Insurer Rejected Claim Due To Negligence

A Malaysian Court has ruled that a tractor owner could not claim for theft of the vehicle under his insurance policy because he had negligently left the tractor unattended by the roadside. In rejecting a suit filed by businessman, against RHB Insurance Berhad, the Magistrate ruled that the insurance policy stipulated that theft due to negligence of the vehicle owner was not covered.

Insured demanded RM85,000 from the insurance company after his tractor was stolen when it was left unattended for two days on the shoulder of the road in Taman Pertanian Jubli Perak Sultan Haji Ahmad Shah because it had broken down.

The Court ruled that the plaintiff's action of leaving the vehicle unattended for two days amounted to negligence on his part. The insured's action was interpreted as inviting danger as it could lead to the theft of the vehicle, and the plaintiff's action of leaving the tractor unattended caused the vehicle to be stolen and could not be traced by police investigators.

The court also agrees with the defendant that the plaintiff carelessly left the vehicle unattended for any reason whatsoever because the plaintiff should be bound by all the terms and conditions contained in the insurance policy he purchased.

In this connection, the court finds that the plaintiff failed to prove his claim against the defendant, hence the plaintiff's claim is dismissed with costs of RM1,500 to be paid to the defendant.

Plaintiff had purchased insurance coverage for the vehicle from the defendant for road accidents and theft for the period from Jan 5, 2021 to Jan 4, 2022. On Nov 24, 2021, Plaintiff  parked the vehicle on the roadside due to damage, and he realized his vehicle was stolen after going to the location on Nov 26. Following that, a police report was lodged on the same day.

The plaintiff then filed a claim for loss of the vehicle due to theft, but the defendant rejected the claim because it lacked strong or reasonable grounds.