The High Court in SU HOCK GUAN V AXA AFFIN GENERAL
INSURANCE MALAYSIA BERHAD [2021] 1 AMR 205 held that
the cause of action against an insurer under an indemnity insurance
accrues upon the occurrence of loss, not upon the repudiation of
liability by the insurer.
BACKGROUND FACTS
The Appellant (“Insured”) had obtained a motor
vehicle insurance policy (“Policy”) with the Respondent
(“Insurer”). The Insured intimated a claim to the
Insurer pursuant to the Policy alleging that a fire on 24 April
2010 caused the motor vehicle to be damaged beyond repair. On
15 June 2012, the Insurer repudiated the Insured's claim on
the ground that the Policy was void ab initio.
On 16 May 2016, which was 6 years after the date of the fire
incident, the Insured initiated a court action against the Insurer
seeking compensation under the Policy. The Insurer filed an
application to strike out the Insured's action on the ground
that it was time-barred pursuant to Section 6 of the
