Over insurance clause - sc.judiciary.gov.ph/jurisprudence/2012/july2012/184300.pdf

sc.judiciary.gov.ph/jurisprudence/2012/july2012/184300.pdf

"x x x.


By the express provision of Section 93 of the Insurance Code, double insurance exists where  the same person is insured by several insurers separately in respect to the same subject and interest.  The requisites in order for double insurance to arise are as follows:

1.  The person insured is the same;
2.  Two or more insurers insuring separately;
3.  There is identity of subject matter;
4.  There is identity of interest insured; and
5. There is identity of the risk or peril insured against.

In the present case, while it is true that the Marine Policy and the SR Policy were both issued over the same subject matter, i.e. goods belonging to Wyeth, and both covered the same peril insured against, it is, however, beyond cavil that the said policies were issued to two different persons or entities.  It is undisputed that Wyeth is the recognized insured of Philippines First under its Marine Policy, while Reputable is the recognized insured of Malayan under the SR Policy.  The fact that Reputable procured Malayan’s SR Policy over the goods of Wyeth pursuant merely to the stipulated
requirement under its contract of carriage with the latter does not make Reputable a mere agent of Wyeth in obtaining the said SR Policy.

The interest of Wyeth over the property subject matter of both insurance contracts is also different and distinct from that of Reputable’s.  The policy issued by Philippines First was in consideration of the legal and/or equitable interest of Wyeth over its own goods.  On the other hand, what was issued by Malayan to Reputable was over the latter’s insurable interest over the safety of the goods,  which may become the basis of the latter’s liability in case of loss or damage to the property and falls within the
contemplation of Section 15 of the Insurance Code.

x x x."