Malaysia legislation
Section 96
Section 96
(2)
No sum shall be payable by an insurer under subsection (1)—
(a)
in respect of any judgement, unless before or within seven days after the commencement of the proceedings in which the judgement was given, the insurer had notice of the proceedings;
(b)
in respect of any judgement, so long as execution is stayed pending an appeal; or
(c)
in connection with any liability, if before the happening of the event which was the cause of the death or bodily injury giving rise to the liability the policy was cancelled
154 Laws of Malaysia ACT 333
by mutual consent or by virtue of any provision contained therein and either—
(i)
before the happening of the said event the certificate was surrendered to the insurer or the person to whom the certificate was delivered made a statutory declaration stating that the certificate had been lost or destroyed;
(ii)
after the happening of the said event, but before the expiration of a period of fourteen days from the taking effect of the cancellation of the policy, the certificate was surrendered to the insurer or the person to whom the certificate was delivered made such a statutory declaration as aforesaid; or
(iii)
either before or after the happening of the said event, but within the said period of fourteen days, the insurer has commenced proceedings under this
Part in respect of the failure to surrender the certificate.
(3)
No sum shall be payable by an insurer under subsection (1) if before the date the liability was incurred, the insurer had obtained a declaration from a court that the insurance was void or unenforceable:
Provided that an insurer who has obtained such a declaration as aforesaid in an action shall not become entitled to the benefit of this subsection as respects any judgement obtained in proceedings commenced before the commencement of that action unless, before or within seven days after the commencement of that action, he has given notice to the person who is the plaintiff in the said proceedings specifying the grounds on which he proposes to rely, and any person to whom notice of such an action is so given shall be entitled if he thinks fit to be made a party thereto.
(4)
If the amount which an insurer becomes liable under this section to pay in respect of a liability of a person insured by a policy exceeds the amount for which he would, apart from this section, be
Road Transport 155
liable under the policy in respect of that liability, he shall be entitled to recover the excess from that person.
(5)
In this section, the expression “material” means of such a nature as to influence the judgement of a prudent insurer in determining whether he will take the risks, and if so at what premium and on what conditions, and the expression “liability covered by the terms of the policy” means a liability but for the fact that the insurer is entitled to avoid or cancel or has avoided or cancelled the policy.
(6)
In this Part, reference to a certificate of insurance in any provision relating to the surrender or the loss or destruction of a certificate of insurance shall, in relation to policies under which more than one certificate is issued, be construed as references to all the certificates and shall, where any copy has been issued of any certificate, be construed as including a reference to that copy.
Rights of third parties against insurers