Bachrach v. British American Insurance Co. - Insurance Proceeds

17 PHIL 555

Facts:

>  Bachrach insured properties of its general furniture shop with British.  The properties were subsequently destroyed by fire.

>  Bachrach claims from the insurance company.  The claim was denied on the ff grounds:

o    The policy was allegedly forfeited because the insured stored varnishes and paints within the premises;

o    Insured stored gasoline in the building; and

o    Bachrach executed a chattel mortgage on the properties insured without the consent of the insured.

Issue:

Whether or not Bachrach can claim the proceeds of the policy.

Held:

Yes.

The policy was NOT forfeited due to the strong paints and varnishes.  There was no express provision pertaining to it and these paints and varnishes are incidental to the business of the insured to keep the furniture in a saleable condition.  The gasoline stored within the premises was in the reservoir of the car and thus does not violate any provision in the policy.  There is no express prohibition against the execution of a chattel mortgage on the property insured.