Taurus Taxi vs. Capital Insurance

TAURUS TAXI CO., INC., FELICITAS V. MONJE, ET AL., plaintiffs-appellees, vs. THE CAPITAL INSURANCE & SURETY CO., INC., defendant-appellant. FACTS: (1) Alfredo Monje was employed as a taxi driver of the Taurus Taxi. (2) On December 6, 1962, the taxi he was driving collided with a Transport Taxicab at the intersection of Old Sta. Mesa and V. Mapa Streets, Manila, resulting in his death. (3) Commercial Vehicle Comprehensive Policy was subsisting at the time of the accident.The Policy states that the amount for which each passenger, including the driver, is insured is P5,000.00. (4) The Indorsement No. 1 which forms part of the policy was given to Petitoner Felicitas and his children. (5) Taurus Taxi made representation " for the payment of the insurance benefit which corresponds to the wife and children". Defendant refused to pay. (6) DEFENDANTS CONTENTION: that in view of the fact that the deceased Alfredo Monje was entitled to indemnity under ANOTHER INSURANCE POLICY issued by Ed. A. Keller Co., Ltd., the heirs of the said deceased are not entitled to indemnity under the insurance policy issued by appellant for the reason that the latter POLICY contains a stipulation that "the company will indemnify any authorized driver provided that such authorized driver is not entitled to indemnity under any other policy. (2)RTC: In favor of the plaintiffs. Order the defendant pay the plaintiff. Defendant would seek to escape liability on the plea that the workman's compensatio. CA: Affirmed. ISSUE: (1)Whether or not the defendant-appellant will indemnify any authorized driver provided that [he] is not entitled to any indemnity under any other policy, it being shown that the deceased was paid his workman's compensation from another insurance policy, should defeat such a right to recover under the insurance contract subject of this suit? (2) Whether or not the plaintiffs committed breach of policy condition when they were joined by Taurus? (Basis is one of the conditions in the policy which states that "no admission, offer, promise or payment shall be made by or on behalf of the insured without the written consent of the Company x x x) HELD: (1)Yes. The petitioner may still recover or still entitled to indemnification from the defendant. (2)No. There is no breach of policy. RATIO: (1)If there is doubt concerning the liability of the defendant insurance firm, it should be resolved against the insurance and in favor of the insured because a contract of insurance couched in language chosen by the insurer is, if open to the construction contended for by the insured, to be construed most strongly, or strictly, against the insurer and liberally in favor of the contention of the insured, which means in accordance with the rule contra proferentem. (2)The institution of the action cannot possibly be construed as an admission, offer, promise, or payment by the company, for it merely seeks to enforce, by court action, the only legal remedy available to it, its rights under the contract of insurance to which it is a party