A motor policyholder who mistakenly left a young driver exclusion in place has lost his bid to have a claim paid after his 21-year-old son was in a collision weeks after gaining his licence.

Hollard declined the claim because the policy excluded drivers aged under 25, unless they were a learner accompanied by a licensed driver over that age.

The claimant said the insurance was initially bought when his son was not yet driving and his daughter, who was listed on the policy, was over 25.

The policy auto-renewed when it fell due and the father said it was an honest oversight that he did not update the age setting so the insurance covered his son.

He argued the insurer acted unfairly in declining the claim because he had been a loyal customer for “a number of years” and felt Hollard should be more generous to him.

The Australian Financial Complaints Authority heard the 21-year-old hit the rear of another vehicle.

As well as suffering damage to his own car, the claimant said he paid about $15,000 for damage to the third-party driver’s vehicle. He also provided an invoice for hire car expenses.

AFCA says there is no dispute that policy documents were sent at inception, the certificate of insurance was sent at renewal, the wording excluded drivers under 25, and the complainant did not update the policy age terms or add the son as a listed driver.

The ombudsman considered section 54 of the Insurance Contracts Act, which deals with omissions that do not contribute to a loss, but found it did not help the complainant.

AFCA accepts it was an honest mistake and an oversight, and the policy auto-renewed.

“Nevertheless, it is the complainant’s responsibility to read the policy documents and ensure the cover meets his needs,” the ombudsman said. “It is also the complainant’s responsibility to update the policy if his needs change.”

The insurer is not required to accept the claim.

The decision is available here.