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JUDGMENT

Abdull Hamid Embong JCA:

(1) On 30 January 1996, a road accident happened involving motorlorry No. WT 1835 belonging to Syarikat Jagoh Angkat Sdn Bhd. which was driven by one Katurajah a/l Subramaniam. Riding as a passenger with him was one Kanisan a/l Gopal (the deceased), who died in that accident. The motorlorry was insured by the respondent in this appeal (now referred to as P&O).

(2) A civil suit which we now refer to as the "liability action" was filed at the Taiping Sessions Court, which after a full trial found the defendant, ie, Kumpulan Jagoh Angkut Sdn Bhd to be 100% vicariously liable for the negligence of its driver Katurajah.

(3) Upon appeal against that decision, in the liability action, the High Court dismissed the appeal against liability but reduced the initial quantum of RM74,100 general damages and RM1,599 as special damages to RM52,899.50.

(4) The appellant next filed a separate action, ie, GS 52-97-01 (the recovery action) against P&O as the insurers. This recovery action was filed pursuant to s.96(1) Road Transport Act, 1987 (RTA). P&O in its defence stated that the coverage is subject to the terms and condition of its insurance policy. It was

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