Traders Insurance and Surety Co. v. Golangco- Insurance Proceeds

95 PHIL 826

Facts:

>  A decision was rendred in Civil Case No. 6306 granting Golangco the right to collect rentals from a building in Sta. Cruz, Manila.

>  Golangco then sought fire insurance from Traders.  Before the policy was issued, Golangco made a full and clear exposal of his interests in the premises, i.e. that he was not the owner.

>  The fire policy that defendant issued covered only all of Golangco’s interest in the premises and his right to collect the rentals.

>  The building burned down in a fire and Golangco sought to collect from Traders.  Traders denied any liability on the ground that since Golangco was not the owner of the premises then he had no insurable interest in the same and consequently, he could not collect the insurance proceeds.

Issue:

Whether or not plaintiff can claim the insurance proceeds.

Held.

YES.

Both at the time of the issuance of the policy and at the time of the fire, plaintiff Golangco was in legal possession of the premises, collecting rentals from its occupant.  It seems plain that if the premises were destroyed as they were, by fire, Golangco would be, as he was, directly damnified thereby; and hence he had an insurable interest therein.