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MARGALLO, Vener Angelo C.

Bank of the Philippine Island and FGU Insurance Corporation v. Yolanda  Laingo sent two letters to BPI an FGU Insurance requesting them to
Laingo process her claim as beneBciary of Rheozel's insurance policy. FGU
Insurance sent a reply-letter to Laingo denying her claim. FGU Insurance
TOPIC: Notice of Loss
stated that Laingo should have Bled the claim within three calendar
DOCTRINE months from the death of Rheozel as required under Paragraph 15 of the
Personal Accident Certificate of Insurance.
The "doctrine of representation," provides that notice to the agent is notice to  RTC Decision: In favor of respondents. The trial court ruled that the
the principal. It is the duty of the agent to act in good faith for the prescriptive period of 90 days shall commence from the time of death of
advancement of the interests of the principal. the insured and not from the knowledge of the beneficiary.
 CA: Reversed the ruling of the trial court. The Court of Appeals ruled
“Art. 1884. The agent is bound by his acceptance to carry out the agency and is liable
that Laingo could not be expected to do an obligation which she did not
for the damages which, through his non-performance, the principal may suffer. He
know existed.
must also finish the business already begun on the death of the principal, should delay
entail any danger. ISSUE:
Art. 1887. In the execution of the agency, the agent shall act in accordance with the Whether or not Laingo, as named beneficiary who had no knowledge of the
instructions of the principal.” existence of the insurance contract, is bound by the three-calendar month
FALLO: WHEREFORE, we DENY the petition. We AFFIRM the Decision of deadline for Bling a written notice of claim upon the death of the insured?
the Court of Appeals. RATIO:
 Laingo argues that she dealt with BPI after her son's death, when she was
 Rheozel Laingo (Rheozel), the son of respondent Yolanda Laingo allowed to withdraw funds from his savings account in the amount of
(Laingo), opened a "Platinum 2-in-1 Savings and Insurance" account with P995,000. However, BPI did not notify her of the attached insurance
petitioner Bank of the Philippine Islands (BPI). A Personal Accident policy.
Insurance Coverage was also issued by FGU Insurance in the name of  As the main proponent of the 2-in-1 deposit account, BPI tied up with its
Rheozel with Laingo as his named beneficiary. affiliate, FGU Insurance, as its partner. Any customer interested to open
 Rheozel died due to a vehicular accident as evidenced by a Certificate of a deposit account under this 2-in-1 product, after submitting all the
Death. required documents to BPI and obtaining BPI's approval, will
 Laingo instructed the family's personal secretary, Alice Torbanos (Alice) automatically be given insurance coverage. Thus, BPI acted as agent of
to go to BPI h and inquire about the savings account of Rheozel. Laingo FGU Insurance with respect to the insurance feature of its own marketed
wanted to use the money in the savings account for Rheozel's burial and product.
funeral expenses. Due to Laingo's credit standing and relationship with  An insurance company has the duty to communicate with the beneficiary
BPI, BPI accommodated Laingo who was allowed to withdraw P995,000 upon receipt of notice of the death of the insured. This notification is how
from the account of Rheozel. a good father of a family should have acted within the scope of its
 More than two years later, Rheozel's sister, Rhealyn Laingo-Concepcion, business dealings with its clients.
while arranging Rheozel's personal things in his room found the Personal  Since BPI is the agent of FGU Insurance, then such notice of death to BPI
Accident Insurance Coverage Certificate issued by FGU Insurance. is considered as notice to FGU Insurance as well. FGU Insurance cannot
Rhealyn immediately conveyed the information to Laingo. now justify the denial of a beneficiary's insurance claim for being Bled
out of time when notice of death had been communicated to its agent
MARGALLO, Vener Angelo C.

within a few days after the death of the depositor-insured. In short, there
was timely notice of Rheozel's death given to FGU Insurance within three
months from Rheozel's death as required by the insurance company.
 Since BPI, as agent of FGU Insurance, fell short in notifying Laingo of the
existence of the insurance policy, Laingo had no means to ascertain that
she was entitled to the insurance claim.