JUDGMENT

Mohd. Eusoff bin Chin SCJ:

The respondent operated a plant at PLO/23 Jalan L, Pasir Gudang, Johor, for the purposes of refining edible palm oil. The plant included a steam boiler known as Wanson Vaporax Model 1000 HP Steam Generator (hereinafter referred to as the boiler).

By a Boiler and Machinery Policy of Insurance valid between 1 November 1982 to 31 December 1983, the respondent insured its plant and machinery including the boiler, with the appellant, against the risk of loss resulting from any "accident" as defined in the policy while the said plant and machinery were in operation.

On 28 November 1982 a rupture in the upper coil of the boiler caused a leakage of water which in turn resulted in the whole plant being shut down. The appellant was immediately informed of the failure. Temporary repair work was carried out pending the arrival of a new coil. The plant was started up on 5 December 1982. But on 12 December 1982, the repaired coil failed again when another rupture occurred diametrically opposite the first rupture. The plant was shut down. The new coil arrived from the manufacturers in Belgium on 17 December 1982, and the plant started operation on 21 December