The insured took out a policy in relation to theft of his motor cycle.  The insurer had initially refused to insure the motor cycle but after discussion with the insured agreed to insure it as long as it was in a locked garage or other secured building.

At the time of the loss the insured had taken the motor cycle out of the garage and chained it up.  While it was out of the garage it was stolen and the insurance company declined the claim.

The Insurance & Financial Savings Ombudsman declined the complaint on the basis that the policy wording was clear that it was only insured while it was locked in a garage or other secured building.  Chaining the motor cycle up outside did not comply with the terms and the insurer was entitled to decline the claim.

It pays to carefully read your terms of the policy and to comply with all the terms at all times.

Alan Knowsley

Insurance Lawyer