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November 27, 2017

1440 United Nations Avenue


This is in reference to the denied insurance claim under Insurance Policy No.
1012402290 Peso AIG Money Tree (Single Premium) with an amount of
P147,500 issued on April 21, 2009 in the name of my brother, Msgr. Beda B.
Belotindos (the insured who died on August 30, 2017) with Uldarica Belotindos
Carreon (yours truly) as the irrevocable beneficiary.

The claim was first denied in 2014 when the insured, while still alive, went to
Philam Life – Dipolog City Branch to claim his maturity benefit but was
informed that his single premium payment in the amount of P118,000.00 was
allegedly not reflected in the system computer. The branch attributed the non-
recording of payment to the Philam Life Agent Graciela M. Desur (the Branch
Manager during that time) who allegedly pocketed the money and did not remit
the same to the cashier. The office asked for a receipt as proof of payment but
apparently, he was not issued one by Ms. Desur.

After the insured died last August 30, 2017, I went again to the Philam Life
Office and the office required me to submit Affidavits (I submitted three
affidavits from three disinterested persons attesting to the fact that the insured
really paid the single premium in the amount of P118,000.00), Death
Certificate and others which I readily submitted to the office.

It cannot be denied that the insured paid the required single premium. The
very first sentence of the policy in our contract of insurance states that:

“We issue this variable life insurance contract in consideration of

the Application and your payment to us of the required
Single Premium.”

Section 79 of the Insurance Code states:

“An acknowledgment in a policy or contract of insurance of

the receipt of premium is conclusive evidence of its payment,
so far as to make the policy binding, notwithstanding any
stipulation therein that it shall not be binding until the premium is
actually paid. (formerly Sec. 78, as amended by RA 10607)

The business of insurance is a highly regulated commercial activity in the

country, and is imbued with public interest. An insurance contract is a
contract of adhesion which must be construed liberally in favor of the insured
and strictly against the insurer in order to safeguard the former’s interest.

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Moreover, the insurer cannot deny the insurance claims by alleging that its
agent pocketed the paid premium. The insurer is deemed to have vouched for
the integrity and honesty of its insurance agents. In Manila Bankers Life
Insurance Corporation vs. Aban, G.R. No. 175666, July 29, 2013, the Supreme
Court ruled that:

Besides, if insurers cannot vouch for the integrity and

honesty of their insurance agents/salesmen and the
insurance policies they issue, then they should cease doing
business. If they could not properly screen their agents or salesmen
before taking them in to market their products, or if they do not
thoroughly investigate the insurance contracts they enter into with
their clients, then they have only themselves to blame. Otherwise
said, insurers cannot be allowed to collect premiums on
insurance policies, use these amounts collected and invest the
same through the years, generating profits and returns therefrom for
their own benefit, and thereafter conveniently deny insurance
claims by questioning the authority or integrity of their own
agents or the insurance policies they issued to their premium-
paying clients.

Furthermore, the Policy has already remained in force for more than two years
– ( 8 years to be exact) and has become incontestable.

Also, after I submitted the required documents last October 10, 2017, the office
required me again to submit another four (4) affidavits from 4 persons. It must
be noted that I already submitted 3 affidavits from 3 persons attesting to the
fact that my insured brother already paid the single premium. Clearly, your
office has been delaying so much the release of my insurance proceeds which
has already become due and demandable.

The Supreme Court, in one case, ruled that:

“Insurers cannot be allowed to delay the payment of claims and

in the meantime, they benefit from collecting the interest and/or
returns on both the premiums previously paid by the insured and
the insurance proceeds which should otherwise go to their

I hope that my insurance claims will be processed as soon as possible. I am

willing to bring this case in court and file cases against those erring

Thank you for your preferential action on this matter.



(Irrevocable Beneficiary of Deceased Msgr. Beda Belotindos)

Assisted by:


Legal Adviser

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