Landicho vs. GSIS (Insurance Law)

Landicho vs. GSIS

[G.R. No. L-28866 March 17, 1972]

FACTS:

On June 1, 1964, the GSIS !!ue" n #a$or o# %&a$ano Lan"cho, a c$& en'neer o# the (ureau o# )u*&c +or!, !tatone" at Ma*urao, Mn"oro Occ"enta&, otona& a""tona& &#e n!urance o&c/ No. OG10617 n the !u o# )7,9.  (e#ore the !!uance o# !a" o&c/, Lan"cho ha" #&e" an a&caton, */ #&n' an" !'nn' a rnte" #or o# the GSIS on the *a!! o# 3hch the o&c/ 3a! !!ue". )ara'r )ara'rah ah 7 o# !a" a&caton State! 7.  I here*/ a'ree a! #o&&o3!  c. 5hat th! a&caton !er$e! a! a &etter o# authort/ to the o&&ectn' O##cer o# our O##ce thru the GSIS to "e"uct #ro / !a&ar/ the onth&/ reu n the aount o#  )00.06, *e'nnn' the onth o# Ma/, 1964, an" e$er/ onth therea#ter unt& notce o#  t! "!contnuance !ha&& ha$e *eenrece$e" *eenrece$e" #ro the S/!te . ". 5hat the #a&ure to "e"uct #ro / !a&ar/ the onth reu! !ha&& not ae the o&c/ o&c / &a!e &a!e,, ho3 ho3e$er e$er,, the re reu u acco account unt !ha&& *e con! con!"er "ere" e" a! n"e* n"e*te"ne te"ne!! !! 3hch, I *n" /!e&# to a/ the S/!te . e. 5hat / o&c/ !ha&& *e a"e e##ect$e on the #r!t "a/ o# the onth net #o&&o3n' the onth the #r!t reu ! a" ro$"e", that t ! not ore nnet/ 9 "a/! *e#ore or a#ter the "ate o# the e"ca& eanaton, 3a! con"ucte" # re:ure".;

+h&e !t&& an e&o/ee o# the (ureau o# )u*&c +or!, Mr. Lan"cho "e" n an ar&ane cra!h on June 29, 1966. Mr!. Lan"cho, n her o3n *eha&# an" that o# her co-&ant##! an" nor ch&"ren, Ra#ae& J. an" Mara Lour"e! an" n #a$or o# the art/ !&e" there*/, the n!ure" e&o/ee. In"ee", our $& o"e ro$"e! 5he nterretaton o# o*!cure 3or"! or !tu&aton! n a contract !ha&& not #a$or the art/ 3ho cau!e" the o*!curt/. 2

5h! ! artcu&ar&/ true a! re'ar"! n!urance o&ce!, n re!ect o# 3hch t ! !ett&e" that the ; ;ter! n an n!urance o&c/, 3hch are a*'uou!, e:u$oca&, or uncertan ... are to be construed strictly  and most strongly against the insurer, and liberally in favor of the insured !o a! to e##ect the "onant uro!e o# n"ent/ or a/ent to the n!ure", e!eca&&/ 3here a #or#eture ! n$o&$e"; 29 ?. Jur., 181, an" the rea!on #or th! ru&e ! the ;n!ure" u!ua&&/ ha! no $oce n the !e&ecton or arran'eent o# the 3or"! e&o/e" an" that the &an'ua'e o# the contract ! !e&ecte" 3th 'reat care an" "e&*eraton */ eert! an" &e'a& a"$!er! e&o/e" */, an" actn' ec&u!$e&/ n the ntere!t o#, the n!urance coan/.; 44 .J.S., . 1174.  3.

5he e:uta*&e an" ethca& con!"eraton! @u!t#/n' the #ore'on' $e3 are *o&!tere" u */ t3o 2 #actor!, nae&/ a 5he a#oreentone" !u*"$!on c !tate! ;that th! a&caton !er$e! a! a &etter o# authort/ to the o&&ectn' O##cer o# our O##ce; > the (ureau o# )u*&c +or! > ;thru the GSIS to "e"uct #ro / !a&ar/ the onth&/ reu n the aount o# )00.06.; No !uch "e"ucton 3a! a"e > an", con!e:uent&/, not e$en the #r!t reu ;a"; > *ecau!e the co&&ectn' o##cer o# the (ureau o#  )u*&c +or! 3a! not a"$!e" */ the GSIS to ae t the "e"ucton ur!uant to !a" authort/. Sure&/, th! o!!on o# the GSIS !hou&" not nure to t! *ene#t. .

* The GSIS had impliedly induced the insured to believe that Policy No. OG-10617 was in force, he having been paid by the GSIS the dividends corresponding to said policy . Aa" the n!ure" ha" the !&'hte!t n&n' that the &atter 3a! not, a! /et, e##ect$e #or non-a/ent o# the #r!t reu, he 3ou&" ha$e, n a&& ro*a*&t/, cau!e" the !ae to *e #orth3th !at!#e".

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