A motorist who left his car unlocked with the keys inside should have his theft claim paid, the financial services ombudsman has ruled.

The policyholder challenged Auto & General’s refusal to pay on the basis the car was left unattended, unlocked and with the keys inside, in breach of policy conditions.

The Australian Financial Complaints Authority has determined the car was not unattended because the man was only a few metres away and able to observe it.

AFCA applied the “Starfire” test, which states “attended” requires the insured to be capable of keeping an item under observation and have a reasonable prospect of preventing any unauthorised interference.

The driver was at a service station in April last year. He parked at the front of the building and went to buy a drink. He said he did this every morning before work.

As he was paying, with his back to the car, he did not see another car pull up and someone get out and steal his vehicle.

A third person alerted him to the theft, which happened quickly.

AFCA says although his back was turned at the moment of the theft, “this does not mean that he could not keep the car under observation. Being capable of keeping an item under observation does not mean you must continually watch something.”

Although he did not prevent the theft, that does not mean he did not have a reasonable prospect of doing so.

The man said the keys were in the ignition or in an inside door pocket. The ombudsman says the key was used to start the car, but the location of the keys was not relevant because the car was not unattended.

The vehicle was recovered damaged and contaminated with methamphetamine.

Read the determination here.