LOSS, IN INSURANCE

Injury or damage sustained by the insured in consequence of the happening of one

or more of the accidents or misfortune against which the insurer, in consideration of
the premium, has undertaken to indemnify the insured. (Bonifacio Bros. Inc. vs.
Mora, 20 SCRA 261)
Loss for which the Insurer is liable:
1. Loss the proximate cause of which is the peril insured against (Sec. 84);
2. Loss the immediate cause of which is the peril insured against except where
proximate
cause
is
an
excepted peril;
3.Loss through negligence of insured except where there was grossnegligenc
e amounting to willful acts; and
3. Loss caused by efforts to rescue the thing from peril insured against;
4. If during the course of rescue, the thing is exposed to a peril not insured
against, which permanently deprives the insured of its possession (either in
whole or in part)(Sec. 85).
Loss for which the insurer is not liable:
1. Loss by insureds willful act;
2. Loss due to connivance of the insured (Sec. 87);and
3. Loss where the excepted peril is the proximate cause.
Proximate Cause An event that sets all other events in motion without any
intervening or independent case, without which the injury or loss would not have
occurred.
REQUISITES FOR RECOVERY UPON INSURANCE
a. The insured must have insurable interest in the subject matter;
b. That interest is covered by the policy;
c. There must be a loss; and
d. The loss must be proximately caused by the peril insured against
NOTICE OF LOSS
Notice in Fire Insurance
Failure to give notice will defeat the right of the insured to recover.
Notice in other types of Insurance
Failure to give notice will not exonerate the insurer, unless there is a
stipulation in the policy requiring the insured to do so