JUDGMENT

PS Gill J:

The plaintiffs, Asean Security Paper Mills Sdn Bhd (hereinafter referred to as ASPM) is a private limited company incorporated in Malaysia. It was at all material times involved in the purchase and sale of various categories of paper including security paper. Pursuant to its business activities, it stored its goods initially at a KTM warehouse in Kuala Lumpur, and later at a warehouse in Kg. Acheh, Sitiawan. Plaintiffs obtained sometime on 23 July 1989, fire insurance coverage from Provincial Insurance (M) Sdn Bhd and Commercial Union Assurance (M) Sdn Bhd for a sum of RM14,932 million in respect of the goods stored at its warehouse. Later on 29 August 1989 the sum insured was increased to RM32,431 million with effect from 30 August 1989. The items insured were as follows:

Item 1. On stock in trade of brilliant White/security/woodfree Asean Bond Paper, Computer Listing/Computer Forms, Elan Papers, Asean Speciality Papers and Papers of every description.

- RM32,000,000

Item 2. On five (5) steel cabins @ $32,400 each, furniture, fixtures & fittings equipment for $20,000 - RM 182,000

Item 3. On building (Warehouse) - RM 200,000

Item 4. On one (1) unit Forklift - RM