A car theft victim’s claim will remain rejected after the dispute authority found he breached his insurance policy’s conditions by leaving the key in an unlocked box on the vehicle’s rear axle. 

The complainant’s car was taken from a locked shed on March 4 last year. A police report from March 26 said thieves opened the building’s roller door and found the key in a magnetic box.  

Insurer Auto & General Services said the claim was not covered because the key was unsecured near the vehicle, with no one around to see or prevent the theft.

The complainant argued the loss should be covered because the shed was secured and required forced entry by the thieves.  

He also noted the incident was recorded on CCTV and promptly reported to police.  

The insured said the fact the key was on the car should hold “no relevance given the secure nature of the property and the presence of video surveillance”. He also said it was not proven that the thieves used the key to start the vehicle.

But the Australian Financial Complaints Authority has rejected the complainant’s argument, saying policy documents stated car keys must be “kept safe and secure while the car is left unattended for any period of time”.  

An AFCA ombudsman said: “Even if I accept the shed was secured and required forced entry for someone to gain access to the vehicle, under the policy the complainant is required lock the vehicle and to remove all keys from within, on, or in the immediate vicinity of the vehicle when it is left unattended.  

“I consider the method by which the engine was started, and that the vehicle was secured by a locking shed, to be irrelevant to the insurer’s entitlement to deny the claim.

“This is because the policy condition does not require the engine of the stolen vehicle to have been started using the key; the security condition simply requires that keys are not to be left in or on the car while unattended.”  

Click here for the ruling.

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