Scribd
Upload
48 views

Emilio Tan Vs CA

This case involves a dispute over life insurance proceeds between beneficiaries and an insurance company. The insurance company denied the beneficiaries' claim and rescinded the policy, alleging misrepresentation by the deceased insured. The beneficiaries argue the insurance company can no longer rescind the contract as the insured has died. The court held that based on Section 48 of the Insurance Law, the insurer has two years to contest the policy, regardless of whether the insured is still living. As the insured in this case died before two years had passed, the insurer was not barred from proving the policy is void due to misrepresentation.

Uploaded by

mpivergara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
48 views

Emilio Tan Vs CA

This case involves a dispute over life insurance proceeds between beneficiaries and an insurance company. The insurance company denied the beneficiaries' claim and rescinded the policy, alleging misrepresentation by the deceased insured. The beneficiaries argue the insurance company can no longer rescind the contract as the insured has died. The court held that based on Section 48 of the Insurance Law, the insurer has two years to contest the policy, regardless of whether the insured is still living. As the insured in this case died before two years had passed, the insurer was not barred from proving the policy is void due to misrepresentation.

Uploaded by

mpivergara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Emilio Tan, et.al. vs.

The Court of Appeals if the insurance has been in force for at


GR No. 48049 least two years during the insured’s
lifetime. The phrase “during the lifetime”
FACTS: Tan Lee Siong, father of herein found in Section 48 of the Insurance Law
petitioners, applied for life insurance in the simply means that the policy is no longer
amount of P80,000.00 with respondent considered in force after the insured has
company Philippine American Life Insurance died. The key phrase in the second
Company. Said application was approved paragraph of Section 48 is “for a period of
and a corresponding policy was issued two years”. The insurer has two years from
effective November 5, 1973, with the date of issuance of the insurance
petitioners as the beneficiaries. On April 26, contract or of its last reinstatement within
1975, Tan Lee Siong died of hepatoma. which to contest the policy, whether or not,
Petitioners then filed with respondent the insured still lives within such period.
company their claim for the proceeds of the The policy was issued on November 6, 1973
life insurance policy. However, the and the insured died on April 26, 1975. The
insurance company denied their claim and policy was thus in force for a period of only
rescinded the policy by reason of the one year and five months. Considering that
alleged misrepresentation and concealment the insured died before the two-year period
of material facts made by the deceased Tan has lapsed, respondent company is not,
Lee Siong in his application for insurance. therefore, barred from proving that the
The premiums paid on the policy were policy is void ab initio by reason of the
thereupon refunded. The petitioners insured’s fraudulent concealment or
contend that the respondent company no misrepresentation. Moreover, respondent
longer had the right to rescind the contract company rescinded the contract of
of insurance as rescission must allegedly be insurance and refunded the premiums paid
done during the lifetime of the insured on November 11, 1975, previous to the
within two years and prior to the commencement of this action on November
commencement of action. According to the 27, 1975.
petitioners, the Insurance Law was
amended and the second paragraph of
Section 48 added to prevent the insurance
company from exercising a right to rescind
after the death of the insured.

ISSUE: Whether or not the insurance


company has the right to rescind the
contract of insurance despite the presence
of an incontestability clause

HELD: YES. The so-called “incontestability


clause” precludes the insurer from raising
the defenses of false representations or
concealment of material facts insofar as
health and previous diseases are concerned

You might also like