A man whose vehicle was stolen as he was unloading luggage at a friend's house will not be covered for losses after a dispute ruling decision went against him.

The complainant filed a claim under his comprehensive motor policy on December 11 2020, after his vehicle had been driven away late at night while he was a couple of metres away helping his friend carrying a suitcase.

The claimant said he attempted to stop the thief by jumping on the bonnet of the car, but the crook managed to race away with the vehicle's boot and back door open.

Suncorp denied the claim, saying its policy excluded thefts where the owner leaves the car unattended, unlocked, and with the keys inside.

The vehicle owner argued that he took reasonable precautions to prevent the theft, saying he left the car not running and could observe it as he was only a few steps away while unloading luggage at his friend's house.

The Australian Financial Complaints Authority (AFCA) acknowledged the close proximity between the owner and his vehicle but said the time of the event hampered his ability to have a clear sight of the car and if anyone had been lurking around.

It said the complainant was not in a position to observe the theft and did not have a reasonable prospect to prevent the event.

AFCA said the insurer's policy had been unambiguous and that it was entitled to decline the claim.

The man complained about Suncorp's handling of the claim, including its decision to deem the vehicle a total loss once recovered.

The owner said if he had been aware that the insurer was going to write off the vehicle, he would have retrieved it and repaired it himself.

The insurer received a mechanical report detailing the damage on January 2 last year. It interviewed the complainant and his friend regarding the theft and assessed the car in early February last year.

Based on the assessment from an expert, the insurer declared the vehicle a total loss, saying that the cost to repair and salvage the car was higher than the $28,200 cover sum. Suncorp communicated to the owner its decision to deny the claim on May 14 last year.

AFCA dismissed the claimant's argument, saying the insurer took a reasonable amount of time to investigate the claim and inform him of its decision.

Click here for the ruling.