Perils or Risks That May Be Insured

The following risks may be insured:

1. Any contingent or unknown event whether past or future which may cause damage to a person having an insurable interest; or
2. Any contingent or unknown event, whether past or future, which may create liability against the person insured.

May a married woman take out an insurance?  If so, on what?

Yes.  A married woman may take out an insurance on her life or that of her children even without the consent of her husband.  She may likewise take out an insurance on the life of her husband, her paraphernal property, or on property given to her by her husband.

May a minor take out an insurance?

Third par of Sec. 3 is no longer applicable, since the age of majority is now 18 years old (RA 8809, Dec. 13, 1989).

Section 3 Insurance Code:

Any contingent or unknown event, whether past or future, which may damnify a person having an insurable interest, or create a liability against him, may be insured against, subject to the provisions of this chapter.

The consent of the husband is not necessary for the validity of an insurance policy taken out by the married woman on her life or that of her children.

Any minor of the age of eighteen years or more, may notwithstanding such minority, contract for life, health and accident insurance, with any insurance company duly authorized to do business in the Philippines, provided the insurance is taken on his own life and the beneficiary appointed is the minor’s estate or the minor’s father, mother, husband, wife, child, brother or sister.

The married woman or the minor herein allowed to take out an insurance policy may exercise all the rights and privileges of an owner under a policy.

All rights, title and interest in the policy of insurance taken out by an original owner on the life or health of a minor shall automatically vest in the minor upon the death of the original owner, unless otherwise provided in the policy.

Related Provisions:

Art. 1174 (NCC).  Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which, could not be foreseen, or which, though foreseen, were inevitable.

Art. 110 (FC).  The spouses retain the ownership, possession, administration and enjoyment of their exclusive properties.

Either spouse may during the marriage, transfer the administration of his or her exclusive property to the other by means of a public instrument, which shall be recorded in the registry of property of the place where the property is located.

Art. 1327 (NCC).  The following cannot give consent to a contract:

(1) Unemancipated minors;

(2) Insane or demented persons, and deaf-mutes who do not know how to write.

Art. 1390 (NCC). The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties:

(1) Those where one of the parties is incapable of giving consent to a contract;

(2) Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.

These contracts are binding, unless they are annulled by a proper action in court.  They are susceptible of ratification.

Problem:

A, wanted to open a medicinal herb shop.  He placed a long distance phone call to Taiwan and talked to an exporter who willingly agreed to consign several tons of ginsengs with him on the condition that he will come and pick the goods up.  A then sent 5 of his cargo vessels to Taiwan.  The ships left on August 9.  On August 14, A insured the 5 vessels against perils of the South China Sea “Lost or Not Lost” with B Insurance Co.  Without the knowledge of both parties, the ships had already sunk on Aug. 14.  Is B Insurance Co. liable for the ships?

Yes.  This is an example of a past unknown event because the sinking of the ship is a past event at the time that the policy took effect.  The contract is valid and B Insurance Co. is liable because he agreed to pay even though the ship be already lost.  An insurance against an unknown past event is peculiar only to marine insurance.  However, Atty. Quimson said in class that nowadays, most if not all insurance companies no longer insure a past event since technology has progressed in such a manner that a ship’s current status can easily be known while the application is being processed.