The Supreme Court in Greece ruled that insured car owners will not be eligible for compensation from insurance companies in case of theft of their vehicles if their car is parked in “unsafe” spaces. According to the Supreme Court, insurance companies will not legally cover the risk of total or partial theft of a car insured for theft if the owner parks it in an unsafe place.

An “unsafe space” is deemed as an area with no lighting, the place is isolated, there is no frequent movement of persons or vehicles, the car does not have an alarm system, etc. The reasoning behind the ruling is that the owners of the vehicle are “grossly negligent” if they fail to take safety measures.

The private insurance contract states in small print that the insurance company, in accordance with Law 2496/1997, in cases of insurance of property against the risk of total or partial theft, undertakes to pay the agreed amount in the event of theft.

However, in the case of insurance of property such as motor vehicles against the risk of total or partial theft, insurance companies are ‘relieved of the obligation to pay the premium’ if the theft is caused by ‘fraud or gross negligence’ on the part of the owner of the insured property.

The ruling was prompted by striking down an appeal filed by a businessman who insured his luxury car, a BMW M3 coupe of 4,000 cc, against various risks, including theft, up to the amount of EUR 90,000. The insurance company refused to cover the businessman who in turn appealed. The case reached the Supreme Court.