The Digester Del Rosario v Equitable G.R. No.

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Thursday, July 12, 2012

Del Rosario v Equitable G.R.

No. L-16215 June 29, 1963
J. Paredes

Facts:
Equitables insurance policy covered indemnities
for bodily injuries and deaths, however, it never
specificed an amount to be given in case of a
persons death by drowning. It specified amounts
from 1,000 to 3,000 for other causes of death,
however.
Francisico del Rosario died from drowning after
jumping from a sinking ship. The insurer,
Equitable, agreed to pay Php 1,000 as the claim
for an accident. His attorney, howvever,
contended that he amount should be greater
under section 2, Php 1500. The issue was
resolved in the Insurance Commison, where it
was held that Section 1, under the provisions
applied. (Php 1,000 as indemnity) The lawyer still
didint agree and instituted a suit. The trail court
held that the company had the discretion to pay
from Php 1,000 to 3,000 for death by drowning
since there was no fixed amount for this type of
death. The amended decision ordered the
company to pay Php 2,000

Issue: What should the amount be?

Held: Judgment affirmed. Still 2,000.

Ratio:
The interpretation of obscure stipulations in a
contract should not favor the party who cause the
obscurity.
Ambigious terms in a policy are to be construed
strictly against, the insurer, and liberally in favor
of the insured for the payment of indemnity where
forfeiture is involved. The company takes great
care in the wording and has legal advisers who
create the contracts to the benefit of the
company.
Trial court ruling are well considered because
they are supported by doctrines on insurance
resolving cases against the party who caused the
ambiguity in the wording of the contracts terms.
This was also due to the fact that the insured
didnt have much of a say in formulating the
contract.

Draft Inger at 10:31 PM

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