Insurer wins RM2.2mil claim over 2017 Muar factory fire
Berjaya Sompo Insurance Bhd recovers payout made to fire-hit factory owner under the principle of subrogation.
The High Court in Muar recently ruled that furniture manufacturer Coreworld Sdn Bhd must pay RM2.2 million to insurance company Berjaya Sompo Insurance Bhd for losses resulting from a factory fire in 2017. Justice Meor Hashimi Abdul Hamid agreed that Berjaya Sompo had proven its case against Coreworld using probability. He rejected a counterclaim filed by Coreworld against Beribu Pilihan Sdn Bhd and the insurer.
The fire started on June 12, 2017, from a workers' hostel at Coreworld's factory No 7 and spread to adjacent factories, including Beribu Pilihan's at Lot 11, Jalan Perindustrian Ulu Bakri. The plaintiffs claimed the blaze was caused by unattended cooking by Coreworld's workers, leading to an electrical overload. Beribu Pilihan lodged an insurance claim after its stock was damaged and obtained payment from Berjaya Sompo.
Berjaya Sompo then sued Coreworld under the principle of subrogation to recover the amount paid. Coreworld was ordered to pay RM2,201,859.68, including interest, and the counterclaim was dismissed. Coreworld's claim for damages to its furniture and goods at Lot 9 was also turned down.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Insurer wins RM2.2mil claim over 2017 Muar factory fire freemalaysiatoday.com
