This court noted that the High Court case of Arasis Sdn Bhd v Pacific & Orient Insurance Co Bhd [2013] 1 MLJ 784 demonstrates critical principles S/N Fn3/gixeHE2ju1Bt1zfJdQ in insurance law, particularly regarding the agreed insured sum and the evidentiary burden on insurers in the event of a dispute. In Arasis, the claimant, owner of a vehicle insured by Allianz for RM60,000, sought compensation following the loss of the vehicle before the policy expired. While the insured sum was RM60,000, the insurer only offered RM29,000, prompting the claimant to pursue legal action. The court held that the insured sum of RM60,000 was binding as it was explicitly agreed upon in the insurance cover note. The insured sum represented the market value of the vehicle at the time the policy was issued. On the other hand, the defendant insurer failed to produce evidence justifying its reduced valuation of RM29,000. In the absence of such rebuttal evidence, the court ruled in favour of the plaintiff appellant in Arasis by allowing the appeal, granting the claimant the insured sum of RM60,000.