Professional Documents
Culture Documents
Eternal Gardens Memorial Park Corporation vs. Philippine American Life Insurance Company
Eternal Gardens Memorial Park Corporation vs. Philippine American Life Insurance Company
Eternal Gardens Memorial Park Corporation vs. Philippine American Life Insurance Company
CASES REPORTED
SUPREME COURT REPORTS ANNOTATED
___________________
_______________
* SECOND DIVISION.
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 1 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 2 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
VELASCO, JR., J.:
The Case
Central to this Petition for Review on Certiorari under
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 3 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
_______________
The Facts
On December 10, 1980, respondent Philippine American
Life Insurance Company (Philamlife) entered into an
agreement denominated as Creditor Group Life Policy No.
P-19202 with petitioner Eternal Gardens Memorial Park
Corporation (Eternal). Under the policy, the clients of
Eternal who purchased burial lots from it on installment
basis would be insured by Philamlife. The amount of
insurance coverage depended upon the existing balance of
the purchased burial lots. The policy was to be effective for
a period of one year, renewable on a yearly basis.
The relevant provisions of the policy are:
ELIGIBILITY.
Any Lot Purchaser of the Assured who is at least 18 but not more
than 65 years of age, is indebted to the Assured for the unpaid
balance of his loan with the Assured, and is accepted for Life
Insurance coverage by the Company on its effective date is eligible
for insurance under the Policy.
EVIDENCE OF INSURABILITY.
No medical examination shall be required for amounts of
insurance up to P50,000.00. However, a declaration of good health
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 4 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
_______________
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 5 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
_______________
3 Id., at p. 58.
4 Id., at p. 139.
5 Id., at p. 160.
6 Id., at p. 162.
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 6 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
_______________
7 Id., at p. 163.
8 Id., at p. 164.
9 Id., at p. 165.
have been met. We will however, return all the premiums which
have been paid in behalf of John Uy Chuang.‰
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 7 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
which reads:
_______________
10 Rollo, p. 44.
SO ORDERED.‰11
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 8 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
_______________
11 Id., at p. 54.
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 9 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 10 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
the attach-
_______________
12 G.R. No. 156360, January 14, 2005, 448 SCRA 220, 228-229.
10
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 11 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
new coverage?
_______________
14 People v. Jaberto, G.R. No. 128147, May 12, 1999, 307 SCRA 93, 102.
15 People v. Oliquino, G.R. No. 171314, March 6, 2007, 517 SCRA 579, 588.
11
[Mendoza:]
A It is [a] standard operating procedure for the new client to fill up two
copies of this form and the original of this is submitted to Philamlife
together with the monthly remittances and the second copy is
remained or retained with the marketing department of Eternal
Gardens.
Atty. Miranda:
We move to strike out the answer as it is not responsive as counsel is
merely asking for the location and does not [ask] for the number of
copy.
Atty. Arevalo:
Q Where is the original?
[Mendoza:]
A As far as I remember I do not know where the original but when I
submitted with that payment together with the new clients all the
originals I see to it before I sign the transmittal letter the originals are
attached therein.16
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 12 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
_______________
12
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 13 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
_______________
18 G.R. Nos. 142369-70, April 13, 2007, 521 SCRA 31, 43.
13
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 14 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
_______________
19 G.R. No. 119599, March 20, 1997, 270 SCRA 242, 254.
20 G.R. No. 125678, March 18, 2002, 379 SCRA 356, 366.
14
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 15 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
and unambiguous.
As a final note, to characterize the insurer and the
insured as contracting parties on equal footing is
inaccurate at best. Insurance contracts are wholly prepared
by the insurer with vast amounts of experience in the
industry purposefully used to its advantage. More often
than not, insurance contracts are contracts of adhesion
containing technical terms and conditions of the industry,
confusing if at all understandable to laypersons, that are
imposed on those who wish to avail of insurance. As such,
insurance contracts are imbued with public interest that
must be considered whenever the rights and obligations of
the insurer and the insured are to be delineated. Hence, in
order to protect the interest of insurance applicants,
insurance companies must be obligated to act with haste
upon insurance applications, to either deny or approve the
same, or otherwise be bound to honor the application as a
valid, binding, and effective insurance contract.21
WHEREFORE, we GRANT the petition. The November
26, 2004 CA Decision in CA-G.R. CV No. 57810 is
REVERSED and SET ASIDE. The May 29, 1996 Decision
of the Makati
_______________
15
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 16 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
··o0o··
_______________
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 17 of 18
SUPREME COURT REPORTS ANNOTATED VOLUME 551 9/16/21, 12:59 AM
https://www.central.com.ph/sfsreader/session/0000017bea6a06850b1bedc3000d00d40059004a/p/ARM969/?username=Guest Page 18 of 18