Amendments to Insurance Code Provisions

Section 27 of Presidential Decree No. 1460 is amended to provide that concealment, whether intentional or unintentional, entitles the injured party to rescind the contract of insurance.
Rescission based on concealment applies regardless of whether concealment is intentional or unintentional.

Section 45 is amended to provide that if a representation is false in a material point, whether affirmative or promissory, the injured party is entitled to rescind the contract from the time when the representation becomes false.
Section 45 further provides that the insurer’s right to rescind under the Insurance Code is waived by the acceptance of premium payments despite knowledge of the ground for rescission.

A new Section 180-A is inserted to govern suicide in a life insurance contract.
The insurer is liable for suicides only when the suicide is committed after the policy has been in force for a period of two years from the date of its issue or of its last reinstatement, unless the policy provides a shorter period.
Section 180-A provides a compensability exception: suicide committed in the state of insanity is compensable regardless of the date of commission.

Section 384 is amended to require that a person having any claim upon the policy issued under the affected chapter must present a written notice of claim to the insurance company concerned setting forth the nature, extent and duration of the injuries.
The notice of claim must be certified by a duly licensed physician.
Notice of claim must be filed within six months from date of accident; otherwise, the claim is deemed waived.
Action or suit for recovery due to loss or injury must be brought, in proper cases, with the Commissioner or the Courts within one year from denial of the claim; otherwise, the claimant’s right of action prescribes.

Section 416 is amended by modifying the rule on force and effect and the appeal method for Commission decisions after hearing.
A decision, order, or ruling rendered by the Commission after a hearing has the force and effect of a judgment.
A party may appeal from a final order, ruling, or decision of the Commissioner by filing with the Commissioner a notice of appeal within thirty days from receipt of a copy of the order, ruling, or decision.
The notice of appeal must be filed in the manner provided for in the Rules of Court for appeals from the Regional Trial Court to the Intermediate Appellate Court.

Any provision of law, decree, rule, regulation, or portion thereof that is inconsistent with Batas Pambansa Blg. 874 is repealed.
Batas Pambansa Blg. 874 takes effect immediately upon its approval (June 12, 1985).