Practice question
Under two ordinary unvalued non-life policies, the same insured interest is overinsured. The full insurable value is P 1 million and the insured has already received P 700,000 under one policy. Assume a total covered loss and no distinct interest. Can the insured disregard that receipt and obtain another P 1 million on the same interest?
- No; the prior receipt must be taken into account against the full insurable value under Section 96.
- Yes, each insurer creates a separate actual loss.
- Yes, all policies permit unlimited enrichment.
- Yes, contribution rules authorize the insured to keep any excess.
- Yes, only the first insurer bears the duty to disclose payment.
Legal references
- Insurance Code as amended by RA10607, Sections26–48 and95–100: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html
- Malayan Insurance v. Philippines First Insurance, GR184300, July11 2012, main decision: https://lawphil.net/judjuris/juri2012/jul2012/gr_184300_2012.html
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