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Case Digest: Finman Gen, Ass. Corp. vs Court of Appeals and Surposa, G.R. No. 100970

Finman Gen, Ass. Corp. vs Court of Appeals and Surposa, GR No. 100970, September 02, 1992

Subject: Obligations and Contracts

FACTS

It appears on record that on October 22, 1986, deceased, Carlie Surposa was insured with petitioner Finman General Assurance Corporation under Finman General Teachers Protection Plan Master Policy No. 2005 and Individual Policy No. 08924 with his parents, spouses Julia and Carlos Surposa, and brothers Christopher, Charles, Chester and Clifton, all surnamed, Surposa, as beneficiaries.

While said insurance policy was in full force and effect, the insured, Carlie Surposa, died on October 18, 1988 as a result of a stab wound inflicted by one of the three (3) unidentified men without provocation and warning on the part of the former as he and his cousin, Winston Surposa, were waiting for a ride on their way home along Rizal-Locsin Streets, Bacolod City after attending the celebration of the "Maskarra Annual Festival."

Thereafter, private respondent and the other beneficiaries of said insurance policy filed a written notice of claim with the petitioner insurance company which denied said claim contending that murder and assault are not within the scope of the coverage of the insurance policy.

ISSUE

Whether or not the said death was committed with deliberate intent which, by the very nature of a personal accident insurance policy, cannot be indemnified.

RULING

No.

Under the law (Art 1377, NCC), the interpretation of obscure words or stipulations in a contract shall not favor the party who caused the obscurity.

In this case, the insurance company is liable to pay respondent and other beneficiaries the sum of P15,000 representing the proceeds of the policy with interest. The principle of expresso union est exclusio alterius—the mention of one thing implies the exclusion of another thing—is, therefore, applicable in the instant case since murder and assault, not having been expressly included in the enumeration of the circumstances that would negate liability in said insurance policy, cannot be considered by implication to discharge the petitioner insurance company from liability for any inquiry, disability or loss suffered by insured. The failure of the petitioner insurance company to include death resulting from murder or assault among the prohibited risks leads inevitably to the conclusion that it did not intend to limit or exempt itself from liability for such death. Moreover, it is well-settled that contracts of insurance are to be construed liberally in favor of the insured and strictly against the insurer. Ambiguity in the words of an insurance contract should be interpreted in favor of its beneficiary.

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