G.R. No. 20341 September 1, 1923
Lessons Applicable: Effect of Lack of Insurable Interest (Insurance)
Laws Applicable:
FACTS:
- August 30, 1919: Garcia executed a mortgage to the Philippine National Bank on the merchandise allegedly insured by Hongkong Fire & Marine Insurance Co. and with the consent of the latter endorsed the policy to PNB
- PNB informed Hongkong Fire through exchange of letters. Hongkong failed to notify PNB or Garcia that it was for the building and not the merchandise.
- February 6, 1920: Fire took place and destroyed the merchandise so Garcia filed a claim which was refused.
- RTC: favored Garcia
ISSUE: W/N
HELD: the lower court is affirmed
- as a matter of fair dealing, it should have notified the Bank that the policy was on the building. It will be noted that the letters in question were all written several months before the fire.
- Under these circumstances it seems clear and manifest that the insured, as well as the manager of the National Bank at Legaspi, who was interested in the policy, because the same secured a loan of P6,000 made to Domingo Garcia, and the corporation of Wise & Co., Ltd., which represented the insurance company, have been in the belief that it was not the building but the merchandise that was insured, for the reason that none of them paid attention to the context of the policy.