Insurer refuses to pay out after ‘cloned’ car stolen

A Gauteng motorist whose vehicle was hijacked has taken his insurer, Old Mutual, to the ombudsman for rejecting his claim on grounds that his vehicle was cloned. 

Safwaan Dunne, 38, of Newlands had driven his Nissan Almera for just two months — after buying it from a private seller for R80,000 — when he was hijacked in Eldorado Park in September last year.

He and a friend were visiting a mechanic when three men with guns robbed them of their belongings, including the car. 

Dunne opened a case with the police and reported the matter to Old Mutual, but was shocked to learn his claim had been rejected because the car was allegedly cloned. 

Responding to his claim in December last year, the insurer wrote: “During investigations conducted following the claim being reported, material information has come to the attention of the company:

• The Nissan Almera added to the policy is a cloned vehicle.
• A cloned vehicle is broadly defined as a vehicle that has been made to appear legitimate by copying the identity of another vehicle.
• This vehicle is not a legal asset in SA and therefore not insurable in terms of this policy.
• We acknowledge that you said you were unaware the vehicle was cloned. However, its status as a cloned vehicle makes it uninsurable, regardless.
• Had we known the vehicle was cloned, we would not have insured it.”

The company said it would void the account and pay back Dunne’s premiums. 

Dunne had taken a motor and household content insurance with Old Mutual in July last year and was paying a R2,000 premium before the incident. 

“I could not understand why they rejected it, because the car was bought legitimately with an affidavit from the police made by the seller. I had also given Old Mutual all the car’s details and they did not identify any issues with it before they insured it. Now that they have to pay, they see problems,” said Dunne.

Sowetan Consumer has seen a sale agreement between Dunne and the seller, which was drawn up in July 2024. We have also seen his affidavit, which states that the police checked the vehicle and declared “that it is not stolen or tempered with”. 

“I logged a complaint requesting evidence proving this and they could not provide reasonable evidence,” said Dunne. “I stated that if my vehicle was cloned then surely there should be an original vehicle, and also since they claim my vehicle is a clone, how did they physically conduct an investigation when they did not recover my vehicle but also have nothing regarding the so-called original vehicle. They refused to pay my claim and I further submitted this to the ombudsman for intervention.”

Sowetan reached out to Old Mutual and to find out how they verify the assets they insure and how they concluded Dunne’s vehicle was cloned. They refused to comment as the matter was before the ombudsman.

“Kindly note that the matter is now in the arbitration process with the NFO (National Financial Ombudsman) and we therefore can only comment further once the process has been finalised,” said spokesperson Phathutshedzo Nepfumbada.

What is vehicle cloning?

Vehicle cloning occurs when a criminal copies the vehicle identification number (VIN) from a legally owned vehicle and uses it to hide the true identity of a stolen or salvaged vehicle of the same make and model.

To do this, the VIN plate of the stolen or salvaged vehicle is replaced with the VIN plate of a validly registered vehicle from another province or country.

According to DataDot, a company that manufactures microdots for identifying and securing assets, victims of vehicle cloning not only lose their insurance cover on the vehicle but also have very little chance of retrieving the money paid for the vehicle once it has been confiscated by authorities.

Tips for car buyers

• Never buy a vehicle without a NaTIS registration certificate. If the vehicle is financed, the registration certificate will be held by the bank and it will only be released once the vehicle is paid in full.

• Check that the information on the registration certificate and/or licence disc matches the information on the vehicle in all aspects.

• Check for spelling mistakes on the registration certificate and that it is not a photocopy.

• Ensure the used vehicle has a service book and an owner’s manual.

• Refuse to buy any vehicle with damaged locks or a damaged ignition system.

• Never buy a vehicle advertised or displayed with foreign number plates.

• Never buy a vehicle that is registered in a foreign country — even our neighbouring countries.

• Illegally imported vehicles can visually be identified by, for example, models that are clearly not sold in SA, mirrors on the front fender of the vehicle, mirrors in the back window, labels on the side windows in foreign languages and wipers on the front headlights.

It is strongly recommended that buyers of used motor vehicles should insist, from the dealer/seller, on a microdot fitment confirmation certificate issued for the vehicle by a reputable accredited microdot fitment centre.

Source: Business Against Crime

SowetanLIVE