New Zealand consumers have been warned about their duty of care following an insurance dispute over a vehicle that was lost to the sea while being driven on a beach.

The driver complained to the Insurance and Financial Services Ombudsman Scheme after his claim was denied. He said he had intended to wash the vehicle’s underside when it hit trouble.

But the authority has dismissed the man’s complaint, noting he failed to consider potential underwater hazards and ignored local council rules about driving on the beach without a permit and proper safety gear.

“It’s important not only from a safety perspective, but also from an insurance perspective, that you follow your local council’s rules for driving on a beach,” Ombudsman Karen Stevens said. “These rules are in place for a reason, and they help prevent accidents.”

Ms Stevens says most policyholders strive to mitigate risks, but there is a “steady stream of complaints” in which consumers breach reasonable care conditions.

She says people must remember that most policies include an “obligation to take reasonable care of their property and belongings.

“House, contents, car and travel insurance policies will often contain reasonable care conditions. If you don’t follow these conditions, your insurer may decline your claim.”