The incident began when the collector reported not receiving any funds from a sale transaction that occurred in May last year. The iconic van was insured for an agreed value of $150,000.
Originally, the vehicle was purchased from an intermediary, referred to as AS, back in January 2018, and had been undergoing restoration under AS's supervision at a local workshop.
In September 2020, with the owner's permission, AS began attempts to sell the vehicle. By May 4, 2021, AS informed the owner of an appealing $125,000 offer. To facilitate the sale, AS requested further details from the owner, including his date of birth and driver’s licence number, which were provided on May 11, 2021.
AS assured the owner on multiple occasions, including May 19 and May 25, that payment would be made. However, no payment was forthcoming.
On visiting the workshop on May 26, the owner found it had closed, and all vehicles, including his Kombi, were removed. An invoice dated the same day suggested the VW Kombi had been sold by AS for $120,000, yet no payment was transferred to the owner. By March 2022, AS had declared bankruptcy, listing the owner as an unsecured creditor.
Upon filing a claim with RACQ Insurance and informing them that AS had not been authorized to finalize the sale, the owner argued that the vehicle was stolen, as reflected in his police report. He sought coverage for the agreed-upon value of the van.
RACQ Insurance, however, refuted the claim, arguing that since AS handled the sale with the owner's consent, the van was not technically stolen. They also pointed out that the misappropriation of the sale proceeds occurred after the policy's expiration date on May 13, 2021. Moreover, the policy does not cover currency theft from sold items.
The panel of the Australian Financial Complaints Authority (AFCA) decided in favor of the insurer, noting that AS had indeed sold the vehicle with approval from the owner, and the resultant issue took place after the policy lapse.
"The panel recognizes that while the complainant might have fallen victim to a crime by AS, the specific reasons cited by the insurer indicate that a claimable loss under the policy wasn’t established,” the AFCA stated.
However, AFCA instructed RACQ Insurance to augment its compensation to $1000 for poor claims handling, highlighting delays, communication shortcomings, and certain mistakes during the claims process.
