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    13 views9 pages

    Ins Less

    Uploaded by

    Chris Inocencio

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF or read online from Scribd
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    Wie ay eeiekut kita eunry Colmes accuse) Reena AC Tota h nuance loss insured against happens, Ener sca Pier TaMIRe Ima Nolere Nom contract, or impossible, the omission to fulfillthe warranty does not avoid the policy +A breach of warranty without NSC etolateice iol) jppbaaes tT Mitt Mut iy Rs Raa ey PIS Wed Bolicy from attaching to the cia Warranty does not defeat Or suspend the operation of Mieco (oy Neel se has be to complied with, A condition precedent has be to complied with, otherwise, the contract does not spring into life When does a breach of warranty without fraud OOo EMS omicou) Payment of indemnity? Warranty does not defeat Or suspend the operation of the policy Warranty does not defeat Or suspend the operation of the policy A condition precedent has be to complied with, otherwise, the contract does not spring into life WHEN IS AN INSURER ENTITLED TO. THE PAYMENT OF PREMIUM? An insurer is entitled to payment of the .premium as soon as the thing insured is. exposed to the peril insured against. Notwithstanding any agreement to the: contrary, no policy or contract of insurance Issued by an insurance company is valid and binding unless and until the premium thereof has been paid, except in the case of a life or an) industrial life policy whenever the grace period: provision applies. (Sec. 77) ASSESSMENT sum specifically levied by mutual insurance companies of associations upon a fixed and definite plan, to pay losses and expenses EXCEPTION ASSESSMENT sum specifically levied by mutual insurance companies of associations upon a fixed and definite plan, to pay losses and expenses GENERAL RULE Payment of premium is not a debt or obligation. ——_——_—_——_ Phil, Phoenix Surety and Ins. Co. vs. In fire, casualty and marine insurance, the premium becomes a debt as soon as _the risk attaches; in Suretyship, as soon as the contract or bond is perfected and delivered to the obligor Phil. Phoenix Surety and Ins. Co. vs. Woodworks, Inc. 92 SCRA 419 (1979) Ina case where no payment of premium was aid, the insurer cannot recover the premium. from the insured. The continuance of the insurer's obligation is conditioned upon the payment of the premium, so that no recovery can be had on a lapsed policy, the contractual relation between the parties having ceased. In fact, if the peril insured against had occurred, the insurer, would have a valid defense against recovery under the policy. Tianawonee ins 22 SoRA 429 (4979) Bgruaonieinancrecich We Ret he Example: n April 1, 2000, Insurer Company issued and delivered to Juan Dela Cruz.a fire policy for the “amount of Php 1 million for a term of 1 year. On September 22, 2000, Juan Dela Cruz paid Php 500,000,00. Notwithstanding several demands, Juan Dela Cruz refused to pay the balance. Did the non-payment cancel the policy? Suppose no partial payment was made, may Insurer Company recover the unpaid premium from Juan Dela Cruz? Another case: Insurer Company issued a fire insurance policy in favor of Ju Dela Cruz on a residential building for Php 6 million. Juan Dela Cruz paid only Php. Php 6,000.00. He paid the balance two days after the insured property was destroyed by fire. The policy provides that for “payment of premium in full before the policy shall be deemed effective, valid and binding upon the company.” \s the fire insurance valid and binding upon the company? Makati Tuscany Condominium Corp. vs. Court of Appeals, 215 SCRA 463 (1992) When there is an agreement allowing the insured to pay the premium in installments and partial payment has been made at the time of loss, is an exception to Sec. 77 Makati Tuscany Condominium Corp. vs- Court of Appeals, 215 SCRA 463 (1992) In this case, the insurer's intention to honor the policies payable in Installments Is clear. If the parties intended subject insurance policies. to be binding and effective notwithstanding the staggered payment of the premiums. American Home Assurance Company vs. Chua, 108 SCAD 172, 309 SCRA 250 (1999) ‘Section 78 is an exception to Sec. 77. Section 78 reads: ‘An acknowledgment in a policy or contract of insurance or the receipt of premium is conclusive evidence ofits payment, so far as to make the policy binding. ‘notwithstanding any stipulation therein thatit shall not be binding until the premium is actually pad. Tibay vs, Court of Appeals, 70 SCAD TA4, 257 SCRA.196 (1996) Makati Tuscany Condominium Corp. vs. Court of Appeals, 215 SCRA 463 (1993) Also, where the risk is entire and the Contract is indivisible, the insured is not entitled to a refund Of the premiums paid if the insurer was exposed to the risk insured for any period, however brief or momentary. Sec. 77, An insurer is entitled to payment of the Premium as soon as the thing insured is exposed to the peril insured against. Notwithstanding any ‘agreement to the contrary, no policy or contract of insurance issued by an insurance company is valid and binding unless and until the premium thereof has been paid, except in the case of a life or an industrial life policy whenever the grace period provision applies. Cia Insurance and Suro, ne. Pesta, no 65 SCRA134 1975 Capital Insurance and Surety Co., Inc. vs. Plastic Era Co., Inc. 65 SCRA 134 (1975) Where credit is given by an insurance ‘company for the payment of the premium it has no right to cancel the policy for non-payment except by putting the insured in default and giving him personal notice: WHAT ARE THE EXCEPTIONS TO SEC. 77? 1 When there is an acknowledgment in a policy or contract of insurance of receipt of premium even if there is a stipulation therein that it shall not be binding until the premium is actually paid (Sec. 78) WHAT ARE THE EXCEPTIONS TO. SEC. 77? = When there is an azreement allowing the insured to pay the premium in installments. and partial premium has been made at the time of the loss, THE INSURED IS ENTITLE! RETURN OF PREMIUM: ) Where the insurances mage fora definite Period of time and the insuredsunenasns he Boy, to such portion ofthe premium Corresponds with the unexpired te, ata pro fata rate unless a shor period rats has bene agseed Upon and appearson the face oie, Policy after deducting tom the whole premium any claim for oss or éamage under the foley Which has previously accrued: SEG. 19) (Noxmaly not forte nsuranee poles) THE INSURED IS ENTITLED TO A ;EMIUM: ) Soe SIN person sure sented to retum of the premium when the contract is voidable, on account of fraud or misrepresentation of the insurer, or of his agent, or on account of facts, the existence ‘of which the insured was ignorant without his fault; or when by any default of the insured other than actual fraud, the insurer rnever incurred any liability under the policy. WHAT ARE THE EXCEPTIONS TO. SEC. 77? m In life or industrial policies whenever the grace period applies. WHAT ARE THE EXCEPTIONS TO SEC. 772 m When there is an agreement to grant the insured credit extension for the payment of premium (Art. 1306, Civil Code); THE INSURED IS ENTITLED TO A RETURN OF PREMIUM: »To the whole premium if no part of his interest in the thing, insured be exposed to any of the perils insured against; (Note: he is entitled to the whole premium) THE INSURED IS ENTITLED TO A RETURN OF PREMIUM: © Sec. 80. If a peril insured against has existed, and the insurer has been liable for any period, however short, the insured is not entitled to return of premiums, so far as that particular risk is concerned. THE INSURED IS ENTITLED TO A RETURN OF PREMIUM: «Sec. 82. In case of an over. insurance by several insurers, the insured is entitled to a ratable return of the premium, proportioned to the amount by which the aggregate sum Insured in alll the policies exceeds the insurable value of the thing at risk. THE INSURED IS ENTITLED TO A RETURN OF PREMIUI (Amounts names HE INSURED, 'ETURN OF PREMIUM. « Sec. 82. In case of an over insurance by several insurers, the insured is entitled to a ratable return of the premium, proportioned to the ‘amount by which the aggregate sum insured in all the policies exceeds the insurable value of the thing at risk IS ENTITLED TO 4 wstioue oP S03ar6 00a ce LOSS AND NOTICE OF LOSS The rationale behind this provision: a) Any agreement to the contrary hinders the free transmission of property; b) Transfer involves but Money claim or right of action; c) Transfer does not involve any question of moral hazard, thatis, it does not increase the insurer's risk for a loss that has already occurred. THE INSURED IS ENTITLED TO A _RETURN OF PREMIUM: m insurable ret vue PA S0S 080 Coen es Insurer Amount of rsurance Premiums Pai ‘Aco. Pm 1,200,00000 Php 28,000.00 Be, 600,000.00. 32,0000 Total-+------.4,800,00000 36,000.00 THE INSURED IS ENTITLED TO A RETURN OF PREMIUM: (f) When rescission is granted due to the insurer's breach of contract. (Filipinas Compania de Seguros vs. Nava, 17 SCRA 216) The insured has the absolute right to transfer the claim of the insured against the insurer after the loss has occurred. A stipulation which attempts to Prohibit such transfer is void. (Sec. 83) Unless otherwise provided by the policy, an insurer is liable for a loss of which a peril insured against was the proximate cause, although a peril not contemplated by the contract may have been a remote ‘cause of the loss; but he is not liable for a loss which the peril insured against was only a remote cause. Definition of Proximate Cause: itis that which, in a natural and continuous sequence, unbroken by any new independent cause, Produces an event, and without which the event would not have occurred, Also note the difference between friendly fire and hostile fire: Friendly fire (where the insurer is not liable) is when fire burns in a place where it is intended to burn and ought to be versus.a hostile fire (where the insurer is liable) is when it occurs. outside of the usual ’confines or begins as a friendly fire and becomes hostile by escaping the place where it. ought to be. The insurer is not liable if the Proximate cause of the loss is a peril excepted from the policy although the immediate cause is a peril not excepted. (See Sec. 86) The insurer is not liable for a loss caused by the intentional act (e.g. suicide) of the insured or though his connivance. But gross negligence or recklessness On the part of the insured the consequence of Which is Palpably obvious to i him at the time will relieve the Insurer from liability, Definition of Proximate Cause: it is fat which, in a natural and continuous sequence, unbroken by any new independent cause, Produces an event, and without which the event would not have occurred. Note: Proximate cause is not equivalent to “immediate cause”. The rational for making a distinction between these fires: A policy shall not be construed to * protect the insured from injury consequent upon his negligent use or management of fire. An insurer is not liable for a loss Aaised by the willful act or through the connivance of the insured; but he is not exonerated by the negligence of the insured, or of the insurance agents or others. (Sec. 87) Mere negligence and/or carelessness on the part of the insured or of his servants, although directly causing the loss does not relieve the insurer of his liability. Conditions after loss: a) Notice and Proof of loss to be given within a reasonable time which means that it should be given as soon as circumstances permitted the insured, in the exercise of reasonable diligence, to communicate. lm Conditions after loss: a) Notice ands If a preliminary proof of loss is required by proof of loss to be given within a the Policy, the insured is not bound to give feasonable time which means that it Satna rived esdeudidia sttficlent tor hian should be given as soon as t to give the best evidence which he has in circumstances permitted the insured, his ipaweratthe tines (Geer soyiit thal in the exercise of reasonable policy requires the certificate or testimony diligence, to communicate. Of a person other than the insured, it Is Sufficient for the insured to use only ID aUe Orolo el Yu ane reasonable diligence to procure it. (See Sec. 92) All defects in a notice of loss, or in ee ae preliminary Proof thereof, which the insured might remedy, and which a double insurance exists the insurer omits to specify to him, where the same person is without unnecessary delay, as insured by several insurers: grounds of objection, are waived. separately in respect to the (Sec. 90) same subject and interest. Where the insured is over insured Where the insured is over insured by double insurance: by double insurance: (a) The insured, unless the policy otherwise (b) Where the policy under which the provides, may claim payment from the insured claims is a valued policy, the insurers in such order as he may select. UP insured must give credit as against the to the amount for which the insurers are valuation for any sum received by him under ‘severally liable under their respective any other policy without regard to the actual ences value of the subject matter insured; Where the insured is over insured Where the ins over i where the insuredis over insured "| by doube insurance: (c) Where the policy under which

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