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2014 MarsdenLR 1466
MAHKAMAH TINGGI MALAYA KUALA LUMPUR
HEW SOON TAI DAN YANG LAIN LWN. HONG LEONG ASSURANCE BERHAD
[Guaman No: S2-22-1096-2008]
Non-disclosure of a criminal record does not constitute a breach of insurance law if not explicitly required in proposal forms; however, claims related to criminal activity are unenforceable due to public policy.
Headnote:(A) Insurance Act 1996 - Section 150(1) - Insurance policy claims - Entitlement to benefits under insurance policies - The court addresses issues of non-disclosure of past criminal record by the insured and whether such non-disclosure is material. It finds that no inquiry was made about criminal history, thus non-disclosure does not violate Section 150(1). The court further addresses the public policy concerns regarding the deceased's death while resisting arrest. Policies under which claims were sought were declared void due to their relation to criminal acts. (Paras 78-161)
Facts of the case:
The plaintiffs, beneficiaries under various insurance policies taken out by Sum Wing Chang, sought payment after his death during a police shooting incident. The defendant denied liability based on alleged non-disclosure of a past criminal record and public policy issues. (Paras 4-12)
Findings of Court:
The court held that benefits could not be claimed under certain policies due to public policy reasons as the insured’s death resulted from his own criminal actions, hence the claims were unenforceable. (Paras 161 vi-viii)
Issues: Whether the plaintiffs were entitled to claim under the insurance policies in light of non-disclosure of criminal history and public policy implications regarding the insured's death. (Paras 13-22)
Ratio Decidendi: The court reasoned that the failure to inquire about past criminal records in the insurance proposal suggests that such information was not deemed material. Thus, the failure to disclose was consistent with the understanding of the policy terms and did not breach Section 150(1). Yet, public policy precludes recovery where the insured's death involved criminal activity. (Paras 94-114)
Result: Plaintiffs allowed recovery on certain claims while others were denied based on public policy. (Ratio Decidendi)
| Table of Content |
|---|
| 1. factual background of the case (Para 1 , 2 , 3) |
| 2. plaintiffs' insurance claims and demands (Para 4 , 5 , 6 , 7 , 8) |
| 3. defendant's acknowledgment and defenses (Para 9 , 11) |
| 4. rebuttal of allegations of criminal conduct (Para 10 , 12 , 22 , 110) |
| 5. issues to be adjudicated (Para 13) |
| 6. plaintiffs' arguments regarding insurance claims (Para 18 , 20 , 77) |
| 7. defendant's arguments and claims against disclosures (Para 21 , 32 , 38 , 59 , 61) |
| 8. judgment on public policy and claims (Para 79 , 91 , 109 , 146) |
| 9. court's ruling and final judgments (Para 118 , 160) |
[1] Perbicaraan penuh untuk kes ini telah dijalankan pada 24 Mac 2013, 23 April 2013, 21 November 2013, 28 Februari 2014, 7 Mac 2014 dan 19 Mac 2014.
Dokumen
[2] Ikatan Dokumen yang telah dirujuk dan ditandakan semasa perbicaraan penuh adalah seperti berikut:
2.1 Ikatan Pliding - A
2.2 Ikatan Dokumen Bersama (Bahagian A) - B1
2.3 Ikatan Dokumen Bersama (Bahagian B) - B2
2.4 Ikatan Dokumen Bersama Bahagian (C) - B3
2.5 Ikatan Dokumen Bersama Tambahan (Bahagian C) - B4
2.6 Ikatan Dokumen Bersaman Tambahan (Bahagian C) - B5
2.7 Ikatan Dokumen Bersaman Tambahan (Bahagian A) - B6
2.8 Ikatan Dokumen Bersama Tambahan (Bahagian C) - B7
Senarai Saksi
[3] Saksi berikut telah dipanggil bagi kedua-dua pihak:-
Saksi Plaintif
(a) Hew Soon Tai - PW-1
(b) Chai Tai Choon - PW-2
Saksi Defendan
(a) Wong Chia Peng - DW-1
(b) Javial s/o Thomas - DW-2
(c) Lee Sen Tuck - DW-3
(d) Sharifuddin - DW-4
(e) Gamal Nasir Bin Mohd Ali - DW-5
(f) Mohd Azri - DW-6
(g) Tuan Zaba Bin Abd Rahim - DW-7
Tuntutan Plaintif
[4] Melalui perjanjian-perjanjian insurans di antara Sum Wing Chang (si mati) dengan Defendan, Defendan telah bersetuju untuk memberikan perlindungan insurans am nyawa bagi faedah ('benefit') Plaintif-Plaintif jika dan apabila berlaku kematian kepada Sum Wing Chang (si mati) atas jumlah keseluruhan yang dilindungi ('total sum covered') sebanyak RM800,000.00 dibawah Polisi-Polisi insurans tersebut.
[5] Perlindungan insurans yang diberikan oleh Defendan kepada Sum Wing Chang (si mati) untuk faedah Plaintif-Plaintif adalah di bawah Polisi-Polisi insurans no. IL/2002/031959/4, IL/2002/031960/5, IL/2002/031022/5, IL/2002/030672/5, IL2002/031961/6 dan IL/2002/030671/4 ("Polisi-Polisi insurans tersebut").
[6] Sum Wing Chang telah meninggal dunia pada 27 Disember 2002. Semasa Sum Wing Chang meninggal dunia kesemua Polisi-Polisi insurans tersebut adalah masih sah dan berkuatkuasa.
[7] Plaintif-Plaintif telah mengemukakan tuntutan insurans kepada Defendan menurut Polisi-Polisi insurans namun demikian Defendan enggan membuat sebarang pembayaran di bawah Polisi-Polisi insurans tersebut kepada Plaintif-Plaintif yang diperuntukkan bagi Polisi-Polisi insurans tersebut.
[8] Plaintif-Plaintif menuntut terhadap Defendan perintah seperti berikut:-
(a) satu perisytiharan bahawa Polisi-Polisi IL/2002/031959/4, IL/2002/031960/5, IL/2002/031022/5, IL/2002/030672/5, IL2002/031961/6 dan IL/2002/030671/4 masih terpakai dan berkuatkuasa;
(b) Jumlah RM300,000.00 dibawah Polisi insurans Polisi No. IL/2002031959/4 dibayar kepada Plaintif Pertama;
(c) Satu perisytiharan bahawa premium-premium bagi Polisi-Polisi insurans IL/2002/031960/5, IL/2002/031022/5, IL/2002/030672/5, IL2002/031961/6 dan L/2002/030671/4 diabaikan ("waived") sehingga tarikh matangnya dan bahawa Plaintif-Plaintif berhak untuk menuntut mengikut terma-terma Polisi-Polisi tersebut;
(d) Secara alternatif, sejumlah wang sebanyak RM500,000.00 dibayar kepada Plaintif-Plaintif bagi Polisi-Polisi insurans IL/2002/031960/5, IL/2002/031022/5, IL/2002/030672/5, IL2002/031961/6 dan IL/2002/030671/4;
(e) Faedah pada kadar 8% setahun ke atas jumlah RM608,291.00 RM300,000.00 dari tarikh penghakiman hingga ke tarikh penyelesaian penuh;
(f) Faedah pada kadar 8% setahun ke atas jumlah RM500,000.00 dari tarikh penghakiman hingga ke tarikh penyelesaian penuh;
(g) Apa-apa faedah ('benefit') lain yang patut dan wajar dibayar di bawah Polisi-Polisi insurans tersebut;
(h) Kos atas das
