Question & AnswerQ&A (BATAS PAMBANSA BLG. 874)
Concealment, whether intentional or unintentional, entitles the injured party to rescind the contract of insurance.
If a representation is false in a material point, the injured party is entitled to rescind the contract from the time the representation becomes false.
Yes, the right to rescind is waived by the insurer's acceptance of premium payments despite knowledge of the grounds for rescission.
The insurer is liable if the suicide is committed after the policy has been in force for two years from the date of issue or last reinstatement, unless the policy states a shorter period. Suicide committed in the state of insanity is compensable regardless of when it occurs.
A notice of claim setting forth the nature, extent, and duration of injuries, certified by a licensed physician, must be filed within six months from the date of the accident; otherwise, the claim is deemed waived.
An action or suit must be brought within one year from the denial of the claim, otherwise the claimant's right of action shall prescribe.
Any such decision, order, or ruling has the force and effect of a judgment.
A party may appeal by filing a notice of appeal with the Commissioner within 30 days from receipt of the order, ruling, or decision, to the Intermediate Appellate Court following the Rules of Court for appeals from the Regional Trial Court.
Any inconsistent provisions are repealed.
The Act took effect immediately upon its approval on June 12, 1985.