Liability Insurance Australia

Australian liability insurance resources

Liability Insurance Australia :: News

SHARE

Share this news item!

AFCA Rules Against Engine Theft Coverage in Motor Policy Dispute

AFCA Rules Against Engine Theft Coverage in Motor Policy Dispute

AFCA Rules Against Engine Theft Coverage in Motor Policy Dispute?w=400

⚠️The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

An applicant's attempt to claim insurance coverage after the theft of an engine designated for his 1993 Nissan Skyline has been denied.

Despite holding a comprehensive motor policy with IAG, the insured's claim was rejected after multiple engines were stolen in a brazen ram-raid at his vehicle repairer's workshop in November 2023, prompting an appeal to the Australian Financial Complaints Authority (AFCA).

The crux of the AFCA's ruling rested on the lack of evidence indicating the claimant's ownership of the engine, thereby negating any financial loss acknowledged under the policy. According to an AFCA ombudsman, even if ownership was established, the engine's status-intended but not installed-did not align with the policy’s definitions of 'vehicle' or 'modifications.'

Furthermore, the complainant had not opted for an additional policy benefit that could extend the cover to spare parts awaiting assembly into the insured vehicle. As a result, the claim for engine theft remains outside the current policy's provisions.

The insured also sought assistance from IAG to recover costs from the repairer, a request AFCA deemed inappropriate, emphasizing that issues pertaining to the repairer fell outside the scope of his insurance contract. This path remains a private matter between the claimant and the repairer involved.

This case highlights the critical importance for policyholders to thoroughly understand the intricacies and limitations of their insurance policies, particularly regarding coverage for vehicle components not yet integrated into the car. It demonstrates the necessity for explicit policy terms and the potential need for additional cover options to protect significant investments like spare parts.

The decision may prompt individual insurers and the wider insurance market to reassess coverage options related to spare parts and modifications to align with consumer expectations and reduce disputes. Policyholders are advised to consult their insurers to ensure adequate coverage, especially when dealing with valuable customizations or restorations. This incident serves as a valuable reminder to scrutinize insurance policies closely and engage with insurers proactively to clarify available coverage options.

Published:Sunday, 4th May 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Significant Health Insurance Premium Increase Set for April 2026

Significant Health Insurance Premium Increase Set for April 2026

10 Mar 2026: Paige Estritori

Australian health insurance policyholders are set to experience a substantial increase in their premiums, with an average rise of 4.41% scheduled to take effect from April 2026. This adjustment marks the most significant hike since 2017 and is expected to impact over 15 million Australians who hold private health insurance policies. - read more

Private Health Insurers Refund $4.8 Billion to Policyholders Post-Pandemic

Private Health Insurers Refund $4.8 Billion to Policyholders Post-Pandemic

10 Mar 2026: Paige Estritori

In a significant move, Australian private health insurers have refunded nearly $4.8 billion to policyholders, fulfilling their commitment not to profit from the reduced access to health services during the COVID-19 pandemic. This substantial refund comes after widespread cancellations of elective surgeries and other medical appointments during lockdowns, which led to considerable savings for insurers. - read more

AMA Report Reveals Erosion of Value in Private Health Insurance

AMA Report Reveals Erosion of Value in Private Health Insurance

10 Mar 2026: Paige Estritori

The Australian Medical Association (AMA) has released its latest Private Health Insurance Report Card, highlighting a concerning trend where Australians are paying higher premiums for private health insurance while receiving diminished value in return. The report indicates that nearly 70% of policies now contain exclusions, limiting the coverage available to policyholders. - read more

AUSactive's New Insurance Offering: Enhanced Protection at Lower Costs

AUSactive's New Insurance Offering: Enhanced Protection at Lower Costs

10 Mar 2026: Paige Estritori

AUSactive has unveiled a new insurance solution designed specifically for fitness and active health professionals. This initiative aims to provide enhanced protection while offering lower premiums compared to existing market options. - read more

Health Insurance Reforms: Inclusion of Natural Therapies from 2026

Health Insurance Reforms: Inclusion of Natural Therapies from 2026

10 Mar 2026: Paige Estritori

In a significant policy shift, Australian health insurers will begin offering rebates for a range of natural therapies, including Yoga, Pilates, Tai Chi, Shiatsu, Naturopathy, Western herbal medicine, and the Alexander Technique, starting early 2026. This change follows legislative amendments allowing these therapies to be covered under private health insurance for the treatment of health conditions or as part of health management programs. - read more

Click for more Insurance News

Business Insurance Articles

Q&A: Common Questions Australian Business Owners Have About Public Liability Insurance

Q&A: Common Questions Australian Business Owners Have About Public Liability Insurance

Public liability insurance is a crucial aspect of managing risk for businesses in Australia. This type of insurance covers costs associated with claims made against a business for property damage or personal injury caused during business operations. - read more

Common Myths About Public Liability Insurance Debunked

Common Myths About Public Liability Insurance Debunked

Today, we're diving into the world of public liability insurance, a crucial topic for anyone running a small business or working as a self-employed professional in Australia. - read more

Insurance Essentials: Protecting Your Small Business with Public Liability Coverage

Insurance Essentials: Protecting Your Small Business with Public Liability Coverage

Running a small business in Australia comes with its own set of challenges and risks. One crucial aspect that should never be overlooked is insurance, particularly public liability insurance. The reason is simple: it offers essential protection against claims of property damage or personal injury caused by your business operations. - read more

Understanding the Role of Public Liability Insurance in Business Disaster Planning

Understanding the Role of Public Liability Insurance in Business Disaster Planning

For Australian business owners, planning for unforeseen disasters is not just prudent; it's an essential aspect of sustaining operations amidst challenges. Recognizing the importance of comprehensive strategies, including robust insurance cover, can make all the difference in business longevity and legal protection. As we navigate the complexities of running a business, it's imperative to have a safeguard against mishaps that could otherwise jeopardize our hard-earned success. - read more

How Public Liability Insurance Can Save Your Business During a Crisis

How Public Liability Insurance Can Save Your Business During a Crisis

Public liability insurance is designed to protect your business from financial loss if you are found liable for causing injury or property damage to a third party. This type of insurance covers legal costs and any compensation claims that might arise from accidents or incidents involving your business operations. - read more

Start Here !

Knowledgebase

Flood Insurance:
A specific type of property insurance that covers losses and damage caused by flooding.

Quick Links: | Liability Insurance Australia | Public Liability Insurance | Professional Indemnity Insurance | Business Liability Cover | Small Business Liability Insurance | Liability Insurance For Trades | Liability Insurance Quote | Corporate Liability Insurance | Liability Insurance For Professionals | Best Liability Insurance Australia

| HOME | RATES | CALCULATORS | NEWS | ARTICLES | ABOUT | CONTACT | PRIVACY | BROKERS | AFFILIATES | SITEMAP |

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.

powered by Financial Services Online | Copyright Clark Family Pty Ltd A.C.N. 010 281 008 - all rights reserved

IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party intermediaries, insurers and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for vaidating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.