Finman General Assurance Corp. v. Court of Appeals G.R. No.

138737 July 12, 2001 Justice Kapunan Facts: Usiphil, Inc. obtained a fire insurance policy from Finman General Assurance Corp. then doing business in the name of Summa Insurance Corp.). Sometime in 1982, Usiphil filed with Finman an insurance claim for the loss of the insured properties due to fire. Despite several demands by Usiphil, Finman refused to pay the insurance claim on the grund that the same could not be allowed because Usiphil failed to comply with a condition in the policy regarding the submission of certain documents to prove the loss. Thus, Usiphil was constraint to file a complaint against Finman for the unpaid insurance claim. After trial, the trial court rendered a decision in favor of Usiphil, and ordered Finman to pay Usiphil the amount of the insurance proceeds plus a 24% interest rate per annum until the judgment proceeds is fully paid. Finman appealed the decision, arguing, among others, that since there was no express finding that it unreasonably withheld or denied the payment of the subject insurance claim, then the award of 24% per annum is not proper. The Court of Appeals affirmed the decision of the trial court. Issue: WON the 24% interest rate per annum awarded by the lower courts is legal. Held: Yes, it is, for the same is authorized by Secs. 243 and 244 of the Insurance Code. Notably, under Sec. 244, aprima facie evidence of unreasonable delay in payment of the claim is created by the failure of the insurer to pay the claim within the time fixed in both Secs. 243 and 244. Further, Sec. 29 of the policy itself provides that the claim shall be paid within 30 days after proof of loss is received by the company.