Professional Documents
Culture Documents
Definition of Policy
Sec 49: The written instrument in which a contract of insurance is set forth,
is called a policy of insurance.
Form of Insurance Policy
Sec 50: The policy shall be in printed form which may contain blank
spaces; and any word, phrase, clause, mark, sign, symbol, signature,
number, or word necessary to complete the contract of insurance shall be
written on the blank space provided therein.
Any rider, clause, warranty, or endorsement purporting to be part of the
contract of insurance and which is pasted or attached to said policy is not
binding on the insured, unless the descriptive title or name of the rider,
clause, warranty or endorsement is also mentioned and written on the
blank spaces provided in the policy.
Unless applied for by the insured or owner, any rider, clause, warranty, or
endorsement issued after the original policy shall be countersigned by the
insured or owner, which countersignature shall be taken as his agreement
to the contents of such rider, clause, warranty, or endorsement.
Notwithstanding the foregoing, the policy may be in electronic form subject
to the pertinent provisions of Republic Act 8792, otherwise known as the
Electronic Commerce Act and to such rules and regulations as may be
prescribed by the Commissioner.
Kinds of Insurable Risks
(1) Personal risks those involving the person
(2) Property risks those involving loss or damage to property
(a) Direct losses -- fire, lightning, windstorm. Flood, and other
forces of nature offer a constant threat of loss to real and
personal property
(b) Indirect losses including loss of profits, rents, or favorable
leases
(3) Liability risks those involving liability for the injury to the person
or property of others
Cancellation of Non-life Insurance Policy
Sec 64. No policy of insurance other than life shall be cancelled by the
insurer except upon prior notice thereof to the insured, and no notice of
cancellation shall be effective unless it is based on the occurrence, after the
effective date of the policy, of one or more of the following:
(a) Nonpayment of premium;
(b) Conviction of a crime arising out of acts increasing the hazard
insured against;
(c) Discovery of fraud or material misrepresentation;
(d) Discovery of willful or reckless acts or omissions increasing the
hazard insured against;
(e) Physical changes in the property insured which result in the
property becoming uninsurable;
(f)
Abandonment
Sec 140. Abandonment, in marine insurance, is the act of the insured by
which, after a constructive total loss, he declares the relinquishment to the
insurer of his interest in the thing insured.
Requisites for Valid Abandonment
(1) There must be actual relinquishment by the person insured of his
interest in the thing insured (Sec 140)
(2) There must be constructive total loss (Sec 141)
(3) The abandonment be neither partial nor conditional (Sec 142)
(4) It must be made within a reasonable time after receipt of reliable
information of the loss (Sec 143)
(5) It must be factual (Sec 144)
(6) It must be made by giving notice thereof to the insurer which may
be done orally or in writing (Sec 145); and
(7) The notice of abandonment must be explicit and must specify the
particular cause of the abandonment (Sec 146)