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652 SUPREME COURT REPORTS ANNOTATED

Western Guaranty Corporation vs. Court of

Appeals

G.R. N . 91666. J l 20,

1990.*

WESTERN GUARANTY CORPORATION, e i i ne , vs.

HONORABLE COURT OF APPEALS, PRISCILLA E.
RODRIGUEZ, and DE DIOS TRANSPORTATION CO., INC.,
e nden .

Commercial Law; Insurance; The scope of liability of Western is

marked out in comprehensive terms; all sums necessary to discharge
liability of the insured in respect of the precipitating events. An e amina
i n f Sec i n 1 en i led Liabili he P blic , ed ab e, f he Ma e P lic i ed b e i
i ne We e n h ha ha Sec i n define he c e f he liabili f in e We e n a ell

_____________
__

* THIRD DIVISION.

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 a he e en hich gene a e ch liabili . The c e f liabili f We e n i ma ked in c
m ehen i e e m : all m nece a di cha ge liabili f he in ed in e ec f [ he eci
i a ing e en ] . The
eci i a ing e en hich gene a e liabili n he a f he in e , ei he in fa f a a enge a hi
d a , a e ecified in he f ll ing e m : (1) dea h f, (2) b dil inj , (3) damage e
f, he a enge he hi d a . Whe e n dea h, n b dil inj and n damage e e l ed
f m he ca al ( an acciden ca ed b a i ing f he e f he Sched le Vehicle ), n
liabili i c ea ed fa a c nce n he in e , e i i ne We e n.

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Same; Same; Same; The Schedule of Indemnities does not purport to limit
or to enumerate exhaustively the species of bodily injury occurrence of
which generate liability for petitioner Western. I m be e ed, h e e , ha he
Sched le f Indemni ie d e n limi , en me a e e ha i el , he ecie f b dil inj
cc ence f hich gene a e liabili f e i i ne We e n. A ca acciden ma , f in
ance, e l in inj in e nal gan f a a enge hi d a , i h an acc m an ing am a i
n l f an e e nal membe (e.g., a f an a m an e e). B ch in e nal inj ie a e
el c e ed b Sec i n 1 f
he Ma e P lic , ince he ce ainl c n i e b dil inj ie .

Same; Same; Same; Contractual limitations of liability found in

insurance contracts should be regarded by courts with a jaundiced eye
and extreme care and should be so construed as to preclude the
insurer from evading compliance with its just obligations. Pe i i ne We e
n ld ha e c n e he Sched le f Indemni ie a c m i ing c n ac al limi a i n f
liabili hich, a al ead n ed, i c m ehen i el defined in Sec i n 1 Liabili he P
blic f he Ma e P lic . I i ell- e led, h e e , ha c n ac al limi a i n f liabili f nd
in in ance c n ac h ld be ega ded b c i h a ja ndiced e e and e eme ca e
and h ld be c n ed a ecl de he in e f m e ading c m liance i h i j bliga i
n.

Same; Same; An insurance contract is a contract of adhesion; The

terms of such contract are to be construed strictly against the party
which prepared the contract. Finall , an in ance c n ac i a c n ac f adhe i
n. The le i ell en enched in j i dence ha he e m f ch c n ac a e be c n ed
ic l again he a hich e a ed he c n ac , hich in hi ca e ha en be e i i ne
We e n.

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654 SUPREME COURT REPORTS ANNOTATED

Western Guaranty Corporation vs. Court of

 Appeals

PETITION e ie he deci i n f he C f A eal .

The fac a e a ed in he e l i n f he C .
Narciso E. Ramirez f e i i ne .
Alejandro Z. Barin and Carlos C. Fernando f i a e e nden .

FELICIANO,
J.:

A a nd 4:30 in he af e n n f 27 Ma ch 1982, hile c ing Ai R ad n

a ede ian lane n he a k, e nden P i cilla E. R d ig e a ck b a De
Di a enge b ned b e nden De Di T an a i n C ., Inc., hen d i en
b ne Wal e Saga A e . The b d i e di ega ded he ignal

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gi en b a affic liceman all ede ian c he ad. P i cilla a h n he g nd, hi ing he f ehead. She
a
ea ed a he P aci Eme genc H i al and la e n h i ali ed a he San J an De Di H i al. He
face a e manen l di fig ed, ca ing he e i an ie and m al di e .
Re nden b c m an a in ed i h e i i ne We e n G a an C a i n ( We e n ) nde i Ma e P lic
hich
ided, am ng he hing , f ec i n again hi d a liabili , he ele an ec i n eading a f ll :
Sec i n 1. Liability to the Public C m an ill, subject to the Limits of Liability, pay all sums necessary to
discharge liability of the insured in e ec f (a)

dea h f b dil inj damage e f an a enge a defined he ein. (b)

death of or bodily injury or damage to property of any THIRD PARTY as defined herein in any
accident caused by or arising out of the use of the Schedule Vehicle, ided ha he liabili hall ha e fi
been de e mined. In n ca e, h e e , hall he C m an al a men nde b h Sec i n I and Sec i n II c mbined
e ceed he Limi f Liabili e f h he ein. With respect to death of or bodily injury to any third party or
passenger, the companyOs payment per victim in any one accident shall not exceed the limits
indicated in the Schedule of Indemnities provided for in this policy e cl ding he c f addi i nal
medicine , and ch he b ial and f ne al e en e ha migh ha e been inc ed. (I alic lied)
655
VOL. 187, JULY 23, 1990 655
Western Guaranty Corporation vs. Court of Appeals
Re nden P i cilla R d ig e filed a c m lain f damage bef e he Regi nal T ial C f Maka i
again De Di T an a i n C . and Wal e A. Saga. Re nden De Di T an a i n C ., in n, filed a
hi d- a c m lain again i in ance ca ie , e i i ne We e n.
On 6 A g 1985, he ial c ende ed a deci i n in fa f e nden P i cilla E. R d ig e , he di i i e i n
 f hich ead:
WHEREFORE, j dgmen i he eb ende ed in fa f lain iff and again he defendan , de ing he la e a he f
me , j in l and e e all , and f he hi d- a defendan a he lain iff, b a f c n ib i n, indemni b ga i n ha e e
am n ma be lef n aid
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11/9/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 187 b he defendan De Di T an a i n C m
an , Inc. he e en f n m e han P50,000.00, a f ll :

a)he m f P2,776.00 a ac al damage e e en ing d c fee ,

h i ali a i n and medicine ;

b)he m f P1,500.00 b a f c m en a i n f l f ea ning

d ing lain iff inca aci k;

c)he m f P10,000.00 a and b a f m al damage ; d)he m f P10,000.00 a

and b a f a ne fee ; and

e )

On a eal, he C f A eal affi med in toto he deci i n f he ial c . Pe

i i ne m ed f he ec n ide a i n f he a ella e c deci i n. In a Re l i
n da ed 10 Jan a 1990, he C f A eal denied he m i n f ec n ide
a i n f lack f me i .
Pe i i ne We e n i n bef e n a Pe i i n f Re ie alleging ha he C f
A eal e ed in h lding e i i ne liable a be nd he limi e f h in he
Sched le f Indemni ie and in finding We e n liable f l f ea ning ,
m al damage and a ne fee . S ccinc l a ed, i i e i i ne We e n i i
n ha i cann be held liable f l f ea ning , m al damage and a ne
fee beca e he e i em a e n am ng h e incl ded in
he Sched le f Indemni ie e f h in he in ance lic .
Delibe a ing n he in an Pe i i n f Re ie , e c n ide ha e i i ne We e n
ha failed h an e e ible e n he a f he C f A eal in ende ing i Deci
i n da ed 26 A il 1989 and i Re l i n da ed 10 Jan a 1990.

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Western Guaranty Corporation vs. Court of

Appeals
 An e amina i n f Sec i n 1 en i led Liabili he P blic , ed ab e, f
he Ma e P lic i ed b e i i ne We e n h ha ha Sec i n define he
scope of the liability f in e We e n a ell a he events which
generate such liability. The c e f liabili f We e n i ma ked in c m
ehen i e e m : all sums necessary to discharge liability of the
insured in respect of [the precipitating events] . The eci i a ing
e en hich gene a e liabili n he a f he in e , ei he in fa f a
passenger a third party, a e ecified in he f ll ing e m : (1) dea h
f, (2) b dil inj , (3) damage e f, he a enge he hi d a . Whe e n
dea h, n b dil inj and n damage e e l ed f m he ca al ( an
acciden ca ed b a i ing f he e f he Sched le Vehicle ), n liabili i
c ea ed fa a c nce n he in e , e i i ne We e n.

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The Sched le f Indemni ie f Dea h and/ B dil Inj a ached he Ma e P

lic , hich e i i ne We e n in ke , need be ed in f ll:

Schedule of Indemnities for Death and/or Bodily

Injury:

The f ll ing ched le f indemni ie h ld be b e ed in he e lemen

f claim f dea h, b dil inj ie f, fe i nal fee and h i al cha ge , f e ice ende ed affic
acciden ic im nde CMVLI c e age:

DEATH INDEMNITY P12,000.00

PERMANENT DISABLEMENT

DESCRIPTION OF DISABLEMENT Amount

L f limb P6,000.00

L f b h hand , all finge and b h h mb 6,000.00

L f b h fee 6,000.00

L f ne hand and ne f 6,000.00

L f igh f b h e e 6,000.00

Inj ie e l ing in being e manen l bed idden 6,000.00

An he inj ca ing e manen al di ablemen 6,000.00

L f a m ab e elb 4,200.00

L f a m be een elb and i 3,000.00657

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Western Guaranty Corporation vs. Court of

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L f hand P2,550.00

L f f finge and h mb f ne hand 2,550.00

L f f finge 2,100.00

L f leg a ab e knee 3,600.00

L f leg bel knee 2,400.00

L f ne f 2,400.00

L f e all f ne f 900.00

L f h mb 900.00

L f inde finge 600.00

L f igh f ne e e 1,800.00

L f hea ing b h ea 3,000.00

L f hea ing ne ea 450.00

T al f Acc mm da i n f P fe i nal A endance

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E ended Se ice Rende ed Fee

Cha
ge

HOSPITAL ROOM Ma im m f 45 da / ea
P 36.00/da
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Lab a fee , d g 300.0
- a , e c. 0

SURGICAL Maj O e a i n 1,000.00

EXPENSES Medi m O e a i n 500.00

Min O e a i n 100.00

ANAESTHESIOLOGIST Medi m O e a i n
S FEES
Maj O e a i n 300.00

Min O e a i n 50.00

OPERATING ROOM Maj O e a i n 150.00

Medi m O e a i n 100.00

Min O e a i n 40.00

MEDICAL EXPENSES F dail i i f nfinemen ) 400.00

1
P ac i i ne
S eciali
20.0
0 /da
_____________
__
T al am n f medical e en e m n e ceed (f ingle e i d f c
1R ll , . 5-6.

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658 SUPREME COURT REPORTS ANNOTATED

Western Guaranty Corporation vs. Court of

Appeals

I ill be een ha he ab e ed Sched le f Indemni ie e abli he m ne

a limi hich We e n ma in ke in ca e f cc ence f he a ic la kind f

h ical inj he e li ed, e.g.: l f b h fee P6,000.00;

l f ne f P2,400.00;

l f igh f ne e e P1,800.00.
11/9/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 187
I m be e ed, h e e , ha he Sched le f Indemni ie d e not limi , en me a e e ha i el , he ecie
f b dil inj cc ence f hich gene a e liabili f e i i ne We e n. A ca acciden ma , f in ance, e l
in injury to internal organs f a a enge hi d a , without an acc m an ing am a i n l f an e e
nal membe (e.g., a f an a m an e e). B ch internal injuries a e el c e ed b Sec i n 1 f
he Ma e P lic , ince he ce ainl c n i e bodily injuries.
Pe i i ne We e n in effec c n end bef e hi C , a i did bef e he C f A eal , ha beca e he
Sched le f Indemni ie limi he am n a able f ce ain kind f e en e
h i al m , gical e en e , anae he i l gi fee , e a ing m and medical e en e ha Sched le h ld
be ead a e cl ding liabili f an he e f e en e damage l e en h gh ac all ained inc ed b he hi
d a ic im. We a e n e aded b We e n c n en i n.
Fi l , he Sched le f Indemni ie d e not e ic he kind f damage ha ma be a a ded again We
e n nce liabili ha a i en. Sec i n 1, ed ab e, d e efe ce ain Limi f Liabili hich in he ca e f he
hi d a liabili ec i n f he Ma e P lic , i a a en l P50,000.00 e e n e acciden . Wi hin hi e -all
an i a i e limi , all kind f damage all able b la ac al c m en a damage ; m al damage ; n
minal damage ; em e a e li ida ed damage ; and e em la damage
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m 2 de a e damage ma be a ; a ded b a c m e en c
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2 A icle 2197, Ci il C de.
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VOL. 187, JULY 23, 1990 659
Western Guaranty Corporation vs. Court of Appeals
again he in e nce liabili i h n ha e a i en, and he e en ial e i i e c ndi i n f g an f each ecie
f damage a e e en . I a ea elf-e iden ha he Sched le f Indemni ie a not intended be an en
me a i n, m ch le a cl ed en me a i n, f he ecific kind f damage hich ma be a a ded nde
he Ma e P lic We e n ha i ed. Acc dingl ,
e ag ee i h he C f A eal ha :
e cann ag ee i h he m an ha he ched le a mean be an e cl i e en me a i n f he na e f he damage f
hich i ld be liable nde i lic . A e ee i , he ched le a me el mean e limi he am n he m an ld be liable f in
ca e f claim f
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dea h, b dil inj ie f, fe i nal e ice and h i al cha ge , f
e ice ende ed affic acciden ic im , and n nece a il e cl de claim again he in ance lic f he kind f
damage , ch a
h e in e i n.
Sec ndl , he eading ged b We e n f he Sched le f Indemni ie c me cl e king f a d n b h he
in ed and he hi d a beneficia f Sec i n 1, ed ab e. F We e n eading ld d a icall and i h a
ning limi he he i e nlimi ed ( a e f he e -all an i a i e limi f liabili f P50,000.00 e e n e
acciden ) and c m ehen i e c e f liabili a med b he in e We e n nde Sec i n 1: all m nece
a di cha ge liabili f he in ed in e ec f [b dil inj a hi d a ] . Thi e l hich i n e en iall diffe en f
m aking a a i h he lef hand ha had been gi en
i h he igh hand e m a id a b i l e gnan
 blic lic . If ha We e n n ge i ha Western in ended achie e b i Sched le f Indemni ie , i a
inc mben n We e n e lang age fa m e ecific and eci e han ha ed in fac b We e n, ha he
in ed, and en ial cha e f i Ma e P lic , and he Office f he In ance C mmi i ne , ma be e l
inf med and ac acc dingl .
Pe i i ne We e n ld ha e c n e he Sched le f Indemni ie a c m i ing c n ac al limi a i n f
liabili hich, a al ead n ed, i c m ehen i el defined in Sec i n 1 Liabili he P blic f he Ma e P
lic . I i ell e led, h e e , ha c n ac al limi a i n f liabili f nd
660
660 SUPREME COURT REPORTS ANNOTATED
Western Guaranty Corporation vs. Court of Appeals
in in ance c n ac h ld be ega ded b c i h a ja ndiced e e and e eme ca e and h ld be c n
in e f m e ading c m liance i h i j ed a bliga i n . 3
ecl de he
Finall , an in ance c n ac i a c n ac f adhe i n. The le i ell en enched in j i dence ha he e
m f ch c n ac a e be c n ed ic l again he c n ac , hich in hi ca e ha en he a hich be e i i ne
We e e n.a 4
ed
ACCORDINGLY, he C Re l ed DENY he Pe i i n f Re ie f lack f me i . C again e i i ne .
Fernan (C.J., Chairman), Gutierrez, Jr., Bidin and Cortés, JJ., c nc .
Petition denied.
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No e. S b ga i n can nl e i af e in e ha aid he in ed. In e can be b ga

ed nl ch igh a in ed ma ha e, h ld in ed elea e he ngd e af e a
men i
ecei ed. (Manila Mahogany Manufacturing Corporation vs. Court of
Appeals, 154 SCRA 650.)

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__

3 Ta Ta i . Ca i al In ance, 24 SCRA 454 (1968); Eagle S a . Chia Y , 96 Phil . 696

(1955).
4 Landich . G e nmen Se ice In ance S em, 44 SCRA 7 (1972); Q a Chee Gan . La Uni
n and R ck In ance C ., L d., 98 Phil. (1955).

661
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