A policyholder will not have their losses covered after fire wrecked a 1974 vehicle, because it was bought outside the cover period and an “automatic addition” benefit did not apply.

The fleet and heavy haulage policy starting on June 18 2022 included an automatic addition clause that extended cover to extra vehicles “of a like kind or of a similar nature to vehicles already insured”.

But the vehicle in question was bought on May 15 that year. It was damaged in a fire on November 15 and declared a total loss given repair costs exceeded its market value. A claim was lodged on December 15.

QBE declined cover, saying the automatic addition benefit was not triggered because the vehicle was bought outside the policy period and it was a “historic vehicle” and not sufficiently like others listed.

The claimant argued he had always retrospectively included vehicles as automatic additions and deletions in line with policy provisions, and the fire-damaged vehicle was similar to a 1994 model in the schedule.

In a dispute ruling, the Australian Financial Complaints Authority says the vehicle was not in the fleet schedule initially and an update requesting cover was sent to the policyholder’s representative on December 19 with a note saying: “With effect date of 30 August 2022.”

AFCA says the policy provision around automatic additions is clear in stating added vehicles must be bought during the period of insurance.

The argument that the 1974 model was similar to others already insured, specifically the 1994 model, has also been rejected.

“The historical difference between these two vehicles is significant,” AFCA said.

The updated fleet schedule backdating the vehicle cover to August was put forward on December 19, after the November fire.

“At the time it was first raised, the vehicle was a total loss. In my view, it would not be reasonable or fair to require the insurer to provide cover for a vehicle that was already a total loss,” AFCA said. “The insurer is entitled to deny the claim.”

The decision is available here.