Edillon v. Manila Bankers Life Insurance Corp. - Concealment

117 SCRA 187

Facts:

>  In Apr. 1969, Carmen Lapuz applied for insurance with Manila Bankers.  In the application she stated the date of her birth as July 11, 1904 (around 64 yrs old). The policy was thereafter issued.

>  Subsequently, in May 1969, Carmen died of a car accident.  Her sister, as beneficiary claimed the proceeds of the insurance.

>  Manila Bankers refused to pay because the certificate of insurance contained a provision excluding it’s liability to pay claims to persons under 16 or over 60.

Issue:

Whether or not the policy is void considering that the insured was over 60 when she applied.

Held:

NO.

The age of Carmen was not concealed to the insurance company.  Her application form indicated her true age.  Despite such information, Manila Bankers accepted the premium and issued the policy.  It had all the time to process the application and notice the applicant’s age.  If it failed to act, it was because Manila Bankers was willing to waive such disqualifications or it simply overlooked such fact.  It is therefore estopped from disclaiming any liability.