Académique Documents
Professionnel Documents
Culture Documents
*
G.R. No. 138941. October 8, 2001.
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*FIRST DIVISION.
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PUNO, J.:
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4O.R. No. 1043, Exhibit “E,” Folder of Exhibits, p. 32; O.R. No. 1044,
Exhibit “Q,” Folder of Exhibits, p. 70.
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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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744
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745
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the building insured in which a school was kept, although it was not an
ordinary school house; the term “store” was held to be a sufficient
description of a building used as a restaurant and bakery.
12Vance on Insurance, pp. 816-817.
13Exhibit “C-2,” Folder of Exhibits, p. 24.
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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:
Q: You mentioned, sir, that at least in so far as Exhibit A
is concern you have read what the policy contents, (sic)
Kindly take a look in the page of Exhibit A which was
marked as Exhibit A-2 particularly the boundaries of
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748
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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.
749
“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-
examination of Mr. Borja, who acknowledged that the paid
amount was lacking by P14,623.20 by reason of a discount
or rebate, which rebate under Sec. 361 of the Insurance
Code is illegal.
The argument fails to impress. It is true that the
asseverations petitioner made in paragraph 24 of its
Answer ostensibly spoke of the policy’s condition for
payment of the renewal premium on time and respondent’s
non-compliance with it. Yet, it did not contain any specific
and definite allegation that respondent did not pay the
premium, or that it did not pay the full amount, or that it
did not pay the amount on time.
Likewise, when the issues to be resolved in the trial
court were formulated at the pre-trial proceedings, the
question of the supposed inadequate payment was never
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750
—PORTABLE EXTINGUISHERS
—INTERNAL HYDRANTS
—EXTERNAL HYDRANTS
—FIRE PUMP
—24-HOUR SECURITY SERVICES
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751
devices:
21
numerous 22portable 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,
24
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
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DISMISSED.
SO ORDERED.
Petition dismissed.
——o0o——
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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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