Malaysia Case Law: Decisions & Judgments | LexChat

Topic

Avoidance of insurance policy

Legal area

Court

25 Mar 2024

1. ) Abdul Hair Bin Ali Hossain 2. ) Wan Ismail Bin Wan Kadir 1. ) ZURICH GENERAL TAKAFUL MALAYSIA BERHAD 2. ) Nor Ashikin Binti Abd Rahman

Citation

W-02(NCC)(A)-560-03/2022 (Mahkamah Rayuan)
Court

NCC
Case number

W-02(NCC)(A)-560-03/2022 (Mahkamah Rayuan)

The Court of Appeal held that statutory third-party protection under the RTA prevents the insurer from obtaining a declaration under s.96 to void the policy after the risk materialised where the insurer failed to show it had made inquiries or safeguarded its interests on renewal; therefore the insurer cannot rely on the vehicle being a different chassis to avoid liability to innocent third-party victims and the High Court's declaration was set aside.
5 Feb 2020

MSIG Insurance (Malaysia) Berhad Nurul Idayu Binti Abd Wahab & 2 Lg

Citation

WA-24NCC-599-11/2019 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24NCC-599-11/2019 (Mahkamah Tinggi)

Following the Court of Appeal line on RTA s109 and having found that the First Defendant was not an authorised driver and had made material misrepresentations and failed to disclose ownership change when renewing the policy (breach of utmost good faith and duty of disclosure), the court held the insurer was entitled to avoid the policy and granted declarations that the insurer is not liable for the policy period and not responsible for third party claims arising from the accident.