A motorist whose car was stolen and written off after his keys were left in his wife’s nearby vehicle will receive a payout because the complaints authority says the loss can be considered accidental damage. 

The man lodged a claim in January last year when his car was found wrecked a few days after the theft. 

Youi, considering the loss a result of the theft, refused to pay out on the basis the crooks obtained the keys from the other vehicle.

The insurer initially said the wife’s car was unlocked but it could not confirm this.  

The policy wording stated that claims would not be covered if “the ignition keys were left near the car while it was unattended”, but the exclusion related to theft only.

The Australian Financial Complaints Authority’s dispute ruling finds that while a theft did occur, the claim can also be considered under the accidental damage cover, where the exclusion does not apply.  

It acknowledges there are few details on the circumstances but says the damage does not appear to have been caused intentionally.  

AFCA says the front-end impact indicates the damage fits the policy’s accidental loss definition of “an unforeseen, unintended and unexpected event which occurs suddenly and at a specific place and time”.

An ombudsman says while the insurer considers the incident as theft, there is “nothing in the policy that prevents the claim from being considered (and potentially covered) under multiple insured events. 

“Given the nature of the damage (front-end impact), I am satisfied it is fair and reasonable to form the view the damage occurred suddenly and at a specific place and time. 

“Therefore, I am satisfied the damage to the vehicle is ‘accidental’ as defined in the policy. The exclusion relied on by the insurer is a specific exclusion within the ‘theft’ insured event. Therefore, it does not apply to claims under the ‘accidental damage’ ... insured event.”  

AFCA says the insurer must accept and pay the claim.

See the ruling here.