JUDGMENT

Abang Iskandar J:

(1) At the end of 2004, Mr Tan Jing Jeong (TJJ) had bought an insurance policy from the Allianz Life Insurance Malaysia Berhad (the defendant insurance company-D1), through one of its agents by the name of Mr Ong Tuan Soon (OTS-D2). The insurance product was a Life Policy known as the Investpro. It was undisputed that, among others, the terms of the Investro policy had included the following:

(a) the premium of the policy was RM400,000 per annum;

(b) that the life insurance coverage was RM8 million;

(c) the total and permanent disability coverage was RM1 million;

(d) that the monthly service charges was RM3; and

(e) the fund management charge was 1.5% p.a.

(2) This product was in the nature of an investment-linked insurance policy and as such a certain portion of the premium was allocated for investment-linked fund for the purpose of yielding returns from the investment. In fact, it was provided that 45% of the premium of RM400,000 which had translated to RM180,000, was earmarked for that very purpose.

(3) TJJ had paid the first year premium for this Investpro insurance product in full and he had expected a reasonable return from his investment