PART FOUR PAYMENT OF PROCEEDS AND FILING OF CLAIMS

Marine

General Principles
The cause of the loss must be perils of the sea and NOT perils of the ship

In case there is bottomry, insurable interest of the ship owner is limited to excess of its value over the amount secured by bottomry. (101)

General Principles
Freightage all benefits derived by the owner either from chartering the ship or its employment for the carriage of his own goods or those of others (102) Charterer of the ship has insurable interest on the ship to the extent that he is damnified by the loss (106)

General Average
if the goods of A are disposed in order to save the vessel and other goods, the loss suffered by A shall be shared by all other owners in proportion to the value of the goods belonging to them which are saved

Particular Average
If the goods of A are disposed but such disposition did not inure to the common benefit of other owners of goods, only A will suffer the loss Other owners will not contribute in As loss

General Principles
If ship is prevented at an intermediate port from completing the voyage due to an insured peril, the liability of the marine insurer continues after reshipment (133) In case of reshipment, the insurer of goods is liable for damages, expenses of discharging, storage, reshipment and other expenses (134)

Total v Partial Loss

Every loss which is not total is partial (128) Total loss may either be actual or constructive Actual loss may be presumed from the continued absence of a ship without being heard of (132)

Actual Loss, 130

total destruction of the thing irretrievable loss of thing by sinking or being broken up damage which renders thing valueless for the purpose it is held other event which effectively deprives owner of possession of the thing at the port of destination

Constructive Total Loss, 131

Also called technical total loss

Loss which gives the person the right to abandon under Section 139

When there can be abandonment SECTION 139

>3/4 of the value is actually lost or would have to be spent to recover it from peril

If the vessel is injured to such an extent as to reduce its value to >3/4

When there can be abandonment SECTION 139

If the thing is a ship, and the voyage cannot be performed without incurring either expense to the insured of >3/4 the value of the thing abandoned or a risk which a prudent man would not take under the circumstances If the thing is cargo or freightage, voyage cannot be performed, nor another ship be procured within a reasonable time and with reasonable diligence to forward the cargo, without incurring like expenses or risk >3/4 of the value of the vessel.

Abandonment
Neither partial nor conditional (140) Must be made within a reasonable time after receipt of reliable information of loss (141) If information on loss is incorrect or thing is restored and there is no total loss, abandonment is ineffectual (141)

Abandonment
It is made orally or in writing. If orally, written notice shall be submitted within 7 days from oral notice (143) Has the effect of transferring by the insured of his interest, to the insurer with all chances of recovery and indemnity (146)

Abandonment
On an accepted abandonment of ship:
freightage earned before the loss belongs to the insurer of the freightage

Freightage earned after the loss belngs to the insurer of the ship

Abandonment
If notice of abandonment is properly given, the rights of the insured are not prejudiced by refusal of insurer to accept abandonment (149) Acceptance of abandonment may be express or implied. Mere silence is acceptance (150)

Abandonment
If insurer refuses to accept valid abandonment, liable for actual total loss deducting any amount given to the insured. If insured fails to abandon, he an recover actual loss.

Measure of Indemnity
Valuation is conclusive between parties in determining total or partial loss EXCEPT if there is fraud (156) Marine insurer is liable for partial loss only for such proportion of the amount insured by him as the loss bears to the value of the whole interest.

How to estimate loss in open policy (161)

Value of the ship value at the beginning of risk including articles which adds to its value or to prepare it for the voyage

How to estimate loss in open policy(161)

Value of the cargo actual cost to insured when laden on board OR market value at the time and place of lading

How to estimate loss in case of open policy (161)

Value of the freightage is the gross freightage, exclusive of primage

Cost of insurance shall be added to the estimated value

LITIGATION OF CLAIMS

244 in relation to 416

when any single claim does not exceed P100,000 (excluding cost, interest and attorneys fees) concurrent jurisdiction of Insurance Commissioner and trial courts more than P100,000 Trial Courts

244 in relation to 416

IC or Court makes a finding as to whether there was unreasonable delay in payment of claims

insurer must pay damages attorneys fees and other expenses and interest

Unfair Settlement Practices (241)

Knowingly misrepresenting to claimants pertinent facts or policy provisions relating to coverage at issue Failing to acknowledge with reasonable promptness pertinent communications with respect to claims arising under its policies

Unfair Settlement Practices (241)

Failing to adopt and implement reasonable standards for the prompt investigation of claims arising under its policies

Unfair Settlement Practices (241)

Not attempting in good faith to effectuate prompt, fair and equitable settlement of claims submitted in which liability has become reasonably clean; or

Unfair Settlement Practices (241)

Compelling policyholders to institute suit to recover amounts due under its policies by offering without justifiable reason substantially less than the amounts ultimately recovered in suits brought by them

Powers of the Commissioner

Administrative powers - can revoke licenses based on complaints grounded on unfair settlement practices decision of the Commission appealable to the Finance Secretary is

Powers of the Commissioner

Adjudicatory powers - claims more than P100,000 (excluding cost, attorneys fees and interest) decision is subject to motion for reconsideration within 15 days appealable to the Court of Appeals