An insurance policy lapses automatically upon the sale of the insured vehicle, releasing the insurer from liability for accidents involving the new owner.

JUDGMENT

Mohd Arief Emran Arifin J:

A. Introduction

[1] The 1st Defendant was the previous owner of the vehicle bearing number JHV 6384. He had obtained insurance coverage from the Plaintiff for the said vehicle for the period between 13 October 2018 and 12 October 2019.

[2] The said vehicle was sold by the 1st Defendant to the 3rd Defendant and had obtained an insurance from AmGeneral Insurance Berhad that is valid from 24 January 2019 to 23 January 2020. At the time of the accident, the said vehicle was registered in the name of the 3rd Defendant.

[3] It is not disputed that the said vehicle was involved in an accident involving the 2nd Defendant, being the driver of the said vehicle. This accident caused damage and losses to the 4th Defendant. This accident occurred on 14 April 2019 whilst the vehicle was registered in the name of the 3rd Defendant. The 1st Defendant was no longer the registered owner of the vehicle and was not involved in the said accident.

[4] The 4th Defendant started proceedings against the 2nd and 3rd Defendants in the Sessions Court at Johor Bahru with the suit bearing number JA-A53KJ-353-06-2020. The 1st Defendant was not named as a Defendant in the said suit.

[5] The 4th Defendant's solicitors had undertaken a search with the Jabatan Pengangkutan Jalan and found that the previous insurance in the name of the 1st Defendant was still registered as a valid insurer to the said vehicle, together with the 2nd and 3rd Defendants' insurers, AmGeneral Insurance Berhad. The appropriate notice was issued to the Plaintiff and AmGeneral Insurance Berhad.

[6] According to the Plaintiff, to ensure that their rights were protected and to prevent a Judgment in Default, they had appointed solicitors to undertake the defence to the claim pending an investigation as to the accident and to identify whether they are required to provide coverage for the said claim.

[7] After undertaking their investigation, they found that the said vehicle was sold to the 3rd Defendant and is now registered in the said Defendant's name. Therefore, the Plaintiff believes that the policy in the name of the 1st Defendant is no longer valid, and they have no obligation to cover for any acts of the 2nd and 3rd Defendants.

[8] Thus, the Plaintiff sought the following reliefs against the Defendants:

i) The entire insurance policy No. 0850118TMA079378 that is issued under the 1st Defendant's name, which covers motorcar No. JHV 6384, is void and unenforceable after the change of ownership of the motorcar No. JHV 6384 to the 3rd Defendant.

ii) The 2nd and 3rd Defendants are not covered under the insurance policy No. 0850118TMA079378 at all material times.

iii) The Plaintiff is not liable under insurance policy No. 0850118TMA079378 for the accident that is reported to have occurred on 14 April 2019 at/or around 11.30am at a traffic light- near Taman Mutiara Rini involving vehicle No. JHV 6384, where the 3rd Defendant is the registered owner of vehicle No. JHV 6384, and the 2nd Defendant was the authorised driver of vehicle No. JHV 6384 and motorcycle No. JNP 3094 ridden by the 4th Defendant (the "accident").

iv) The Plaintiff is not the insurer concerned for motorcar No. JHV 6384 at the time of the accident.

v) The Plaintiff is not liable to bear/satisfy any order and judgment under s 96(1) of the Road Transport Act 1987 that is adjudged by the 4th Defendant against the 2nd and 3rd Defendants in Johor Bahru Civil Suit No: JA-A53KJ-353-06-2020 and/or in any other action following the said accident.

B. Defendants' Arguments Opposing This Application

[9] The 2nd and 3rd Defendants did not file an affidavit in reply to the Plaintiff's application. Instead, the affidavit was filed by one Toh Lee Teng on behalf of the 2nd and 3rd Defendants. She is a representative of AmGeneral Insurance Berhad.

[10] I note that there is no evidence that the 2nd and 3rd Defendants had authorised the said Toh Lee Teng to affirm the affidavit on their behalf. The only evidence before me is