It was reported in the media that a classic sports car stolen from an East Coast city in the US nearly 36 years ago has been recovered on the other side of the country.
A Santa Maria, California, man bought the 1969 Chevy Camaro SS from a seller on eBay in February. But Keith Williams tells KSBY-TV he contacted the California Highway Patrol after certain features of the car didn’t match the model.
Police discovered the vehicle was stolen from Newark, New Jersey, on July 8 1975.
This raises a very important question- “What is the impact on Insurance when property which is lost or stolen is later recovered and the insurance claim has been paid?”
I raised these and other questions with the experts at Outsurance and would like to to share some of the responses received!
- What happens when your claim for stolen property is paid and the property is then recovered? Do you have to report this to the insurer?
Most definitely a YES. The property actually belongs to the insurance company once the claim is settled. The client cannot keep it otherwise there is a double benefit i.e. he has the cash/replacement item and the recovered item.
- Does the policy contract have a stipulation on this and what would the wording be?
See the last sentence in the para below:
Yes, this can happen and in fact does happen when clients return the goods or the cash if they recover the lost or stolen items.
- What would the effect be of damage to the property – where your car is only found 5 years later?
Same principles apply although in reality it rarely happens where the time span is so vast.