TRAVELLERS INSURANCE & SURETY CORP. v.

CA (MENDOZA) 272 SCRA

536HERMOSISIMA, JR; May 22, 1997
NATURE
The petition herein seeks the review and reversal of the decision of respondent Court of Appeals
affirmingin toto the judgment of the Regional Trial Court in
anaction for damages filed by priva t e respon dent Vicente Mendoza, Jr. as heir of his
mother who waskilled in a vehicular accident.
FACTS
-an old lady was hit by a taxicab. The taxicab waslater identified and a case was filed against the
driverand owner. Later, an amendment was filed to includethe insurance company. RTC and CA
ordered
that theowner, driver as well as the insurance company beheld solidarily liable.
ISSUE
WON RTC and CA erred
HELD
YES- Where the contract provides for indemnity againstliability to third persons, then third
persons to
whomthe insured is liable can sue the insurer. Where
thecontract is for indemnit y a gainst actual loss orpayment, then third persons cannot
proceed against the insurer, the contract being solely to reimbursethe insured for liability
actually discharged by himthru payment to third persons, said third persons' recourse being
thus limited to the insured alone. Butin the case at bar,
there was no contract shown.What then was the basis of the RTC and the CAto say that the
insurance contract was a third-party liability insurance policy?
Consequently, thetrial court was confused as it did not distinguishbetween the private
respondent's cause of actionagainst the owner and the driver of the Lady
Lovetaxicab and his cause of action against petitioner.The former is based on torts and quasidelicts whilethe latter is based on contract.- Even assuming arguendo that there was such
acontract, private respondent's cause of action cannot prevail because he
failed to file the writtenclaim mandated by the Insurance Code (beforeit was amended-action

must be brought withinsix months from date of the accident (this

iswhats applicable here)
; a f ter amendmen t - "action or suit for recovery of damage due to loss orinjury must be
brought
in proper cases, with theCommissioner or the Courts within one year fromdenial of the claim,
otherwise the claimant's right of action shall prescribe" )
.
He is deemed, under thislegal provision, to have waived his rights as againstpetitioner-insurer.
Disposition:
petition granted

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