Title
Amendments to Insurance Code Provisions
Law
Batas Pambansa Blg. 874
Decision Date
Jun 12, 1985
Amendments to the Insurance Code of 1978 introduce provisions allowing the injured party to rescind the insurance contract if the insured party conceals information or makes false representations, while also specifying liability for suicides committed after a certain period and setting deadlines for filing claims and appeals.

Questions (BATAS PAMBANSA BLG. 874)

Under the amended Section 27, concealment whether intentional or unintentional entitles the injured party to rescind the contract of insurance.

If a representation is false in a material point, whether affirmative or promissory, the injured party may rescind the contract from the time when the representation becomes false.

The right to rescind granted by the Code to the insurer is waived by the acceptance of premium payments despite knowledge of the ground for rescission.

The insurer is liable in case of suicide only when it is committed after the policy has been in force for a period of two years from the date of issue or of its last reinstatement, unless the policy provides a shorter period.

Yes. Suicide committed in a state of insanity is compensable regardless of the date of commission.

Generally, two years from the date of issue or of its last reinstatement.

The claimant must present a written notice of claim to the concerned insurance company setting forth the nature, extent, and duration of injuries as certified by a duly licensed physician, without unnecessary delay.

Notice must be filed within six (6) months from the date of accident; otherwise, the claim shall be deemed waived.

Action or suit for recovery must be brought in proper cases, with the Commissioner or the Courts, within one (1) year from denial of the claim.

The claimant’s right of action prescribes (i.e., is barred by prescription).

Any decision, order, or ruling rendered by the Commissioner after a hearing has the force and effect of a judgment.

Thirty (30) days from receipt of a copy of such order, ruling, or decision.

Appeal is filed with the Commissioner to the Intermediate Appellate Court, following the Rules of Court manner for appeals from the Regional Trial Court to the Intermediate Appellate Court.

Any provision of law, decree, rule, or regulation—or portion thereof—that is inconsistent with the Act is repealed.

Immediately upon its approval.

Section 27: concealment (intentional or unintentional) entitles the injured party to rescind. Section 45: a false representation in a material point (affirmative or promissory) allows rescission from the time it becomes false; insurer’s rescission right is waived by premium acceptance despite knowledge of rescission grounds.


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