Loss of Money due to Theft

This dispute concerns a claim for loss of money due to theft during the insured’s overseas trip. The insurer had initially repudiated the claim for loss of money on the basis that the insured did not take reasonable precautions to safeguard his money.

The insured had appealed against the repudiation and upon review of the claim, the insurer offered RM1,000 as compensation.

However, the insured rejected this offer and referred the matter to OFS.

Investigation and findings
The following findings were noted:
1. Policy definition of ‘theft’:
‘Theft means a permanent loss of belongings where the belongings are taken from a pocket, bag or purse at any place where the general public has free access to. Such act shall comprise the elements of stealth and surprise.’
2. The insured made a police report upon becoming aware of the loss of money from his bag.
3. The passport stamps indicated that he had immediately returned to Malaysia after he had made a police report on the theft.
4. The insured was able to provide a bank statement to reconcile with the ATM withdrawal slips as proof that he did withdraw money for the scheduled trip.
5. The independent loss adjuster enquiries revealed that there was no evidence of fraud on the part of the insured.
6. Based on the above OFS had requested the insurer to review their decision.

The insurer revised their decision and increased their offer, which was accepted by the insured.