Guingon v. Del Monte

80 SCRA 181

Facts:

>  The insured owned a fleet of jeepneys.  He insured the operation of his jeepneys against “accidents with third part liability” with Capital Insurance and Surety Co.

>  One day, one of his jeepney dirivers, bumped and killed Guingon.

>  An action for damages was then filed against the owner-insured, the driver and the company.

>  The company sough to dismiss the charges against it on the ground of lack of cause of action against it.

Issue:

Whether or not there is a cause of action against the company.

Held:

YES.

The right of a person injured to sue the insurer of the party at fault depends on whether the contract of insurance was intended to benefit third persons.  The test applied here is: Where the contract provides for indemnity against liability to third persons, then third persons to whom the insured is liable, can sue the insurer.  On the other hand, where the contract is for indemnity against actual loss or payment, then third persons cannot proceed against the insurer, the contract being solely to reimburse the insured for liability actually discharged by him through payment to third persons, said third persons' recourse being thus limited to the insured alone

The policy in the present case, is one whereby the insurer agreed to indemnify the insured "against all sums . which the Insured shall become legally liable to pay in respect of: a. death of or bodily injury to any person . . ." Clearly, therefore, it is one for indemnity against liability from the fact then that the insured is liable to the third person, such third person is entitled to sue the insurer.

Since the policy in questioned contained a stipulation pour autrui, then the insurance company must deliver the proceeds to the claimants.