Universiti Teknologi Malaysia Institutional Repository

Construction insurance

Lim, Wan Wei (2010) Construction insurance. Masters thesis, Universiti Teknologi Malaysia, Faculty of Built Environment.



Subrogation means that a person who indemnifies another is entitled to step into the shoes of the person and take over whatever right he may have against third parties. But, it is found that the insurers are not always successful in their subrogation claims against the wrongdoer in the construction industry. Thus, in order to understand the insurers? right of subrogation claim in construction contract, this master project has been carried out with the intention to identify circumstances that do not allow insurers to exercise their rights of subrogation. This project has been carried out mainly through documentary analysis of the relevant cases repeated in law journals, such as Malayan Law Journal, Singapore Law Report, Building Law Report, etc. Eighteen cases has been chosen to be analysed in accordance with the feature of right of subrogation against co-insured and the waiver of subrogation clauses in the standard forms of contract.The result showed that, in conjunction with insurance clauses, construction contracts do include provisions that require the insurance policies to be in the form of joint names of the employer, contractor, subcontractor and all related third parties. This would lead to the insurers not being able to exercise the usual rights of subrogation against any of the joint insured. Besides that, the construction contracts also require the insurance policies to contain cross liability or waiver of subrogation clauses. The clauses provide that the insurances carrier, after settling and paying a claim, cannot pursue the damage paid for by the insured parties? insurance carrier. These effectively prevent an insurer from seeking recovery from the party at fault. So, where a loss has been caused by a subcontractor and the principal contractor seeked recovery, the insurer cannot pursue the claim from the subcontractor.

Item Type:Thesis (Masters)
Additional Information:Thesis (Sarjana Sains (Pengurusan Kontrak Pembinaan)) - Universiti Teknologi Malaysia, 2010; Supervisor : En. Jamaluddin Yaakob, Dr. Nur Emma Mustaffa
Uncontrolled Keywords:construction contracts, construction industry, insurance
Subjects:T Technology > TH Building construction
Divisions:Built Environment
ID Code:36261
Deposited By: Kamariah Mohamed Jong
Deposited On:08 Jan 2014 00:43
Last Modified:06 Feb 2020 04:26

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