Insurance Case Digest:
rider, no qualifications were placed on the scope of
Gulf Resorts Inc. V.
Philippine Charter
Insurance Corp. (2005)
G.R. No. 156167 May 16, 2005
Lessons Applicable: Stipulations Cannot Be
Segregated (Insurance)
FACTS:
Gulf Resorts, Inc at Agoo, La Union was insured
with American Home Assurance Company which
includes loss or damage to shock to any of the
property insured by this Policy occasioned by or
through or in consequence of earthquake
July 16, 1990: an earthquake struck Central Luzon
and Northern Luzon so the properties and
2 swimming pools in its Agoo Playa Resort were
damaged
August 23, 1990: Gulf's claim was denied on the
ground that its insurance policy only afforded
earthquake shock coverage to the two swimming
pools of the resort
Petitioner contends that pursuant to this
the earthquake shock coverage. Thus, the policy
extended earthquake shock coverage to all of the
insured properties.
RTC: Favored American Home - endorsement
rider means that only the two swimming pools were
insured against earthquake shock
CA: affirmed RTC
ISSUE: W/N Gulf can claim for its properties aside
from the 2 swimming pools
HELD: YES. Affirmed.
It is basic that all the provisions of the insurance
policy should be examined and interpreted in
consonance with each other.
All its parts are reflective of the true intent
of the parties.
Insurance Code
Section 2(1)
contract of insurance as an agreement whereby one undertake
consideration to indemnify another against loss, damage or lia
from an unknown or contingent event
An insurance premium is the consideration paid
an insurer for undertaking to indemnify the insured
against a specified peril.
 In the subject policy, no premium payments
were made with regard to earthquake shock
coverage, except on the two swimming pools.