LAW OF AGENCY : CASE STUDY

On April 2014, Suri purchased a health insurance policy under 'Executive VIP Plan' Policy from Joe
Fernandez, who represents WeCARE General Insurance Berhad. The first instalment towards
premium payment was made by Suri on the same date after signing of all the necessary insurance
contract (policy) and thereafter she has been receiving receipts for her monthly payment from the
insurance company. Upon returning from her jungle tracking expedition at Gunong Semanggol,
Perak, Suri was hospitalized for high fever but the private hospital where she was treated refused
to accept her health insurance policy card issued by WeCARE General Insurance Berhad citing that
it was not a health insurance card.

After being discharged from the hospital, Suri went to WeCARE General Insurance Berhad office to
confirm the status and validity of her insurance policy and coverage. During the meeting between
Suri and the officer of WeCARE General Insurance Berhad, the officer has confirmed to Suri the
followings:-
1) Joe Fernandez is the authorized agent of WeCARE General Insurance Berhad and stationed
at Life Insurance Policy Department, and
2) The insurance policy contract between WeCARE General Insurance Berhad and Suri has
been properly executed and duly filed, and
3) The insurance policy premium payments made by Suri has been duly received and receipts
for the said payments have been issued.

With that confirmation, Suri asked for clarification from the officer on why the hospital authority
declined to accept her insurance card issued by WeCARE General Insurance Berhad where the
officer told Suri that Joe Fernandez had no authority to sign any person for medical healthcare
insurance policy as his job scope is only to sign people for life insurance policy. Not satisfied with
answer from the officer, Suri decided to take legal actions against WeCARE General Insurance
Berhad and seek your advice on the followings-

1) What is the definition of an agent and who can be an agent as provided under the Contract Act
1950? (10 marks)
2) Whether Joe Fernandez has an authority to act for the WeCARE General Insurance Bhd as an
agent? (15 marks)
3) Whether the contract entered into by Suri and the WeCARE General Insurance Bhd through
Mr Joe Fernandez is a valid contract under the principle of appointment of an agent by
ratification?