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Insurance Case Digest No.


By Valero OE

First Integrated Bonding and Insurance Company, Inc., vs. Hon. Harold Hernando

No. L-51221, July 31, 1991)

Topic : Casualty Insurance; Compulsory motor vehicle liability; Third party suit
against insurer
Facts : Silverio Blanco, owner of a passenger jeepney acquired TPL insurance with
First Integrated Bonding and Insurance Company, Inc. for P30,000.00. The said
jeepney driven by Blanco himself bumped a five-year old child, and died. The
boys parents filed a complaint for damages against Blanco and First Insurance.
Summons were served on Silverio Blanco and First Insurance. However, only
Blanco filed an answer. Upon motion of the Advincula spouses, First Insurance
was declared in default. The Insurance company contended that the victims
parents have no cause of action against it because they are not parties to the
insurance contract and that they may only proceed against the driver based on the
provisions of the New Civil Code.
Issue : Whether or not an injured party for whom the contract of insurance is
intended can sue directly the insurer.
Held : YES. The injured for whom the contract of insurance is intended can sue
directly the insurer. The general purpose of statutes enabling an injured person to
proceed directly against the insurer is to protect injured persons against the
insolvency of the insured who causes such injury, and to give such injured person a
certain beneficial interest in the proceeds of the policy, and statutes are to be
liberally construed so that their intended purpose may be accomplished. It has even
been held that such a provision creates a contractual relation which inures to the
benefit of any and every person who may be negligently injured by the named
insured as if such injured person were specifically named in the policy.