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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
A policy of insurance must specify the following: (a) the parties between whom the contract is made; (b) the amount to be insured except in the cases of open or running policies; (c) the premium, or if the insurance is of a character where the exact premium is only determinable upon the termination of the contract, a statement of the basis and rates upon which the final premium is to be determined; (d) the property or life insured; (e) the interest of the insured in property insured, if he is not the absolute owner thereof; (f) the risks insured against; and (g) the period during which the insurance is to continue. (Section 51, R.A. No. 10607 or the Insurance Code of the Philippines)
An insurance policy is a written instrument where a contract of insurance is set forth. (Section 49, R.A. No. 10607 or the Insurance Code of the Philippines) It is a written document embodying the terms and stipulations of the contract of insurance between the insured and the insurer.
The law says:
“Section 51. A policy of insurance must specify:
(a) The parties between whom the contract is made;
(b) The amount to be insured except in the cases of open or running policies;
(c) The premium, or if the insurance is of a character where the exact premium is only determinable upon the termination of the contract, a statement of the basis and rates upon which the final premium is to be determined;
(d) The property or life insured;
(e) The interest of the insured in property insured, if he is not the absolute owner thereof;
(f) The risks insured against; and
(g) The period during which the insurance is to continue. (Section 51, R.A. No. 10607 or the Insurance Code of the Philippines)
Jurisprudence says:
In the case of Steamship Mutual Underwriting Association (Bermuda) Limited v. Sulpicio Lines, Inc. (G.R. No. 196072, September 20, 2017), the Supreme Court held that:
“Section 51 of the Insurance Code prescribes the information that must be stated in the policy, namely: the parties in the insurance contract, amount insured, premium, property or life insured, risks insured against, and period of insurance. However, there is nothing in the law that prohibits the parties from agreeing to other terms and conditions that would govern their relationship, in which case the general rules of the Civil Code regulating contracts will apply.”
Question: What is a rider in an insurance policy?
Answer: A rider is an attachment in an insurance policy that modifies the conditions of the policy by expanding or restricting its benefits or excluding certain conditions from the coverage. (p. 1189, Black’s Law Dictionary, 5th ed.)
The law says:
“Any rider, clause, warranty or endorsement purporting to be part of the contract of insurance and which is pasted or attached to said policy is not binding on the insured, unless the descriptive title or name of the rider, clause, warranty or endorsement is also mentioned and written on the blank spaces provided in the policy.
Unless applied for by the insured or owner, any rider, clause, warranty or endorsement issued after the original policy shall be countersigned by the insured or owner, which countersignature shall be taken as his agreement to the contents of such rider, clause, warranty or endorsement.” (Section 50, R.A. No. 10607 or the Insurance Code of the Philippines)
Related article: Basics of an Insurance Contract
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