Professional Documents
Culture Documents
CA
Topic: Concealment
CODE: Sec. 26 A neglect to communicate that which a party
knows and ought to communicate, is called a CONCEALMENT.
Summary: [BASA BASA MUNA INSYUUURENCE CONTRECT
BAGO PUMAYAG HINDI NIYA NABASA NA KELANGAN IDECLARE KUNG MAY PREVIOUSLY INSURED [ COINSURANCE] YUNG SAME OBJECT.
Note- In this case: pwede non-disclosure provided total
indemnity is not more than 200k
1. Petitioner- [FIRE INSURANCE ]co-insured (different
insurance companies) of the same stock/ goods of
the company
2. The warehouse burned down.
3. Petitioner claim was denied for failing to disclose
that said property was co-insured, upon
acquiring said insurance.
4. Said requirement of disclosure was stated in the
insurance policy of the insurance companies
5. Hence, such concealment , prevented the company
from claiming their insurance.
ISSUE- W/N Petitioner can claim NO, VIOLATION OF
INSURANCE POLICY NON DISCLOSURE THAT SAID
PROPERTY WAS CO-INSURED.
RATIO - The obvious purpose of the aforesaid
requirement in the policy is to prevent over-insurance and thus
avert the perpetration of fraud. The public, as well as the insurer,
is interested in preventing the situation in which a fire would be
profitable to the insured. According to Justice Story: "The insured
has no right to complain, for he assents to comply
with all the stipulations on his side, in order to entitle himself to the
benefit of the contract, which, upon reason or principle, he
has no right to ask the court to dispense with the
performance of his own part of the agreement, and yet to
bind the other party to
obligations, which, but for those stipulations, would not have been
entered into."
Facts
6. The antecedents of this case show that Julian Sy and
Jose Sy Bang have formed a business partnership