An insured has found out the hard way that the policy exclusion for unsupervised luggage includes luggage which is with you but not being completely supervised. 

His backpack was stolen from a shop while he was shopping and his wife had been sitting near the backpack but had not noticed it being taken.  This means that the luggage was unsupervised at the time it was taken and therefore excluded from the policy.  It appears that the only time your luggage is going to be covered for theft in this way is if the bag is actually snatched from you at the time.  It pays to read your policy carefully and to comply with all conditions.

Alan Knowsley

Insurance Lawyer
Wellington