Caravan Insurance Online :: 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
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

ASIC Takes Legal Action Against Mercer Super for Alleged Systemic Failures
ASIC Takes Legal Action Against Mercer Super for Alleged Systemic Failures
11 May 2026: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings against Mercer Super, one of Australia's largest superannuation funds, alleging systemic failures in reporting and member account management. This action underscores the critical importance of compliance and transparency within the superannuation and insurance sectors. - read more
Hostplus and MetLife Australia Strengthen Group Insurance Partnership
Hostplus and MetLife Australia Strengthen Group Insurance Partnership
11 May 2026: Paige Estritori
Hostplus, a prominent Australian superannuation fund, has announced the extension of its group insurance partnership with MetLife Australia until June 2028. This renewal signifies a continued commitment to providing comprehensive insurance coverage to Hostplus members. - read more
AIA Australia Announces Strategic Leadership Overhaul to Boost Group Insurance
AIA Australia Announces Strategic Leadership Overhaul to Boost Group Insurance
11 May 2026: Paige Estritori
AIA Australia, a leading life, health, and wellbeing insurer, has announced a series of key appointments and structural changes as part of a strategic investment in its group insurance capabilities. This initiative reflects the insurer's long-term commitment to the superannuation industry and aims to enhance member outcomes through innovative and tailored solutions. - read more
HESTA's Initiative to Lower Insurance Fees and Strengthen Member Benefits
HESTA's Initiative to Lower Insurance Fees and Strengthen Member Benefits
11 May 2026: Paige Estritori
HESTA, a prominent Australian superannuation fund, has unveiled a series of changes aimed at making insurance cover more accessible and affordable for its members. Effective from 1 July 2026, these changes include an average 12% reduction in insurance fees across all cover types. - read more
Challenger's Record Annuity Sales Drive Strong Half-Year Performance
Challenger's Record Annuity Sales Drive Strong Half-Year Performance
11 May 2026: Paige Estritori
Challenger, a leading Australian wealth management firm, has reported an 11% increase in life sales, reaching $5.1 billion in the December half of the 2026 financial year. This growth is primarily attributed to record annuity transactions, underscoring the company's strategic focus on retirement income solutions. - read more
Click for more Insurance News


Caravan Insurance Articles

Comprehensive vs Third-Party Caravan Insurance: Which is Right for You?
Comprehensive vs Third-Party Caravan Insurance: Which is Right for You?
With the growing appeal of exploring the vast and varied landscapes of Australia, the caravanning lifestyle has seen a significant surge in popularity. The sense of freedom that comes with a home on wheels captivates adventurers and holiday-makers alike, making the choice of caravan protection through insurance an essential aspect of ensuring ongoing travel peace of mind. - read more
5 Top Tips for Safely Caravanning with Your Furry Friends in Australia
5 Top Tips for Safely Caravanning with Your Furry Friends in Australia
Exploring the great Australian outdoors in a caravan with your furry friends by your side can create unforgettable memories and provide experiences that deepen the bond between you and your pets. The joy found in watching your pet's excitement as they encounter new sights, sounds, and smells is irreplaceable and adds a layer of delight to the adventures ahead. - read more
Mastering Weight Distribution for a Smooth, Safe Caravan Journey
Mastering Weight Distribution for a Smooth, Safe Caravan Journey
When embarking on journeys with a caravan in tow, understanding the concept of weight distribution is critical. This refers to how the weight of your load is spread both within the caravan and between the caravan and the towing vehicle. Ensuring this weight is evenly distributed is not just a matter of organization; it's a fundamental aspect of safe and smooth travel. - read more
Essential Guide to Insuring Your Converted Van or Bus in Australia
Essential Guide to Insuring Your Converted Van or Bus in Australia
Owning a converted van or bus is a dream for many adventurous Australians. It offers freedom, mobility, and the chance to explore the great outdoors with the comfort of home on wheels. However, with this unique lifestyle comes specific responsibilities, one of which is ensuring your beloved vehicle is adequately insured. - read more
Practical Security Measures Every Caravan Owner Should Implement Now
Practical Security Measures Every Caravan Owner Should Implement Now
In recent years, we've seen a troubling rise in caravan thefts nationwide, which has undoubtedly caused concern within our vibrant community. It's clear that the adage 'better safe than sorry' has never been more applicable to caravan ownership. - read more

Knowledgebase
Term Life Insurance:
A life insurance that provides a cover for a specific period of time - usually one to five years or until the insured reaches age 65 or 70.

Quick Links: | Caravan Insurance | Campervan Insurance | Compare Caravan Insurance | Best Caravan Insurance Australia | Cheap Caravan Insurance | Comprehensive Caravan Insurance | Caravan Insurance Quotes | RV Insurance Australia | Caravan Insurance Online | Specialist Caravan Insurance
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. 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 validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.