You are on page 1of 2

43. G.R. No. 102253 June 2, 1995 SOUTH SEA SURETY AND INSURANCE COMPANY, INC. !. HON.

COURT O" APPEA#S $n% &A#EN'UE#A HARD(OOD AND INDUSTRIA# SUPP#Y, INC. "ACTS) Plaintiff [Valenzuela Hardwood and Industrial Supply, Inc.] entered into an agreement with the defendant Seven rothers where!y the latter undertoo" to load on !oard its vessel #$V Seven %m!assador the former&s lauan round logs num!ering '() at the port of #aconacon, Isa!ela for shipment to #anila. Plaintiff insured the logs, against loss and$or, damage with defendant South Sea Surety and Insurance *o., Inc. and the latter issued its #arine *argo Insurance Policy. +n ,( -anuary .'/(, the plaintiff gave the chec" in payment of the premium on the insurance policy to #r. Victorio *hua. 0he said vessel #$V Seven %m!assador san" on ,1 -anuary .'/( resulting in the loss of the plaintiffs insured logs. +n 2) -anuary .'/(, a chec" for P1,3,1.)) to cover payment of the premium and documentary stamps due on the policy was tendered to the insurer !ut was not accepted. Instead, the South Sea Surety and Insurance *o., Inc. cancelled the insurance policy it issued as of the date of inception for non4payment of the premium due in accordance with Section 55 of the Insurance *ode. 0he trial court rendered 6udgment in favor of plaintiff Hardwood. 0he *ourt of %ppeals affirmed the 6udgment of the court a quo only against the insurance corporation. ISSUE) 7hether there was payment of the premiums ma"ing petitioner lia!le. HE#D) YES. 0he payment of the premium is a condition precedent to, and essential for, the efficaciousness of the contract. 0he only two statutorily provided e8ceptions are 9a: in case the insurance coverage relates to life or industrial life 9health: insurance when a grace period applies and 9!: when the insurer ma"es a written ac"nowledgment of the receipt of premium, this ac"nowledgment !eing declared !y law to !e then conclusive evidence of the premium payment. %t the time the vessel san" on ,1 -anuary .'/( resulting in the loss of the insured logs, the insured had already delivered to Victorio *hua the chec" in payment of premium. ut, as Victorio *hua testified, it was only in the morning of 2) -anuary .'/( or 1 days after the vessel san" when his messenger tendered the chec" to defendant South Sea Surety and Insurance *o., Inc. #r. *hua testified that the marine cargo insurance policy for the plaintiff&s logs was delivered to him on ,. -anuary .'/( at his office to !e delivered to the plaintiff. 7hen the appellant South Sea Surety and Insurance *o., Inc. delivered to #r. *hua the marine cargo insurance policy for the plaintiffs logs, he is deemed to have !een authorized !y the South Sea Surety and Insurance *o., Inc. to receive the premium which is due on its !ehalf.

7hen therefore the insured logs were lost, the insured had already paid the premium to an agent of the South Sea Surety and Insurance *o., Inc., which is conse;uently lia!le to pay the insurance proceeds under the policy it issued to the insured.

You might also like