Zurich Takaful can void policy obtained through fraud, High Court rules
Judge says insurer’s agent ignored basic underwriting safeguards while pursuing commission.
The Ipoh High Court has ruled that Zurich Takaful Malaysia Bhd was entitled to void a family takaful policy obtained through deliberate fraud, despite the insurer's agent failing to follow basic underwriting procedures. The judge found that the proposal form contained false declarations regarding the deceased's marital status, occupation, income, address, literacy, alcohol consumption, and relationship with the nominee.
The court concluded that the policy was likely completed by the nominee to ensure the policy proceeds would be paid to him, and dismissed the nominee's counterclaim for the policy proceeds. Zurich Takaful was ordered to refund the RM3,000 contribution to the deceased's lawful widow, who was not named in the decision.
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