Insurer obliged to check applicant’s financial status, court rules

Free Malaysia Today

The Penang High Court affirms a lower court ruling in favour of a mechanic who sued his insurer after he was not allowed to claim for permanent disability.   Read More:  https://www.freemalaysiatoday.com/category/nation/2024/08/07/insurer-obliged-to-check-applicants-financial-status-court-rules/   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #Insurer #CheckApplicant #FinancialStatus #AllianzGeneralInsuranceCompany #GeorgeTownHighCourt

Transcript

00:00The Georgetown High Court has upheld a decision saying that an insurance company has the responsibility

00:09to check an applicant's financial status.

00:13The court also said that any contract entered into good faith was legally binding, even

00:18when one party was bankrupt.

00:20Following the court's decision, Alliance General Insurance Company Burkhardt must now honour

00:25a policy it sold to mechanic Chong Heng Fook, who lost his left thumb in a workplace incident

00:31in May 2018.

00:33The 58-year-old man then sought treatment at a private hospital in Sungai Petani and

00:38Alliance covered his surgery, which cost over RM11,000.

00:42However, the insurer later declined Chong's request to claim the remainder of the sum

00:48and permanent disability benefits because he had failed to disclose the fact that he

00:52was declared bankrupt in 2004.

00:55Chong then filed an originating summons against Alliance.

00:59The session's court ruled in his favour in 2022, saying it was the insurer that had failed

01:04to carry out due diligence.

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