Case Digest (G.R. No. 95546)
Facts:
In Makati Tuscany Condominium Corporation v. The Court of Appeals, petitioner Makati Tuscany Condominium Corporation (TUSCANY) entered into a fire and allied perils insurance with private respondent American Home Assurance Co. (AHAC), represented by American International Underwriters (Phils.), Inc. On March 1, 1982, AHAC issued Policy No. AH-CPP-9210452 covering petitioner’s building until March 1, 1983, with a total premium of ₱466,103.05. Petitioner paid this premium in four installments, all accepted by AHAC. On February 10, 1983, Policy No. AH-CPP-9210596 was issued to renew coverage from March 1, 1983, to March 1, 1984; the same total premium was likewise paid in five installments and accepted. On January 20, 1984, AHAC again renewed the coverage for March 1, 1984, to March 1, 1985, under Policy No. AH-CPP-9210651. Petitioner made two installment payments (₱52,000.00 on February 6 and ₱100,000.00 on June 6, 1984) but refused to settle the remaining balance of ₱314,103.05.Case Digest (G.R. No. 95546)
Facts:
- Insurance policies issuance and payments
- Early 1982: Private respondent American Home Assurance Co. (AHAC), represented by American International Underwriters (Phils.), Inc., issued Policy No. AH-CPP-9210452 covering 1 March 1982 to 1 March 1983 with total premium of ₱466,103.05. Premium paid in installments on 12 March, 20 May, 21 June, and 16 November 1982, all accepted by AHAC.
- 10 February 1983: AHAC issued Renewal Policy No. AH-CPP-9210596 covering 1 March 1983 to 1 March 1984 with premium ₱466,103.05. Paid in installments on 13 April, 13 July, 3 August, 9 September, and 21 November 1983, all accepted.
- 20 January 1984: AHAC issued Renewal Policy No. AH-CPP-9210651 covering 1 March 1984 to 1 March 1985. Petitioner paid two installments—₱52,000 on 6 February 1984 and ₱100,000 on 6 June 1984—but refused to pay the remaining ₱314,103.05.
- Procedural history
- AHAC filed an action for recovery of the unpaid balance of ₱314,103.05. Petitioner answered and counterclaimed for refund of premiums paid, arguing the policies were invalid under Section 77 of P.D. 612 and due to reservations in the receipts.
- Trial Court (8 October 1987): Dismissed complaint and counterclaim, finding risk attached during policy terms and petitioner justified in refusing unpaid balance after expiration.
- Court of Appeals: Modified Trial Court decision, ordering petitioner to pay the balance of ₱314,103.05 plus legal interest and denying petitioner’s counterclaim for refund.
Issues:
- Whether payment of insurance premiums by installments invalidates the contract under Section 77 of P.D. 612.
- Whether acceptance of partial or staggered premium payments estops the insurer from denying liability or rescinding the contract.
- Whether petitioner is entitled to a refund of premiums paid on alleged invalid insurance policies.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)