Malaysian Court Orders Insurer To Honor Claim

An insurance company was today ordered to pay RM85,000 in damages to a widow who won the final appeal over the loss of her husband’s car that was reported missing soon after his death three years ago.

A three-member Court of Appeal bench held that Loh Swee Liang had proved her case on the balance of probabilities that the car had been stolen. The Court ordered AM General Insurance to pay interest of 5% per annum from July 3, 2018 until the settlement of the judgment sum. She was also awarded RM30,000 in costs.

A magistrates’ court in July 2020 dismissed her claim as no proof was furnished that the missing car had been stolen. The High Court, which affirmed the ruling last year, further held that the police had not arrested any thief to recover the car.

In her statement of claim, Loh said that on July 3, 2018, her husband, Tay Guan Song drove his car from their residential Prima Duta Condominium to Changkat View Condominium to clean up the place as the tenant had left.

Loh said Tay, 37, did not respond over the mobile despite repeated calls that day. She went to look for him at the Changkat View condominium, only to find him dead. She said a post mortem report revealed he had died of a heart attack.

After the mourning ceremony, she realized Tay’s car was missing and lodged a police report.
She made a third police report on Sept 1, 2018 and later made a claim with the insurance company but the claim was rejected as she could not prove the missing car had been stolen.

Loh, in her statement, said she inquired with Tay’s relatives and friends to determine if anyone had borrowed the car. She had also checked with Kuala Lumpur City Hall and the Shah Alam City Council to ask if Tay’s car had been towed away before making her insurance claim.