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Case Review: Insurance
Summary of some of the decisions made by the Mediators on some of the complaints received by FMB.
This summary is for information only and should not be used for other purpose.
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FMB/GI 0088 - Unauthorised Driver
The insured vehicle was in the custody and control of S, the insured's brother in law. At the material time of the accident the insured vehicle was driven by R whilst S was the front seat passenger. According to the insured she does not know R, the driver of the insured vehicle at the time of the accident. The insurers declined the claim on the ground that the insured vehicle was driven by unauthorized driver.
S would have the necessary permission from the insured to use the insured vehicle. S then permitted R to drive the vehicle. In Yang Moi & Anor v Asia Insurance Co Ltd [1964] MLJ 307 the Federal Court held that when the owner of a car had granted permission to a person to use the car without imposing any restriction that no other person was to use the car, permission by the owner to allow another person to use the car might be implied. There was no evidence that the insured had imposed any restriction that the insured vehicle was not to be used by any other person. Thus permission to allow R to use the vehicle may be implied.
In the light of the above the insurers subsequently revised their decision and approved the claim.
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