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TITLE 9

LOSS
Sections 85 to 89

DEFINITION

Injury, damage, or liability sustained by the


insured in consequence of the happening of one
or more of the perils against which the insurer, in
consideration, of the premium, has undertaken to
indemnify the insured.

TYPES OF LOSSES COMPENSABLE


Actual Total Loss
Constructive Total Loss
Partial Loss

PAN MALAYAN INSURANCE


CORPORATION VS. COURT OF
APPEALS
(G.R. NO. 95070, 05 SEPTEMBER 1991)

The rule is that where the cargo by the process of


decomposition or other chemical agency no longer
remains the same kind of things as before, an
actual total loss has been suffered.

SECTION 85
An agreement not to transfer the claim of
the insured against the insurer after

loss

has happened, is

void

the

if made

before the loss except as otherwise provided


in the case of life insurance.

CLAIM

A demand for the satisfaction of a loss suffered


within the purview of an insured policy.

SECTION 86
Unless otherwise provided by the policy, an
insurer is liable for a loss of which a peril
insured against was the proximate

cause,

although a peril not contemplated by the


contract may have been a remote cause of the
loss; but he is not liable for a loss of which the
peril insured against was only a remote cause.

PROXIMATE CAUSE

That which, in a natural and continuous


sequence, unbroken by any new independent
cause, produces an event and without which the
event would not have occurred.

BURDEN OF PROOF WHERE LOSS


HAS OCCURRED

Insurer; to show that he is not liable

HOSTILE FIRE

(FOR BON)

FRIENDLY FIRE

(FOR BON)

SECTION 87
An insurer is liable where the thing insured is
rescued from a peril insured against that would
otherwise have caused a loss, if, in the course of
such rescue, the thing is exposed to a peril not
insured against, which permanently deprives the
insured of its possession, in whole or in part; or
where a loss is caused by efforts to rescue the thing
insured from a peril insured against

FOR BON DISCUSSION RE SEC 87

CASE DISCUSSION FOR BON

SECTION 88
Where a peril is especially excepted in a
contract of insurance, a loss, which would
not have occurred but for such peril, is
thereby excepted although the immediate
cause of the loss was a peril which was not
excepted.

CASE DISCUSSION FOR SICCUAN

SECTION 89
An insurer is not liable for a loss caused by
the

willful

connivance

act

or

through

the

of the insured; but he is not

exonerated by the negligence of the insured,


or of the insurance agents or others.

FOR RAMOS DISCUSSION RE SEC


89

CASE DISCUSSION FOR RAMOS

END OF PRESENTATION

Bon, Rosaminda S.
Juan, Judith O.
Ramos, Rexford P.
Siccuan, Mark Nikolai A.
ATTY. LYDIA BUNDAC
Insurance, 2nd Semester
A.Y. 2015-2016

Arellano University School of Law