SUMMIT GUARANTY AND INSURANCE v. HON.

JOSE DE GUZMAN (Presiding Judge, CFI Tarlac), GERONIMA

PULMANO and ARIEL PULMANO
June 30, 1987
Gancayco, J.

FACTS: Jose Ledesman was the owner of a tractor bumped by a minibus insured with Summit for purposes of
third party liability. He made a notice of claim and Summit advised him to have the tractor repaired at GA
Machineries. Summit made an assurance of payment of the amount needed. When GA Machineries was done,
Ledesma made demands on Summit because of the repair shop's warning that failure to pay would result in the
auctioning of the tractor to cover the mechanic's lien. He got nothing except additional assurances of payment.

Geronima Pulmano was the owner of a jeep insured with Summit. While being driven by Ariel Pulmano, the
jeep figured in an accident which resulted in the death of one of the victims. She filed a notice of accidenet and
claim but Summit did nothing.

Amelia Generao owned a passenger jeepney insured with, yes, Summit. While being driven by Carlos
Pagkalinawan, the jeepney struck Mr. Hahn's van. 2 days after, Generao notified Summit and demanded
payment. But Summit took no action. Mr. Han filed a complaint for damages against Generao and
Pagkalinawan, who in turn filed a third party complaint against Summit. Summit argued that all these
complaints had prescribed as they were filed beyond the 1-year period provided in Sec. 384 1.

ISSUE: Have the private respondents' causes of action prescribed? (NO)

HELD: There is nothing in the law which mandates that the 2 periods (notice of claim within 6 months from
accident or suit brought within the Commission or the courts within 1 year) must always concur. It is very clear
that the 1-year period is only required in proper cases. It is obvious that Summit is trying to use Sec. 384 to hide
from its liabilities. It made deliberate efforts to prevent the filing of a formal action against it. If it succeeds in
doing so until 1 year lapses from the date of accident, it could set up the defense of prescription.

The one-year period should instead be counted from the date of rejection by the insurer as this is the time
when the cause of action accrues. Since in these cases there has yet been no accrual of cause of action, We
hold that prescription has not yet set in.

1 SECTION 384. Any person having any claim upon the policy issued pursuant to this chapter shall, without any unnecessary delay,
present to the insurance company concerned a written notice of claim setting forth the amount of his loss, and/or the nature, extent
and duration of the injuries sustained as certified by a duly licensed physician. Notice of claim must be filed within six months from
date of the accident, otherwise, the claim shall be deemed waived Action or suit for recovery of damage due to loss or injury must
be brought, in proper cases, with the Commission or the Courts within one year from date of accident, otherwise the claimant's right
of action shall be prescribe.