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PS GILL
ASEAN SECURITY PAPER MILLS SDN BHD – Appellant
Versus
COMMERCIAL UNION ASSURANCE (M) SDN BHD – Respondent
Key Points: - The court considered whether the policy was valued or unvalued and the consequences for indemnity (!) (!) (!) . - The court addressed whether the insurers were estopped by their conduct from denying liability and discussed related estoppel principles (!) (!) (!) (!) . - The court ruled on whether fraud was proven beyond reasonable doubt and denied a finding of fraud against the plaintiffs (!) (!) . - The court analyzed compliance with Condition 11 (notice and documentation), found satisfactory compliance, and discussed implications for liability (!) (!) (!) . - The court considered Condition 12 (possessory rights over insured property) and found non-compliance issues due to disagreement over loss adjuster appointment rather than strict non-compliance by the insured (!) (!) . - The court reviewed Condition 19 (time limit) and held that the condition was void under contractual law, affecting timeliness arguments (!) (!) (!) . - The verdict awarded judgment in favor of the plaintiffs for the claimed amount with interest and costs, reflecting the balance-of-probabilities standard rather than beyond reasonable doubt for the main liability issue (!) (!) (!) .
PS Gill J:
The plaintiffs, Asean Security Paper Mills Sdn Bhd (hereinafter referred to as ASPM) is a private limited company incorporated in Malaysia. It was at all material times involved in the purchase and sale of various categories of paper including security paper. Pursuant to its business activities, it stored its goods initially at a KTM warehouse in Kuala Lumpur, and later at a warehouse in Kg. Acheh, Sitiawan. Plaintiffs obtained sometime on 23 July 1989, fire insurance coverage from Provincial Insurance (M) Sdn Bhd and Commercial Union Assurance (M) Sdn Bhd for a sum of RM14,932 million in respect of the goods stored at its warehouse. Later on 29 August 1989 the sum insured was increased to RM32,431 million with effect from 30 August 1989. The items insured were as follows:
Item 1. On stock in trade of brilliant White/security/woodfree Asean Bond Paper, Computer Listing/Computer Forms, Elan Papers, Asean Speciality Papers and Papers of every description.
- RM32,000,000
Item 2. On five (5) steel cabins @ $32,400 each, furniture, fixtures & fittings equipment for $20,000 - RM 182,000
Item 3. On building (Warehouse) - RM 200,000
Item 4. On one (1) unit Forklift - RM
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