Berjaya Sompo Insurance Bhd recovers payout made to fire-hit factory owner under the principle of subrogation.
Justice Meor Hashimi Abdul Hamid ruled that Berjaya Sompo Insurance Bhd had proven its claim against Coreworld Sdn Bhd on the balance of probabilities.
He also dismissed a counterclaim filed by Coreworld against Beribu Pilihan Sdn Bhd and the insurance company.
The judge, who has been elevated to the Court of Appeal, returned to the Muar High Court yesterday to deliver his decision. He also ordered Coreworld to pay RM100,000 in costs to Beribu Pilihan.
The fire broke out on June 12, 2017, from a workers’ hostel at the rear of factory No 7 operated by Coreworld and spread to neighbouring factories, including one operated by Beribu Pilihan at Lot 11, Jalan Perindustrian Ulu Bakri.
The plaintiffs alleged that the fire was caused by unattended cooking by Coreworld’s workers, which resulted in an electrical overload.
They relied, among other things, on fire and rescue department findings and reports.
Beribu Pilihan made an insurance claim after its stock-in-trade was damaged in the fire.
Berjaya Sompo paid the claim and subsequently sued Coreworld under the principle of subrogation to recover the amount paid.
The judge ordered Coreworld to pay RM2,201,859.68, inclusive of interest, and dismissed its counterclaim.
The counterclaim, which exceeds RM1.5 million, involved Coreworld’s furniture and goods at Lot 9. It claimed losses arising from the destruction of the goods and relied on a tenancy agreement dated Jan 16, 2014.
However, Berjaya Sompo’s fire policy covered only Beribu Pilihan’s stock-in-trade at Lot 11 and did not insure Coreworld’s goods at Lot 9.
Beribu Pilihan and Berjaya Sompo were represented by P Paannimalar, Suresh G Sreedharan and M P Prathib Kumar. Andrew Tan appeared for Coreworld. - FMT
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