Can an insurer cancel or void a policy in the face of MIB – and by when?

In Malaysia, if a car is validly insured when an accident happens, the insurer must pay the victim. Compulsory-insurance legislation, the Motor Insurers’ Bureau Agreements, and consumer-protection reforms now make post‑accident cancellations and technical excuses very difficult. The whole scheme is designed to protect injured people, not insurers’ balance sheets.

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Has the RTA made the ‘insurable interest defence’ and the ‘recovery action,’ redundant?

Should innocent accident victims be forced into costly legal battles twice—once against the driver and again, [by what has come to be known as a ‘Recover Action’] against the insurer? How did Malaysia’s Federal Court in the 2022 Sa' Amran decision demolish 70 years of established insurance practice? How did it revolutionise third-party victim compensation?

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