An insured who claimed after the theft of an engine that was due to be fitted to his 1993 Nissan Skyline has lost a dispute over coverage.

The man held a special vehicle comprehensive motor policy with IAG and lodged the claim after a number of engines were stolen from his repairer in a November 2023 ram-raid.

The car was with the repairer at the time, and the claimant said the engine due to be installed in his vehicle was among those taken.

He sought cover for the cost of the engine, but the claim was denied and he appealed to the Australian Financial Complaints Authority.

AFCA has found in favour of the insurer, saying there is no evidence the claimant owned the engine, so he has not suffered financial loss.

“Regardless ... even if it was accepted that the complainant did own the engine at the time of the loss, this does not assist his position,” an AFCA ombudsman says. 

“This is because I am not satisfied the engine, which had not yet been fitted to the [insured vehicle], falls within the policy definitions for the terms vehicle and modification(s).”

AFCA says the complainant did not select an optional policy benefit that extended cover to the theft of spare parts purchased for fitting to the insured vehicle.

The man also asked that his insurer help him recover his loss from the repairer, but AFCA says this is not appropriate.

“Any issue between the complainant and his repairer sits outside the contract of insurance held with the insurer and is a private matter.”

Click here for the full ruling.

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