Not upheld: claim decline - failure to meet policy exclusion requirements complaint against W (micro-enterprise)

Decision detail

Summary

W, a micro-enterprise, claimed on its business protection insurance policy after a bag containing a laptop and electrical equipment was stolen from their car while parked in a car park. Hiscox declined the claim relying on a policy exclusion requiring items to be completely hidden in a storage compartment and all vehicle security measures to be fully operational and activated. The ombudsman found the claim was fairly declined because the luggage was visible from outside the car and not in an enclosed compartment, and forensic evidence suggested the vehicle's security measures were not fully activated, contradicting the claimant's account of how the theft occurred.

The Ombudsman's reasoning

The ombudsman applied the policy terms as the starting point for determining fairness. The policy exclusion for theft from unattended vehicles has two requirements: items must be completely hidden out of sight in a storage compartment, and all security measures must be fully operational and activated. The evidence showed the luggage was visible from outside the car and not in an enclosed compartment. The forensic report, combined with Mr G's account, suggested the vehicle's security measures were not fully activated at the time of theft, as a relay theft would have required circumstances inconsistent with Mr G's description. The ombudsman found Hiscox's conclusion reasonable and not contradicted by expert evidence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website