Third Party Rights in Insurance Law in Malaysia

Third Party Rights in Insurance Law in Malaysia addresses an important aspect of insurance law which impacts persons from all layers of society. It touches issues routinely encountered by claimants, legal practitioners, risk managers, insurance practitioners, estate planners as well as judicial officers adjudicating insurance claims. The book analyses the rights of a person who is not a party to the policy. In many instances, the insurance policy is effected for the benefit of a third party, for example a beneficiary nominated by a policy owner, an assignee, a road user injured in a motor accident, a client suing a professional for negligence, and a workman hurt in the course of work.

The book considers the doctrine of privity of contract, the defences available to the insurer as well as the application of other substantive laws such as agency, bankruptcy and trust which affect third party rights. Current issues pertaining to third parties rights in insurance law are also discussed. The Companies Commission of Malaysia has proposed the implementation of limited liability partnership as a form of business vehicle. To protect the rights of the public with a legitimate claim against a negligent professional limited liability partnership, it was suggested that the partnership be required to effect a professional indemnity policy. Third Party Rights in Insurance Law in Malaysia studies the general characteristics of the policy which may affect third party rights. Another current topic of discussion is whether claimants are protected when an insurer becomes insolvent. In Malaysia, the Insurance Guarantee Scheme Fund was established to compensate such claimants. A chapter in the book is devoted to the examination of the rights of a third party claimant against the Fund.