ATTY. Lovely mei r.

dela cruz
LAW and accounting OFFICE
Ground Floor Shop N Go Building,
National Highway Purok 2, Guibang, Gamu, Isabela
Contact No.: +639178844337

April 29, 2019

AIR MATERIAL WING SAVINGS & LOAN ASSOCIATION, INC.

AMSLAI BUILDING
Cor. Boni Serrano & 15th Avenue
Murphy, Cubao, Quezon City

Attention: MR. RICKY GALLERO

SPSS-Head

Dear Mr. Gallero:

This is in reference to the demand letter received by my client, Mrs. Thelma Bala on April
22, 2019 regarding the unpaid Loan of his deceased husband Alex S. Bala amounting to
P55,100.90.

Mrs. Bala was made aware by the employees of your company that the existing loan of his
husband will be totally shouldered by the Insurance company after the death of his husband.
She was surprised to learn that the debt has not been extinguished as of today.

Mr. Bala had availed an Educational loan with your company on February 19, 2014 which
you secured through availing an insurance with the Beneficial Life Insurance Company Inc.
Policy No. GCL-0495 was issued. On September 26, 2014, he died due to Community Acquired
Pneumonia and Liver Mass. As a result, your company filed a formal claim with the insurance
company which however was denied due to concealment as claimed by the insurance company.
Concealment as defined under the Insurance Code is the neglect to communicate that which a
party knows and ought to communicate. Mr. Bala had contracted the loan on February 2014
and learned about his illness sometime in August 2014 when he first consulted a doctor. In this
case concealment is not present. He did not neglect to communicate or disclose that he has
pneumonia/liver mass since he only knew of such existence six months after availing the loan.
We are attaching the medical records of Mr. Alex Bala as evidenced that concealment is not
present in his case. Moreover, under Article 774 of the New Civil Code of the Philippines,
obligations may only be inherited to the extent of the value of inheritance. My client did not
received any inheritance/properties from his deceased husband in which case she cannot be
made as party defendant to any collection case against his husband.

Thank you.

Very truly yours,

ATTY. LOVELY MEI R. DELA CRUZ

Counsel

Cc: Atty. Roger S. Bonifacio

Legal Counsel