(delivering the judgment of the court): In Malaysian Australian Finance Co Ltd v The Law Union & Rock Insurance Co Ltd [1972] 2 MLJ 10 an endorsement in a commercial vehicle insurance policy relevant to the case reads as follows:

"It is hereby understood and agreed that Messrs. Malaysian Australian Finance Co. Bhd. (hereinafter referred to as the owners) are the owners of the motor vehicle and that the motor vehicle is the subject of a hire purchase agreement made between the owners of the one part and the insured of the other part and it is further understood and agreed that the owners are interested in any monies which but for this endorsement could be payable to the insured under this policy in respect of loss of or damage to the motor vehicle (which loss or damage is not made good by repair reinstatement or replacement) and such monies shall be paid to the owners as long as they are the owners of the motor vehicle and their receipt shall be a full and final discharge to the company in respect of such loss or damage. Save as by this endorsement expressly agreed nothing herein shall modify or affect the rights and liabilities of the insured or the company respectively under or in connection with this policy."

Mohd. Azmi J. (as he then was) said that "because of the fact that the respondent (The Law Union & Rock Insurance Co. Ltd.) has taken upon itself in the relevant endorsement to pay the applicant (Malaysian Australian Finance Co. Ltd.) direct in respect of money arising to be paid under the policy, and the fact that the insurance policy was in fact effected for the applicant's benefit, the respondent should be regarded as trustee and/or agent for the applicant". The learned judge continued:

"Thus, although as a general rule, a contract cannot be enforced except by a party to the contract, in my view, this case comes within the exceptions to that rule and the applicant is entitled to institute claims against the respondent in its own name."

After the judgment in the Malaysian Australian Finance case had been delivered, learned counsel for the appellant insurance company, United General Insurance Co. Sdn. Bhd., had submitted that steps was taken by the appellant to amend the endorsement in its motor vehicle insurance policy. When the private motor car insurance policy W/PC/0069 covering Honda Accord Registration No. WAQ 8814 was issued to Wong Kim Miew, the insured, on 27 July 1983 it contained the amended endorsement which was in the following terms:

"It is hereby understood and agreed that Progress Credit Sdn. Bhd. (hereinafter referred to as the owners) are the owners of the motor vehicle and that the motor vehicle is the subject of a hire purchase agreement made between the owners of the one part and the insured of the other part. It is further understood and agreed that any payment made in respect of loss or damage (which loss or damage is not made good by repair reinstatement or replacement) under section 1 of this policy shall be made to the owners as long as they are owners of the motor vehicle and their receipt shall be a full and final discharge to the corporation in respect of such loss or damage. It is also understood and agreed that notwithstanding any provision in the hire purchase agreement to the contrary this policy is issued to the insured namely Wong Kim Miew as the principal party and not as agent or trustee for the owners and nothing herein shall be construed as constituting the insured as agent or trustee for the owners or as an assignment (whether legal or equitable) by the insured to the owners of his rights benefits and claims under this policy. It is lastly understood and agreed that the insured shall not assign his rights benefits and claims under this policy without the prior consent in writing of the corporation (emphasis given). Subject otherwise to the terms of the policy."

It was the submission of learned counsel for the appellant in this appeal that the additional words italicized