A driver who was jailed after a high-speed car crash has lost a claim dispute that hinged on whether his injuries were caused by an epileptic seizure or criminal activity.

The man, who had a diagnosed amphetamine use disorder, crashed his car while travelling about 150km/h seven years ago.

He was sentenced to three years’ imprisonment, with a minimum term of 20 months, after he was found to be drug-driving.

The driver pleaded guilty to six charges, including reckless conduct, negligently causing serious injury and use of an unregistered vehicle.

In 2020, he lodged a total and permanent disability claim under an AIA life insurance policy, held through his superannuation.

Now, the Australian Financial Complaints Authority has ruled AIA can apply an illegal activity exclusion.

“The charges were very serious,” an AFCA ombudsman said. “The speed of the crash was very high.

“The complainant was under the influence of drugs. The risks of such conduct are obviously high.

“I am satisfied it was gravely reprehensible and seriously antisocial ... I am comfortably satisfied that the injuries the complainant suffered in the crash were directly or indirectly caused by his criminal activity, and not by a seizure.”

The man’s TPD claim listed a host of disabling injuries and conditions, including a brain haemorrhage, lung damage, broken bones, post-traumatic stress, major depressive disorder and social anxiety.

But AFCA says AIA acted in accordance with the policy terms.

“There is no proper basis for me to find that the complainant’s epilepsy makes him TPD,” the ombudsman says. “It appears he has significant retained physical capacity and that he in fact returned to some work before he was imprisoned.”

A psychiatric report stated that after the collision, the man was conscious and able to talk to the police, and the absence of bite marks on his tongue or any incontinence “goes against the possibility of a seizure in the build-up to the accident”.

The claimant had told a neuropsychologist: “I’m sorry. I wish I could take back everything.”

He subsequently suffered feelings of inadequacy as a parent and self-blame. He went on junk food binges and had erratic sleep ranging from three to 12 hours a day.

But AFCA has ruled his post-traumatic stress and major depressive disorder – which included a sense of hopelessness due to difficulties with showering and household chores, and episodic suicidal thoughts – were caused by illegal activity.

“It is clear the complainant returned to work in 2020 and no satisfactory explanation has been given about why he could not still do the work he was doing then. There is no reliable medical evidence that he stopped that work because of disablement.”

See the ruling here.