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2008 MarsdenLR 396

HIGH COURT SABAH & SARAWAK, KUCHING
BORNEO UNITED SAWMILLS SDN BHD – Appellant
Versus
MUI CONTINENTAL INSURANCE BHD – Respondent


JUDGMENT

David Wong Dak Wah J:

The Proceedings

[1] The plaintiff's claim is for loss of goods in the sum of RM396,000 under a Marine Cargo Policy taken out with the defendant which disclaims liability on the ground that the plaintiff had breached certain conditions of the policy rendering it unenforceable.

Undisputed Facts

[2] The defendant by a Marine Cargo Policy (the policy) provided insurance coverage in respect of goods valued at RM400,000 carried on board motor vessel M.V "Kuasa Jaya No.1" (the vessel). On at or about 23 September 2003, the plaintiff alleged that the vessel carrying 428.4804 cubic meters of sawn timbers (goods) was sailing from Pontianak, Kalimantan, Indonesia and heading towards Sibu, Sarawak, Borneo before she went missing. It was also alleged that on 30 November 2003, the Indonesia Navy located the vessel abandoned in the Java Sea near Surabaya in Indonesia. Attempts to locate the crew and the goods proved futile. As a result of the loss, the plaintiff made a claim under the policy which was rejected by the defendant for breaches of warranties by the plaintiff.

Issues

[3] Having read the submissions of counsels and the evidence adduced, it is my view that the fol

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