Zenith Insurance Corporation vs.

Court of Appeals, 185 SCRA 398

Facts: Lawrence Fernandez insured his car for "own damage" with Zenith
Insurance Corporation. The car figured in an accident and suffered actual damages
in the amount of P3,640.00. After allegedly being given a run around by Zenith for
two (2) months, Fernandez filed a complaint with the Regional Trial Court of Cebu
for sum of money and damages resulting from the refusal of Zenith to pay the
amount claimed. A decision was rendered by the trial court in favor of Fernandez.
The trial court awarded the amount of P3,640.00 representing the damage incurred
plus interest at the rate of twice the prevailing interest rates; moral damages;
exemplary damages; and attorneys fees.
Issue: Whether or not the trial court as affirmed by the CA is correct in awarding
moral damages, exemplary damages and attorneys fees to the private respondent?
Held: Yes. Under the Insurance Code, in case of unreasonable delay in the
payment of the proceeds of an insurance policy, the damages that may be awarded
are: a) attorneys fees; b) other expenses incurred by the insured person by reason
of such unreasonable denial or withholding of payment; c) interest at twice the
ceiling prescribed by the Monetary Board of the amount of the claim due the
injured; and d) the amount of the claim.