8b. Under Sec.

94e of the Insurance Code, each insurer is bound, as between himself

and the other insurers, to contribute ratably to the loss in proportion to the amount for
which he is liable under his contract. This is known as the “principle of contribution” or
“contribution clause” under the rules on double insurance, when there are two or more
insurers—co-insurers— over a property. In other words, each insurer will pay the
amount to which they agreed to indemnify in case of loss in their contract so long as
such amount does not exceed the value of the insurable interest.

The comprehensive policy of iZONE is Php 400, 000. It is lower that the value of the car
which is Php 600,000. Therefore, in cases of loss iZONE will be liable for Php 400,000.
Bryan being a co-insurer of the car does not reduce their liability since they had agreed
to be iable for such an amount in a contract. Bryan may have covered the other Php
200,000 in a different insurance contract, nevertheless, he can only pay for his
proportionate contribution as a coinsurer which will not in any way affect the liability of
iZONE.