Zenith and Col Castro Cases
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ZENITH INSURANCE CORP. vs. COURT OF APPEALS FACTS: Lawrence Fernandez insured his car for “own damage with Zenith. The car figured in an accident and suffered actual damages In the amount of P3,640. After being given a run around by Zenith for two months, Fernandez filed a complaint with the RTC for sum of money and damages. He was allowed to present evidence while Zenith was not due to its non-appearance in the pre-trial. Judgment was rendered in favor of Fernandez. Zenith filed petition for certiorari before the CA but this was dismissed. Zenith filed for a MR alleging that the award of actual damages of P3,460 is erroneous and what it is liable for is only P1,927, the amount arrived at after deducting P250 and P274 as deductible franchise and 20% depreciation on the parts as agreed upon in the contract. ISSUE: W/N actual damages should be deducted as claimed by Zenith. HELD: NO. As regards the actual damages incurred by private respondent, the amount of P3,640.00 had been established before the trial court and affirmed by the appellate court. Respondent appellate court correctly ruled that the deductions of P250.00 and P274.00 as deductible franchise and 20% depreciation on parts, respectively claimed by petitioners as agreed upon in the contract, had no basis. Any doubt that may arise for failure of the contract to provide with respect to a particular matter should be resolved against the insurer. In this case, the policy does not mention any deductible franchise. COL. C. CASTRO vs. INSURANCE COMMISSION FACTS: Castro applied for insurance on the life of his driver. On the basis of such application, Insular Life issued policy No. 934943 effective July 18, 1979. The policy applied for and issued was on a 20-yr endowment plan for the sum of P25K with double indemnity in case of accidental death. Castro paid the first quarterly premium of P309.95. About 3 months later, on Oct. 16, 1959, the insured driver was allegedly shot to death by unknown persons. Castro then filed a claim for the total benefits of 50K under the policy. Insular life denied
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Transcript of Zenith and Col Castro Cases
ZENITH INSURANCE CORP. vs. COURT OF APPEALS
FACTS:
Lawrence Fernandez insured his car for “own damage with Zenith. The car figured in an accident and suffered actual damages In the amount of P3,640. After being given a run around by Zenith for two months, Fernandez filed a complaint with the RTC for sum of money and damages. He was allowed to present evidence while Zenith was not due to its non-appearance in the pre-trial. Judgment was rendered in favor of Fernandez. Zenith filed petition for certiorari before the CA but this was dismissed. Zenith filed for a MR alleging that the award of actual damages of P3,460 is erroneous and what it is liable for is only P1,927, the amount arrived at after deducting P250 and P274 as deductible franchise and 20% depreciation on the parts as agreed upon in the contract.
ISSUE: W/N actual damages should be deducted as claimed by Zenith.
HELD: NO. As regards the actual damages incurred by private respondent, the amount of P3,640.00 had been established before the trial court and affirmed by the appellate court. Respondent appellate court correctly ruled that the deductions of P250.00 and P274.00 as deductible franchise and 20% depreciation on parts, respectively claimed by petitioners as agreed upon in the contract, had no basis.
Any doubt that may arise for failure of the contract to provide with respect to a particular matter should be resolved against the insurer. In this case, the policy does not mention any deductible franchise.
COL. C. CASTRO vs. INSURANCE COMMISSION
FACTS:
Castro applied for insurance on the life of his driver. On the basis of such application, Insular Life issued policy No. 934943 effective July 18, 1979. The policy applied for and issued was on a 20-yr endowment plan for the sum of P25K with double indemnity in case of accidental death. Castro paid the first quarterly premium of P309.95. About 3 months later, on Oct. 16, 1959, the insured driver was allegedly shot to death by unknown persons. Castro then filed a claim for the total benefits of 50K under the policy. Insular life denied the claim on the ground that the policy was VOID. Insular instead refunded to Castro the premiums he had paid.
ISSUE: W/N Castro has an insurable interest in his driver.
HELD: NO. The requirement of insurable interest to support a contract of insurance is based upon consideration of public policy which renders wager policies INVALID. To sustain a contract of this character it must appear that there is a real concern in the life of the party whose death would be the cause of substantial loss to those who are named as a beneficiary. Mere relationship of uncle and nephew, employer and employee is NOT sufficient to provide an insurable interest on the life of the insured. It must be shown that the destruction of the life of the insured would cause pecuniary loss to the complainant. This, Castro failed to prove.
