The Court of Appeal upheld a High Court ruling ordering MSIG Insurance to pay RM900,000 to a businessman for damage to his Bentley in a 2020 accident.
PUTRAJAYA: The Court of Appeal here today upheld a High Court decision ordering an insurance company to pay RM900,000 in indemnity to a businessman for damages to his Bentley Continental in an accident in 2020.
A three-member bench comprising Justices Datuk Dr Choo Kah Sing, Datuk Ismail Brahim and Datuk Leonard David Shim dismissed both MSIG Insurance (Malaysia) Bhd’s appeal and Inderpal Singh’s appeal, with RM50,000 in costs each.
MSIG Insurance had appealed against the High Court’s decision allowing Inderpal’s claim for indemnification under the insurance policy, while Inderpal appealed against the dismissal of his claim for negligence and consequential claims for RM253,000 for loss of use and RM990,000 for loss of enjoyment of the luxury car.
Delivering the unanimous decision, Justice Choo said the court found that the High Court judge had evaluated the evidence and made findings of fact that disclosed no error warranting the Court of Appeal’s interference.
He said although there was a version put forward by MSIG Insurance as to how the accident could have happened, that could not move this court to disturb the trial court’s finding.
Justice Choo said that the court was not convinced by the suggestion that the accident was staged to claim insurance.
“There was no evidence which was convincing that Inderpal Singh had staged the accident, other than the defendant’s (MSIG Insurance ) suspicion that the accident could not have happened in a manner as proffered by Inderpal Singh,” he said, adding that occasionally, accidents could happen without a scientific and logical explanation.
On Inderpal’s cross-appeal, he said the court agreed with the High Court that Inderpal had failed to prove that MSIG Insurance was negligent in carrying out the investigation and processing his insurance claim.
Inderpal is the registered owner of the Bentley Continental which was insured with MSIG Insurance under a private car insurance policy providing comprehensive coverage valued at RM900,000 for one year beginning from Feb 8, 2019.
On Jan 22, 2020, Inderpal was returning home after visiting his sister in Kelana Jaya when his vehicle collided with a guardrail on the left side of the road after he attempted to avoid hitting a dog that had unexpectedly crossed his path.
He notified an MSIG insurance agent the following day, and the vehicle was subsequently towed to a workshop, which prepared an estimate report detailing repair costs amounting to RM1,053,491.07.
On June 4, 2021, MSIG Insurance issued a letter rejecting Inderpal’s claim, alleging that it was suspicious and inconsistent with the circumstances of the accident as described by Inderpal.
The insurer also alleged that Inderpal had used fraudulent means to obtain benefits from the insurance policy.
Inderpal filed a suit seeking indemnification under the insurance policy, alleging breach of contract and negligence by the insurance company in handling his claim.
On May 20 last year, the Kuala Lumpur High Court allowed Inderpal’s claim for indemnification under the insurance policy but dismissed his claims for negligence and consequential claims for loss of use and loss of enjoyment of the car.
Inderpal was represented by lawyers David Samuel and Mithurran Ravinthiran, while lawyer Samreet Singh Sagoo and Theebadarshini Retnakumar represented MSIG Insurance.
