GR No. 85141 Nov. 28, 1989 FILIPINO MERCHANTS INSURANCE CO.

INC, VS COURT OF APPEALS AND CHOA TIEK SENG FACTS: Plaintiff insured its shipment with defendant insurance company under an all risks marine policy for the goods described as !! metric tons of fishmeal in new gunny bags of "! kilos each from #angkok$ Thailand to %anila against all risks under warehouse to warehouse terms& The fishmeal in new gunny bags were unloaded from the ship at %anila unto the arrastre contractor '& (a)on *nc& and defendant+s sure,eyor ascertained and certified that in such discharge -!. bags were in bad order condition& The condition of bad order was reflected in the turn o,er sur,ey report of #ad order Cargoes & Plaintiff made a formal claim with Filipino %erchants *nsurance Company but the latter refused to pay the claim& The trial court ruled against the insurer& *SS/': 0hether or not an all risks marine policy can be claimed only if there is 1some fortuity casualty or accidental cause to which the alleged loss is attributable (/2*34: 3o& An all risks policy should be read literally as meaning all risks whatsoe,er and co,ering all losses by an accidental cause of any king& The terms ha,e been taken to mean that which happens by chance or fortuitously$ without intention and design$ and which is une5pected$ unusual and unforeseen& The terms all risks must be gi,en a broad and comprehensi,e meaning as co,ering any loss other than a willful and fraudulent act of the insured& The burden of proof is upon the insured to show that a loss arose from a co,ered peril$ but under an all risks policy the burden is not on the insured to pro,e the precise cause of loss or damage for which it seeks compensation& The insured has the initial burden of pro,ing that the cargo was in good condition when the policy attached and that the cargo was damaged when unloaded from the ,essel6 thereafter the burden then shifts to the insurer to show the e5ception to the co,erage& *n the present case$ there being no showing that the loss was caused by any of the e5cepted perils$ the insurer is liable under the policy&