The financial services ombudsman has backed two travel insurers in disputes over their sublimits on payments for lost jewellery.

One traveller lost her Cartier bracelet, worth about $9000, while at a concert in Thailand last November.

She said insurer AWP told her she was covered for losses up to $10,000 and its agent did not inform her about the $750 jewellery sublimit. She argued she was misled, because it was the agent’s responsibility to tell her “all the ins, outs, gaps and rules the insurance covers or does not cover”.

AWP said its representative mentioned the jewellery sublimit and gave the woman the option to increase her coverage beyond $10,000, but she declined.

The Australian Financial Complaints Authority says the call recording confirms this.

It notes the woman expedited the policy purchase because she was in a rush on the day she was due to travel.

“I am satisfied the insurer reasonably clarified the sublimit applicable to jewellery and did not mislead the complainant about cover available for jewellery,” an AFCA ombudsman said. “The responsibility remained with the complainant to read the policy and understand the sublimits applicable to her valuables.” 

The second claimant wanted $15,000 for a lost gold necklace worth $24,500. 

Insurer HDI Global did not dispute the value but said its policy limited payment for any non-electronic or communication device to $750. 

The claimant argued that neither he nor his wife had been able to download policy documents that were sent to them. 

But AFCA finds they probably had access to the documents, because the policy could not be bought without accepting terms and conditions included in the product disclosure statement. It also notes the man was aware of the maximum payable amount under the policy. 

The claim was settled for $550 after the policy’s $200 excess was applied. 

See the rulings here and here.