Defenses not Barred by Incontestability

FACTS

Dominador Albay got the insurance company to insure his life for the sum of P5,000 and that through the representations and statements made by said Dominador Albay in his application and the favorable medical examination made by Dr. Jose A. Vidal (record, p. 126), the company agreed to the life insurance sought, and on November 6,1912, issued the policy No. 5592, the value whereof was payable to the insured’s motherin-law, Francisca Eguaras. One month after said insurance policy had been issued, that is, on December 6, 1912, the insured Dominador Albay died in the municipality of Santa Cruz, Laguna, of intestinal occlusion,

On December 6, 1912, said policy being in force, the insured died in Laguna, and defendant company refused to pay to the plaintiff the value of the policy.

Kinds of Policy; Open, Sec 60.

FACTS

“SEC. 60. An open policy is one in which the value of the thing insured is not agreed upon, and the amount of the insurance merely represents the insurer’s maximum liability. The value of such thing insured shall be ascertained at the time of the loss.

This case will require an examination of Policy No. RY/F-082, as renewed by virtue of which the petitioner Development Insurance insured Philippine Union Realty Development Corporation’s building against fire for ₱2,500,000.00.

G.R. No. 89741. March 13, 1991.

FACTS

Emilio Tan took from Sun Insurance a P300,000.00 property insurance policy to cover his interest in the electrical supply store of his brother housed in a building in Iloilo City. Four (4) days after the issuance of the policy, the building was burned including the insured store. On August 20, 1983, Tan filed his claim for fire loss with the petitioner, but on February 29, 1984, petitioner wrote Tan denying the latter’s claim. On April 3, 1984, Tan wrote to the petitioner, seeking reconsideration of the denial of his claim, but still denied the claim. 

Sun Insurance alleged Condition 27 of the Insurance Policy which provides that: If a claim be made and rejected and an action or suit shall be commenced within twelve (12) months from receipt of notice of such rejection, or in case of arbitration taking place as provided herein, within twelve (12) months after due notice of the award made by the arbitrator or arbitrators, then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.”

FACTS

Newlife Enterprises insured its stocks with Western Guaranty Corporation, Reliance Surety and Insurance Co., Inc., and Equitable Insurance Corporation. In 1982, the building was gutted by fire where the stocks insured are placed. According to the certification issued the cause of fire was electrical in nature.

After the fire, the petitioner went to the insurance companies to file a claim. Ultimately, the three insurance companies denied plaintiffs’ claim for payment  for breach of policy conditions. It allegedly violated Conditions No. 3 & 27 of the insurance contract where it provides that it must state or endorse thereon the other insurance coverage obtained or subsequently effected on the same stocks.

Petitioners contend that they are not to be blamed for the omissions, alleging that insurance agents knew about the existence of the additional insurance coverage d that they were not informed about the requirement that such other or additional insurance should be stated in the policy, as they have not even read policies