Serrano v. CA [G.R. No. L-35529, July 16, 1984, MAKASIAR, J MAKASIAR, J.] .] Petitioner: Nora Ca!"# S$rrao Respondent: CA a% SSS Topic: G$$ral Topic: G$$ral Doctrine: Ambiguity in words of insurance contract shall be interpreted in favor of its beneciary. beneciary. !ACTS: 1. &'o a''l"(a)"o o* )+$ SSS, a Grou' Mor)#a#$ R$%$')"o ol"(y a! "!!u$% /y r"0a)$ L"*$ I!ura($ Co'a"$! *or a #rou' #rou' l"*$ l"*$ "!ura "!ura( ($ $ 'ol"(y 'ol"(y o )+$ l"0$! o* +ou!" +ou!"# # loa loa or)#a#or! o* )+$ SSS. 2. &%$r )+"! Grou' Mor)#a#$ R$%$')"o !(+$$, a #ra)$$ o* a +ou!" +ou!"# # loa loa o* SSS "! r$u r$u"r "r$% $% )o or)# or)#a#$ a#$ )+$ +ou!$ +ou!$ (o!)ru()$% (o!)ru()$% ou) o* )+$ loa a% )+$ lo) o +"(+ ") !)a%!. 3. SSS )a$! a l"*$ "!ura($ "!ura($ o )+$ $l"#"/l$ $l"#"/l$ or)#a#or or)#a#or )o )+$ $)$ $)$) ) o* )+$ )+$ or) or)#a #a#$ #$ "%$ "%$/) /)$% $%$ $!! !! !u(+ !u(+ )+a) )+a) "* )+$ )+$ or)#a#or %"$!, )+$ 'ro($$%! o* +"! l"*$ "!ura($ u%$r )+$ 'ol"(y "ll /$ u!$% )o 'ay +"! "%$/)$%$!! )o )+$ SSS a% )+$ %$($a!$% %$($a!$%! ! +$"r! +$"r! "ll )+$r$/y )+$r$/y /$ r$l"$0$ r$l"$0$% % o* )+$ /ur%$ o* 'ay"# *or )+$ aor)"a)"o o* )+$ %$($a!$%! !)"ll u'a"% loa )o )+$ SSS. 4. $)")"o$r +$r$" "! )+$ "%o o* )+$ la)$ $rar%o S$rrao, +o, a) )+$ )"$ o* +"! %$a)+, a! a a"rl"$ '"lo) o* A"r Ma"la, I(. a% a! !u(+ a! a $/$r o* )+$ SSS. 5. SSS a''ro0$% )+$ r$al $!)a)$ or)#a#$ loa o* )+$ la)$ Ca'). S$rrao *or 37,4. *or )+$ (o!)ru()"o o* )+$ a''l"(a)! +ou!$. 6. A 'ar)"al r$l$a!$ " )+$ aou) o* 35,4. a! $$()$% a% %$0o)$% )o )+$ (o!)ru()"o o* )+$ +ou!$. A! a (o!$u$($, a or)#a#$ (o)ra() a! $$(u)$% " *a0or o* SSS /y )+$ la)$ Ca'). S$rrao ")+ +"! "*$ a! (o-or)#a#or. 7. : Mar(+ 8, 1968, Ca'). S$rrao %"$% " a 'la$ (ra!+ a% /$(au!$ o* +"! %$a)+, SSS (lo!$% +"! +ou!"# loa a((ou) )o )+$ r$l$a!$% aou) o* 35,4.. 8. $)")"o $)")"o$r $r !$) a l$))$r l$))$r a%%r$!!$ a%%r$!!$% % )o )+$ C+a"ra C+a"ra o* SSS r$u$!)"# )+a) )+$ /$$;)! o* )+$ Grou' Mor)#a#$ R$%$')"o I!ura($ /$ $)$%$% )o +$r. 9. <+$ l$))$r a! r$*$rr$% r$*$rr$% )o )+$ A%""!)ra)or A%""!)ra)or o* SSS, +o r$(o$%$% r$(o$%$% ")! %"!a''ro0al o )+$ #rou% )+a) )+$ la)$ Ca'). S$rr S$rra ao o a! a! o) o) y$) y$) (o0$ (o0$r$ r$% % /y )+$ )+$ Grou Grou' ' Mor) Mor)#a #a#$ #$ R$%$')"o I!ura($ 'ol"(y a) )+$ )"$ o* +"! %$a)+. 1. SSS= !u!)a"$% )+$ !a"% !)a% a% %$"$% '$)")"o$r>! r$u$!).
11. CA= a?r$% SSS. @$($, )+"! '$)")"o.
"SS#$%S: :N CA $rr$% " (o!)ru"# )+$ $$()"0")y %a)$ o* )+$ "!ura($ (o0$ra#$ *ro )+$ /$#""# o* )+$ aor)"a)"o '$r"o% o* )+$ Mor)#a#$ Loa. &$S '$(D: CA !$) a!"%$. SSS "! %"r$()$% )o r$l$a!$ )+$ '$)")"o$r *ro 'ay"# )+$ or)#a#$ loa. $)")"o$r "! %"r$()$% )o r$*u% )o )+$ SSS )+$ 'r$"u (orr$!'o%"# )o )+$ r$l$a!$% aou), "* )+$ !a$ +a% o) /$$ %$%u()$% )+$r$*ro. RAT"): 1. <+$r$ (a /$ o %ou/) a! )o )+$ $l"#"/"l")y o* )+$ la)$ Ca'). S$rrao *or (o0$ra#$ u%$r S$(. 1 o* Ar). II o* )+$ Grou' Mor)#a#$ R$%$')"o I!ura($ ol"(y a! +$ a! a or)#a#or o* SSS o) o0$r )+$ a#$ o* 65 $ar$!) +"! /"r)+%ay a) )+$ )"$ +$ )+$ or)#a#$ loa a! #ra)$% )o +". 2. <+$ 'ro/l$ a"*$!)! ")!$l* " S$(!. 2 a% 3 o* )+$ !a$ ar)"(l$ o* )+$ !a"% 'ol"(y. S$( 2 'ro0"%$! )+a) B any mortgagor who is eligible for coverage on or after the Date of Issue shall be automatically insured,...B +"l$ S$( 3 'ro0"%$! )+a) )+$ "!ura($ B!+all )a$ $$() *ro )+$ /$#""# o* )+$ aor)"a)"o '$r"o% o* !u(+ Mor)#a#$ loa or partial release of Mortgage LoanB 3. &%$r S$(. 2, )+$ or)#a#or +o "! $l"#"/l$ *or (o0$ra#$ o or a*)$r )+$ %a)$ o* "!!u$ !+all /$ automatically "!ur$%. <+$ oly (o%")"o "! )+a) )+$ a#$ r$u"r$$) !+oul% /$ !a)"!;$%, +"(+ +a% /$$ (o'l"$% ")+ /y $rar%o. <+$ or)#a#$ r$%$')"o "!ura($ "! o) Du!) au)oa)"( ") "! (o'ul!ory *or all ual";$% /orro$r!. 4. <+$ Mor)#a#$ Co)ra() /$"# "!!u$% /y )+$ SSS " (o$()"o ")+ a''l"(a)"o! *or +ou!"# loa!, !'$(";(ally S$(. 16, 'ro0"%$!= EFa The loan shall be secured against the death of the borrower through the Mortgage Redemption Insurance Plan F/ Coverage shall tae e!ect on the date of the "rst release voucher of the loan a% !+all (o)"u$ u)"l )+$ r$al $!)a)$ or)#a#$ loa "! *ully 'a"% H 5. @o$0$r, S$(. 3 o* Ar)"(l$ II 'r$!$)! a a/"#u")y. <+$ $$()"0$ %a)$ o* (o0$ra#$ (a /$ ")$r'r$)$% )o $a )+a) )+$ "!ura($ (o)ra() )a$! $$() B*ro )+$ /$#""# o* )+$ aor)"a)"o '$r"o% o* !u(+ Mor)#a#$ LoaB or B'ar)"al r$l$a!$ o* Mor)#a#$ Loa.B 6. A''ly"# Ar)"(l$ 1374 o* )+$ $ C"0"l Co%$, )+$ or)#a#or " )+$ "!)a) (a!$ a! alr$a%y (o0$r$% /y )+$ "!ura($ u'o )+$ 'ar)"al r$l$a!$ o* )+$ loa. 7. <+$ a/"#u")y " S$()"o 3 o* Ar)"(l$ II !+oul% /$ r$!ol0$% " *a0or o* )+$ '$)")"o$r. *The interpretation of obscure
words or stipulations in a contract shall not favor the party who caused the obscurity* +Article ,-/ Civil Code0. The provisions/ conditions or e1ceptions tending to wor2 a forfeiture of insurance policies should be construed most strongly against those for whose benet they are inserted/ and most favorably toward those against whom they are intended to operate. 8. +"l$ )+$ "!!ua($ o* )+$ Grou' Mor)#a#$ R$%$')"o I!ura($ "! a (o)ra() /$)$$ SSS a% )+$ r"0a)$ L"*$ I!ura($ Co'a"$!, )+$ *a() "! )+a) SSS $)$r$% ")o !u(+ a (o)ra() )o aor% 'ro)$()"o o) oly )o ")!$l* !+oul% )+$ or)#a#or %"$ /$*or$ *ully 'ay"# )+$ loa, /u) al!o )o aor% 'ro)$()"o )o )+$ or)#a#or. 9. )a$ o)$ o* )+$ *ollo"#= I. I!ura($ Co0$ra#$. 1. "r$ "!ura($. <+$ SSS-;a($% +ou!$ !+all /$ (o0$r$% /y ;r$ "!ura($ $ual )o ")! a''ra"!$% 0alu$ or )+$ aou) o* )+$ loa, +"(+$0$r "! l$!!$r. 2. Mortgage Redemption Insurance. Co0$ra#$ !+all /$ (o'ul!ory *or ay or)#a#or +o "! o) or$ )+a 6 y$ar! ol%. The insured indebtedness on the mortgage as provided in the policy shall be deemed paid upon the death of a mortgagor covered under the MRI F'loy$$! $$;)! So("al $l*ar$, 1983 R$0. %., CSI, ''. 5-51. 1. : )+$ 'ar) o* SSS, ") +a! )o $)$r ")o !u(+ *or o* (o)ra() !o )+a) " )+$ $0$) o* )+$ u$'$()$% %$"!$ o* )+$ or)#a#or %ur"# )+$ !u/!"!)$($ o* )+$ or)#a#$ (o)ra(), )+$ 'ro($$%! *ro !u(+ "!ura($ "ll /$ a''l"$% )o )+$ 'ay$) o* )+$ or)#a#$ %$/), )+$r$/y r$l"$0"# )+$ +$"r! o* )+$ or)#a#or *ro 'ay"# )+$ o/l"#a)"o. SSS "!ur$! )+$ 'ay$) )o ")!$l* o* )+$ loa ")+ )+$ "!ura($ 'ro($$%!. I) al!o $#a)$! ay *u)ur$ 'ro/l$ )+a) (a (ro' u' !+oul% )+$ +$"r! /$ o) " a 'o!")"o )o 'ay )+$ or)#a#$ loa. I !+or), )+$ 'ro($!! o* aor)"a)"o "! +a!)$$% a% 'o!!"/l$ l")"#a)"o " )+$ *u)ur$ "! a0o"%$%. 11. I a !""lar 0$", a'l$ 'ro)$()"o "! #"0$ )o )+$ or)#a#or u%$r !u(+ a (o($') !o )+a) " )+$ $0$) o* +"! %$a)+ )+$ or)#a#$ o/l"#a)"o "ll /$ $)"#u"!+$% /y )+$ a''l"(a)"o o* )+$ "!ura($ 'ro($$%! )o )+$ or)#a#$ "%$/)$%$!!. 12. <+$ ")$r'r$)a)"o o* SSS #o$! a#a"!) )+$ 0$ry ra)"oal$ o* )+$ "!ura($ !(+$$. I) (ao) uDu!)ly $r"(+ ")!$l* a) )+$ $'$!$ o* ao)+$r F#emo cum alterius detrimento protest . B0$ry '$r!o u!), " )+$ $$r("!$ o* +"! r"#+)! a% " )+$ '$r*ora($ o* +"! %u)"$!, a() ")+ Du!)"($, #"0$ $0$ryo$ +"! %u$, a% o/!$r0$ +o$!)y a% #oo% *a")+B FAr)"(l$ 19, C"0"l Co%$.
13. S"'ly 'u), SSS (ao) /$ allo$% )o +a0$ )+$ a%0a)a#$ o* (oll$()"# )+$ "!ura($ /$$;)! *ro )+$ 'r"0a)$ l"*$ "!ura($ (o'a"$! a% a) )+$ !a$ )"$ a0o"% ")! r$!'o!"/"l")y o* #"0"# )+$ /$$;)! o* )+$ Mor)#a#$ R$%$')"o I!ura($ 'la )o )+$ or)#a#or. <+$ 0$ry r$a!o *or )+$ $"!)$($ o* SSS "! )o $)$% !o("al /$$;)!. 14.
15. I) "! 0$ry (l$ar )+a) )+$ !'"r") o* !o("al Du!)"($ '$r$a)$! )+$ "!ura($ !(+$$ u%$r )+$ Grou' Mor)#a#$ R$%$')"o I!ura($. 16. &!ually, ao# )+$ ")$! )o /$ %$%u()$% /y SSS *ro )+$ ;r!) r$l$a!$ o* )+$ loa "! )+$ 'r$"u (orr$!'o%"# )o )+$ or)#a#$ r$%$')"o "!ura($ FMRI. @o$0$r, "* )+$ 'r$"u (orr$!'o%"# )o )+$ aou) )o /$ %$%u()$% *ro )+$ ;r!) r$l$a!$ o* )+$ loa a! o) 'a"% /y )+$ /orro$r, )+$ %$($a!$% or)#a#or, )+$ !a"% u'a"% 'r$"u !+oul% /$ r$*u%$% /y )+$ +$"r! o* )+$ /orro$r.
