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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
An insurer is not liable for a loss caused by the willful act or through the connivance of the insured. (Section 89, R.A. No. 10607 or the Insurance Code)
A contract of insurance is an agreement whereby one undertakes for a consideration to indemnify another against loss, damage or liability arising from an unknown or contingent event. (Section 2, par. a, R.A. No. 10607 or the Insurance Code)
Loss in insurance law presupposes injury or damage. In the case of Bonifacio Brothers, Inc. v. Enrique Mora, et al. (G.R. No. L-20853, May 29, 1967), the Supreme Court defined loss in insurance as follows:
“It is the injury or damage sustained by the insured in consequence of the happening of one or more of the accidents or misfortune against which the insurer, in consideration of the premium has undertaken to indemnify the insured.”
To recover upon a loss, the following requisites mut be met:
(1) The insured must have insurable interest in the subject matter;
(2) The insurable interest is covered by the policy;
(3) There is a loss; and
(4) The loss must be one for which the insurer is liable.
Section 89, R.A. No. 10607 or the Insurance Code provides that:
“An insurer is not liable for a loss caused by the willful act or through the connivance of the insured.”
As held in the case of UCPB General Insurance Co., Inc. v. Asgard Corrugated Box Manufacturing Corporation (G.R. No. 244407, January 26, 2021) the insured is not liable for a loss caused by the intentional act of the insured or through his connivance. Such damage or loss is not an insurable interest because the occurrence of the loss was subject to the control of one of the parties and not merely caused by the negligence of the insured.
It has been held that Section 89 of the Insurance Code is deemed incorporated in every insurance contract, as it is basic that the law is deemed written into every contract. Although a contract is the law between the parties, the provisions of positive law which regulate contracts are deemed written therein and shall limit and govern the relations between the parties
Related Article/s:
Contents of an Insurance Policy
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