Insurance doesn't pay for all theft damages

[Ethel Street]

Let's go back to this point:

 

Yet the insurance said they don't cover the rust rust damages, they only cover "damages that are a result of the theft".

 

I don't think that statement is correct to start with. I can't be sure without seeing the whole policy wording but my guess is the claims handler has never heard of 'proximate cause'. Which doesn't surprise me, in 30 years of dealing with motor claims most front line claims handlers had a thin grasp of it even before the days of outsourced call centres!

 

You can look up 'proximate cause' online for legalistic explanations but the gist of it is that all damage that flows from an insured risk - ie theft in this case - is insured unless there has been an intervening event not related to the theft. So rust is excluded if you'd just left the bike uncovered in your front garden, but if the rust wasn't there before the theft (and you have evidence it wasn't) but is there now as a result of the thieves dumping it in a field I would argue that the cost of rectifying the rust is 'proximately caused' by the theft and so is insured. 'Proximate cause' arguments are technical but important and in this case I'd certainly be arguing the subsequent rust damage was insured because it was 'proximately caused' by theft.

 

Is the standard wording available on the insurer's website? If so could you post a link to it?

[Ethel Street]

I understand the principle you are referring to very well – but in all my 40 or so years of being in the law, I have never heard of "proximate cause".

 

Thank you, it is brilliant to have some language to use when describing this. I can't say that I learn something new every day – but pretty frequently.!

 

This is how the Chartered Institute of Loss Adjusters teaches trainee loss adjusters about Proximate Cause (pp47 - 49)

 

http://www.cila.co.uk/cila/downloads/getting-qualified/certificate/files-2/205-chapter-8-proximate-cause/file

 

As insurance students we had to memorise the definition from Pawsey (1908) and reproduce it perfectly in just about every exam! I can still remember it now....