Insurer wins RM2.2mil claim over 2017 Muar factory fire

The Muar High Court in Malaysia has ruled that furniture company Coreworld Sdn Bhd must pay RM2.2 million to insurer Berjaya Sompo Insurance Bhd due to losses incurred from a factory fire in 2017. Justice Meor Hashimi Abdul Hamid dismissed Coreworld's counterclaim against the insurance company and Beribu Pilihan Sdn Bhd, the latter of which filed the insurance claim.

The fire originated from a worker's hostel at Coreworld's factory No. 7, spreading to neighboring premises, including Beribu Pilihan's factory. The plaintiffs blamed the fire on unattended cooking by Coreworld's workers, resulting in an electrical overload. Berjaya Sompo paid the claim and later sued Coreworld under subrogation, a legal principle allowing insurers to recover from the responsible party.

The judge ordered Coreworld to pay RM2,201,859.68, including interest, dismissing the counterclaim, which involved losses from destroyed furniture and goods at a different location. Coreworld's representation included P Paannimalar, Suresh G Sreedharan, and M P Prathib Kumar, while Andrew Tan appeared for the company.