Allianz General Insurans Company (M) Berhad v Norbiyah binti Mat Aris & Anor

Appellant(s): Allianz General Insurance Company (M) Berhad

Respondent(s):

• Norbiyah Binti Mat Aris
• Rahmat Bin Embong

• YA Datuk Mohamed Zaini Bin Mazlan
• YA Datin Paduka Evrol Mariette Peters
• YA Dato' Hajah Aliza binti Sulaiman

• The first respondent was involved in a motorcycle accident with an insured party, whose vehicle was insured by the appellant.
• The appellant insurer subsequently obtained a declaratory order under section 96(3) of the Road Transport Act 1987 ("RTA 1987") to avoid liability under the insurance policy, alleging a false report by the insured.
• The respondents later obtained a judgment against the insured in a tortious claim and sought to enforce this judgment directly against the appellant, leading the appellant to file an originating summons to prevent such enforcement.

• Whether the Declaratory Order obtained by the appellant was valid and in compliance with section 96(3) of the RTA 1987.
• Whether the respondents were required to set aside or file a collateral action to impeach the Declaratory Order.
• Whether the respondents could execute the judgment obtained against the insured without first obtaining a separate judgment against the appellant via a recovery action.

• The Court of Appeal dismissed the appeal, affirming the High Court's decision that the Declaratory Order was invalid and the respondents could enforce their judgment directly against the insurer.
• The Declaratory Order was held to be invalid because the insurer failed to comply with the mandatory notice requirement under section 96(3) RTA 1987 to the third-party claimants (respondents), despite having prior knowledge of their intention to file a claim.
• The Court reiterated that a third-party judgment creditor has the right to enforce a judgment directly against the insurer under section 96(1) RTA 1987 without needing to file separate recovery proceedings, affirming Federal Court precedents.