Case Digest (G.R. No. L-16215)
Facts:
Simeon Del Rosario v. The Equitable Insurance and Casualty Co., Inc., G.R. No. L-16215, June 29, 1963, the Supreme Court En Banc, Paredes, J., writing for the Court.
On February 7, 1957, The Equitable Insurance and Casualty Co., Inc. issued Personal Accident Policy No. 7136 on the life of Francisco del Rosario (alias Paquito Bolero), binding itself to pay between P1,000.00 and P3,000.00 as indemnity for the insured’s death under various enumerated conditions. The policy’s Part I covered death from bodily injury “effected solely through violent, external, visible and accidental means” with graduated amounts in Sections 1–5; Part VI listed exceptions and included death by drowning among grounds addressed elsewhere in the policy. A rider purported to waive an exception regarding drowning.
On February 24, 1957, the motor launch in which the insured was aboard caught fire off Jolo; the insured and others were forced to jump, and the insured died by drowning. On April 13, 1957, Simeon Del Rosario (the insured’s father and sole heir) filed a claim with the insurer. On September 13, 1957, the company paid P1,000.00 and obtained a receipt that described the payment as “settlement in full for all claims and demands” arising from the accident and stated the policy was “surrendered and Cancelled.”
Plaintiff’s counsel protested by letter, claiming entitlement to at least P1,500.00 under Section 2 and later asserting a P3,000.00 claim; the insurer sought the Insurance Commissioner’s opinion, which advised it was liable only for P1,000.00. When the insurer refused further payment, plaintiff sued in the Court of First Instance (CFI) of Rizal (Pasay Branch VIII) for the P2,000.00 balance and additional attorney’s fees and costs. The insurer moved to dismiss on the ground that the signed receipt operated as a full release.
The trial court deferred action on the motion and ultimately (in an amended decision promulgated September 1, 1958) found that the contemporaneous and subsequent acts of the parties showed they did not intend the P1,000.00 payment and loss receipt to release the insurer completely; it held drowning was not a “bodily injury” under Part I and that the policy was ambiguous as to the amount payable for drowning, requiring construction against the insurer. The CFI awarded the plaintiff the P2,000.00 balance ...(Subscriber-Only)
Issues:
- Did the receipt and surrender of the policy, following the P1,000.00 payment, operate as a full release of the insurer’s liability?
- Under the contract terms, what amount is payable for the insured’s death by drowning — was the insurer liable only for P1,000.00 or for the greater sum (up to P3,000.00) specified ...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)