An insurer that rejected a claim because it said a crane was not operated properly has lost a case before the financial services ombudsman.

QBE said damage that occurred when the crane was moving industrial equipment was not a claimable loss under its special plant policy and, in addition, it was excluded because the insured did not operate the machine strictly in accordance with the manufacturer’s recommendations.

The Franna crane – also known as a pick and carry crane – was moving a wood chip colouriser from one float to another, but the equipment fell and was damaged.

The colouriser weighed about eight tonnes and a steel frame had been built so it could be moved by crane.

The insurer hired two experts who agreed the crane could technically lift the colouriser but the incorrect method was used in the July 2022 incident.

The Australian Financial Complaints Authority does not accept QBE’s argument that the crane was not designed to lift the colouriser, and so finds the loss was claimable.

And referring to the crane’s manual, it says QBE has not shown the crane was operated contrary to the manufacturer’s recommendations.

“Although there is some evidence that suggests the lift was not being operated in a way that would be termed best practice, there is no persuasive evidence that suggests the lift performed by the complainant was outside of any industry standards.”

See the ruling here.