Appeals court upholds RM900,000 insurance payout for Bentley owner

The Court of Appeal in Malaysia has upheld a High Court decision that ordered an insurance company to pay RM900,000 in indemnity to a businessman whose Bentley Continental was damaged in an accident in 2020. The three-judge bench, consisting of Justices Choo Kah Sing, Ismail Brahim, and Leonard David Shim, dismissed appeals from both MSIG Insurance and the car owner, Inderpal Singh.

Both parties were ordered to pay RM50,000 in costs. The insurer had contested the High Court's ruling, allowing Inderpal's claim for indemnification under the insurance policy, while Inderpal had appealed against the dismissal of his claims for negligence and consequential damages totaling RM1,253,000. The Court of Appeal found that the High Court judge had evaluated the evidence and made findings of fact without error.

Although MSIG Insurance presented a version of events regarding the accident's cause, it was not sufficient to overturn the trial court's decision. The judges were not convinced that the accident was staged, as there was no convincing evidence supporting Inderpal's claim. The case arose when Inderpal, the registered owner of the insured Bentley Continental, collided with a guardrail while attempting to avoid hitting a dog on January 22, 2020.

He reported the incident to MSIG Insurance and received an estimate for RM1,053,491.07 in repairs. MSIG Insurance subsequently denied his claim, alleging it was suspicious and inconsistent with the accident's circumstances, and suggested fraudulent means were used to obtain benefits from the policy. Inderpal filed a suit seeking indemnification under the policy, alleging breach of contract and negligence by the insurance company.

The High Court agreed with Inderpal and permitted his claim for indemnification but dismissed his claims for negligence and consequential damages.