A Ferrari driver who collided with a BMW will have his claim paid despite immediately leaving the crash scene and not opening his door when police arrived at his home.

The complainant reversed and drove away after the smash, which caused front-end damage to his vehicle that he later repaired for $207,971.

Prevail Insurance declined his damage claim because a police report indicated he refused a breath test after the August 30 2023 accident.

A later amendment showed there was no refusal but that he did not open his door to officers.

The claimant went to a police station voluntarily a few days later and was charged with careless driving and failing to give his name and address and report an accident. A court later imposed a 12-month good behaviour bond and a financial penalty. 

The insurer revised its claim denial reason, saying failure to open the door to police breached a co-operation clause. Going to the police station later deprived officers and the insurer of contemporaneous information about the incident, it said.

The driver argued he co-operated with police once contacted and, crucially, the co-operation clause related to the insurer, not to third-party interactions.

In a dispute ruling, the Australian Financial Complaints Authority says the policy is a contract between insured and insurer, and it must be interpreted in that context. It says the wording focuses on assistance and co-operation “in settling the loss”.

“This indicates the obligation is directed to the insurer’s assessment and management of the claim rather than the complainant’s compliance with criminal or investigatory processes,” an ombudsman said.

“In the absence of clear wording, I am not satisfied that the co-operation clause can be interpreted as requiring the complainant to open the door to police after the incident or that a failure to do so constitutes a breach that would exclude the claim.” 

In contrast to some other policies – including the insurer’s updated product disclosure statement – the document did not contain wording requiring a person to remain at the scene, engage with police at the time of an incident or otherwise co-operate with officers.

The ombudsman also found the careless driving charge was not equivalent to conduct detailed in a “wilful or reckless” driving exclusion.

AFCA says the insurer is entitled to review the complainant’s repair invoices before settling the claim. The 2021 Ferrari was covered for an agreed value of $900,000.

See the decision here. 

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