JUDGMENT

Zaleha Zahari JCA:

[1] The appellants were insured by Perdana Cigna Insurance Bhd ("the insurers") under a Marine Open Policy against loss or damage arising from all shipping and sendings on or after 20 October 1992. The policy issued by the insurers was at all times a contract of indemnity. The policy, inter alia , included a subrogation clause, that at the request of the insurers, the appellants shall subrogate to the insurers their rights and claims against others and permit a suit to be brought in the appellants' name at the insurers' expense.

[2] By letter dated 23 February 1995, the appellants submitted a claim in respect of damage caused to certain equipment on 19 April 1994 during the carriage/transportation from the ship on discharge to the terminal for storage pending delivery to the appellants, as consignee. Letter dated 4 April 1995, minutes of meeting held on 4 April 1995, letter dated 27 April 1995 to GEC-Marconi Projects (Malaysia) Sdn. Bhd and letter dated 2 August 1995, show that the insurers admitted the appellants' claim. The settlement arrived at was that the damaged equipment would be replaced by the supplier, GEC-Marconi Projects (Malaysia) Sdn. Bhd. ("G