Motor - Theft of Vehicle

Background

The Insured’s theft claim for the loss of his motorcycle was rejected by the Insurer on the ground of breach of policy condition 7(c), i.e. the Insured had failed to take reasonable precaution to safeguard his motorcycle from the loss.

Investigation and Findings

The following findings were noted:-

  1. Section E: Condition 7 (c) in the policy provides as follows: -

 7. Other Matters

We will only be liable to indemnify You under this policy if You

c.Take reasonable care to avoid any situation that could result in a claim. This policy will not cover if You or Your Authorised Rider are reckless i.e. where You recognise a serious risk but deliberately do not take steps to prevent it.This includes but not limited to leaving Your Motorcycle unattended with ignition key left in or on Your Motorcycle.

  1. The following were observed from the Insured’s police report and signed statement:
    1. Whilst the Insured and his friends were riding their motorcycles, they were stopped and surrounded by a group of men who had then attacked them with dangerous ‘weapons’. Fearing for their lives they had left their motorcycles with the keys in the ignition switch and ran away;
    2. Upon returning to the scene with the police the Insured’s motorcycle as well as the motorcycles belonging to his friends were missing.

  2. Any reasonable person in such circumstances would have reacted in the same manner as the Insured. The state of mind of a person at the time of being attacked by someone would be to save himself first.

  3. The Insured’s reaction was therefore normal, reasonable and sensible in light of all the circumstances. His act of leaving the motorcycle with key and running away from the culprits could not in any way amount to recklessness.

Settlement

Revised the Insurer’s decision and the recommendation was accepted by the Insurer.