SHC Capital Ltd v NTUC Income: Double Insurance & Workmen's Compensation
SHC Capital Ltd sought a declaration against NTUC Income Insurance Co-operative Ltd in the High Court of Singapore, Chan Seng Onn J, presiding on 5 August 2010, regarding liability for a payout made under a workmen’s compensation policy. The case arose from an industrial accident where a workman, Omar Bin Hoydeen, was injured. SHC argued that NTUC was liable for contribution due to double insurance. The court declared that NTUC was legally obligated to reimburse SHC for the sum of $317,664.70, which was paid by SHC to indemnify EIN and Simei for their liability arising out of Suit 527 of 2006.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
SHC sought contribution from NTUC for a payout under a workmen’s compensation policy. The court found NTUC liable for reimbursement.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| SHC Capital Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | Adeline Chong Seow Ming |
| NTUC Income Insurance Co-operative Ltd | Defendant | Corporation | Judgment Against Defendant | Lost | Desmond Tan, Aileen Chia |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chan Seng Onn | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Adeline Chong Seow Ming | Infinitus Law Corporation |
| Desmond Tan | Lee & Lee |
| Aileen Chia | Lee & Lee |
4. Facts
- An industrial accident occurred at Pan-United Concrete Pte Ltd premises involving a workman, Omar Bin Hoydeen.
- Omar, an employee of EIN, was seriously injured by metal chains attached to a mobile crane.
- Omar commenced an action against Pan-United, EIN, Simei, and Hock Swee for negligence.
- Interlocutory judgment was entered by consent against the defendants for 90% of total liability.
- EIN and Simei’s liabilities totaled $317,664.70, which was paid by SHC.
- Pan-United had a Workmen’s Compensation Policy with NTUC, later extended to cover all tiers of sub-contractors.
- SHC had underwritten Workmen’s Compensation policies to insure EIN and Simei.
5. Formal Citations
- SHC Capital Ltd v NTUC Income Insurance Co-operative Ltd, Originating Summons No 135 of 2010, [2010] SGHC 224
6. Timeline
| Date | Event |
|---|---|
| Industrial accident occurred at Pan-United Concrete Pte Ltd premises. | |
| Omar Bin Hoydeen commenced action Suit 527 of 2006. | |
| SHC’s solicitors requested NTUC to take over conduct of the defence for Simei and EIN. | |
| NTUC rejected SHC’s request. | |
| Interlocutory judgment was entered by consent against the defendants in Suit 527 of 2006. | |
| SHC commenced present proceedings. | |
| Judgment reserved. |
7. Legal Issues
- Double Insurance
- Outcome: The court found that double insurance existed with respect to EIN's liability, making NTUC liable for reimbursement.
- Category: Substantive
- Sub-Issues:
- Non-contributory Clause
- Contingent Liability Clause
- Cross Liability Clause
- Related Cases:
- [1911] 103 LT 663
- [1985] 1 WLR 734
- [1996] 1 SLR(R) 441
- [1932] 2 KB 563
- Right to Contribution/Reimbursement
- Outcome: The court held that SHC's payment was not voluntary due to consistent protests and business reputation concerns, entitling them to reimbursement from NTUC.
- Category: Substantive
- Sub-Issues:
- Voluntary Payment
- Legal Compulsion
- Unjust Enrichment
- Related Cases:
- [1871-1872] LR 7 Ex 101
- [1899] 1 QB 161
- [2009] HCA 21
- [1939] 2 KB 81
- [2001] Lloyd’s Rep Bank 36
- (1799) 8 TR 308
- [1992] 1 All ER 283
- [2004] QB 601
- Interpretation of Insurance Policy Clauses
- Outcome: The court interpreted the Contingent Liability Clause as extending coverage beyond the NTUC Operative Clause and found it inapplicable to EIN.
- Category: Substantive
- Sub-Issues:
- Contingent Liability Clause
- Cross Liability Clause
- Non-contributory Clause
- Related Cases:
- [1997] 2 SLR(R) 746
8. Remedies Sought
- Declaration that NTUC's Workmen's Compensation Policy extends to cover EIN and Simei.
- Indemnification by NTUC for damages and legal costs paid on behalf of EIN and Simei.
9. Cause of Actions
- Breach of Contract
- Negligence
10. Practice Areas
- Insurance Litigation
- Commercial Litigation
11. Industries
- Insurance
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| American Surety Co of New York v Wrightson | Not Available | Yes | [1911] 103 LT 663 | England and Wales | Cited for the principle that contribution is based on equity and equality. |
| Bankers & Traders Insurance Co Ltd v National Insurance Co Ltd | Privy Council | Yes | [1985] 1 WLR 734 | Malaysia | Cited regarding the construction of exclusion clauses in insurance policies in the event of double insurance. |
| Nanyang Insurance Co Ltd v Commercial Union Assurance Plc | Not Available | Yes | [1996] 1 SLR(R) 441 | Singapore | Cited regarding the effect of exclusion clauses in insurance policies where there is double insurance. |
| Weddell v Road Transport & General Insurance Co Ltd | Not Available | Yes | [1932] 2 KB 563 | England and Wales | Cited for the principle that when both insurers exclude liability in the event of double insurance, the exclusion clauses cancel each other out. |
| Awang bin Dollah v Shung Shing Construction & Engineering Co Ltd | Court of Appeal | Yes | [1997] 2 SLR(R) 746 | Singapore | Cited to distinguish the meaning of 'sub-contractors' in the context of the policy. |
| Moule v Garrett | Not Available | Yes | [1871-1872] LR 7 Ex 101 | England and Wales | Cited for the principle of contribution and reimbursement. |
| Bonner v Tottenham and Edmonton Permanent Investment Building Society | Not Available | Yes | [1899] 1 QB 161 | England and Wales | Cited for the principle of contribution and reimbursement. |
| Friend v Brooker | High Court of Australia | Yes | [2009] HCA 21 | Australia | Cited for the principle of contribution. |
| Whitham v Bullock | Court of Appeal | Yes | [1939] 2 KB 81 | England and Wales | Cited for the principle of contribution. |
| Grupos Torras SA v Al-Sabah (No 5) | Not Available | Yes | [2001] Lloyd’s Rep Bank 36 | England and Wales | Cited for the principle that remedies of contribution or reimbursement are restitutionary in nature. |
| Exall v Partridge | Not Available | Yes | (1799) 8 TR 308 | England and Wales | Cited as an example of a claim in reimbursement. |
| Legal & General Assurance Society v Drake Insurance Co Ltd | Court of Appeal | Yes | [1992] 1 All ER 283 | England and Wales | Cited for the principle that no right of contribution or reimbursement exists if a claimant has paid out voluntarily. |
| Drake Insurance plc v Provident Insurance plc | Court of Appeal | Yes | [2004] QB 601 | England and Wales | Cited to distinguish Legal & General Assurance Society v Drake Insurance Co Ltd. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Workmen’s Compensation
- Double Insurance
- Non-contributory Clause
- Contingent Liability Clause
- Cross Liability Clause
- Reimbursement
- Contribution
- Sub-contractors
- Indemnity
15.2 Keywords
- insurance
- workmen's compensation
- double insurance
- contribution
- reimbursement
- negligence
- contract
- Singapore
16. Subjects
- Insurance
- Contract Law
- Workmen's Compensation
- Civil Procedure
17. Areas of Law
- Insurance Law
- Workmen's Compensation
- Contract Law
- Equity
- Restitution