Edilon vs.

Manila Bankers Life 117 SCRA 187

Facts: Carmen Lapuz applied with Manila Bankers for coverage against accident and injuries. On
the application form she gave her age at 64 years old and paid the premium thereon. Thereafter,
she was issued a certificate of insurance. During the effectivity of said policy, she died in a
vehicular accident. Edilon, who was named as beneficiary to the policy, filed her claim for the
proceeds of the insurance. The Insurer rejected her claims on the ground that the Certificate of
Insurance excludes its liability to pay claims under the policy in behalf of persons who are over
60 years old. The trial court sustained the contention of the Insurance Company and dismissed
the complaint. Petitioner appealed the decision to the Supreme Court on a question of law.
Issue: Whether or not the acceptance by Manila Bankers of the premium and its issuance of the
corresponding Certificate of Insurance should be deemed a waiver of exclusionary condition of
coverage.
Held: Yes. The insurance corporations inaction to revoke the policy despite a departure from the
exclusionary condition contained in the policy constituted a waiver of such condition.
There was sufficient time for the private respondent to process the app lication and to notice that
the applicant was over 60 years of age and thereby cancel the policy on that ground if it was
minded to do so. If the private respondent failed to act, it is either because it was willing to waive
such disqualification; or, through the negligence or incompetence of its employees for which it
has only itself to blame, it simply overlooked such fact. Under the circumstances, the insurance
corporation is already deemed in estoppel. Its inaction to revoke the policy despite a departure
from the exclusionary condition contained in the said policy constituted a waiver of such
condition.