No. L-28501. September 30, 1982.

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PEDRO ARCE, plaintiff-appellee, vs. THE CAPITAL INSURANCE & SURETY CO., INC., defendant-appellant.
Mercantile Law; Insurance; Unless premium is paid, insurance contract not effective; Insurance company relieved of
obligation to pay insurance proceeds under the policy for insured's failure to pay premiums on the policy.—It is
obvious from both the Insurance Act, as amended, and the stipulation of the parties that time is of the
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* SECOND DIVISION.
64

64
SUPREME COURT REPORTS ANNOTATED
Arce vs. Capital Insurance & Surety Co., Inc.
essence in respect of the payment of the insurance premium so that if it is not paid the contract does not take effect
unless there is still another stipulation to the contrary. In the instant case, the INSURED was given a grace period to
pay the premium but the period having expired with no payment made, he cannot insist that the COMPANY is
nonetheless obligated to him
APPEAL from the decision of the Court of First Instance of Manila.

The facts are stated in the opinion of the Court. Arce vs. Capital Insurance & Surety Co., Inc., 117 SCRA 63, No. L-
28501 September 30, 1982