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.”