CHONG LAI KENG v. PRUDENTIAL ASSURANCE MALAYSIA BHD [2024] 1 CLJ 293
HIGH COURT MALAYA, SHAH ALAM
JAMHIRAH ALI JC
[CIVIL SUIT NO: BA-22NCC-21-02-2022]
23 OCTOBER 2023
The uberrimae fidei principle, entrenched in Part 3, Schedule 9 of the Financial Services Act 2013, imposes consumers with a duty of disclosure and representation when engaging in, modifying or renewing insurance contracts with insurers. This duty requires consumers to exercise reasonable care to prevent any misrepresentation during the pre-contractual phase. Specifically, consumers have an obligation to ensure the accuracy and completeness of their responses to the insurer's inquiries. In cases where a consumer deliberately or recklessly makes a misrepresentation and conceal material facts, the insurer has the authority to void the contract of insurance and decline any claim settlements.
INSURANCE
Claim - Repudiation - Life assured acquired two life insurance policies from insurer - Wife named as nominee of both life insurances - Wife submitted claims for insurance policies following sudden death of life assured - Insurer discovered that life assured held three other life insurance policies with another insurer and such policies were already in force when life assured applied for two policies from insurer - Whether there was misrepresentation by life assured by not disclosing pre-existing policies - Whether life assured had committed fraudulent non-disclosure - Whether insurer entitled to repudiate claim - Whether two policies null and void from inception - Financial Services Act 2013
CONTRACT
Contract of insurance - Repudiation of death claim - Life assured acquired two life insurance policies from insurer - Wife named as nominee of both life insurances - Wife submitted claims for insurance policies following sudden death of life assured - Insurer discovered that life assured held three other life insurance policies with another insurer and such policies were already in force when life assured applied for two policies from insurer - Pre-contractual duty of disclosure - Principle of uberrimae fidei - Whether there was fraudulent non-disclosure and fraudulent misrepresentation by life assured - Whether contract of insurance null and void - Whether insurer entitled to repudiate contract - Financial Services Act 2013
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