Commercial Union Assurance Pte Ltd v Chua Kim Bak

• Jurisdiction: Singapore
• Judge: S Rajendran J
• Judgment Date: 28 July 1998
• Neutral Citation: [1998] SGHC 258
• Docket Number: Suit No 2212 of 1996
• Date: 28 July 1998
• Year: 1998
• Published date: 19 September 2003
• Plaintiff Counsel: Fazal Mohamed (B Rao & KS Rajah)
• Citation: [1998] SGHC 258
• Defendant Counsel: Jenny Ang (Rajah & Tann)
• Court: High Court (Singapore)
• Subject Matter: Employers’ liabilities,ss 3(1), 7, 14(2), 18(b), Third Sch paras 1, 2, 3 & 4 Workmen's Compensation Act (Cap 354),Whether employer's insurer can seek indemnity for lost wages and medical expenses from party liable in causing injuries workmen,Liability to pay compensation for personal injuries which workmen suffer in course of employment,Employment Law,Whether compensation payable under the Workmen's Compensation Act includes lost wages and medical expenses

Judgment:

S RAJENDRAN J

On 13 June 1991 motor-vehicle SBG9584L owned and driven by Chua Kim Bak (the `defendant`) collided into the back of motor-lorry YD 9142Y owned by L&M Technology (the `employer`) and driven by one of its employees. The lorry was at the time ferrying 14 workers, seven of whom were the employees of the employer and the remaining were employees of a sub-contractor of the employer . As a result of the accident the driver and all 14 workers on board the lorry suffered personal injuries, incurred medical expenses and suffered loss of wages.

2.The plaintiffs had issued a workmen`s compensation insurance policy to the employer which covered the above accident. Pursuant thereto and pursuant to the Workmen`s Compensation Act (Cap 354) (the `Act`), the plaintiffs effected payments to the injured workers of various sums of money as assessed by the Ministry of Labour:

(a)	Per five notices of assessment from the Ministry of Labour for permanent incapacity	$116,872.32
(b)	Lost wages (medical leave)	$ 5,745.77
(c)	Medical expenses for workers` injuries	$ 7,645.93
Total	$130,264.02

Having made these payments the plaintiffs, invoking s 18(b) of the Act, sought to recover these amounts from the defendant on the grounds that the accident was caused by the negligence of the defendant. Upon the defendant`s failure to respond affirmatively to their demand, the plaintiffs commenced these proceedings.

3.At the hearing Miss Jenny Ang, counsel for the defendant, informed the court that the defendant admitted the facts pleaded in the re-amended statement of claim and consented to final judgment being entered against him in respect of the sum of $116,872.32. The defendant was taking this position because the defendant accepted that under s 18(b) of the Act compensation paid for permanent incapacity is recoverable from him. In respect of the claims relating to lost wages and medical expenses, however, the defendant took the view that s 18(b) did not cover these items and the plaintiffs could not, therefore, recover these items from him under that section. Miss Ang emphasized that the defendant was only disputing his liability to reimburse the plaintiffs for these items and was not disputing the workmen`s entitlement to compensation, medical expenses and wages under the Act. Mr Fazal Mohamed, counsel for the plaintiffs, told the court that although the sums involved were paltry, the issue raised was an important one on which insurance companies would like to see a definitive ruling.

4.It will be useful to set out in full the provisions of s 18(b) of the Act:

Where any injury for which compensation is payable under this Act was caused under circumstances creating a legal liability in some person other than the employer to pay damages in respect thereof -

(a) ...

(b) if the workman has recovered compensation under this Act, the person by whom the compensation was paid, and any person who has been called upon to pay an indemnity under section 17(2), shall be entitled to be indemnified by the person so liable to pay damages as aforesaid. [Emphasis added.]

Section 3(1) which imposes liability on the employer to pay this compensation provides that where personal injury is caused to a workman in the course of his employment, the employer shall be liable to pay compensation in accordance with the provisions of this Act. Section 7 goes into some greater detail by providing that, subject to the provisions of the Act, the amount of compensation payable shall be in accordance with the provisions of the Third Schedule. The Third Schedule contains four...