DOCTRINE

A condition in the policy which requires the insured to disclose to the insurer of any insurance that, if violated by the insured, would ipso facto avoid the contract

Respondent Oliva Yap was the owner of a store in a two- storey building located at No. 856 Juan Luna Street, Manila, where in 1962 she sold shopping bags and footwear, such as shoes, sandals and step-ins. Chua Soon Poon, Oliva Yap’s son-in-law, was in charge of the store. 

On April 19, 1962, Yap took out Fire Insurance Policy No. 4216 from  Pioneer Insurance & Surety Corporation with a face value of P25,000.00 covering her stocks, office furniture, fixtures and fittings of every kind and description.  In the policy, it was stipulated that the Insured shall give notice to the Company of any insurance or insurances already effected, or which may subsequently be effected, covering any of the property hereby insured, and unless such notice be given and the particulars of such insurance or insurances be stated in or endorsed on this Policy by or on behalf of the Company before the occurrence of any loss or damage, all benefits under this Policy shall be forfeited.