BURGLARY INSURANCE - FULL THEFT/LARCENY

There is a news report 'HK diamond thief swaps stone for fake'. A thief swapped a US$220,000 diamond with a fake at a jewellery store in Hong Kong. The incident was captured on CCTV.

If the shop owner carries Burglary insurance with full theft/larceny extension, would he be able to make a claim under this policy? We have earlier on deliberated on the question of shop lifting but this case involves swapping the real with a fake.

Please share your thoughts.

• Ong Chun Keat It would falls into Theft by Deception exclusion. I think
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  Raymond Huang OCK - I could not find the exclusion in the policy.
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  Ong Chun Keat : Usually it is standard clause imposed in Burglary/ Money policies by insurer.

  
  
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  Raymond Huang: OCK - What happens when this exclusion is not there but the policy is extended to include full theft/larceny?

  
  
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  Ong Chun Keat: It would most probably will be covered by the armpit of the policy. Depending on the circumstances and adjuster's final findings.

  
  
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  Raymond Huang: I like your sense of humour but there is still no answer to the question.

  
  
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  Tay Ho Soon Raymond Huang:, I don't OCK was trying to be humourous. Instead of "by the armpit", my guess is that he wanted to say "under the ambit of".
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  Juan Hoh See: I the absence of this exclusion, i would opine that this is covered under the policy so long as the insured has proven that he has suffered a loss.
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  Yam Lim Song If full theft extension is included, liability will be apparent
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  Wong Woon Hock Many Burglary policies nowadays do carry Exclusion on Theft by Deception or Cheating. In the absence of such exclusion, I feel the Insurer should pay the claim since the Insured has suffered the loss,as FULL THEFT/LARCENY cover has been extended and which does not require forcible break in.