Facts: Geagonia, owner of a store, obtained from Country Bankers 1year fire insurance covering the stock trading trading of dry goods. The policy noted the requirement that "3. The insured shall give notice to to the Company of any insurance or insurances insurances already effected, or which may subsequently be effected, covering any of the property or properties consisting of stocks in trade, goods in process and/or inve ntories only hereby insured, xxx The petitioners’ stocks were destroyed by fire. He then filed a claim which was subsequently denied because the petitioner’s stocks were covered by two other fire other fire insurance policies issued by PFIC. The basis of the private respondent's denial was the petitioner's petitioner's alleged violation of Condition 3 of the policy. po licy. The Insurance Commission found that the p etitioner did not violate Condition 3 as he had no knowledge of the existence of the two fire two fire insurance policies obtained from the PFIC; that it was Cebu Tesing Textiles which procured the PFIC policies w/o informing him or securing his consent; and that Cebu Tesing Textile, as his creditor, had insurable interest on the stocks. Issue: Whether or not Geagonia is prohibited from from recovering from the Country Bankers ? Held: A policy may declare that a violation of specified provisions thereof shall avoid it, otherwise, the breach of an immaterial provision does not avoid the policy. To constitute a violation of the “other insurance” clause, the other insurance must be upon the same subject matter, the same interest therein, and the same risk.
