SUBJECT:
TOPIC:
Date Made:
Digest Maker:
INSURANCE
Construction and Interpretation
29 Aug 2016
AJLCardeño
CASE NAME: Sun Insurance Oce! Ltd" #s Court o$ Appea%s & Nerissa Li' PONENTE: Cru(! J"
Case Date: 1) Ju% 1992
Case S!!ar": *e%i+ Li'! Jr" accidenta%%, -i%%ed .i'se%$ /it. .is gun a$ter re'o#ing t.e 'aga(ine and pointing t.e gun at .is te'p%e t.in-ing it /as not %oaded" Sun Insurance ru%ed t.at it /as not suicide ut a%so said t.at it /as not an accident and t.ere$ore not co#ered , insurance" 3.e /ido/ ene4ciar, o$ t.e 5.p 200 Li$e 5o%ic, sued Sun Insurance" SC said it /as an accident and t.at it didn7t $a%% on t.e e+ceptions stipu%ated in t.e said Insurance contract" #$e %& La': As a ru%e! Insurance contracts are to e interpreted %iera%%, in $a#or o$ t.e assured"
Detai$ed (a)ts:
1" Sun Insurance Insurance issued a 5ersona% 5ersona% Accident Accident 5o%ic, 5o%ic, to *e%i+ *e%i+ Li'! Jr" Jr" /it. a $ace #a%ue o$ 5.p 200!000"00 /it. .is /i$e Nerissa as ene4ciar," 2" On Oct" 6! 1982! Li' accid accidenta enta%%, %%, s.ot s.ot .i'se%$ .i'se%$ in t.e .ead and /as -i%%ed -i%%ed on t.e spot" :" According According to .is secretar, secretar, %one /itness! /itness! Li' pointed pointed t.e gun at .er .er as a ;o-e ;o-e and assured .er t.at it /as not %oaded t.e 'aga(ine /as re'o#ed! t.en .e put t.e gun to .is te'p%e and 4red it" <" Sun Insurance Insurance agreed agreed t.at it /as /as not suicide! suicide! ut argued argued t.at it /as /as not an accident accident t.ere$ore not co#ered , Insurance" =" Sun Insuranc Insurance> e> one o$ t.e $our e+cept e+ception ions s in t.e said Insurance Insurance contract contract inc%udes inc%udes odi%, in;ur, conse?uent upon t.e insured person atte'pting to co''it suicide or /i%%$u%%, e+posing .i'se%$ to need%ess peri% e+cept in an atte'pt to sa#e a .u'an %i$e! and t.at t.e 'ere act o$ pointing t.e gun to .is te'p%e s.o/ed t.at *e%i+ /i%%$u%%, e+posed .i'se%$ to danger" 6" Neri Neriss ssa a Li'> Li'> *e%i+ e%i+ e%i e%ie# e#ed ed t.e t.e gun gun to e sa sa$e $e eca ecaus use e .e .ad .ad re' e'o# o#ed ed t.e t.e 'aga(ine and .e repeated%, assured .is secretar, t.at t.e gun /as not %oaded" Isse:
@ON Li's deat. /as an accident" B ES @ON Nerissa is entit%ed to da'ages" D NO *%$di+g:
AccidentAccidenta% in Insurance Contracts are construed and considered according to t.e ordinar ordinar, , underst understand anding ing and co''on usage and speec.> 3.at /.ic. /.ic. .appens .appens , c.ance or $ortuitous%,! /it.out intention or design! and /.ic. is une+pected! unusua%! and un$oreseen" BLOCK D 2019 1
3.e SC de4nes an accident as an e#ent t.at ta-es p%ace /it.out ones $oresig.t or e+pectation B an e#ent t.at proceeds $ro' an un-no/n cause! or is an unusua% eFect o$ a -no/n case! and t.ere$ore not e+pectedG an e#ent /.ic. .appens /it.out an, .u'an agenc, or! i$ .appening t.roug. .u'an agenc,! an e#ent /.ic.! under t.e circu'stances! is unusua% to and not e+pected , t.e person to /.o' it .appens" It is a%so de4ned as an in;ur, /.ic. .appens , reason o$ so'e #io%ence or casua%t, to t.e insured /it.out .is design! consent! or #o%untar, coBoperation" 3.ere /as no /i%%$u% e+posure to need%ess peri% $or t.e part o$ Li' /.en .e pointed t.e gun to .is te'p%e! ecause .e t.oug.t it /as not unsa$e to do so .a#ing re'o#ed t.e 'aga(ine" He /as un?uestiona%, neg%igent ut it s.ou%d not pre#ent Nerissa $ro' reco#ering t.e insurance po%ic, t.at Li' otained precise%, against accident" Suicide and e+posure to need%ess peri% are si'i%ar in t.e sense t.at ot. signi$, disregard $or one7s %i$e" 3.e 4ring o$ t.e gun /as dee'ed to e t.e une+pected and independent and un$oreseen occurrence t.at %ed to Li'7s deat. .e did not -no/ t.at t.e gun /as sti%% %oaded" T,ere is +%t,i+g i+ t,e I+sra+)e -%$i)" t,at re$ie.es S+ I+sra+)e %& t,e res-%+si/i$it" t% -a" t,e i+de!+it" agreed -%+ i& t,e i+sred is s,%'+ t% ,a.e )%+tri/ted t% ,is %'+ a))ide+t
Accident insurance po%icies /ere ne#er 'eant to re/ard t.e insured $or .is tendenc, to s.o/ oF or $or .is 'isca%cu%ations" 3.e, /ere intended to pro#ide $or contingencies" Insurance contracts are supposed to e interpreted %iera%%, in $a#or o$ t.e assured" 3.ere is no reason to de#iate $ro' t.is ru%e" Nerissa Li' is not entit%ed to da'ages ecause Sun Insurance acted in good $ait. /.en it re;ected t.e Insurance c%ai'" 3.e re;ection o$ Nerissa7s c%ai' /as not raised $or t.e purpose o$ e#ading a %egiti'ate o%igation" #$i+g:
CA ecision A**IRE! ut OI*IE /it. de%etion o$ a/ard $or da'ages" Ot,er O-i+i%+s:
BLOCK D 2019 2
