CASE STUDY $$ LAW OF AGENCY

QUESTION.

On January $15,2014,$ Madam Anya purchased a health insurance policy under 'SupremeCare VIP$-$Plan $1($Class $1)\text{'}$ Policy from Mr$.$ Alex, the best insurance agent in Petaling Jaya, who represents YouCARE General Insurance Bhd$.$ The first instalment towards premium payment was made by Madam Anya 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.

After returning from her holiday in South Africa, Madam Anya was hospitalized for high fever but the private hospital where she was treated refused to accept her health insurance policy card issued by YouCARE General Insurance citing that it was not a health insurance card.

Three days after being discharged from the hospital, Madam Anyawent toYouCAREGeneral Insurance Berhad office to confirm the status and validity of her insurance policy and coverage. During the meeting Madam Anya with the officer of YouCAREGeneral Insurance Berhad, the said officer has confirmed to Madam Anya the followings:$-$

$1.$ Mr$.$ Alex is the authorized agent of YouCARE Insurance Berhad stationed at Life Insurance Policy Department, and

$2.$ The insurance policy contract between YouCARE and Madam Anya has been properly executed and duly filed, and

$3.$ The insurance policy premium payments made by Madam Anya has been duly received and receipts for the said payments have been issued.

With that confirmation, Madam Anya narrated her bad experiences at the hospital during her hospitalization when the the hospital declined to accept her insurance card issued by YouCAREGeneral Insurance Berhad stating that it is not a health insurance covering card. However, the officer told Madam Anya that Mr$.$ Alex 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, Madam Anya decided to take legal actions against YouCARE Insurance Berhad and seek your advice on whether the contract entered into by Madam Anya and the YouCARE General Insurance Bhd through Mr Alex is a valid contract under the principle of appointment of an agent by ratification.

Advice Madam Anya and support your answer with relevant provisions of the statute and decided cases.

$[20$ Marks$]$

$($NOTE: Students are required to discuss the relevant principle of law within the ambit of the law of agency only and NOT other areas of law$).$