2017 MarsdenLR 2026

MAHKAMAH TINGGI MALAYA ALOR SETAR
THE PACIFIC INSURANCE BERHAD LWN. ISHAK MD HANAFIAH & YANG LAIN
[Guaman Sivil No: 24NCVC-691-08/2016]

Insurance liability is contingent upon the insured holding an insurable interest at the time of the incident, affecting the enforceability of the policy.

Headnote:This case concerns an appeal by the Third and Fourth Respondents against a decision allowing The Pacific Insurance Berhad to avoid liability under the car insurance policy covering vehicle number PBR 5949. The court found that, due to prior sale of the vehicle, the insurance policy was ineffective. Major legal issues revolve around the enforceability of insurance contracts closely tied to ownership. The court's ruling indicates a void insurance policy due to the transfer of ownership before the accident occurred as discussed in several case law precedents. As a result, the court dismissed the appeal and ruled in favor of the Plaintiff.