Appeals court upholds RM900,000 insurance payout for Bentley owner

 The court says it is not convinced by MSIG Insurance (Malaysia) Bhd’s suggestion the accident was staged to claim insurance.

The Court of Appeal said although there was a version put forward by the insurer as to how the accident could have happened, that could not move the bench to disturb the trial court’s finding.

PUTRAJAYA:

The Court of Appeal today upheld a High Court decision ordering an insurance company to pay RM900,000 in indemnity to a businessman for damage to his Bentley Continental in an accident in 2020.

A three-member bench comprising Justices Choo Kah Sing, Ismail Brahim and Leonard David Shim dismissed both appeals by MSIG Insurance (Malaysia) Bhd and the car’s owner, Inderpal Singh, with both ordered to pay RM50,000 in costs each.

MSIG Insurance had appealed against the High Court’s decision allowing Inderpal’s claim for indemnification under the insurance policy, while Inderpal appealed against the dismissal of his claim for negligence and consequential claims for RM253,000 for loss of use and RM990,000 for loss of enjoyment of the luxury car.

Delivering the unanimous decision, Choo said the court found that the High Court judge had evaluated the evidence and made findings of fact that disclosed no error warranting the Court of Appeal’s interference.

He said although there was a version put forward by MSIG Insurance as to how the accident could have happened, that could not move the bench to disturb the trial court’s finding.

Choo said the court was not convinced by the suggestion that the accident was staged to claim insurance.

“There was no evidence which was convincing that Inderpal Singh had staged the accident, other than the defendant’s (MSIG Insurance) suspicion that the accident could not have happened in a manner as proffered by Inderpal Singh,” he said, adding that accidents could happen without a scientific and logical explanation.

On Inderpal’s cross-appeal, Choo said the court agreed with the High Court that he had failed to prove that MSIG Insurance was negligent in carrying out the investigation and processing his insurance claim.

Inderpal was the registered owner of the Bentley Continental which was insured with MSIG Insurance under a private car insurance policy providing comprehensive coverage valued at RM900,000 for one year beginning from Feb 8, 2019.

Inderpal was returning home after visiting his sister in Kelana Jaya on Jan 22, 2020, when his vehicle collided with a guardrail on the left side of the road after he tried to avoid hitting a dog that had unexpectedly crossed his path.

He notified an agent of MSIG Insurance the following day, and the vehicle was subsequently towed to a workshop, which prepared an estimate report detailing repair costs amounting to RM1,053,491.07.

On June 4, 2021, MSIG Insurance issued a letter rejecting Inderpal’s claim, alleging that it was suspicious and inconsistent with the circumstances of the accident as described by him.

The insurer also alleged that Inderpal had used fraudulent means to obtain benefits from the insurance policy.

Inderpal filed a suit seeking indemnification under the insurance policy, alleging breach of contract and negligence by the insurance company in handling his claim.

On May 20 last year, the Kuala Lumpur High Court allowed Inderpal’s claim for indemnification under the insurance policy, but dismissed his claims for negligence and consequential claims for loss of use and loss of enjoyment of the car.

Inderpal was represented by lawyers David Samuel and Mithurran Ravinthiran, while lawyer Samreet Singh Sagoo and Theebadarshini Retnakumar represented MSIG Insurance. - FMT