A woman distressed by her father's worsening health had her car stolen from outside of her house. Although it can't be proven that she left her handbag in the car with the key fob inside it - she could have dropped the handbag near the house or in the grounds - Suncorp refused to settle the claim.
The vehicle was later recovered a few months later with damage on one side which was quoted at $9,843.67 to repair -the key fob was recovered with it. Suncorp again refused this claim and the woman went to the Australian Financial Complaints Authority who found in favour of Suncorp.
Suncorp could have offered an ex gratia payment (an amount which is not strictly due under the terms of the policy and doesn't admit liability) but didn't.
The AFCA report states "The complainant says she was advised to withdraw her claim and return the hire vehicle as the insurer intended to deny the claim. She says she has been a customer of the insurer for 43 years. She feels its handling of the matter was inappropriate and this distressed her.
"I acknowledge the loss of her vehicle and the denial of her claim was difficult. I further acknowledge the situation with her father caused further distress at the time of the loss.
"I am not satisfied the insurer’s actions in denying the claim were unreasonable. Based on the provided evidence it informed the complainant at the earliest opportunity of the likely outcome. The insurer is and was entitled to deny the claim.
"Given I do not consider the insurer’s actions were wrong, I am not satisfied it is required to compensate the complainant."
The report goes on to state:
"AFCA’s approach is based on fairness
AFCA has determined this complaint based on what is fair in all the circumstances, having regard to:
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the legal principles
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applicable industry codes or guidance
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good industry practice
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previous decisions of AFCA or its predecessor schemes (which are not binding)."