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    Insurance: Verendia V. Ca G.R. No. 75605 January 22, 1993

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    Lara
    Verendia's residential building was insured by multiple insurers including Fidelity. After a fire destroyed the building, Verendia filed a claim with Fidelity. However, Fidelity refused to pay, claiming over-insurance and that Verendia presented a false lease contract with a Roberto Garcia when it was actually with Marcelo Garcia. The court ruled that by presenting the fraudulent lease contract, Verendia forfeited all benefits under the policy per the policy's terms. The insurance contract terms must be strictly construed against the insured since Verendia used false information to support his claim, violating the contract's good faith requirement.

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    Insurance: Verendia V. Ca G.R. No. 75605 January 22, 1993

    Uploaded by

    Lara
    670 views2 pages
    Verendia's residential building was insured by multiple insurers including Fidelity. After a fire destroyed the building, Verendia filed a claim with Fidelity. However, Fidelity refused to pay, claiming over-insurance and that Verendia presented a false lease contract with a Roberto Garcia when it was actually with Marcelo Garcia. The court ruled that by presenting the fraudulent lease contract, Verendia forfeited all benefits under the policy per the policy's terms. The insurance contract terms must be strictly construed against the insured since Verendia used false information to support his claim, violating the contract's good faith requirement.

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    Case digest in Insurance

    Original Title

    Verendia v. CA

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    Verendia's residential building was insured by multiple insurers including Fidelity. After a fire destroyed the building, Verendia filed a claim with Fidelity. However, Fidelity refused to pay, claiming over-insurance and that Verendia presented a false lease contract with a Roberto Garcia when it was actually with Marcelo Garcia. The court ruled that by presenting the fraudulent lease contract, Verendia forfeited all benefits under the policy per the policy's terms. The insurance contract terms must be strictly construed against the insured since Verendia used false information to support his claim, violating the contract's good faith requirement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    670 views2 pages

    Insurance: Verendia V. Ca G.R. No. 75605 January 22, 1993

    Uploaded by

    Lara
    Verendia's residential building was insured by multiple insurers including Fidelity. After a fire destroyed the building, Verendia filed a claim with Fidelity. However, Fidelity refused to pay, claiming over-insurance and that Verendia presented a false lease contract with a Roberto Garcia when it was actually with Marcelo Garcia. The court ruled that by presenting the fraudulent lease contract, Verendia forfeited all benefits under the policy per the policy's terms. The insurance contract terms must be strictly construed against the insured since Verendia used false information to support his claim, violating the contract's good faith requirement.

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    © All Rights Reserved
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    INSURANCE

    VERENDIA V. CA
    G.R. No. 75605 January 22, 1993

    FIDELITY & SURETY CO. V. VERENDIA & CA


    G.R. No. 76399 January 22, 1993
    FACTS: Petitioner Rafael Verendia's residential building was insured with Fidelity and Surety
    Insurance Company and two others, Country Bankers Insurance and Development
    Insurance, with Monte de Piedad & Savings Bank as beneficiary. The insured building was
    completely destroyed by fire. With this, petitioner claim for the insurance on which Fidelity
    refused to give depending on its issued Fire Insurance Policy F-1887. Fidelity, among other
    things, averred that the policy was avoided by reason of over-insurance, that Verendia
    maliciously represented that the building at the time of the fire was leased under a contract
    executed on 25 June 1980 to a certain Roberto Garcia, when actually it was a Marcelo Garcia
    who was the lessee.
    ISSUE: Whether or not Verendia forfeited all benefits due to his presentation of a false
    declaration (contract signed by Roberto, when in fact it was Marcelo Garcia who signed it) to
    support his claim.
    HELD: Yes. Verendia, having presented a false declaration to support his claim for benefits in
    the form of a fraudulent lease contract, he forfeited all benefits therein by virtue of Section 13
    of the policy in the absence of proof that Fidelity waived such provision. Worse yet, by
    presenting a false lease contract, Verendia, reprehensibly disregarded the principle that
    insurance contracts are uberrimae fidae and demand the most abundant good faith
    Based on previously decided cases:
    Basically a contract of indemnity, an insurance contract is the law between the parties. Its
    terms and conditions constitute the measure of the insurer's liability and compliance
    therewith is a condition precedent to the insured's right to recovery from the insurer. As it is
    also a contract of adhesion, an insurance contract should be liberally construed in favor of the
    insured and strictly against the insurer company which usually prepares it.
    Considering, however, the foregoing discussion pointing to the fact that Verendia used a false
    lease contract to support his claim under Fire Insurance Policy No. F-18876, the terms of the
    policy should be strictly construed against the insured. Verendia failed to live by the terms of
    the policy, specifically Section 13 thereof which is expressed in terms that are clear and
    unambiguous, that all benefits under the policy shall be forfeited "If the claim be in any
    respect fraudulent, or if any false declaration be made or used in support thereof, or if any
    fraudulent means or devises are used by the Insured or anyone acting in his behalf to obtain
    any benefit under the policy.

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