The dispute authority has ruled against a road freight business owner who alleged his broker did not follow through on a request to buy optional theft cover.  

The business owner lodged a claim when two trailers containing goods worth about $140,000 were stolen on October 8 2023, but it was denied because his cargo insurance policy did not have the optional theft cover as of that date.

The claimant told the Australian Financial Complaints Authority he had called an Emmark Insurance Brokers employee, referred to as G, to add theft cover on October 3 when the policy renewed.  

He said he told G that “a recent change in the manner of ... operations” required the cover and that G told him he would arrange it.  

AFCA heard that G arranged the cover on October 9, backdated to October 3.

The claimant said G made an “oversight in not actioning the request he had made on October 3”.

He also said he spoke with G after he stopped working for Emmark and that G was “willing to testify if needed under oath in the courthouse”.

The claimant said the brokerage’s failure to add the theft cover until it was informed of the incident was a clear breach of duty and it should pay the claim cost.

But the broker said the complainant did not request the theft cover until October 9, and asked for it to be backdated. It said it was unaware a theft had occurred when the request was made, and if it was it would not have sought to have the cover backdated.  

The broker showed that on October 9, G recorded the request and sent an internal email about it. It said it was reasonable to assume G would have acted promptly if the request came earlier.  

It also referred to “threatening messages” sent by the claimant to G and his family, and said this showed an attempt to coerce G to endorse his version of events.  

AFCA says the evidence shows that “more likely than not the complainant did not until October 9 2023 request theft cover be added to the policy”.

It says matters would have been clearer if G provided a statement, and it cannot rely on the complainant’s version of what he said. It notes the claimant has not provided information to show he called G about the cover on October 3.  

AFCA’s ruling adds it is “unlikely a broker would seek to arrange backdated cover to pick up a prior loss, as an insurer would inevitably deny the claim once the date of loss was confirmed”.

Click here for the ruling.