A traveller who was hurt in a motorbike smash has lost his bid for an injury payout because of a “dangerous activity” exclusion in his insurance policy.

The man, insured with Allianz Worldwide Partners under a credit card benefit, was riding a 650cc motorbike in Romania when he was involved in an accident and hospitalised.

He claimed for his medical costs and the loss of some luggage, which he said was taken while he was being treated.

AWP pointed to a policy clause stating riding a motorcycle powered above 200cc was considered a dangerous activity and any injuries would be excluded.

The man said he thought he was covered for motorbike riding and he considered a 200cc motorcycle a “moped”.

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However, the financial services ombudsman says the exclusion was clear.

The Australian Financial Complaints Authority adds the insurer properly settled the claim for lost luggage, although the man complained he should receive replacement value. 

AWP paid a depreciated value after allowing for the luggage’s age, and wear and tear. 

The ombudsman says this is in accordance with the policy and no further payment is necessary. 

Read the determination here.

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