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contract
No.
HELD:
The insurance company clearly passed the maximum limit of petitioners liability for damages
arising from death or bodily injury at P12k per passenger and its maximum liability per
accident at P50k.
Since only one passenger was injured in the accident, the insurers liability for damages
suffered by passenger is pegged to the amount of P12,000 only.
RULING:
The limit of P50k per accident means that the insurers liability for any single accident will not
exceed P50k regardless of number of passengers killed or injured therein.
The bust company may not recover from the insurance company more than P12k per
passenger killed or injured, or P50k per accident even if under the judgment of the court, the
erring bus operator will have to pay more than P12k to each injured passenger.
The trial courts interpretation of the insurance contract was the correct interpretation.
Hence, the award of damages to Jose is modified by reducing it to P12,000.