TAMPICO, E.L.

Tampico, Eldene L.
JD 3-4

Insurance Law

Asynchronous Activity No. 1

1. What is insurance? As a non-lawyer what is your knowledge of the subject?

According to Sec. 2 of the Insurance Code of the Philippines, a contract of insurance is

an agreement whereby one undertakes for a consideration to indemnify another against
loss, damage, or liability arising from an unknown or contingent event.

As a non-lawyer, I have always viewed insurance as a mode of compensating a person

or his or her heirs if an unexpected incident occurs such as an accident, health issues,
hospitalization, loss of some or all physical capabilities, and even death. I understood
insurance to work through the client paying the insurance company in the terms they
both agreed to for the purpose of which when such future occurrence happens, he or
she or his or her heirs are bound to get compensated.

2. What do you think are the popular information on the law, which you would like
confirmation by law? e.g. I heard that some businessman burn their factories so that
they claim double the insurance value of their bankrupt businesses.

I heard that some people submit to suicide during difficult financial times in order for
their families to receive insurance money. I might have heard a news of one person
staging his own kidnapping and death.

Also, I heard that really old people as well as people with some specific and/or terminal
diseases are declined by insurance companies when they apply for insurance.

pg. 1