Subject: Insurance

Case No: G.R. No. L-34200

Topic: Policy of Insurance; Return of premiums; When right to return exists; Waiver of exclusionary condition
Date: September 30, 1982
Ponente: Justice Vasquez
Facts: Carmen O. Lapuz, then 64 years old, applied with Manila Bankers Life for insurance coverage against
accident and injuries. She clearly indicated in the application form her date of birth, filed the same, paid the premium,
and for which she was issued a certificate of insurance by the insurance company. During the effectivity of the
insurance, Carmen died in a vehicular accident. Regina Edillon, the beneficiary of the policy, filed her claim for the
proceeds of the insurance but it was denied. Manila Bankers Life contends that the certificate of insurance contains a
provision which states that the insurance company is not liable to pay claims in behalf of persons under 16 years old
or over 60 years old. Since Carmen was already over 60 years when she applied for coverage, the policy was null
and void, hence, no risk on the part of the insurance corporation had arisen therefrom.
Issue: W/N the acceptance by the private respondent insurance corporation of the premium and the issuance of the
corresponding certificate of insurance should be deemed a waiver of the exclusionary condition of overage stated in
the said certificate of insurance
Held: YES
Doctrine: Inaction to revoke the policy despite a departure from the exclusionary condition contained in the said
policy constituted a waiver of such condition