Beruflich Dokumente
Kultur Dokumente
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G.R. No. 138941. October 8, 2001.
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*FIRST DIVISION.
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fire engine, and (3) a fire hose which has a connection to one of the
external hydrants.
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PUNO, J.:
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30, 1991 gutted and consumed the new oil mill. Respondent
immediately notified the petitioner of the incident. The
latter then sent its appraisers who inspected the burned
premises and the properties destroyed. Thereafter, in a
letter dated October 15, 1991, petitioner rejected
respondentÊs claim for the insurance proceeds on the
ground that no policy was issued by it covering the burned
oil mill. It stated that the description of the insured
establishment referred to another building thus: ÂOur
policy Nos. 306-7432321-9 (Ps 6M) and 306-7432324-4 (Ps
3M) extend insurance coverage to your oil
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mill under Building No.5 5, whilst the affected oil mill was
under Building No. 14.‰
A complaint for specific performance and damages was
consequently instituted by the respondent with the RTC,
Branch 53 of Lucena City. On October 16, 1995, after trial,
the lower court rendered a Decision finding the petitioner
liable on the insurance policy thus:
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SO ORDERED.‰
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„Atty. G. Camaligan:
Q: What did you do when you received the report?
A: I told them as will be shown by the map the intention
really of Mr. Edison Tantuco is to cover the new oil mill
that is why when I presented the existing policy of the
old policy, the policy issuing clerk just merely (sic)
copied the wording from the old policy and what she
typed is that the description of the boundaries
from the old policy was copied but she inserted
covering the new oil mill and to me at that time
the important thing is that it covered the new oil
mill because it is just within one compound and
there are only two oil mill[s] and so just enough, I
had the policy prepared. In fact, two policies were
prepared having the same date one for the old one and
the other for the new
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oil mill and exactly the same
policy period, sir.‰ (emphasis supplied)
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„ATTY. SALONGA:
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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.
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„24. Plaintiff has not complied with the condition of the policy and
renewal certificate that the renewal premium should be paid on or
before renewal date.‰
Petitioner adds that the issue was the subject of the cross-
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·PORTABLE EXTINGUISHERS
·INTERNAL HYDRANTS
·EXTERNAL HYDRANTS
·FIRE PUMP
·24-HOUR SECURITY SERVICES
BREACH of this warranty shall render this policy null and void
and the Company shall no longer be liable for any loss which may
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occur.‰
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devices:
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numerous portable
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fire extinguishers, two23 fire
hoses, fire hydrant, and an emergency fire engine. All
of these equipments were in efficient working order when
the fire occurred.
It ought to be remembered that not only are warranties
strictly construed against the insurer, but they should,
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likewise, by themselves be reasonably interpreted. That
reasonableness is to be ascertained in light of the factual
conditions prevailing in each case. Here, we find that there
is no more need for an internal hydrant considering that
inside the burned building were: (1) numerous portable fire
extinguishers, (2) an emergency fire engine, and (3) a fire
hose which has a connection to one of the external
hydrants.
IN VIEW WHEREOF, finding no reversible error in the
impugned Decision, the instant petition is hereby
DISMISSED.
SO ORDERED.
Petition dismissed.
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carry out the purpose for which the parties entered into the
contract which is, to insure against risks of loss or damage
to the goods. (Malayan Insurance Corporation vs. Court of
Appeals, 270 SCRA 242 [1997])
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21 Exhibits „T‰, „T-1‰ and „T-13‰, Folder of Exhibits, pp. 73 and 77.
22 Exhibit „T-12‰, Folder of Exhibits, p. 77.
23 Exhibit „T-14‰, Folder of Exhibits, p. 77.
24 See Qua Chee Gan v. Law Union and Rock Insurance Co., Ltd., 98
Phil. 85 (1955).
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