5.

The physical injuries he sustained caused temporary total disability of

plaintiff's left hand. He then filed the corresponding notice of accident and
Topic Construction/Interpretation of Insurance Contracts notice of claim with all of the insurers named as defendant in this case to
Case No. G.R. No. 16138-45 | 29 April 1961 recover indemnity under Part II of the policy which read that the loss of a
Case Name Ty v. First National Surety hand shall mean the loss by amputation through the bones of the wrist.”
Full Case DIOSDADO C. TY, plaintiff-appellant, 6. Ty further argues that in order that he may recover on the insurance policies
Name vs. issued him for the loss of his left hand, it is not necessary that there should be
FIRST NATIONAL SURETY & ASSURANCE CO., INC., an amputation thereof, but that it is sufficient if the injuries prevent him from
defendant-appellee. performing his work or labor necessary in the pursuance of his occupation or
Ponente Labrador, J business.
Doctrine Obscure words or stipulations should be interpreted against the 7. The insurers rejected Ty’s claim on the ground that there being no severance
person who caused the obscurity, and the ones which caused the of amputation of the left hand, the disability suffered by him was not covered
obscurity in the cases at bar are the defendant insurance by his policy.
companies.

RELEVANT FACTS ISSUES & RATIO DECIDENDI

1. Diosdado C. Ty was employed as operator mechanic foreman in the
Broadway Cotton Factory, in Grace Park, Caloocan, Rizal, at a monthly salary
of P185.00.
2. He insured himself in 18 local insurance companies, among which being the
following eight named defendants, which issued to him personal accident
policies, upon payment of the premium of P8.12 for each policy.
a) FIRST NATIONAL SURETY & ASSURANCE CO., INC.
b)ASSOCIATED INSURANCE & SURETY CO., INC.
c) UNITED INSURANCE CO., INC.
d)PHILIPPINE SURETY & INSURANCE CO., INC.
e) RELIANCE SURETY & INSURANCE CO., INC.
f) FAR EASTERN SURETY & INSURANCE CO.
g) CAPITAL INSURANCE & SURETY CO., INC.
h)CAPITAL INSURANCE & SURETY CO., INC.
3. Plaintiff's beneficiary was his employer, Broadway Cotton Factory, which
paid the insurance premiums.
4. On December 24, 1953, a fire broke out which totally destroyed the
Broadway Cotton Factory. Ty was injured on the left hand by a heavy object.
He was brought to the Manila Central University hospital, and after receiving
first aid there, he went to the National Orthopedic Hospital for treatment of
his injuries.
W/N the insurers are liable.
1. No. The clear and express conditions of the insurance policies
define partial disability as loss of either hand by amputation
through the bones of the wrist."
There was no such amputation in the case at bar. All that was found by
the trial court, which is not disputed on appeal, was that the physical
injuries "caused temporary total disability of plaintiff's left hand." Note
that the disability of plaintiff's hand was merely temporary, having been
caused by fracture of the index, the middle and the fourth fingers of the
left hand.
The Court cited authorities to the effect that "total disability" in relation
to one's occupation means that the condition of the insurance is such
that common prudence requires him to desist from transacting his
business or renders him incapable of working. (46 C.J.S., 970).
The Court also held that while obscure words or stipulations should be
interpreted against the person who caused the obscurity, and the ones
 which caused the obscurity in the cases at bar are the defendant
insurance companies, the terms of the policies are clear, express and
specific that only amputation of the left hand should be considered as a
loss thereof, an interpretation that would include the mere fracture or
other temporary disability not covered by the policies would certainly
be unwarranted.

DISPOSITIVE
WHEREFORE, the decision appealed from is hereby affirmed, with costs
against the plaintiff-appellant.