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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 0042 - Verbal Notification
The insured was involved in an accident on 20.5.2004 and submitted a claim under the personal accident policy. The insurers declined the claim on the ground that the insured had failed to give notice of the accident within 14 days as required by the policy.
The insured alleged that he had notified the insurance agent of the accident on 1.6.2004. In his letter dated 9.12.2004 the agent stated that the insured had called him and informed him of the accident in June 2004. The question is whether verbal notification to the insurance agent is a sufficient compliance with the policy condition.
Policy condition (7) requires notice to be given to the insurer within 14 days of the accident with full particulars. Verbal notification through telephone call would not provide the full particulars of the accident and injury as required by the policy condition. Furthermore policy condition (2) requires notice to the insurers to be given in writing. In Cheng Kok Hwa v Taisho Marine & Fire Insurance Co Ltd [1977] 1 MLJ 244 the court held when an insurance policy imposed a duty on an insured to give a written notice of loss to an insurers, the term was not complied with by the insured when the insured gave oral notice of his loss to the insurance agent.
By reasons of the above the Mediator confirmed the insurers' decision in repudiating liability on the claim.
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