HDI Global Specialty has been ordered to cover a traveller for luggage stolen during a train journey after the complaints authority found she could not be blamed for leaving the bag in a designated storage area.

The insurer denied the claim on the basis the bag was left unattended. It said the woman acknowledged she could not see the bag from her seat and did not notice it was missing until she was about to leave the train.

The claimant explained she had followed instructions on the train company’s website to place her luggage in a dedicated storage area.

But the insurer argued the bag could have been placed closer to her, given it had wheels and could have been moved easily if necessary.

The claimant countered that the bag was too large to fit in overhead storage or beneath her feet. She could not put it on her lap because the seat’s tray tables were in the way, and leaving it in the aisle would have obstructed other passengers and staff.

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In its ruling, the Australian Financial Complaints Authority accepts the policyholder’s explanation.

It notes the train company’s guidelines state passengers “may take luggage ... on board the coach free of charge, provided they are stored in the spaces made available for luggage”. They specify that even small items such as umbrellas, deckchairs and musical instruments should be placed in designated storage areas.

AFCA says section 54 (5)(b) of the Insurance Contracts Act – which prevents claim denials based on a policyholder’s actions if those actions were not reasonably avoidable – apply in this case.

See the ruling here.

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