Rahman v Lim Keenly Builders: Workmen's Compensation & Insurance Coverage for Subcontractor Employees
In Mohammed Shahid Late Mahabubur Rahman v Lim Keenly Builders Pte Ltd, the Singapore High Court addressed whether the defendant, Lim Keenly Builders Pte Ltd, a main contractor, could claim indemnity from Tokio Marine Insurance Singapore Ltd for a claim made by Mohammed Shahid Late Mahabubur Rahman, an employee of a subcontractor, Utracon Structural System Pte Ltd, who was injured at the defendant's worksite. The plaintiff sued the defendant for breach of statutory duties and occupier’s liability. The court, Steven Chong JC, dismissed the defendant's claim, holding that the Workmen’s Compensation Policy only covered liabilities to the insured's own employees, not common law liabilities to employees of subcontractors.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Claim by the defendant against the Insurer is dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court examined if a main contractor's insurance covered common law liabilities to a subcontractor's injured employee, ruling it did not.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Tokio Marine Insurance Singapore Ltd | Respondent | Corporation | Won | Won | |
| Lim Keenly Builders Pte Ltd | Defendant | Corporation | Claim Dismissed | Lost | |
| Mohammed Shahid Late Mahabubur Rahman | Plaintiff | Individual | Interlocutory judgment entered at 95% liability in favor of the plaintiff | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Steven Chong | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- Plaintiff, a Bangladeshi national, was injured at a factory construction site.
- Plaintiff was employed by Utracon, a subcontractor engaged by the defendant.
- Plaintiff fell from scaffolding at the worksite, sustaining serious injuries.
- Defendant was the main contractor engaged by M/s Kim Teck Leong (Pte) Ltd.
- Plaintiff sued the defendant for breach of statutory duties and occupier’s liability.
- Defendant brought Third Party proceedings against Tokio Marine for indemnity under insurance policies.
- Plaintiff settled his claim against the defendant with interlocutory judgment entered at 95% liability.
5. Formal Citations
- Mohammed Shahid Late Mahabubur Rahman v Lim Keenly Builders Pte Ltd (Tokio Marine Insurance Singapore Ltd, third party), Suit No 305 of 2009, [2010] SGHC 142
6. Timeline
| Date | Event |
|---|---|
| Plaintiff injured at worksite | |
| Lawsuit filed (Suit No 305 of 2009) | |
| Judgment reserved | |
| Judgment issued |
7. Legal Issues
- Scope of Insurance Coverage
- Outcome: The court held that the insurance policy only covered liabilities to the insured's own employees, not common law liabilities to employees of subcontractors.
- Category: Substantive
- Sub-Issues:
- Interpretation of insurance policy terms
- Indemnity claims
- Common law liabilities
- Employer's liability
- Occupier's liability
- Related Cases:
- [1997] 2 SLR(R) 746
- [1970] 2 QB 292
- Interpretation of Contractual Terms
- Outcome: The court interpreted the various clauses of the insurance policy to determine the scope of coverage.
- Category: Substantive
- Sub-Issues:
- Operative clause construction
- Interpretation clause
- Name of insured clause
- Risk No 001 clause
- Deletion of exceptions
- Contra proferentem
- Related Cases:
- [1917] 1 KB 352
- [1940] 2 KB 388
- [1969] 1 Lloyd’s Rep 575
- (1889) 23 QBD 453
- [2003] EWCA Civ 1606
8. Remedies Sought
- Monetary Damages
- Indemnity
9. Cause of Actions
- Breach of Statutory Duties
- Occupier's Liability
- Indemnity Claim
10. Practice Areas
- Insurance Coverage
- Construction Litigation
- Commercial Litigation
11. Industries
- Construction
- Insurance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Hurst v Evans | N/A | Yes | [1917] 1 KB 352 | N/A | Cited for the burden of proof on the defendant to prove its claim under the WC Policy. |
| Awang bin Dollah v Shun Shing Construction & Engineering Co Ltd | Court of Appeal | Yes | [1997] 2 SLR(R) 746 | Singapore | Cited as a similar case where the indemnity claim against the insurer was not payable because the plaintiff’s case succeeded against the main contractor on the basis of occupier’s liability, and not on the basis of employer’s liability. |
| Vandyke v Fender and another | English Court of Appeal | Yes | [1970] 2 QB 292 | N/A | Cited to confirm that it is not appropriate to look to the Act for definitions of terms in the WC Policy which the Act itself does not define. |
| General Accident Fire and Life Assurance Corporation Limited v Midland Bank Limited | N/A | Yes | [1940] 2 KB 388 | N/A | Cited to support the conclusion that the WC Policy is not a joint policy but a composite one. |
| Lombard Australia Ltd v NRMA Insurance Ltd | Court of Appeal of the Supreme Court of New South Wales | Yes | [1969] 1 Lloyd’s Rep 575 | N/A | Cited to support the conclusion that the WC Policy is not a joint policy but a composite one. |
| Callaghan v Dominion Insurance Co | N/A | Yes | [1997] 2 Lloyd’s Rep 541 | N/A | Cited for the definition of insurance. |
| Cornish v The Accident Insurance Company Limited | N/A | Yes | (1889) 23 QBD 453 | N/A | Cited regarding the contra proferentem rule. |
| McGeown v Direct Travel Insurance | N/A | Yes | [2003] EWCA Civ 1606 | N/A | Cited regarding the contra proferentem rule. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Workmen’s Compensation Act (Cap 354, 1998 Rev Ed) | Singapore |
| Work Injury Compensation Act (Cap 354, 2009 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Workmen's Compensation Policy
- Contractors’ All Risks Policy
- Operative Clause
- Insured
- Employment
- Course of Employment
- Sub-contractor
- Main Contractor
- Indemnity
- Occupier's Liability
- Composite Policy
- Joint Policy
- Contra Proferentem
15.2 Keywords
- workmen compensation
- insurance coverage
- construction accident
- occupier liability
- subcontractor
- indemnity
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Workers Compensation | 90 |
| Insurance | 70 |
| Occupiers' Liability | 60 |
| Construction Law | 50 |
| Breach of Statutory Duty | 40 |
| Personal Injury | 30 |
16. Subjects
- Insurance
- Construction
- Employment Law
- Contract Law