Pioneer v Yap

Pioneer v Yap G.R. No. L-36232 December 19, 1974
J. Fernane!
Fac"#$
Re#ponen" %&iva Yap 'a# "(e o'ner o) a #"ore in a "'o-#"ore* b+i&in, '(ere #(e
#o& #(oppin, ba,# an )oo"'ear. -(+a .oon Poon, (er #on-in-&a', 'a# in c(ar,e o)
"(e #"ore.
Yap "oo/ o+" a Fire 0n#+rance Po&ic* No. 4216 )rom Pioneer 0n#+rance 'i"( a va&+e o)
P21,222.22 coverin, (er #"oc/#, o3ce )+rni"+re, 45"+re# an 4""in,#.
6mon, "(e coni"ion# in "(e po&ic* e5ec+"e b* "(e par"ie# are "(e )o&&o'in,$
+n&e## #+c( no"ice be ,iven an "(e par"ic+&ar# o) #+c( in#+rance or in#+rance# be
#"a"e in, or enor#e on "(i# Po&ic* b* or on be(a&) o) "(e -ompan* be)ore "(e
occ+rrence o) an* &o## or ama,e, a&& bene4"# +ner "(i# Po&ic* #(a&& be )or)ei"e7
6n* )a&#e ec&ara"ion or breac( or "(i# coni"ion 'i&& rener "(i# po&ic* n+&& an voi.
6no"(er in#+rance po&ic* )or P22,222.22 i##+e b* Grea" 6merican coverin, "(e
#ame proper"ie#. 8(e enor#emen" reco,ni!e co-in#+rance b* Nor"('e#" )or "(e
#ame va&+e.
%&iva Yap "oo/ o+" ano"(er 4re in#+rance po&ic* )or P22,222.22 coverin, "(e #ame
proper"ie# )rom "(e Feera& 0n#+rance -ompan*, 0nc., '(ic( 'a# proc+re 'i"(o+"
no"ice "o an "(e 'ri""en con#en" o) Pioneer.
6 4re bro/e o+" in "(e b+i&in,, an "(e #"ore 'a# b+rne. Yap 4&e an in#+rance
c&aim, b+" "(e #ame 'a# enie )or a breac(.
%&iva Yap 4&e a ca#e )or pa*men" o) "(e )ace va&+e o) (er 4re in#+rance po&ic*. 8(e
in#+rance compan* re)+#e "o pa* beca+#e #(e never in)orme Pioneer o) ano"(er
in#+rer. 8(e "ria& co+r" ecie in )avor o) Yap. 8(e -6 a3rme.
0##+e$
9(e"(er or no" pe"i"ioner #(o+& be ab#o&ve )rom &iabi&i"* on "(e Pioneeer po&ic* on
acco+n" o) an* vio&a"ion o) "(e co-in#+rance c&a+#e
:e&$ No. Pe"i"ion i#mi##e.
Ra"io$
8(ere 'a# a vio&a"ion. 8(e in#+rance po&ic* )or P22,222.22 i##+e b* "(e Grea"
6merican, cea#e "o be reco,ni!e b* "(em a# a co-in#+rance po&ic*.
8(e enor#emen" #(o'# "(e c&ear in"en"ion o) "(e par"ie# "o reco,ni!e on "(e a"e
"(e enor#emen" 'a# mae, "(e e5i#"ence o) on&* one co-in#+rance, "(e Nor"('e#"
one. 8(e 4nin, o) "(e -o+r" o) 6ppea&# "(a" "(e Grea" 6merican 0n#+rance po&ic*
'a# #+b#"i"+"e b* "(e Feera& 0n#+rance po&ic* i# inee con"rar* "o #ai
#"ip+&a"ion.
%"(er in#+rance 'i"(o+" "(e con#en" o) Pioneer 'o+& avoi "(e con"rac". 0" re;+ire
no a3rma"ive ac" o) e&ec"ion on "(e par" o) "(e compan* "o ma/e opera"ive "(e
c&a+#e avoiin, "(e con"rac", '(erever "(e #peci4e coni"ion# #(o+& occ+r. 0"#
ob&i,a"ion# cea#e, +n&e##, bein, in)orme o) "(e )ac", i" con#en"e "o "(e ai"iona&
in#+rance.
8(e va&ii"* o) a c&a+#e in a 4re in#+rance po&ic* "o "(e e<ec" "(a" "(e proc+remen"
o) ai"iona& in#+rance 'i"(o+" "(e con#en" o) "(e in#+rer rener# "(e po&ic* voi i#
in 6merican =+ri#pr+ence.
>i&'a+/ee >ec(ani#? L+mber -o., v#. Gib#on- @8(e r+&e in "(i# #"a"e an prac"ica&&*
a&& o) "(e #"a"e# i# "o "(e e<ec" "(a" a c&a+#e in a po&ic* "o "(e e<ec" "(a" "(e
proc+remen" o) ai"iona& in#+rance 'i"(o+" "(e con#en" o) "(e in#+rer rener# "(e
po&ic* voi i# a va&i provi#ion.A
0n "(i# =+ri#ic"ion, Genera& 0n#+rance B .+re"* -orpora"ion v#. N, :+a- C8(e
anno"a"ion "(en, m+#" be eeme "o be a 'arran"* "(a" "(e proper"* 'a# no"
in#+re b* an* o"(er po&ic*. Dio&a"ion "(ereo) en"i"&e "(e in#+rer "o re#cin.
F+r"(ermore, even i) "(e anno"a"ion# 'ere over&oo/e "(e e)enan" in#+rer 'o+&
#"i&& be )ree )rom &iabi&i"* beca+#e "(ere i# no ;+e#"ion "(a" "(e po&ic* i##+e b*
Genera& 0nemni"* (a# no" been #"a"e in nor enor#e on Po&ic* No. 471 o)
e)enan". 8(e obvio+# p+rpo#e o) "(e a)ore#ai re;+iremen" in "(e po&ic* i# "o
preven" over-in#+rance an "(+# aver" "(e perpe"ra"ion o) )ra+ '(ere a 4re 'o+&
be pro4"ab&e "o "(e in#+re.C