The victim of an unprovoked assault will not receive a payout for missing work because he did not have positive income during his policy period, the industry ombudsman has ruled.

The man suffered serious injuries and his situation was “very unfortunate”, but it would not be fair for Hannover Life Re to pay benefits, the Australian Financial Complaints Authority says.

The man was attacked in January last year and a day later was certified unfit to work.

He claimed against his income protection cover, but the insurer said the benefit was capped at 75% of pre-disability income, which during the relevant period amounted to a loss of $5077.

The man worked at a building business owned by his investment trust, which paid him a wage and dividends.

Unlike many income protection policies, his cover did not have terms addressing how the income of self-employed people was assessed.

The man told the insurer he was a self-employed builder and had earned $250,000 from a two-year project.

The business was involved in buying, developing and selling properties, and its income and expenses were “lumpy”.

The ombudsman notes he had two claims in the previous two years, and he worked only about nine months in that period.

It says his business had not been profitable since the 2022-23 tax year.

Read the ruling here.