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2024 MarsdenLR 310
HIGH COURT MALAYA KUALA LUMPUR
ZURICH GENERAL INSURANCE MALAYSIA BERHAD – Appellant
Versus
LAILIN SININ & ANOR AND ANOTHER CASE – Respondent
[Civil Suit Nos: WA-24NCC-837-08-2022 & WA-24NCC-917-09-2022]
Insurance policies require accidents to occur on a 'road' as defined by the Road Transport Act, which must be accessible to the public; an army camp does not meet this criterion.
Headnote:(A) Road Transport Act 1987 – Sections 2 and 91(1)(b) – Enforceability of insurance policies – Plaintiffs sought declarations regarding two insurance policies following an accident at an army camp – Court found that the accident did not occur on a 'road' as defined by the RTA, as Kem Syed Sirajuddin is a restricted area not accessible to the public – The policies did not cover the accident. (Paras 1-52)
(B) Insurance Coverage – Definition of 'road' – The court examined the definition of 'road' under the RTA and relevant case law, concluding that the accident site did not meet the criteria for a public road. (Paras 17-30)
Facts of the case: The Plaintiffs issued motor insurance policies for motorcycles involved in an accident at Kem Syed Sirajuddin, an army camp, and sought declarations regarding coverage under the policies.
Findings of Court: The court found that Kem Syed Sirajuddin does not qualify as a 'road' under the RTA due to lack of public access and connectivity.
Issues: Whether the accident occurred on a 'road' as defined by the RTA and whether the insurance policies were enforceable.
Ratio Decidendi: The court ruled that for an area to qualify as a 'road', it must be accessible to the public and connect two points, which Kem Syed Sirajuddin does not. The policies did not cover the accident.
Result: Suits dismissed.
JUDGMENT
[1] The Plaintiffs in both the above suits (Originating Summons No WA-24NCC-837-08/2022 ("Suit 837") and Originating Summons No WA- 24NCC-917-09/2022 ("Suit 917") (collectively referred to as "the Suits") had applied for a declaration in respect of the enforceability of two insurance policies under s 96(3) of the Road Transport Act 1987 (" RTA ").
[2] Both Suits share the following commonalities:
i) They involve the same accident and similar parties but are in respect of different insurance policies;
ii) The Plaintiffs are represented by the same solicitors, the 1st Defendant (in Suit 837) and 3rd Defendant (in Suit 917) are represented by the same solicitors and the 2nd Defendant (in Suit 837) and the 1st and 2nd Defendants (in Suit 917) are represented by the same solicitors; and
iii) The primarily issue in both Suits is whether the accident occurred on a "road" (or "public road") as defined by the RTA as required under the respective policies for the insurance coverage to apply.
[3] Both Suits were heard together and the submissions were mainly by learned counsel for the Plaintiffs and learned counsel for Rauf Saifuddin bin Jantan ("Rauf") and Nor Hasimah Binti Zainal Abidin ("Nor Hasimah"). Counsel for Lailin Sinin ("Lailin") substantially adopted the submissions of counsel for Rauf and Nor Hasimah.
[4] After hearing submissions from all parties, I dismissed both Suits, below are the reasons for my decision.
A. Salient Background Facts
[5] The Plaintiff in Suit 837 issued a motor insurance policy no 24200005727200 ("Policy 272") in respect of a motorcycle bearing registration No SYJ 7432 ("motorcycle SYJ 7432") to Ronny Emanuel Rabinus (deceased) ("Ronny") (substituted by the administrator of his estate, his mother, Lailin Sinin).
[6] The Plaintiff in Suit 917 issued a motor insurance policy no 50205002811200 ("Policy 112") in respect of a motorcycle bearing registration No CCP 7912 ("motorcycle CCP 7912") to Nor Hasimah.
[7] An accident occurred on 6 April 2021 at around 11:30am at Jalan Utama, Kem Syed Sirajuddin, Gemas, Negeri Sembilan ("Kem Syed Sirajuddin") involving motorcycle SYJ 7432 ridden by Ronny and motorcycle CCP 7912 which was ridden by Rauf ("the Accident").
[8] It is not disputed that Kem Syed Sirajudin is a military or army camp.
[9] A s 96(2) RTA notice was subsequently issued by Lailin's solicitors to the Plaintiff in Suit 837 and similarly a s 96(2) notice was issued by Rauf's solicitors to the Plaintiff in Suit 917.
[10] Rauf commenced a suit against Ronny's estate on 26 January 2022 while Lailin, as the administrator of Ronny's estate, initiated a suit against Rauf and Nor Hasimah on 1 July 2022 ("Accident Suits"). Both the Accident Suits were filed at the Kuala Pilah Sessions Court.
[11] An investigation was then carried out by the Plaintiffs' appointed adjustors and following the said investigation, the Plaintiffs' concluded that as the accident occurred in Kem Syed Sirajuddin, Gemas, an army camp area, it is thus not a public road or a road to which the public has access as stipulated under ss 2 and 91(1)(b) RTA .
[12] Therefore, the polices issued by the Plaintiffs did not cover the accident.
B. Coverage Under The Policies
[13] Both Policy 272 and Policy 112 have similar if not almost identical wordings. The relevant clauses in Policy 272 are reproduced below.
Policy 272
"Section A: Loss or Damage to Your Own Motorcycle
Clause 1a: Events We Cover
We will indemnify You if Your Motorcycle is lost or damaged during the Period of Insurance arising from the following Incidents:
(i) accidental collision or overturning;
(ii) collision or overturning caused by mechanical breakdown;
(iii) collision or overturning caused by wear and tear;
(iv) impact damage caused by falling objects provided no convulsions of nature is involved;
(v) fire, explosion or lightning;
(vi) burglary, housebreaking or theft;
(vii) malicious act; or
(viii) while in transit ie being carried from one place to another (includ
