New Zealand’s industry dispute scheme has warned people to take reasonable care of their belongings after backing an insurer that denied a careless policyholder’s claim for stolen designer clothes and jewellery.  

The claimant reported the theft of more than $NZ31,000 ($27,430) of items from his car. He had recently returned from a trip with his wife and had left his bags in the back seat of the vehicle overnight. 

The insurer argued the man did not take reasonable care to protect his belongings and noted the couple had previously experienced a similar theft from a vehicle.

The Insurance & Financial Services Ombudsman Scheme says the insurer had to demonstrate the complainant “was grossly careless, grossly negligent or reckless – proving negligence or carelessness is not enough”.  

The ombudsman considered factors including the value of the items, the previous theft, the fact designer sunglasses were left visible on the front seat, and that the man’s wife had advised him to bring the bags inside. 

It says the claimant’s actions “created a significant and obvious risk that a reasonable person would have recognised and avoided – particularly in light of the recent similar theft and visible items inside the car.

“By taking no precautions to secure or remove the items, [the man] disregarded or failed to recognise that risk.” 

Ombudsman Karen Stevens says the case shows that “even if you have insurance, you need to make sure you take reasonable care of your property. 

“The specific wording of ‘reasonable care’ obligations can differ depending on your insurance policy, so it’s important to review your own policy document to understand exactly what’s required.”  

The case features in the ombudsman scheme’s annual report, which reported a 22% rise in general insurance dispute numbers compared with the previous year.  

See report here. 

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