Professional Documents
Culture Documents
Minda Gapuz)
ELEMENTS: COC-II-ER-AR-S-P
1.
2.
3.
4.
5.
6.
Insurance is
an agreement
for a consideration
to indemnify another against LOSS,
DESTRUCTION, OR LIABILITY
arising from an unknown or contingent
event
A past event may be covered by MARINE INSURANCE,
provided that the loss of vessel in the past could not be
known by ordinary means of communication.
Characteristics: R-I-A-U-C
1. Risk-distributing (contribution of all to a
certain fund will be used for the payment of
insurance of one insurance fund)
2. Contract of indemnity (exchange of value for
value aleatory or uncertain)
** waging contract depends on chance
3. Contract of adhesion (fine print rule, policy
already approved by the commission; generally
construed in favor of the insured)
4. Uberrimae Fides contract (utmost good faith
contract; disclose facts)
5. Consensual contract (perfected from the time
of meeting of minds with respect to object,
cause, or consideration)
In insurance, the insurer is the OFFEROR because the
insured is the one who applies. If there is no policy
given, then there is no acceptance by the insurance
company or the insured, there is no meeting of the
minds.
INSURABLE INTEREST
The relationship with a person or interest to benefit
from the person or the thing insured.
protect the person or the thing because
of the PECUNIARY BENEFIT and to
prevent PECUNIARY LOSS
every interest in property, real or
personal, of such nature that a
contemplated peril might directly
damnify the insured
Generally , mistress cannot be insured
by a married man. However, if he
derives pecuniary interest from such
mistress (support), it is the designation
only as a spouse that is void. He can
still insure the life of the mistress.
Rescission
MARINE INSURANCE
- Covers all risks in the shipment or navigation of
a vessel, including the goods shipped, profits,
and the ship itself.
- CHARTERER (lessee) has insurable interest with
the freightage of the goods.
- Owner of the VESSEL has insurable interest with
the vessel itself and the goods
- Owner of the GOODS has insurable interest with
the goods themselves.
- INSURABLE:
o Any peril during the voyage
o Any peril for a certain period
o Ay peril for a certain voyage
- PERILS OF THE SHIP : ordinary wear and tear of
the ship, ordinary occurrences in the voyage
- PERILS OF THE SEA: unexpected and inevitable
circumstances and casualties due to the
violence of the sea (INCH MARIE CLAUSE)
Implied warranty of sea worthiness ship is reasonably
fit to perform service and must be able to encounter
the ordinary perils of the voyage. It is not limited to
the physical structure of the vessel, but must be laden
with the proper equipment, machinery, crew members,
and food for passengers.
Implied warranties of the ship:
1. W. of seaworthiness
2. W. that the vessel will not deviate from the
route
3. W. that the vessel will not engage in illegal
papers
4. W. that the vessel has the proper documents
IN THE ABSENCE OF ANY STIPULATION, ONLY THE PERILS
OF THE SEA IS INSURED, UNLESS ALL-RISK POLICY IS
STIPULATED.
ALL-RISK POLICY exempting clauses arte important;
concealment will not vitiate the contract except when
such concealment is the cause of damage or loss.
BAREBOAT or DEMISE charter
- charterer: ship becomes common carrier
- the real owner: becomes private carrier, tasked
to observe diligence of a good father of a
family
VOYAGE OR TIME CHARTER- AFREIGHTMENT
- the owner of the vessel is the common carrier
(extraordinary diligence)
- shipper is a private carrier
INSURABLE INTEREST IN MARINE INSURANCE:
Shipper cargo, expected profits
Charterer the ship and the goods
Ship-owner the ship itself
VEHICLE INSURANCE
SETTLEMENT OF CLAIMS:
1. Notice of loss given within reasonable time: so
that the insurer will have ample time to
investigate on the loss/ destruction/ death.
2. Notice of claim to the insurer should be given
within 6 months after notice of loss. Submission
of evidence of loss.
3. Insurer should pay
a. NON-LIFE 30 days after proof of loss is
received by the insurer, and the loss/
damage has been ascertained through
agreement or arbitration;
b. NON-LIFE 90 days after receipt of
proof of loss, and the ascertainment
had not been made within 60 days after
such receipt;
c. LIFE INSURANCE immediately upon
maturity of policy (except when
payable in installments or as an
annuity, they are payable as they
become due);
d. LIFE INSURANCE - within 60 days from
filing of proof of death.
DOUBLE INTEREST DOCTRINE The insurer must pay
immediately upon maturity, otherwise, the insurer
pays:
(12% interest per annum x 2) of the principal + other
damages at 6% per annum
WHEN DOES THE CAUSE OF ACTION ACCRUE?
- upon final denial of the claim
- MR filed in the insurance company does not
affect the prescriptive period.
** When the insurer pays, there is the right of
subrogation. The insurer steps into the shoes of the
insured. Need not be stipulated.
** Subrogation does not apply in:
- LIFE insurance
- or when the insurer released the wrong doer
- or when he pays for a risk which is not covered
by the policy
- or when he pays more than the value of the
insurance.