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Case Review: Insurance
Summary of some of the decisions made by the Mediators on some of the complaints received by FMB.
This summary is for information only and should not be used for other purpose.
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FMB/GI 0286 - Loss of Contents (Householder Policy)
The insured (Mr. T) submitted a claim for loss of contents of the risk premises due to burglary. The insurers declined the claim on the ground that the insured did not reside at the risk premises and most of the property that were stolen belonged to Ms T (insured's daughter). The insurers maintained that although Ms T resided at the risk premises, she was not a named insured under the extended personal accident coverage which showed that the insured had not intended to cover Ms T's property.
The relevant policy provision states as follows:-
"A Loss or Damage to Contents
The company will indemnify the insured against loss or damage … to the contents… being the property of the insured or any member of his family normally residing with him…"
Based on the above provision the policy covers property belonging to the insured (Mr. T) or his family members normally residing at the risk premises. Although according to the adjuster's report the insured did not reside at the risk premises the loss involved the property/contents whilst contained in the risk premises belonging to the insured's family member residing at the risk premises. Further the fact that Ms T (insured's daughter) was not included as an insured under the personal accident coverage is irrelevant as the claim was concerned with loss of contents and not personal accident. Since Ms T was residing at the risk premises there was no reason why the insured did not intend to cover her property.
In the circumstances the Mediator held the insurers liable to indemnify the insured for the loss of the contents of the risk premises.
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