Del Rosario v. Equitable Insurance - Life Insurance Policy

118 PHIL 349

Facts:

>  Equitable Insurance issued a life Insurance policy to del Rosario binding itself to pay P1,000 to P3,000 as indemnity.

>  Del Rosario died in a boating accident.  The heirs filed a claim and Equitable paid them P1,000.

>  The heir filed a complaint for recovery of the balance of P2,000, claiming that the insurere should pay him P3,000 as stated in the policy.

Issue:

Whether or not the heir is entitled to recover P3,000.

Held:

YES.

Generally accepted principles or ruling on insurance, enunciate that where there is an ambiguity with respect to the terms and conditions of the policy, the same shall be resolved against the one responsible thereof.  The insured has little, if any, participation in the preparation of the policy.  The interpretation of obscure stipulations in a contract should not favor the party who cause the obscurity.