ALLEN MARK B.

LUPERA
INSURANCE LAW

San Goku was the owner of a heavy lift vessel. It entered into a contract
with Vegeta for the delivery of its spaceship from Aparri to Jolo. The vessel was
insured by Piccolo for absolute total loss. However, the vessel sank resulting to
its total loss. Due to such misfortune, San Goku turned into a super saiyan and
filed a claim against Piccolo for the total loss. Later on, it was found out that
Master Pogi head of the coast guard revealed that he inspected the vessel and
declared to be unseaworthy because water is bubbling in the engine room. But
despite Master Pogis order not to commence its voyage the vessel still
proceeded. Piccolo then refused to pay on the ground of concealment.
San Goku hired the services of Cell and relied on Art. 130 (b) and 135 of
the Insurance Code which states that:
ART. 130(b) An actual loss is caused by the irretrievable loss of the thing
by sinking or by being broken up;
ART. 135 Upon an actual total loss a person insured is entitled to payment
without notice of abandonment.
By relying in this provision, in case of total loss, Gokus right to claim to
the whole insurance is absolute.
Piccolo hired the services of Majimbu, they alleged that San Goku is not
entitled to the insurance proceed under Act. 108 of insurance code which states
that, in marine insurance, information of the belief and expectation of a third
person on reference to material fact, is material. Hence, there is concealment
where the insured did not disclose the opinion of marine experts, which is Master
Pogi, who inspected the vessel insured that it was unseaworthy. Therefore,
precludes recovery.
Issue to be resolved is whether or not San Goku can recover from the
insurance
As a judge, I will rule in negative. Claim of San Goku is hereby rejected.
It is an elementary rule in insurance law that concealment of material fact
entitles the injured party to rescind the entire contract, which in this case it is
Piccolo who was the injured party. In a marine insurance, the rule is stricter
because the insured is bound to communicate to the insurer not only facts but
also beliefs or opinions of third persons. Thus, there is concealment where the
insured at the time of application for insurance did not disclose the opinion of

marine experts who inspected the vessel insured that it was unseaworthy. In this
case, San Goku is obliged to disclose such information, belief or expectation of
Master Pogi at the time of application for insurance in order that Piccolo as
insurer may be made liable and to deprive him to exercise the right of rescind
the insurance contract. Petition is dismissed. Costs against petitioner. SO ORDER.