Case Digest (G.R. No. 183272)
Facts:
Sun Life of Canada (Philippines), Inc. v. Sandra Tan Kit and the Estate of the Deceased Norberto Tan Kit, G.R. No. 183272, October 15, 2014; 745 Phil. 482 (May 11, 2015), Supreme Court Second Division, Del Castillo, J., writing for the Court.
Petitioner Sun Life of Canada (Philippines), Inc. issued a life insurance policy (face value P300,000.00) to Norberto Tan Kit on October 28, 1999. Norberto died on February 19, 2001, within the two-year contestability period under Section 48 of the Insurance Code. Respondent Sandra Tan Kit, his widow and designated beneficiary, filed a claim for the policy proceeds.
On September 3, 2001 petitioner denied the claim, asserting Norberto had misrepresented his smoking history in his application (answering “No” to smoking within the prior 12 months), and enclosed a check for P13,080.93 as refund of premiums, treating the policy as rescinded. Respondent refused the check and insisted on payment of proceeds. Petitioner then filed a Complaint for Rescission with the Regional Trial Court (RTC) of Makati City on October 4, 2002.
The RTC (Judge Cesar O. Untalan) sided with respondents in a November 30, 2005 decision, finding petitioner failed to prove misrepresentation and ordering payment of the P300,000 proceeds with 6% interest per annum from October 4, 2002. Petitioner’s motion for reconsideration was denied (Feb. 15, 2006), and petitioner appealed to the Court of Appeals (CA).
The CA reversed in an October 17, 2007 decision, finding Norberto guilty of concealment (medical records and physicians’ affidavits deemed admitted under Rule 26), rescinding the policy and ordering reimbursement of the premium P13,080.93 with 12% per annum interest fr...(Subscriber-Only)
Issues:
- Is petitioner liable to pay interest on the premium to be refunded to respondents? ...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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