Insurers will turn down claims for theft when security features are ‘thief proof’


This case highlights the need for dealers to have a very strict key control policy.

Author: Dennis Chapman
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This article is 9 years old.

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The financial Ombudsman agreed with insurers that a claim should be turned down when a car was apparently stolen, and then set on fire,  given the car had an ‘intelligent’ programmed key.

The son of the insured gave evidence that he arrived home and said the car was missing.  The insurer said the only other way to remove the car was by transporter or low truck but in such cases the alarm would have sounded. 

In defence of the insured and her claim the original dealer said the car’s security could be by-passed.  That evidence however was not sufficient to counter that of the insurers.  

The case very much highlights the need for dealers to have a very strict key control policy to avoid being turned down on theft claims.

Dennis Chapman

In remembrance of Dennis Chapman 1951 -2015

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