Edillion v Manila Bankers Life

G.R. NO. L-34200

FACTS: Carmen Lapuz applied for insurance with Manila Bankers. In her application dated April 15, 1969,
she stated that her birth date was July 11, 1904. [65 years old] She paid 20php representing her
premium, for which she was issued the corresponding receipt signed by the company. The insurance
policy would be effective for 90 days. During the effectivity of the Certificate of Insurance, Lapuz died in
a vehicular accident. The sister, herein petitioner, who was the beneficiary of the insured filed a claim
for the proceeds of the insurance, but was denied. The insurance corporation relied on the provision
which excluded liability to pay claims in behalf of people under 16 years of age and over 60 years old.

The RTC sustained the petition of the Insurance Company and dismissed the complaint, claiming that
given that the policy was a contract of adhesion, it was the duty of the insured to know the terms of the
contract.

ISSUE: Is the insurance policy valid, despite the fact that she was overage at the time of the issuance of
the policy?

HELD: YES. The age of the insured was not concealed to the inusurance company. Her application which
was on a printed form which contained very few items fo information clearly indicated her age of the
time of filing of the same. Despite such information, the respondent insurance received her payment of
premium and issued the corresponding certificate of insurance without question. There was sufficient
time for the company to process the application and to notice that the applicant was over 60 year and
thereby cancel the policy.