Edillon vs Manila Bankers Life Insurance

Corporation
G.R. No. L-34200
September 30, 1982
Vasquez, J
FACTS

• In April 1969, Carmen Lapuz applied with Manila

Bankers for Insurance coverage against accident
and injuries. In the application form, she indicated
her birthdate as July 11, 1904. She named her sister
Regina Edillon as her beneficiary.
• She paid 20.00php representing as premium for
which she was issued, corresponding receipt.
• Manila Bankers issued her a policy effective for a
period of 90 days.
• However, On May 1969, Carmen died in a
vehicular accident in the North Diversion
Road.
• Regina then filed her claim for the proceeds
of the insurance.
• Manila Bankers refused her claim, relying on
a provision contained in the Certificate of
Insurance which excluded its liability to pay
claims in behalf of persons who are under
sixteen or over sixty. Because Carmen was
over 60 years old when she applied for the
insurance coverage, the policy is null and
void, and no risk ever arose n the part of
Manila Bankers.
Whether or not Edillon is entitled to the insurance
claim as a beneficiary
Ruling
• Yes. Carmen Lapuz did not conceal her true
age. Despite this, the insurance company still
received premium from Lapuz and issued the
corresponding insurance policy to her. When
the accident happened, the insurance policy has
been in force for 45 days already and such time
was already sufficient for Manila Banker to
notice the fact that Lapuz is already over 60
years old and thereby cancel the insurance
policy.
• If Manila Banker failed to act, it is either
because it was willing to waive such
disqualification; or, through the negligence or
incompetence of its employees for which it has
only itself to blame, it simply overlooked such
fact.