The industry ombudsman has backed an insurer’s decision to write off a car that hit a pedestrian, rejecting the owner’s argument the company overstated repair costs.

The policyholder also sought compensation for stress and inconvenience, and he blamed the pedestrian for “jaywalking with her hearing blocked by earbuds”, arguing Suncorp should waive his excess.

But the Australian Financial Complaints Authority says the insurer fairly assessed the claim.

Suncorp obtained a repair quote for $9197, which compared with a pre-accident market valuation of $7100 and a salvage value of $1200.

The complainant provided a repair quote for $4436, but AFCA finds it was “less extensive than the insurer’s quote”, which it says covered all work required to fix the crash damage shown in photographs.

Under the policy, a vehicle could be declared a total loss if repair costs and salvage value exceeded the amount covered. The insurer assessed the amount covered to be $6440.

Related article: AFCA sides with car insurer in row over fair value

AFCA concludes the car was a write-off and the complainant was entitled to the agreed value, less the excess.

The authority has rejected the request to waive the excess, noting the policy required the insured to establish another driver was at fault – not a pedestrian.

An AFCA member added: “The police report states the complainant ‘failed to observe [the pedestrian]  crossing’ ... The footage of the accident shows the complainant’s car colliding with the pedestrian. I do not consider this shows the pedestrian was at fault.”

The ombudsman has also ruled out compensation, finding the insurer’s conduct did not cause an unusual degree of stress or inconvenience.

See the ruling here.