Luis listed the vehicle for sale on Facebook Marketplace, and a potential buyer expressed interest, prompting a meeting on that day. While on a test drive, the potential buyer absconded with the vehicle, leaving Luis unable to establish contact. Subsequently, Luis promptly reported the incident to the police.

Luis filed a theft claim with the insurer. The insurer repudiated the claim because the incident constituted a criminal breach of trust, which is not covered under the policy’s terms and conditions.

OUR FINDINGS

The insurer relied on a policy provision that specifically excludes any loss or damage resulting from cheating or criminal breach of trust.

Criminal breach of trust refers to the act of dishonestly taking control of someone else’s property entrusted to them to deprive the owner of it permanently. In this scenario, Luis entrusted the vehicle to the potential buyer during a test drive, exemplifying the elements of a criminal breach of trust.

OUTCOME Our case manager made a recommendation in favour of the insurer, as their decision aligns with the policy’s terms and conditions