Farm Insurance Online :: News
SHARE

Share this news item!

Insurers Ordered to Compensate Despite Theft Claim Doubts

Insurers Ordered to Compensate Despite Theft Claim Doubts

Insurers Ordered to Compensate Despite Theft Claim Doubts?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Financial Complaints Authority (AFCA) has mandated that Insurance Manufacturers of Australia compensate a claimant whose car was stolen while it was parked at a friend's residence.

The policyholder filed a claim two days after her vehicle was reported stolen on March 23, 2022. She recounted purchasing the car from a friend, who is a certified motor mechanic, and leaving it at their house for servicing.

Insurance Manufacturers of Australia had raised numerous concerns about the circumstances surrounding the theft. These included a lack of proof of purchase and incomplete information about the vehicle's service history. The car was insured despite the new owner not driving it, which also raised suspicions. In addition, the friend did not cooperate with the insurer’s inquiries.

AFCA responded by stating that it is common for individuals to not have a purchase receipt when buying a vehicle privately. They accepted the bank statements showing a $35,000 transaction labeled "AA-Van" as adequate evidence of payment. They also acknowledged that service history details may have been in the vehicle at the time of theft.

The ruling emphasized that purchasing insurance was logical as it included coverage for non-driving events such as theft. While cooperation from the mechanic friend would have aided the investigation, it was not deemed a sufficient reason to reject the claim.

Concerns were also raised by the insurer about why the car remained with the friend for over nine months and inconsistencies in the car’s documented compliance and build dates. AFCA found no definitive reason for the extended storage but accepted explanations, such as Melbourne's lockdown and the complainant’s husband's health issues, as plausible.

The authority acknowledged a confusing situation regarding date inconsistencies but noted that the vehicle identification number (VIN) was consistent across documentation, thus confirming ownership and associated loss.

“Although it seems unlikely that a certified motor vehicle tester would make an error in the build date, it’s not an implausible mistake to make,” commented AFCA’s adjudicator.

Given all evidence, AFCA concluded that the complainant should be recognized as the owner who suffered a financial loss, and they instructed Insurance Manufacturers of Australia to accept the claim and process the payout.

For more details on the original case and ruling, refer to the Australian Financial Complaints Authority’s documentation.

Published:Monday, 29th Jul 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

What Electric Heavy Vehicles Mean for Truck Insurance
What Electric Heavy Vehicles Mean for Truck Insurance
10 Sep 2026: Paige Estritori
Recent transport and fleet industry coverage continues to point to a steady increase in electric and low-emission heavy vehicles across Australian logistics operations. For many operators, the attraction is clear: quieter vehicles, lower tailpipe emissions, potential fuel savings and stronger alignment with customer sustainability targets. But the insurance conversation is now becoming more detailed than simply replacing a diesel truck with an electric one. - read more
Why the Latest Insurance Data Matters for Trade Businesses
Why the Latest Insurance Data Matters for Trade Businesses
10 Sep 2026: Paige Estritori
APRAs latest quarterly general insurance statistics point to a market that is still under cost pressure, even as insurers continue to report stronger overall results than during the worst of the recent claims cycle. For Australian tradespeople, the headline is not simply whether insurers are profitable. The practical issue is how rising premiums, repair costs, reinsurance expenses and claims activity flow through to the price and availability of cover used every day on the tools. - read more
Advice Changes Could Make Income Cover Easier to Understand
Advice Changes Could Make Income Cover Easier to Understand
10 Sep 2026: Paige Estritori
Australias financial advice reform agenda has taken another important step, with industry attention turning to how simpler, more accessible guidance could help consumers make better decisions about insurance. For workers who rely on income insurance or salary continuance cover, the issue is more practical than political: many people hold cover they do not fully understand until illness or injury forces them to test it. - read more
Why Battery Freight Is Becoming a Truck Insurance Issue
Why Battery Freight Is Becoming a Truck Insurance Issue
10 Sep 2026: Paige Estritori
Recent transport and insurance industry attention on lithium-ion battery safety is a timely warning for Australian truck operators. The issue is no longer limited to consumer products catching fire in homes or warehouses. Batteries now move through freight networks in tools, scooters, e-bikes, electronics, spare parts and energy storage equipment, and that creates a different risk profile for carriers, depots and subcontracted linehaul work. - read more
Seasonal Bushfire Risk Puts Farm Cover Back in the Spotlight
Seasonal Bushfire Risk Puts Farm Cover Back in the Spotlight
09 Sep 2026: Paige Estritori
Australias latest seasonal bushfire outlook is a practical reminder that fire risk is not confined to the height of summer. For many farms, the exposure begins well before a catastrophic fire day is declared, as grass growth, drying winds, stored fodder, machinery movement and access limitations combine to create a more complex risk profile than a standard rural home policy can address. - read more


Farm Insurance Articles

Livestock Insurance in Australia: What Farm Owners Should Understand
Livestock Insurance in Australia: What Farm Owners Should Understand
Livestock insurance can help Australian farm owners manage financial risk when valuable animals are lost, stolen, injured or affected by specified insured events. This guide explains common cover types, exclusions, valuation issues and questions to ask before choosing a policy. - read more
Comparing Insurance Options for Mixed Farming: What Rural Owners Need to Know
Comparing Insurance Options for Mixed Farming: What Rural Owners Need to Know
Welcome to our comprehensive guide on comparing insurance options for mixed farming. As a rural farm owner, you face unique challenges that require specialized insurance coverage to protect your livelihood. - read more
What Affects the Cost of Farm Insurance in Australia
What Affects the Cost of Farm Insurance in Australia
Farm insurance premiums in Australia can vary widely because every farming operation has different assets, risks, locations and coverage needs. This guide explains the main factors that can affect farm insurance cost, how excesses and policy limits work, and practical ways to compare cover without leaving important gaps. - read more
How Keyperson Insurance Can Safeguard Your Farm's Future
How Keyperson Insurance Can Safeguard Your Farm's Future
Keyperson insurance is a specialized type of business insurance designed to protect companies from the financial repercussions of losing a critically important team member. This type of insurance provides a payout that can help stabilize the business during the transition period following the loss of a key individual. In the context of farming, this might include someone who holds a unique skill set, deep agricultural knowledge, or critical business acumen that drives the success of the farm. - read more
Farm Insurance Comparison: Secure Your Farm with the Right Coverage
Farm Insurance Comparison: Secure Your Farm with the Right Coverage
As a farm owner, your livelihood depends not only on the hard work you put in but also on the protection you have in place against unforeseen events. Farm insurance is crucial in safeguarding your investments, ensuring that your operations can continue smoothly even when faced with unexpected challenges. - read more

Knowledgebase
Indemnity:
A legal principle that stipulates that insurance policies should restore the insured to the financial position they were in before the loss.