Syed Othman J:

On 17 July 1962, on a proposal by the first defendant, the plaintiffs who are insurers, insured the first defendant's station wagon and the first defendant against the usual third party risks for the period from 17 July 1962 to 23 November 1962. On 8 October 1962 during the currency of the insurance, one Cheong Moi while driving the vehicle on the first defendant's order or with his permission was involved in an accident in which one Abdon bin Haji Dahalan was killed. On 20 October 1963 the dependants of the deceased issued a writ in the High Court at Johore Bahru claiming damages against Cheong Moi for negligence. The policy covers such liability.

The insurers now seek a declaration that they are entitled to avoid the insurance on the ground "apart from any provision contained in the policy, the policy was obtained by non-disclosure of material facts and/ or representation of a fact which was false in some material particular." One of the questions contained in the proposal is "4. Have you or any person who to your knowledge will drive, been convicted during the past five years of any offence in connection with the driving of any motor vehicle?". The answe