insurance law

1. Utmost good faith

1.1. Case:goh chooi leng v public life assurance co ltd (1964)-assured anwers in the declaration was a deliberate lie.therefore voidable.

2. Insurable interest

2.1. Case:macaura v northem-assurance co ltd-macaura had no insurable interest as he had assigned the plantation to the company.case:nanyang insurance co ltd v salbiah & anor-lau teck siaw had an insurable interest in the car on the date of accident.

3. Completion of proposal by agent

3.1. Case:ong eng chai v china insurance-the proposal form had been filled in and signed by an agent of defendant company and contained untrue answer.

4. introduction

4.1. in consideration,the insured promised to pay to the insurer a sum of money called premium.the premium may consist of lump sum or of periodic payment.one person the insurer undertakes to idemnify another the insured against a loss which may arise upon the occurence of some event.

5. Insurance act 1996

5.1. Sextion 4,divide insurance business two clasess,life business and general business

6. Two type insurance

6.1. Contingency insurance-invovle payment on contingent event in which the sum paid is not measured by loss but stated in policy.example life policy where insurer undertakes to pay a certain sum of money on the death

6.2. Indemnity insurance-indemnity against loss in which measure of loss of payment.if the risk insured against does not occur,then no payment is made to the insured.example,fire policy where the liability of insurer is only to reimburse the insured for loss he has suffered.

7. Material fact

7.1. Case:new india assurance conltd v oang piong chong & anor-the first defendant answer did not constitute a non-disclosure of material fact

8. Exemption clause-tan kenng hong & anor v fatimah binti abdullah-a lorry was insured under a third party policy which exempted liability for death caused to any person carried vehicle.