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A STUDY ON THE VIABILITY OF IMPLEMENTING A NO-FAULT LIABILITY SYSTEM FOR MOTOR VEHICLE ACCIDENTS IN MALAYSIA: ISSUES AND CHALLENGES BY CHARLES NICHOLSON A thesis submitted in fulfillment of the requirement for the degree of Doctor of Philosophy Ahmad Ibrahim Kulliyyah of Laws International Islamic University Malaysia AUGUST 2013
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A STUDY ON THE VIABILITY OF IMPLEMENTING A NO-FAULT ...

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A STUDY ON THE VIABILITY OF IMPLEMENTING A NO-FAULT LIABILITY SYSTEM FOR MOTOR

VEHICLE ACCIDENTS IN MALAYSIA: ISSUES AND CHALLENGES

BY

CHARLES NICHOLSON

A thesis submitted in fulfillment of the requirement for the degree of Doctor of Philosophy

Ahmad Ibrahim Kulliyyah of Laws International Islamic University Malaysia

AUGUST 2013

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ABSTRACT Motor vehicle accidents have dominated tort law in the country where unfortunate injured victims seek relief from the courts for injuries and loss resulting from such accidents. However, the present adversarial tort compensation mechanism founded on the notion of fault has been fraught with deficiencies causing injured claimants financial hardships, emotional distress and social injustices. In believing that the traditional tort system was never designed or contemplated to address the contemporary issues facing such victims, a number of mature common law jurisdictions have taken the bold decision to depart from this system in search of an alternative, fairer and better compensatory model. Focusing on the injuries and rehabilitation of the injured rather than on culpability, modern compensation models that developed were based on statutory no-fault principles and have adopted as their guiding philosophy, community responsibility, social justice and public benefit. The research is an attempt to investigate into the manifested weaknesses observed with the present tort compensation system for road accident victims and conducts a comparative and evaluative study on the alternative no-fault arrangements operating particularly in countries such as New Zealand and Australia. It further takes a look at the existing compensation models for industrial injuries in Malaysia which have incorporated no-fault principles and provides a critical analysis of amendments to the Civil Law Act 1956 which has made significant intrusions into the exercise judicial discretion. The research then concludes that it is fitting for the present unsatisfactory state of the law to be reformed and hence recommends the enactment of a new motor vehicle compensation Act that would create a hybrid compensation scheme premised on no-fault principles but which allow restricted access to common law damages. It would be aimed at providing guaranteed and comprehensive benefits to all persons injured as a result of road accidents in an expeditious and equitable manner at reasonable costs.

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البحث ملخص يطلب فيه المصابون الذي البلد في الأخطاء قانون محظية ا في السيارات حوادث إن

ذلك، ومع .نتيجة تلك الحوادثالتحكيم في التعويض للإصابات والخسائر التي لحقت م ئة مملوءة بالقصور في بعض طاخ فكرة ىمبنية عل الحالي الضرر تعويضنظام كان قدل

والظلمجوانبها، الأمر الذي يسبب للمصابين الأحوال المالية الضيقة والقلقات النفسية ير مصمم غ التقليديقانون الأخطاء نظام، إيمانا من أصحاب هذا القانون أن الاجتماعي

للولاية العام القانون من عددهناك و .الضحايا هؤلاءهها تواج التي المعاصرة القضايا لمعالجة أمثل بديل عن لبحثل محاولة النظام هذا عن للتخلي لجذريا القرار القاضئية تتخذ

المصابين، الذي ينظر إلى الإصابات وعلاجها، غير النظام تعويض نموذج لنظام أفضلو، ولذا )اللاخطئية( مبادئ لىع الحديث التعويضنظام نماذج استندتقد و ،م المألوفالملو

والعدالة كان معتمدا ليكون موجها للمسؤولين في غايام وفي تحقيق مسؤوليات اتمعدراسة، تبحث عن القصور الواضحة ال ههذومن هنا فإن .العام والنفع ،الاجتماعية

تقويمية دراسة و تجري ،الطرق حوادث ضحايال المعاصر تعويضال نظام والملحوظة في المستعمل في بعض الدول خاصة في البديل ) اللاخطئية(على طريقة ترتيب نظام مقارنة

في الموجود الإصابات تعويض ذجونم ، وكذلك تلقي الضوء على واستراليانيوزيلندا لتعديلاتل نقدياً تحليلاًدراسة القدمتو، )اللاخطئية(ذي يتضمن مبادي نظام الو ماليزيا

في في تطبيق الجانب القانوني ملموساً ، التي قد لعبت دوراً 1956المدني القانون الواقعة فيضرورة تعديل جانب القصور في أصبحت من الأنه وتوصلت الدراسة إلى .الموضوع

نظامنشئ ي يوالذ ،لسياراتا لتعويض أمثلٍ جديد قانونبوضع توصيو .القانون الحالي. ، لتقليل من أضرار القانون المدني العام)اللاخطئية(ذي قيمة عالية لمبادي نظام تعويضٍ

نتيجة المصابين الأشخاص لجميع وشاملة مضمونة فوائدوسوف يعمل هذا في توفير .معقولة وبتكاليف بشكل سريع وعادل، الطرق حوادث

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APPROVAL PAGE

The thesis of Charles Nicholson has been approved by the following:

___________________________ Naemah Amin

Supervisor

__________________________

Puteri Nemie Jahn Kassim Internal Examiner

__________________________ Hussin@Mohd Ab. Rahman

External Examiner

_________________________ El-Fatih Abdullahi Abdelsalam

Chairman

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DECLARATION

I hereby declare that this thesis is the result of my own investigations, except where

otherwise stated. I also declare that it has not been previously or concurrently

submitted as a whole for any other degrees at IIUM or other institutions.

Charles Nicholson Signature ……………………………. Date ………………………….

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INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

DECLARATION OF COPYRIGHT AND AFFIRMATION OF FAIR USE OF UNPUBLISHED RESEARCH

Copyright © 2013 by Charles Nicholson. All rights reserved.

A STUDY ON A ‘NO-FAULT LIABILITY’ SCHEME FOR MOTOR VEHICLE ACCIDENTS IN MALAYSIA: PERSPECTIVES AND

PROSPECTS

No part of this unpublished research may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the copyright holder except as provided below.

1. Any material contained in or derived from unpublished research may only be used by others in their writing with due acknowledgement.

2. IIUM or its library will have the right to make and transcript copies (print or electronic) for institutional and economic purposes.

3. The IIUM library will have the rights to make, store in a retrieval system and supply copies of this unpublished research if requested by other universities and research libraries.

Affirmed by Charles Nicholson. ……………………… ………………….. Signature Date

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ACKNOWLEDGEMENTS I express my sincere and profound appreciation to my supervisor, Assoc. Professor Dr. Naemah Amin for her invaluable assistance, patience and advice in guiding me during the course of my research.

To my dearest wife, Maureen, my heartfelt gratitude for her constant and unfailing support and encouragement and who has remained a pillar of my determination and strength all the way through my study.

My lovely children, Karen, Michael and David, who have been the source of

my inspiration, for their patience and understanding and to my son-in-law Goh Ser Yoong, for his kind assistance with the technical aspect of formatting the thesis.

Finally, I am also greatly indebted to the University for allowing me the use of

the library facilities where I have conducted a significant part of my research and study.

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TABLE OF CONTENTS Abstract .............................................................................................................. ii Approval Page ..................................................................................................... iv Declaration .......................................................................................................... v Declaration of Clarification.................................................................................. vi Acknowledgements ............................................................................................. vii List of Tables ....................................................................................................... xii List of Cases ........................................................................................................ xiii List of Statutes ..................................................................................................... xxi CHAPTER 1: INTRODUCTION ..................................................................... 1

1.1 Background of the Research .............................................................. 1 1.2 Statement of Problem ........................................................................ 11 1.3 Objectives of the Research................................................................. 15 1.4 Scope of the Research........................................................................ 16 1.5 Literature Review .............................................................................. 16 1.6 Hypothesis......................................................................................... 29 1.7 Research Methodology ...................................................................... 30 1.8 Significance of the Research .............................................................. 30 1.9 Outline of Chapters............................................................................ 31

CHAPTER 2:CIVIL LIABILITY AND MOTOR VEHICLE ACCIDENTS . 33

2.1. Introduction ....................................................................................... 33 2.2 The Concept of Civil Liability ........................................................... 35 2.3 Negligence In Relation to Motor Vehicle Accidents .......................... 44

2.3.1 Common Forms Of Negligent Driving ...................................... 51 2.3.2 Establishing ‘Fault’ .................................................................. 59 2.3.3 Common Defences ................................................................... 63

2.4 The Relevancy of Contributory Negligence in Road Accidents .......... 67 2.4.1 Statutory Intervention ............................................................... 69 2.4.2 Impact of Contributory Negligence on A Dependency Claim.... 76

2.5 Conclusion ........................................................................................ 80 CHAPTER 3:THE POSITION OF THE LAW ON COMPENSATION FOR ACCIDENTS IN MALAYSIA .......................................................................... 83

3.1 Introduction ....................................................................................... 83 3.2 The Tort Compensation Scheme ........................................................ 84

3.2.1 Common Law ........................................................................... 87 3.2.2 Civil Law Act 1956 (Act 67) .................................................... 91

3.2.2.1 Loss Of Future Earnings Limited To 55 Years Of Age .... 92 3.2.2.2 Plaintiff To Be In Gainful Activity .................................. 94 3.2.2.3 Prospect Of Increased Earnings ....................................... 95 3.2.2.4 Deduction Of Living Expenses ........................................ 96 3.2.2.5 Computation Of The ‘Multiplier’..................................... 97

3.2.3 Death Benefits .......................................................................... 98

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3.2.3.1 Deceased Above 55 Years Of Age ................................... 105 3.2.3.3 Loss Of Expectation Of Life ............................................ 106 3.2.3.4 Loss Of Consortium ........................................................ 107

3.3 Employees’ Compensation Schemes .................................................. 108 3.3.1 Employees’ Social Security Act 1969 (Act 4) ........................... 109

3.3.1.1 Contributions .................................................................. 110 3.3.1.2 Application Of The Scheme ............................................ 111 3.3.1.3 Benefits Under The Act ................................................... 112 3.3.1.4 A No-Fault Scheme ......................................................... 113 3.3.1.5 Bar To Common Law Action .......................................... 113 3.3.1.6 Accidents While Travelling To And From Work ............. 116 3.3.1.7 Appeals ........................................................................... 118 3.3.1.8 No Claims Discounts ....................................................... 119 3.3.1.9 Financial Performance Of Socso ...................................... 120

3.3.2 The Workmen’s Compensation Act 1952 (Act 273) ................. 120 3.3.2.1 Scope Of The Act ............................................................ 120 3.3.2.2 Benefits Under The Scheme ............................................ 123 3.3.2.3 Access To Common Law Damages ................................. 125 3.3.2.4 Notice To Employer And Limitation Of Action ............... 127 3.3.2.5 A No-Fault Scheme ......................................................... 129 3.3.2.6 No Contracting Out Of The Act ....................................... 129

3.4 Compensation under Compulsory Third Party Insurance Scheme ...... 130 3.4.1 The Road Transport Act 1987 ................................................... 132 3.4.2 Exclusion of Property Damage Claims ..................................... 133 3.4.3 Liability to Passengers .............................................................. 134

3.4.3.1 The Position of Passengers in Private Vehicles ................ 134 3.4.3.2 The Position Of Employees Travelling As Passengers ..... 136 3.4.3.3 Passenger Travelling As An Independent Contractor ....... 141

3.4.4 Duty of Insurer to Satisfy Judgement Sum ................................ 142 3.4.5 Notice of Proceedings to Insurer ............................................... 144 3.4.6 The Recovery Action against the Insurer .................................. 145 3.4.7 Certificate Of Insurance as a Pre-Condition to Liability ............ 146 3.4.8 Limitation Period in the Case of Fraud ..................................... 147

3.5 Conclusion ........................................................................................ 148 CHAPTER 4:THE WEAKNESSES OF THE COMMON LAW TORT COMPENSATION MECHANISM .................................................................. 151

4.1 Introduction ....................................................................................... 151 4.2 The Common Law Tort System: A Critique....................................... 152 4.3 The Injustices Caused By Delay ........................................................ 154

4.3.1 Pre-Trial ................................................................................... 157 4.3.2 The Trial ................................................................................... 160 4.3.3 Post Trial .................................................................................. 163 4.3.4 The Volume Of Cases ............................................................... 174

4.4 High Administrative Costs ................................................................ 181 4.4.1 Contingency Fees...................................................................... 182

4.5 The Deterrent Element ....................................................................... 188 4.6 The Uncertainties Of Tort Litigation .................................................. 196 4.7 Lump Sum Awards ........................................................................... 197

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4.8 Conclusion ....................................................................................... 204 CHAPTER 5:THE NO FAULT LIABILITY SCHEMES IN NEW ZEALAND AND AUSTRALIA ............................................................................................ 207

5.1 Introduction ....................................................................................... 207 5.2 Categories Of No-Fault Liability Schemes ......................................... 208 5.3 The No-Fault Compensation Scheme In New Zealand ....................... 210

5.3.1 Background .............................................................................. 210 5.3.2 Regulatory Framework Of The Scheme .................................... 214 5.3.3 Administration Of The Scheme ................................................ 218 5.3.5 Funding Of The Scheme ........................................................... 228

5.4 No-Fault Liability Schemes In Australia ............................................ 233 5.4.1 No-Fault Scheme In Victoria .................................................... 234

5.4.1.1 Administration Of The Scheme ....................................... 235 5.4.1.2 Benefits Under The Scheme ............................................ 238 5.4.1.3 Funding ........................................................................... 243 5.4.1.4 Performance Assessment ................................................. 244

5.4.2 No-Fault Scheme In Tasmania .................................................. 246 5.4.2.1 Administration Of The Scheme ....................................... 246 5.4.2.2 Benefits Under The Scheme ............................................ 249 5.4.2.3 Funding ........................................................................... 252

5.4.3 No Fault Scheme In Northern Territory Of Australia ................ 253 5.4.3.2 Benefits Under The Scheme ............................................ 256 5.4.3.3 Funding ........................................................................... 260 5.4.3.4 Performance Assessment ................................................. 260

5.5 A Comparative Analysis .................................................................... 261 5.6 Conclusion ........................................................................................ 271

CHAPTER SIX:THE ISLAMIC PERSPECTIVE ON NO-FAULT LIABILITY ........................................................................................................ 275

6.1 Introduction ....................................................................................... 275 6.2 Civil Liability Under Islamic Law ..................................................... 277 6.3 The Concept Of Compensation Under Islamic Law ........................... 282 6.4 Payment Of Diyah As Compensation For Civil Wrongs..................... 285 6.5 Application Of Islamic Principles To Accident Compensation Schemes ................................................................................................... 295

6.5.1 Individual Responsibility .......................................................... 296 6.5.2 Collective Responsibility .......................................................... 297 6.5.3 The Role Of Insurance .............................................................. 301 6.5.4 State Responsibility .................................................................. 304

6.6 Conclusion ........................................................................................ 306 CHAPTER 7:THE VIABILITY OF IMPLEMENTING A NO-FAULT SCHEME FOR MOTOR VEHICLE ACCIDENTS IN MALAYSIA: RECOMMENDATIONS AND CONCLUSION .............................................. 309

7.1 Introduction ....................................................................................... 309 7.2 Existing Proposals For Implementing A No-Fault Scheme For Motor Vehicle Accidents .................................................................................... 311 7.3 Viability Of Implementing A No-Fault Scheme ................................. 316

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7.3.1 Population ....................................................................... 317 7.3.2 Eligibility Criteria ........................................................... 318 7.3.3 Funding ........................................................................... 321 7.3.4 Deterrent Effect And Accountability Mechanism............. 325 7.3.5 Rise In Claims ................................................................. 327 7.3.6 High Costs Of Operation ................................................. 328

7.4 The Suitable Model For A No-Fault Scheme For Malaysia. ............ 330 7.5 Basic Features Of The Scheme .......................................................... 332

7.5.1 The Management Of The Scheme .................................... 332 7.5.2 Benefits And Levels Of Compensation ............................ 335 7.5.3 Access To Common Law Damages ................................. 396 7.5.4 The Accident Compensation Court .................................. 400 7.5.5 Limitation Period ............................................................ 344 7.5.6 Liability Of The Commission To Indemnify .................... 344

7.6 Conclusion ........................................................................................ 346 BIBLIOGRAPHY .............................................................................................. 349 APPENDIX A ..................................................................................................... 359 THE PROPOSED ACCIDENT COMPENSATION BILL ................................... 359

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LIST OF TABLES

Table No. Page No. 3.1 Foreign Workers Statistics: Year 2008 – 2010 142

4.1 The Claims Process 193

4.2 Total Number of Civil Cases Registered, Disposed Off and Pending 2000-2007 in the Sessions Courts 204

4.3 Total Numbers of Civil Cases Registered, Disposed Off and Pending 2000 – 2007 in the Magistrates’ Courts 206

4.4 Death and Personal Injuries Resulting from Motor Vehicle Accidents 2002 – 2007 208

4.5 Fatalities Index and Accidents Index 2002 – 2007 210

5.1 Motor Vehicle Account Statement of Income 2011 273

5.2 Transport Accident Charges and Duty 284

5.3 Proportion of Death Benefits to Dependent Persons 300

5.5 Overview of Compensation Schemes 311

5.6 Motor Vehicle Registration Statistics for New Zealand and Australia 316

6.1 Benefits Awarded Against Accidental Death/ Permanent Disablement under Takaful Operations (STMB) 338

6.2 Diyah for loss of limbs and organs of the body 340

6.3 Diyah for loss of the functions of the faculties 342

6.4 Diyah for wounds 343

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LIST OF CASES

Abdul Gaffar Bin Md v. Ibrahim B. Yusoff and Saayah Bte. Abdullah (Federal Court Civil Application No. 08-149-2007(P)) Abdul Hamid & Anor. v. Tan Chu Kim [1969] 2 MLJ 215 Abdul Mokti bin Haji Ahmad v. Idris bin Ibrahim [1977] 2 MLJ 85 Abraham v. Choo Jit Fung & Anor. [1966] 1 MLJ 97 Admiralty Commissioners v. S. S. Volute [1922] 1 AC 129, [1921] All ER 193 Ahmad Nordin Bin Haji Maslan & Anor. v. Eng Ngak Hua & Ors [1985] 2 MLJ 431 Ahmad Sandara Lela Putera & Anor. v Queensland Insurance Co. Ltd. [1975] 1 MLJ 209 Ang Eng Lee & Anor. v. Lim Lye Soon [1987] 2 MLJ 545 Annuar bin Mat Amin v. Abdullah bin Mohd Zain [1989] 3 MLJ 313 Appalasamy Somuloo v. Bong Kim Chuan & Anor. [1985] CLJ 398 Auto Dunia Sdn. Bhd. V. Wong Sai Fatt & Ors. [1995] 2 MLJ 549 Azimah bte. Ismail & Ors. v. Chang Ng Pang & Ors [1985] 2 MLJ 152 Badruzaman Bin Azmi v. Kurnia Insurance (M) Bhd [2001] 6 MLJ 481 Baker v. E. Longhurst & Sons Ltd. [1933] 2 KB 461 Baker v. Market Harborough Industrial Co-operative Society Ld. Wallace v. Richards (Leicester) Ld [1953] 1 WLR 1472 Balachandran a/l Samy & Anor. v. Chew Man Chan @ Chew Ah Yeow & Anor [1995] 3 AMR 2263; [1996] 1 CLJ 169 Barnett v. Chelsea & Kensington Hospital Management Committee [1969] 1 QB 428 Barnett v. Chelsea & Kensington Hospital Management Committee [1969] 1 QB 428 Bas Mini Muhibbah Sdn Bhd v. Abdullah Bin Salim [1983] 2 MLJ 405 Bata Shoe Co. (Malaya) Ltd. Employees Provident Fund Board [1967] 1 MLJ 120 Blyth v. Birmingham Waterworks Co. (1856) 11 Exch 781 Bonham-Carter v. Hyde Park Hotel Ltd (1984) 64 TLR 177 Bowater v. Rowley Regis Corporation [1944] KB 476 British Columbia Electric Railway Co. Ltd. v. Loach [1916] 1 AC 719 British Transport Commission v. Gourley [1956] AC 185 Brooks v. Graham and Berrington (1964), an unreported English Court of Appeal case Brown & Lynn v. Western S. M. T. Co. [1945] Sessions Cases 35 Brunsden v. Humphrey (1884) 14 QBD 141 Butterfield v. Forrester (1809) 11 East 60; 103 ER 926 Caparo Industries plc v Dickman [1990] 1 All ER 568 Capital Insurance Bhd. v. Cheong Heng Loong Goldsmiths (KL) Bhd. [2005] 6 MLJ 593 Capital Insurance Bhd. v. Kassim bin Mohd. Ali [1996] 2 MLJ 425

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Capps v. Miller [1989] 2 All ER 333 Carpenter v. Ebblewhite & Ors. [1939] 1 K.B. 347 Caswell v. Powell Duffryn Associated Collieries Ltd [1939] 3 All ER 722 Ceylon Motor Insurance Association v. Thambugala [1953] 2 All ER 870 Chan Chin Ming v. Lim Yoke Eng [1994] 3 MLJ 233 Chan Chong Foo v. Shivanathan [1992] 2 MLJ 473, Supreme Court Chan Eng Keat v. Liang Zhi Qiang & Anor. [2012] 8 MLJ 167 Chan Kum Fook & Ors v The Welfare Insurance Co Ltd [1975] 2 MLJ 184 Chan Lye Huat v. Tan Ong Kong @ Chan Man Kong [1985] 1 CLJ 261 Che Noh Bin Yaacob v. Syarikat Kilang Getah Seng Hin [1982] 1 MLJ 80 Cheng Hang Guan & Ors. v. Perumahan Farlim (Penang) Sdn. Bhd. & Ors. [1993] 3 MLJ 352 Chin Hooi Nan v. Comprehensive Auto Restoration Services Sdn Bhd & Anor. [1995] 2 MLJ 100 China Insurance Co Ltd v. Teh Lain Lee & Anor [[1977] 1 MLJ 1 Chong Pik Sing & Anor. v. Ng Mun Bee & Ors. [1985] 1 MLJ 433 Chow Sow Ying & Anor. v. Official Administrator [1984] 1 MLJ 185 Chu Kim Sing & Anor. v. Abdul Razak bin Amin [1999] 6 MLJ 433 Chu Kim Siong & Anor. v. Abdul Razak bin Amin [1999] 6 MLJ 433. Cimb Bank v. Sumbangan Kemuncak Sdn Bhd & Ors [2012] MLJU 49 Cornilliac v. St. Louis (1965) 7 W.I.R. 491 Countess of Shrewbury’s Case (1601) 5 Co. Rep. 14a. Countess of Shrewbury’s Case (1601) 5 Co. Rep. 14a. Currie v. Misa (1875) LR 10 Ex 153 Dato’ Tan Heng Chew v. Tan Kim Hor [2006] 2 MLJ 293 Davies v. Mann (1842) 10 M & W 546; 152 ER 588 Davies v. Powell Duffryn Associated Colleries Ltd. [1942] AC 601, 617 Davies v. Swan Motor Co. [1949] 2 KB 291 Day v. Edwards (1794) 5 Term Rep. 648 De Cotta v. Tan Hock Lee [1972] 2 MLJ 173 Dickenson v. Watson (1682) T. Jones 205 Dirkje Peiternella Halma v. Mohd Noor bin Baharom & Ors [1990] 3 MLJ 103 Doherty v. Liverpool Hospital (1991) 22 NSWLR 284 Donoghue v. Stevenson [1932] AC 562 Donselaar v. Donselaar [1982] 1 NZLR 97 Dr. Bernadine Malini Martin v. MPH Magazine Sdn. Bhd. & Ors. And Another Appeal [2010] 7 CLJ 525 Dunlop Pneumatic Tyre Co. Ltd v. Selfridge & Co. Ltd [1951] AC 847 Dunlop Pneumatic Tyre Co. Ltd v. Selfridge & Co. Ltd [1951] AC 847 Edwards v. Nobbs (1963) unreported Court of Appeal decision. Esah bte Ishak (a mother and legal dependant of Nazri bin Ahmad Ramli, deceased & Anor. v. Kerajaan Malaysia & Anor [2006] 6 MLJ 1 Fardon v. Harcourt-Rivington (1932) 146 LT 391 Fardon v. Harcourt-Rivington (1939) 146 LT 391 Fima Palmbulk Services Sdn Bhd v. Suruhanjaya Pelabuhan Pulau Pinang & Anor. [1988] 1 MLJ 269

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Fitter v. Veal (1701) 88 ER 1506 Foakes v. Slaytor [1979] 1 All ER 137 Foong Gun Mooi v. Lim Yeok Soon [1978] 1 MLJ 218 Fournier v. Canadian National Railway [1927] AC 167 Froom & Ors. v. Butcher [1975] 3 All ER 520 Glasgow Corpn. v. Taylor [1922] 1 AC 44, 67 Glasgow Corporation v. Muir [1943] AC 488 Goh Beng Seng v. Dol Bin Dollah [1970] 2 MLJ 95 Goh Ya Tian v. Tan Song Gou & Ors. [1981] 2 MLJ 317 Gough v. Thorne [1966] 1 W.L.R. 1387 Gough v. Thorne [1966] 1 W.L.R. 1387 Government of Malaysia v. Jumal b. Mahmud [1977] 2 MLJ 103 Govinda Raju & Anor. v. Laws [1966] 1 MLJ 188 Guan Soon Tin Mining Co. v. Wong Fook Kum [1969] 1 MLJ 99 Guan Soon Tin Mining Co. v. Wong Fook Kum [1969] 1 MLJ, 99 Guthrie Sdn. Bhd. Trans-Malaysian Leasing Corp. Bhd. [1991] 1 MLJ 33 H West & Son v. Shephard [1964] AC 326 H West & Sons Ltd v. Shephard [1964] AC 36 Haron v. Macaulay [1969] 1 MLJ 169 Heaps v. Perrite Ltd. [1937] 2 All ER 60 Henley v. Cameron [1949] LJR 989 Henry Trading Co. Ltd. v. Harun [1966] 2 MLJ 281 Hill-Venning v. Beszant [1950] 2 All ER 1151 Hindmarsh v. Guthrie, Shell Co. of New Zealand [1930] NZLR 15 Hong Liang Ting & Ors. v. China Insurance Co. Ltd [1984] 2 MLJ 327 Hulle v. Orange (1466) B & M Hulle v. Orynge (1466) Y. B. 6 Edw. IV, folio 7 Hussein & Anor. v. Maiden [1970] 1 MLJ 114 Ibrahim bin Ismail & Anor. v. Hasnah bte. Puteh & Anor and Lai Wai Keet & Anor. v. Looi Kwai Fong [2004] 1 MLJ 525 Izzard v Universal Insurance Co [1937] AC 733 Jaafar Bin Shaar & Anor.(Suing as Administrators of the Estate of Shofiah Bte. Ahmad, Deceased v. Tan Lip Eng & Anor. [1997] 3 MLJ 693 Jafri Bin Elias v. Khor Tang Seah [1992] 2 CLJ 1016 Jag Singh v. Toong Fong Omnibus Co. Ltd. (1962) 28 MLJ 271 Johannes Koplan v. Aw Chen [1970] 1 MLJ 220 Jones v. Lawrence [1969] 3 All ER 267 Jones v. Livox Quarries Ltd. [1952] 2 QB 608 Joseph Eva, Ltd. v. Reeves [1938] 2 KB 393 Jub’il Bin Mohamed Taib Tavel & Ors. v. Sunway Lagoon Sdn. Bhd. [2001] 6 MLJ 669 K. Ratnasingam v. Kow Ah Dek & Anor. [1983] 2 MLJ 297 K.R. Taxi Service Ltd. & Anor. v. Zaharah & Ors. [1969] 1 MLJ 49 K.R. Taxi Service Ltd. & Anor. v. Zaharah & Ors[1969] 1 MLJ 49 Kepong Prospecting Ltd. v. Schmidt [1968] 1 MLJ 170 Ketua Pengarah Pertubuhan Keselamatan Social v. Rajaparameswari Marimuthu [2004] 4 CLJ 528

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Ketua Pengarah Pertubuhan Keselamatan Social v. Vadivelan a/l Sandara Saigara [2009] 1 MLJ 238 Ketua Pengarah, Pertubuhan Keselamatan Social v. Mohd. Zaili Ali [2004] 1 MLJ 283 Khamis bin Mohd Norhari v. Amir Hamzah [2008] 8 MLJ 133 King Lee Tee v. Norwich Union Fire Insurance Society [1932] 2 MLJ 187 Kirk v. Parker [1938] 60 LL LR 129 Kosnan v. Phua Huat Choy [1966] 2 MLJ 233 Lambert v. Bessey(1681) Th. Raym. 421 Latham v. Johnson [1913] 1 KB 398, Leame v. Bray (1803) 3 East 593, 600 Lee Geok Theng v. Ngee Tai Hoo & Anor [2004] 4 MLJ 42 Lee Seng Kee v. Sukatno (Ong Thean Soo, third party) [2008] 4 MLJ 716 Lee v. Lee [1974] RTR 35 Lembaga Kemajuan Tanah Perseketuan v. Muda Bin Jusoh [1991] 2 MLJ 34 Letchumanan a/l Gopal (representative for the estate of Rajammah a/p Muthusamy, deceased) v. Pacific Orient & Co Sdn Bhd [2011] 6 MLJ 788 Lew Voon Kong & Anor. v. Mustaffa bin Kamis [1978] 1 MLJ 217 Lewis v. Denye [1939] 2 KB 540 Liddle v. Yorkshire (North Riding) C.C. [1934] 2 KB 101 Liew Thai v. Yee Cheng [1997] 1 CLJ Supp. 13 Lim Chai Oon Anor. v. Normah bt Ismail [1994] 2 AMR 33 1679; [1994] 3 MLJ 488 Lim Poh Choo v. Camden & Islington AHA [1980] AC 174 Lim Poh Choo v. Camden & Islington Area Health Authority [1979] 2 All ER 910 Lim Yoke Kong v. Sivapiran a/l Sabapath [1992] 2 MLJ 571 Livingstone v. Rawyards Coal Co. (1880) 5 AC 25 Lloyde v. West Midlands Gas Board [1971] 1 WLR 749 Loghelly Iron & Coal v. M’Mullan [1934] AC 1, 25 Loh Hee Thuan v. Mohd Zani bin Abdullah [2003] 1 AMR 332 Loh Saik Pew v. Tan Huat Chan [1976] 1 MLJ 1 London Passenger Transport v. Upson & Anor. [1949] AC 155 Lynch v. Nurdin (1841) 1 QB 30 M’Nair v. Glasgow Corporation [1923] SC 397 Madyosi & Anor. v. SA Eagle Insurance Co. Ltd 1990 (3) SA 442 AD Mahomed Syedol Ariffin v. Yeoh Ooi Gark [1916] 2 AC 575 Majlis Perbandaran Ampang Jaya v. Steven Phoa Cheng Loon & Ors [2006] 2 MLJ 389 Malaysia & Nippon Insurans Bhd v. Low Buck Ngoh & Anor [2005] 5 MLJ 779 Marappam & Anor. v. Siti Rahmah Bte. Ibrahim [1990]1MLJ 99 Mariam Binti Mansor v. JD Peter [1975] 1 MLJ 279 Mariam bte. Ahad v. Gacad & Anor. [1986] 1 MLJ 82 Marimuthu a/l Velappan v. Abdullah bin Ismail [2007] 2 MLJ 23 Mary Colete John v. South East Asia Insurance Bhd [2010] 8 CLJ 129 Mat Abu Bin Man v. Medical Superintendent, General Hospital, Taiping, Perak & Ors. [1989] 1 MLJ 226 Medical Defence Union Ltd. v. Department of Trade [1980] 1 Ch 82 Mitchell v. Alestry (1676) B & M 572; 1 Vent. 295.

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Mobil Oil Hong Kong Ltd. v. Hong Kong United Dockyards Ltd. [1991] 2 Lloyd’s Rep. 309 Mohamad Safuan & Anor. v. Mohd. Ridhuan bin Ahmad [1994] 2 MLJ 187 Mohamed Bin Abdullah v. Chah Hea Seng [1980] 2 MLJ 282 Mohamed Repin v. Lim Yu Kee [1969] 1 MLJ 64 Mohd Redza Bin Johari v. 1. Mohd Azmi Bin Abu Bakar & Anor. And Mirwan Bin Suhaini – Third Party Ampang Sessions Court, Summons No: 53-316-98 Mohori Bibee v. Dhurmodas Ghose (1903) Privy Council (1903) 30 IA 114; 30 Cal 539 Moktar Bin Abdul Razak v. Shamsiah Bte. Saman (suing as widow and beneficiary to Abdul Razak Bin Hj. Senawi, Decd) [1997] 1 MLJ 493 Moore v. Maxwells of Emsworth, Ltd. and Another [1968] 2 All ER 779 Moreton v. Hardern (1825) 4 B & C 225 Muhammad Hilman Idham & Ors. v. Kerajaan Malaysia & Ors. (No. 2) [2010] 1 LNS 1151 Mulholland v. Mitchell [1971] AC 666 Murphy v Brentwood District Council [1990] 2 All ER 908 Nance v. British Columbia Electric Railway Co. [1951] AC 600 Natesan v. Thanaletchumi & Anor. [1952] MLJ 1 Neo Chan Eng v. Koh Yong Hoe [1960] MLJ 291 Nettleship v Weston [1971] 2 QB 691 Nettleship v. Weston [1971] 2 QB 691 Ngooi Ku Siong & Anor. v. Aidi Abdullah [1985] 1 MLJ 30 Noraini bte Omar (wife of the deceased, Ku Mansor bin Ku Baharom and mother of the deceased, Ku Amirul bin Ku Mansor) & Anor. v. Rohani bin Said and another appeal [2006] 3 MLJ 150 O’Connel v. Jackson [1972] 1 QB 270 Oli Mohamed v. Keith Murphy & Anor. [1969] 2 MLJ 244 Ong Ah Long v. Dr S Underwood [1983] 2 MLJ 324 Ong Ah Long v. Dr. S. Underwood Syed Agil Barakbah Ong Sim Moy & Ors. v. Ong Sim Hoe [1969] MLJ 82 Ong Yam Chong & Anor. v. Chan Wah [1962] MLJ 184 Osman Affendi v. Mohd Noh [2003] 1 AMR 332 Overseas Tankship (UK) Ltd. v. Morts Docks & Engineering Co. Ltd. [1961] AC 388 (‘The Wagon Mound (No.1')) Owens v. Brimmel [1977] QB 608 Pacific & Orient Insurance Co. Berhad v. Paul Rozario [2010] MLJU 1197 Pacific & Orient Insurance Co. Bhd. v. Rusnah Abd Raop [2003] 6 MLJ 113 Pacific & Orient Insurance Company Sdn Bhd v. Lee Yin Siong & Anor. [1983] 1 CLJ 91 Page v. Richards & Draper (1920) 36 English & Empire Digest 92, para. 502 Parish v. Judd [1960] 3 All ER 33 Parkinson v. Liverpool Corp. [1950] 1 All ER 367 Parry v. Cleaver [1970] AC 1 Parvathy & Ors. v. Liew Yoke Khoon [1984] 1 MLJ 183 Pasternack v. Poulton [1973] 2 All ER 74

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Perianayagam & Anor. v. Yeo Suan Tin & Anor. [1984] 1 MLJ 214 Petroliam Nasional Bhd. (PETRONAS) & Anor. v. Cheah Kam Chiew [1986] 1 LNS 81 Phillips v. London and South Western Rly Co (1879) 5 CPD 280 Phillips v. South Western Railway Co. (1879) 4 QBD 426) Phipps v. Rochester Corpn. [1955] 1 QB 450 Post Office v. Norwich Union Fire Insurance Society, Ltd. [1967] 1 All E.R. 577 Puspa a/p Meenasundram & Ors v. Awai bin Hassan & Anor [1995] 1 MLJ 510 QBE Insurance Ltd v. Hashin bin Abdul & Anor. [1981] 2 MLJ 275 QBE Insurance Ltd v. Thuraisingham [1982] 2 MLJ 62 Queenstown v. Palmer [1999] 1 NZLR 549 R v. Gosney [1971] 3 All ER 220 R. Rethana v. The Government of Malaysia & Anor [1988] 1 MLJ 133 Radburn v. Kemp [1971] 3 All ER 249 Radley v. London & North Western Railway Co. (1876) 1 App. Cas. 754 Rafiah Bt. A. Bakar v. East West-UMI Insurance Bhd. [1993] 1 CLJ 431 Ramachandran a/l Mayandy v. Abdul Rahman Bin Ambok Laongan & Anor. [1997] 4 MLJ 237 Ramlah bte Abdullah v. Talasco Insurance Sdn Bhd & Anor [2009] 3 MLJ 474 Ramoo v. Ong Ah Ho [1968] 2 MLJ 66 Rautenbach v. De Bruyn 1970 (1) SA 383 TPD Razshah Enterprises Sdn Bhd. v. Arab Malaysian Finance Bhd [2009] 2 MLJ 102 Re Polemis and Furness, Wilthy & Co. Ltd. [1921] 3 KB 560 Reynolds v Clarke (1725) B & M 354 Richards v Cox [1942] 2 All ER 624 River Wear Commissioners v. Adamson (1877) 2 App. Cas. 743 Rozita bte. Baharom (an infant) v. Sabedin bin Salleh [1993] 1 MLJ 393. Rubaidah bte Dirin v. Ahmad bin Ariffin [1997] 1 MLJ 677 Rylands v. Fletcher (1868) L.R. 3 H.L. 330 Rylands v. Fletcher (1868) LR 3 HL 341 Sam Wun Hoong v. Kader Ibramshah [1952] MLJ 168, 169. Sambu Pernas Construction & Anor. v. Pitchakkaran [1982] 1 MLJ 269 Sammugam v. Fraser (1888) 4 Ky 338 Samsuri bin Saad & Anor. v. Chew Kit Toh (t/a Kit Thong Who Hup) & Another [1996] 1 MLJ 576 Saniah & Ors. v. Abdul Hamid & Ors. [1967] 2 MLJ 255 Santhanaletchumy a/p Subramaniam v. Zainal Bin Saad & Anor. [1994] 4 CLJ 192 Sathisvaran A/l Chandrasegaran v. Agilan A/l Vanmugelan & Anor [2012] MLJU 210 Scott v. Sheperd (1773) 2 Wm Bla. 892 Selvaduray v. Chinniah [1939] MLJ 253 Sia Cheng Soon & Syarikat N & S Enterprises Sdn Bhd v. Tengku Ismail Bin Tengku Ibrahim (Permohonan Sivil No: 08-151-2007 (N)) Singapore Bus Service Ltd. v. Lim Swee Pheng & Sons (Pte) Ltd. [1980] 1 MLJ 53 Sinnadorai v. New Zealand Insurance Co. Ltd [1969] 1 MLJ 183

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Siti Rohani Mohd Shah & Ors. v Hj. Zainal Hj. Saifiee & Anor. [2001] 1 CLJ 498 Slater v. Clay Cross Co. Ltd. [1956] 2 QB 691 Sukarto v. Lee Seng Kee [2009] 3 MLJ 306 Sum Kum v. Devaki Nair & Anor. [1964] 1 MLJ 4 Tahan Steel Corp Sdn Bhd v Bank Islam Malaysia Bhd [2012] 2 MLJ 314 Tai Siat Fah & Ors. v. Lawful Personal Representative of Badrul Hisham Bin Hashim [1995] 2 MLJ 571 Takong Tabari v. Govt. of Sarawak & Ors [1998] 4 MLJ 512 Tan Ah Chye v. Chin Kon Sang [1976] 2 MLJ 237 Tan Ah Hoong v. Mahalingam [1962] 1 MLJ 250 Tan bin Hairuddin v. Bayeh a/l Belalat [1990] 2 CLJ 773 Tan Chye Choo & Ors. v. Chong Kew Moi [1970] 1 MLJ Tan Guan Cheng & Anor. v. Kuala Lumpur, Klang & Port Swettenham Omnibus Co. Ltd [1971] 1 MLJ 49 Tan Hee Juan v. The Boon Keat and Lai Soon [1934] 1 MLJ 96. Tan Keng Hong & Anor v New India Assurance Co. Ltd [1978] 1 MLJ 97 Tan Kim Chuan & Anor. v. Chandu Nair [1991] 2 MLJ 42 Tan Leong Wei & Ors. v. Omar Bin Ahmad [2005] 2 MLJ 576 Tan Leong Wei & Ors. v. Omar Bin Ahmad [2005] 2 MLJ 576 Tan Peng Loh v. Lee Aik Fong & Anor. [1980] 1 MLJ 264 Tart v. G. W. Chitty & Co. Ltd [1933] 2 KB 453. Tay Tong Chew & Anor. v. Abdul Rahman Bin Haji Ahmad [1985] 1 MLJ 50 Tayler’s Case (1780) Ann. Reg Tey Hwa Seong v. Chop Lim Chin Moh [1981] 2 MLJ 341 Tham Yew Heng & Anor. v. Chong Toh Cheng [1985]1 MLJ 408 Thangachimmah & Anor. v Flower [1968] 2 MLJ 248 Thangavelu v Chia Kok Bin [1981] 2 MLJ 277 Thangavelu v. Chia Kok Bin [1981] 2 MLJ 277 The Cooperative Central Bank Ltd. v KGV & Associates Sdn Bhd [2008] 2 MLJ 233 The Governor and Company of the Bank of England v. Vagliano Brothers [1891] AC 107 The Marpesia (1872) LR 4 PC 212 The Merchant Prince (1892) Pro. Div. 179 The People’s Insurance Co (M) Bhd v. Ting Tiew Kiong [2007] 5 MLJ 624 The Virgil (1843), 2 W. Rob 201; 166 ER 730 Thomas v. Quartermaine (1887) 18 QBD 685 Ting Ee Moi v. Palpandy Arumuga Perumal & Anor. [1997] 1 CLJ Supp 83 Tsang Yee Kwan v. Majlis Perbandaran Batu Pahat [ 2011] 1 LNS 771 Underwood v. Hewson (1724) 1 Str. 596 Union Insurance (M) Sdn Bhd v. Chan You Young [1999] 1 MLJ 593 United Oriental Assurance Sdn Bhd v Lim Eng Yew [1991] 3 MLJ 429 Veronica Joseph (f), an infant & Anor. v. Tu Kon Lin & Anor [1987] 1 CLJ 81 Wakeman v. Robinson (1823) 1 Bing. 214 Wallace v. Bergius [1915] Ct. Sess. 205 Wallersteiner v. Moir (No. 2) [1975] 1 QB 373 Ward v. London County Council [1938] 2 All ER 341

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Weaver v. Ward (1616) B & M 331; Hob. 134 Williams v. Holland (1833) 10 Bing 112 Winnipeg Electric Co. v. Jacob Geel [1932] A.C. 690 Winnipeg Electric Co. v. Jacob Geel [1932] A.C. 690 Wong Ah Gan v. Chan Swei Yueh & Anor. [1970] 2 MLJ 25 Wong Choo Yong v. Safety Insurance Co Ltd [1971] 2 MLJ 260 Wong Eng v. Chock Mun Chong & Ors, [1963] MLJ 204 Wong Fook v. Abdul Shukur bin Abdul Halim [1991] 1 MLJ 46. Wong Yew Loy v. Ketua Pengarah Pertubuhan Keselamatan Social [2009] MLJU 1264 Yeap Cheng Hock v. Kajima-Taisei Joint Venture [1973] 1 MLJ 230 Yeo Kim Kuan v. Hamid [1968] 2 MLJ 188 Young v. Chester [1974] RTR 70 Zainap bte Abd Majid & Ors v. Gan Eng Hwa & Ors.[1995] 1 MLJ 801 Zainun Binti Abdul Ghani & Anor. v. Chong Ah Seng & Anor [1975] 1 MLJ 33

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LIST OF STATUTES

Accident Compensation Act 1972, New Zealand Accident Compensation Act 1982, New Zealand Accident Compensation Act 2001, New Zealand Accident Compensation Act 2010, New Zealand Accident Insurance Act 1998, and Accident Insurance (Transitional Provisions) Act 2000), New Zealand Accident Insurance Act 1998, New Zealand Accident Rehabilitation and Compensation Insurance Act 1992, New Zealand Civil Code 1987, United Arab Emirates Civil Law (Amendment) Bill 1984 Civil Law Act 1956 (Act 67) Court of Judicature Act 1964 (Act 91) Crimes Act 1961, New Zealand Criminal Act 1991, Sudan Employee’s Social Security (General) Regulations, 1971 Employees’ Social Security (Social Security Appellate Board Procedure) Regulations, 1976 Employees’ Social Security Act 1969 (Act 4) Evidence Act 1950 (Act 56) Federal Liability Act 1906, The United States of America, Government Business Enterprises Act 1995 Injury Prevention, Rehabilitation, and Compensation Act (No. 2) 2005, New Zealand Injury Prevention, Rehabilitation, and Compensation Act 2001, New Zealand Injury Prevention, Rehabilitation, and Compensation Amendment Act 2003, New Zealand Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007, New Zealand Interpretation Acts 1948 and 1967 (Act 388) Kelantan Syariah Criminal Code (II) Enactment, 1993 Legal Profession (Practice and Etiquette) Rules 1978 Legal Profession Act 1976 (Act 166) Limitation Act 1953 (Act 254) Limitation of Actions Act 1958, Australia Criminal Procedure Code (Act 593) Mental Health Act 1969, New Zealand Minimum Retirement Age 2012 Motor Accidents (Compensation) Act 1979, Northern Territory, Australia Motor Accidents (Liabilities and Compensation) Act 1973, Tasmania, Australia

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Motor Accidents (Liabilities and Compensation) Regulations 2010, Tasmania, Australia Motor Accidents Act 1973, Victoria Motor Vehicles (Third-Party Risks and Compensation) Act (Chapter 189), Singapore Parental Leave and Employment Protection Act 1987, New Zealand Penal Code (Act 574) Public Insurance Act 1994, Manitoba, Canada Qisas and Diyat Ordinance 1991, Pakistan Road Transport Act 1987 ( Act 333) Rules of Court 2012 Subordinate Courts Act 1948 Subordinate Courts Rules 1980 Takaful Act 1984 (Act 312) Territory Insurance Office Act 1979, Northern Territory, Australia The Contracts (Privity) Act 1982, New Zealand The Contracts (Right of Third Parties) Act 1999, United Kingdom Transport Accident Act 1986, Indexation of Benefits, Victoria, Australia Transport Accident Act 1986, Victoria, Australia Workmen’s Compensation (Foreign Worker’s Scheme) (Insurance) Order 1993 Workmen’s Compensation (Foreign Workers’ Compensation Scheme)(Insurance) Order 2005 Workmen’s Compensation Act 1884, Germany Workmen’s Compensation Act 1952 (Act 273) Workmens’ Compensation Act of 1897, England Wrongs Act 1958, Australia

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CHAPTER 1

INTRODUCTION 1.1 BACKGROUND OF THE RESEARCH

There has been an alarming increase in the number of registered motor vehicles in the

country over the preceding six years, rising from a total of 13,541,265 in 2005 to

19,781,836 in 2011, a 46% increase over the period and registering an average

increase of 7.6% vehicles each year.1

Motor vehicles have become an indispensable mode of conveyance which

inevitably had its impact on a corresponding increase in the number of road accidents.

In the year 2007, 6282 persons died as a result of road accidents and in 2010, the

death toll stood at 6872, with motorcyclists making up 60% of the deaths2. An average

of 17 motorists died each day from road accidents for the year 2007.3 9273 of the

victims suffered serious injuries and 18,444 sustained minor injuries as a result of road

accidents4. There are over 40,000 third party bodily injury and death claims filed per

year5.

1 Road Transport Department, Malaysia. Of this figure, motorcars and motorcycles accounted for 99% of all registered vehicles in 2011, each making up approximately 50% of the total number of vehicles, with the remaining 1% being made up of commercial vehicles, public vehicles and others. A decade ago, in 2002, there were a total of 12,021,939 registered motor vehicles in the country. 2 Wong, S. V. Set up Sentencing Council for fatal road accidents, New Straits Times, January 26, 2012 3 Official Website of the Royal Malaysian Police. Accessed at http://www.rmp.gov.my. Retrieved on 15/01/2009. See also: Chan Kong Choy, Road safety drive pays off, New Straits Times, 23. 11.2004 p. 1. 4 Royal Malaysian Police. 5 Bank Negara Malaysia, Proposed Basic Motor Cover Framework: Discussion Paper, 23 April 2010. Accessed: www.bnm.gov.my/files/Discussion_Paper_TPBID.pdf. Retrieved: 9 April 2012. It was also stated in the Paper that according to the 2009 Global Status Report on Road Safety conducted by the World Health Organisation, in Malaysia, the fatality rate in 2008 from motor accidents were 3.7 deaths per 10,000 vehicles, recording one of the highest rates in the ASEAN region.

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As expected, the situation has raised serious concerns to the Malaysian

Government, prompting the Prime Minister to make the following observations in his

opening address:

Road accidents are a huge economic and health problem facing our Nation. Each year over 6000 of people are killed and over 37000 are injured or crippled and many are disabled for the rest of their lives in some cases perpetuating poverty for their families. Over the last 5 years nearly 30,000 have died and over 225,000 have been injured and our nation has lost around RM 39 billions (US$10.2 Billions) through property damage, medical costs and lost productivity.6

The structure and scale of benefits and compensation that are available to the

victims of motor vehicle accidents would depend on the choice of compensation

system and the type of legal system that exist in the countries.

The present tort mechanism used for awarding damages to the victims of a

motor vehicle accident requires them to successfully prove that the injuries and losses

suffered were due to the negligent conduct of the defendant tortfeasor and establish a

causal connection between the two. Establishing negligence has been the cornerstone

of liability under the modern action of negligence which had the effect of restricting

rather than expanding liability under a fault-based tort system that is regulated by

strict court rules and procedures. The onerous task of proving fault was identified as

among the principal sources among a host of deficiencies present in the system where

a number of victims recover nothing either because they cannot establish negligence

against the owner or because his indemnity does not extend to their cases. Only about

30% of accident claims are covered under the third party insurance system.7 Basically,

the idea of compulsory third party motor accident insurance rests on proof of

6 ADB/ASEAN Regional Road Safety Programme, National Road Safety Action Plan 2005-2010, 12 February 2004. See also: Chan Kong Choy, Road safety drive pays off, New Straits Times, 23. 11.2004 p. 1. 7 Paragraph 27, Report of Committee on Absolute Liability, July 1963. The 70% of claims that are not covered by the existing third party insurance system includes: passengers in motor vehicles – 35%; drivers of motor vehicles – 20%; and pedestrians, cyclists, and other non-motorists – 15%.