APPLICATION OF UK MARINE INSURANCE ACT 1906 IN MALAYSIA
Application of U.K. common law, rules of equity and certainstatutes
3. (1) Save so far as other provision has been made or may hereafter be made by any written law in force
in Malaysia, the Court shall—
a) in Peninsular Malaysia or any part thereof, apply the common law of England and the rules of equity
as administered in England on the 7 April 1956;
b) in Sabah, apply the common law of England and therules of equity, together with statutes of general
application, as administered or in force in England on 1 December 1951;
c) in Sarawak, apply the common law of England and the rules of equity, together with statutes of
general application, as administered or in force in England on12 December 1949, subject however to
subparagraph (3)(ii):
Provided always that the said common law, rules of equity andstatutes of general application shall be
applied so far only as thecircumstances of the States of Malaysia and their respective inhabitants
permit and subject to such qualifications as localcircumstances render necessary.
 The application of the law of England throughout Malaysia is subject to 2 limitations:
1. It is applied only in the absence of local statutes on that particular matter.
2. The English Law will be applied only if it suited to local circumstances.
Nepline v Jones Lang Wooton (1995) 1 CLJ 865
Abdul Hamid J:
“In applying s.3 of the Civil Law Act 1956, the approach the Court should take are:
1. determine whether there is any written law in force in Malaysia.
2. If there is none, then the Court should determine what is the common law of, and the rules of
equity as administered in England on 7 April 1956.
3. Having done that, the Court should consider whether "local circumstances" and "local
inhabitants" permit its application as such.
If it is "permissible" the Court should apply it. If not, the Court is free to reject it totally or adopt any part
which is "permissible“…
APPLICATION OF ENGLISH COMMERCIAL LAW IN MALAYSIA
Section 5(1) of the Civil Law Act 1956
5. (1) In all questions or issues which arise or which have to bedecided in the States of Peninsular
Malaysia other than Malacca and Penang with respect to the law of partnerships, corporations, banks
and banking, principals and agents, carriers by air, land and sea, marine insurance, average, life and fire
insurance, and with respect to mercantile law generally, the law to be administered shall be the same as
would be administered in England in the like case at the date of the coming into force of this Act, if such
question or issue had arisen or had to be decided in England, unless in any case other provision is or shall
be made by any written law.
Section 5(2) of the Civil Law Act 1956
5.(2) In all questions or issues which arise or which have to be decided in the States of Malacca, Penang,
Sabah and Sarawakwith respect to the law concerning any of the matters referred to in subsection (1),
the law to be administered shall be the same as would be administered in England in the like case at
thecorresponding period, if such question or issue had arisen or hadto be decided in England, unless in
any case other provision is or shall be made by any written law.
 Section 5(1) CLA- introduced into Peninsula Malaysia (except Penang and Malacca) principles of
English commercial law as it stood on the 7 April 1956 in the absence of local legislation.
 Section 5(2) CLA which applies to Penang, Malacca, Sabah & Sarawak, introduces English
Commercial Law at the date on which the matter has to be decided. Thus under these 4 states,
there still a continuing reception of English commercial law in the absence of local legislations.
 Section 5 is applicable only if a particular question or issue with respect to those areas enumerated
in it has arisen. Section 5 makes particular reference to marine insurance.
 There is no statute in Malaysia that deals exclusively with the area of marine insurance. Thus UK
Marine Insurance Act 1906 is applied in Malaysia.
In the “Melanie” United Oriental Assurance Sdn. Bhd. Kuantan v. W.M. Mazzarol [1984] 1 MLJ 260
(Federal Court) :
Salleh Abas C.J. clarified that the Marine Insurance Act 1906 of the United Kingdom is made applicable
to Malaysia as part of our law by virtue of section 5(1)of our Civil Law Act 1956.”
In Tuong Aik (Sarawak) Sdn Bhd v Arab-Malaysian Eagle Assurance Berhad, [1996] 1 AMR 871
The High Court confirmed the application of the English Marine Insurance Act 1906 in Malaysia.