Premium Payment

FACTS

Maxilite and Marques entered into a trust receipt transaction with FEBTC, in the sum of US$80,765.00, for the shipment of various high-technology equipment from the United States, with the merchandise serving as collateral. Maxilite paid the premiums for these policies through debit arrangement. Far East Bank Insurance Brokers, Inc. (FEBIBI), subsidiary of FEBTC, upon the advice of FEBTC facilitated the procurement and processing from Makati Insurance Company of four separate and independent fire insurance policies over the trust receipted merchandise.

Finding that Maxilite failed to pay the insurance premium in the sum of P8,265.60 for one of the insurance policy, covering the period 24 June 1994 to 24 June 1995, FEBIBI sent written reminders to FEBTC, to debit Maxilite’s account.  FEBTC failed to transmit the premium payments on subject insurance coverage.

FACTS

In  November 27, 1973, petitioners Laura Velasco and Greta Acosta while riding in their Mercury car and driven by their driver Guarra collided with N/S taxicab driven by defendant Dominador Santos registered in the name of Alice Artuz c/o Norberto Santos. In July 20, l974,  petitioners sued Santos, Artuz and N. Santos for actual, moral and exemplary  damages plus attorney’s fees. Maharlika Insurance Co., Inc. was impleaded as a defendant with an allegation that the N/S taxicab involved was insured against third party liability for P20,000.00 at the time of the accident. 

Both the accident and filing of the suit happened before effectivity on December 18, 1974 of Presidential Decree No. 612, the subsequent insurance law which repealed its predecessor.