sometimes more handling, changes in weather conditions and more instability of vessels • Most Australian H & C Insurance Policies cover total loss only • When clients are taking about insurance, as well as considering insuring the value of the move, they need to consider the replacement cost of their possessions at the destination. • We need to stress that Grace: • has the most comprehensive and easy to understand insurance policy in the industry • offers the fastest claims process in the industry • employs fully trained removalists who are managed by service levels • Sell the move, then get the insurance if possible