Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 1988 > May 1988 Decisions > G.R. No. L-36480 May 31, 1988 - ANDREW PALERMO v. PYRAMID INSURANCE CO., INC.:




PHILIPPINE SUPREME COURT DECISIONS

FIRST DIVISION

[G.R. No. L-36480. May 31, 1988.]

ANDREW PALERMO, Plaintiff-Appellee, v. PYRAMID INSURANCE CO., INC., Defendant-Appellant.


D E C I S I O N


GRIÑO-AQUINO, J.:


The Court of Appeals certified this case to Us for proper disposition as the only question involved is the interpretation of the provision of the insurance contract regarding the "authorized driver" of the insured motor vehicle.

On March 7, 1969, the insured, appellee Andrew Palermo, filed a complaint in the Court of First Instance of Negros Occidental against Pyramid Insurance Co., Inc., for payment of his claim under a Private Car Comprehensive Policy MV-1251 issued by the defendant (Exh. A).

In its answer, the appellant Pyramid Insurance Co., Inc., alleged that it disallowed the claim because at the time of the accident, the insured was driving his car with an expired driver’s license.

After the trial, the court a quo rendered judgment on October 29, 1969 ordering the defendant "to pay the plaintiff the sum of P20,000.00, value of the insurance of the motor vehicle in question and to pay the costs.cralawnad

"On November 26, 1969, the plaintiff filed a "Motion for Immediate Execution Pending Appeal." It was opposed by the defendant, but was granted by the trial court on December 15, 1969.

The trial court found the following facts to be undisputed:jgc:chanrobles.com.ph

"On October 12, 1968, after having purchased a brand new Nissan Cedric de Luxe Sedan car bearing Motor No. 087797 from the Ng Sam Bok Motors Co. in Bacolod City, plaintiff insured the same with the defendant insurance company against any loss or damage for P20,000.00 and against third party liability for P10,000.00. Plaintiff paid the defendant P361.34 premium for one year, March 12, 1968 to March 12, 1969, for which defendant issued Private Car Comprehensive Policy No. MV-1251, marked Exhibit ‘A.’

"The automobile was, however, mortgaged by the plaintiff with the vendor, Ng Sam Bok Motors Co., to secure the payment of the balance of the purchase price, which explains why the registration certificate in the name of the plaintiff remains in the hands of the mortgagee, Ng Sam Bok Motors Co.

"On April 17, 1968, while driving the automobile in question, the plaintiff met a violent accident. The La Carlota City fire engine crashed head on, and as a consequence, the plaintiff sustained physical injuries, his father, Cesar Palermo, who was with him in the car at the time was likewise seriously injured and died shortly thereafter, and the car in question was totally wrecked.

"The defendant was immediately notified of the occurrence, and upon its orders, the damaged car was towed from the scene of the accident to the compound of Ng Sam Bok Motors in Bacolod City where it remains deposited up to the present time.

"The insurance policy, Exhibit ‘A,’ grants an option unto the defendant, in case of accident either to indemnify the plaintiff for loss or damage to the car in cash or to replace the damaged car. The defendant, however, refused to take either of the above-mentioned alternatives for the reason as alleged, that the insured himself had violated the terms of the policy when he drove the car in question with an expired driver’s license." (Decision, Oct. 29, 1969, p. 68, Record on Appeal.)

Appellant alleges that the trial court erred in interpreting the following provision of the Private Car Comprehensive Policy MV-1251:jgc:chanrobles.com.ph

"AUTHORIZED DRIVER:chanrob1es virtual 1aw library

Any of the following:chanrob1es virtual 1aw library

(a) The Insured.

(b) Any person driving on the Insured’s order or with his permission. Provided that the person driving is permitted in accordance with the licensing or other laws or regulations to drive the Motor Vehicle and is not disqualified from driving such motor vehicle by order of a Court of law or by reason of any enactment or regulation in that behalf." (Exh.’A.’)

There is no merit in the appellant’s allegation that the plaintiff was not authorized to drive the insured motor vehicle because his driver’s license had expired. The driver of the insured motor vehicle at the time of the accident was the insured himself, hence an "authorized driver" under the policy.

While the Motor Vehicle Law prohibits a person from operating a motor vehicle on the highway without a license or with an expired license, an infraction of the Motor Vehicle Law on the part of the insured, is not a bar to recovery under the insurance contract. It however renders him subject to the penal sanctions of the Motor Vehicle Law.

The requirement that the driver be "permitted. in accordance with the licensing or other laws or regulations to drive the Motor Vehicle and is not disqualified from driving such motor vehicle by order of a Court of Law or by reason of any enactment or regulation in that behalf," applies only when the driver "is driving on the insured’s order or with his permission." It does not apply when the person driving is the insured himself.

This view may be inferred from the decision of this Court in Villacorta v. Insurance Commission, 100 SCRA 467, where it was held that:chanrobles law library : red

"The main purpose of the ‘authorized driver’ clause, as may be seen from its text, is that a person other than the insured owner, who drives the car on the insured’s order, such as his regular driver, or with his permission, such as a friend or member of the family or the employees of a car service or repair shop, must be duly licensed drivers and have no disqualification to drive a motor vehicle.

In an American case, where the insured herself was personally operating her automobile but without a license to operate it, her license having expired prior to the issuance of the policy, the Supreme Court of Massachusetts was more explicit:jgc:chanrobles.com.ph

". . . Operating an automobile on a public highway without a license, which act is a statutory crime is not precluded by public policy from enforcing a policy indemnifying her against liability for bodily injuries inflicted by use of the automobile." (Drew C. Drewfield McMahon v. Hannah Pearlman, Et Al., 242 Mass. 367, 136 N.E. 154, 23 A.L.R. 1467.)

WHEREFORE, the appealed decision is affirmed with costs against the defendant-appellant.

SO ORDERED.

Narvasa, Cruz, Gancayco and Medialdea, JJ., concur.




Back to Home | Back to Main




















chanrobles.com





ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review : www.chanroblesbar.com

ChanRobles MCLE On-line

ChanRobles Lawnet Inc. - ChanRobles MCLE On-line : www.chanroblesmcleonline.com






May-1988 Jurisprudence                 

  • G.R. No. L-47717 May 2, 1988 - IGNACIO PASCUA, ET AL. v. HEIRS OF SEGUNDO SIMEON, ET AL.

  • G.R. No. 76353 May 2, 1988 - SOPHIA ALCUAZ, ET AL. v. PHILIPPINE SCHOOL OF BUSINESS ADMINISTRATION, ET AL.

  • G.R. No. L-43446 May 3, 1988 - FILIPINO PIPE AND FOUNDRY CORPORATION v. NATIONAL WATERWORKS AND SEWERAGE AUTHORITY

  • G.R. No. L-39272 May 4, 1988 - EUGENIA SALAMAT VDA. DE MEDINA v. FERNANDO A. CRUZ, ET AL.

  • G.R. No. L-66183 May 4, 1988 - RICARDO O. MONTINOLA, JR. v. REPUBLIC PLANTERS BANK, ET AL.

  • G.R. No. L-67451 May 4, 1988 - REALTY SALES ENTERPRISE, INC., ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. L-74410 May 4, 1988 - PABLO MAYOR v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. L-53984 May 5, 1988 - PEOPLE OF THE PHIL. v. EDUARDO V. ANTONIO

  • G.R. No. L-70987 May 5, 1988 - GREGORIO Y. LIMPIN, JR., ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. L-78605 May 5, 1988 - NATIONAL POWER CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. L-53907 May 6, 1988 - MODERN FISHING GEAR LABOR UNION v. CARMELO C. NORIEL, ET AL

  • G.R. Nos. L-57719-21 May 6, 1988 - WILFREDO DAVID v. COURT OF APPEALS, ET AL.

  • G.R. No. 76595 May 6, 1988 - PACIFIC ASIA OVERSEAS SHIPPING CORPORATION v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • A.M. No. R-254-MTJ and 88-1-2807-MCTC May 9, 1988 - COURT ADMINISTRATOR v. RICARDO M. MAGTIBAY

  • G.R. No. L-30964 May 9, 1988 - SY CHIE JUNK SHOP, ET AL. v. FOITAF, ET AL.

  • G.R. No. L-43825 May 9, 1988 - CONTINENTAL MARBLE CORP., ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-46303 May 9, 1988 - VICENTE S. UMALI v. JORGE COQUIA, ET AL.

  • G.R. No. L-47968 May 9, 1989

    LINA MONTILLA v. COURT OF APPEALS, ET AL.

  • G.R. No. L-48064 May 9, 1988 - ANTHONY POWERS, ET AL. v. DONALD I. MARSHALL, ET AL.

  • G.R. No. L-49893 May 9, 1988 - DANIEL C. ASPACIO v. AMADO G. INCIONG, ET AL.

  • G.R. No. L-51278 May 9, 1988 - HEIRS OF RAMON PIZARRO, SR. v. FRANCISCO Z. CONSOLACION, ET AL.

  • G.R. No. L-54090 May 9, 1988 - PEOPLE OF THE PHIL. v. ABRAHAM P. SERANILLA, ET AL.

  • G.R. No. L-56505 May 9, 1988 - MAXIMO PLENO v. COURT OF APPEALS, ET AL.

  • G.R. No. L-56923 May 9, 1988 - RAMON J. ALEGRE v. MANUEL T. REYES, ET AL.

  • G.R. No. L-57061 May 9, 1988 - PEOPLE OF THE PHIL. v. MANGUIGIN MACATANA, ET AL.

  • G.R. No. L-57280 May 9, 1988 - PEOPLE OF THE PHIL. v. COURT OF FIRST INSTANCE OF RIZAL, BRANCH IV, QUEZON CITY, ET AL.

  • G.R. No. L-68940 May 9, 1988 - PEOPLE OF THE PHIL. v. MATEO ABAGON, ET AL.

  • G.R. No. L-77227 May 9, 1988 - COMMANDER REALTY, INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 78604 May 9, 1988 - BATAAN SHIPYARD and ENGINEERING CO., INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-81190 May 9, 1988 - MATIAS B. AZNAR III, ET AL. v. JUANITO A. BERNAD, ET AL.

  • A.M. No. R-6-RTJ May 11, 1988 - PELAGIO SICAT v. FERNANDO S. ALCANTARA, ET AL.

  • G.R. No. L-38426 May 11, 1988 - PEDRO DE VILLA v. ISMAEL MATHAY, SR.

  • G.R. No. L-48848 May 11, 1988 - FEDERATION OF FREE WORKERS, ET AL. v. AMADO G. INCIONG, ET AL.

  • G.R. No. L-48889 May 11, 1989

    DEVELOPMENT BANK OF THE PHILIPPINES v. MIDPANTAO L. ADIL

  • G.R. No. L-65680 May 11, 1988 - JOSE B. SARMIENTO v. EMPLOYEES’ COMPENSATION COMMISSION, ET AL.

  • G.R. No. L79644 May 11, 1988 - LORENZO SHIPPING CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. L-53873 May 13, 1988 - PEOPLE OF THE PHIL. v. ALFREDO C. LAYA, ET AL.

  • G.R. No. L-47379 May 16, 1988 - NATIONAL POWER CORPORATION v. COURT OF APPEALS, ET AL.

  • A.C. No. 3153 May 17, 1988 - JUANITO L. HAW TAY v. EDUARDO SINGAYAO

  • G.R. No. L-58652 May 20, 1988 - ALFREDO B. RODILLAS v. SANDIGANBAYAN, ET AL.

  • G.R. No. L-50242 May 21, 1988 - E. RAZON, INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-53966 May 21, 1988 - IN RE: JOSE B. YUSAY, ET AL. v. TERESITA Y. RAMOS

  • G.R. No. L-60487 May 21, 1988 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. L-72069 & L-72070 May 21, 1988 - COMMISSIONER OF CUSTOMS v. COURT OF TAX APPEALS, ET AL.

  • G.R. No. 77465 May 21, 1988 - UY TONG, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 78343 May 21, 1988 - HEIRS OF RICARDO OLIVAS v. FLORENTINO A. FLOR, ET AL.

  • G.R. No. L-37409 May 23, 1988 - NICOLAS VALISNO v. FELIPE ADRIANO

  • G.R. No. L-47414 May 23, 1988 - ELIODORO T. ISCALA v. REPUBLIC OF THE PHIL., ET AL.

  • G.R. No. 71863 May 23, 1988 - PEOPLE OF THE PHIL. v. ALEJANDRO POLICARPIO KHAN

  • G.R. No. L-73491 May 23, 1988 - CONCEPCION B. TUPUE v. JOSE URGEL, ET AL.

  • G.R. No. 74907 May 23, 1988 - PEDRO S. LACSA v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. L-76258 May 23, 1988 - JUANITO S. AMANDY v. PEOPLE OF THE PHIL., ET AL.

  • G.R. No. 79010 May 23, 1988 - GENEROSO CORTES v. COURT OF APPEALS, ET AL.

  • G.R. No. L-30751 May 24, 1988 - PHILIPPINE NATIONAL BANK v. GENERAL ACCEPTANCE AND FINANCE CORPORATION, ET AL.

  • G.R. No. L-38570 May 24, 1988 - DOMINGO PADUA v. VICENTE ERICTA, ET AL.

  • G.R. No. L-57145 May 24, 1988 - PEOPLE OF THE PHIL. v. VALENTIN ATUTUBO

  • G.R. No. L-66575 May 24, 1988 - ADRIANO MANECLANG, ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 71909 May 24, 1988 - JANE CUA, ET AL. v. CARMEN LECAROS, ET AL.

  • G.R. No. 80066 May 24, 1988 - PEOPLE OF THE PHIL. v. MAXIMIANO ASUNCION, ET AL.

  • G.R. No. L-36007 May 25, 1988 - FERNANDO GALLARDO v. JUAN BORROMEO

  • G.R. No. L-61093 May 25, 1988 - ELIGIO P. MALLARI, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-65483 May 25, 1988 - PEOPLE OF THE PHIL. v. SILVINO T. VILLANUEVA

  • G.R. No. 74451 May 25, 1988 - EQUITABLE BANKING CORPORATION v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 77859 May 25, 1988 - CENTURY TEXTILE MILLS, INC., ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-64349 May 27, 1988 - CARLOS CARPIO v. PEOPLE OF THE PHIL.

  • G.R. No. L-46188 May 28, 1988 - HELENA ALMAZAR v. PEDRO D. CENZON, ET AL.

  • G.R. No. L-46556 May 28, 1988 - NAPOLEON O. CARIN v. EMPLOYEES’ COMPENSATION COMMISSION, ET AL.

  • G.R. No. L-51101 May 28, 1988 - RUFINO NAZARETH, ET AL. v. RENATO S. SANTOS, ET AL.

  • G.R. No. L-53650 May 28, 1988 - VIRGINIA M. RAMOS v. ABDUL-WAHID A. BIDIN, ET AL.

  • G.R. No. L-56362 May 28, 1988 - TOMASITA AQUINO v. PEDRO T. SANTIAGO, ET AL.

  • G.R. No. L-56429 May 28, 1988 - BANCO FILIPINO SAVINGS AND MORTGAGE BANK v. FIDEL PURISIMA, ET AL.

  • G.R. No. L-58997 May 28, 1988 - MARCELINO TIBURCIO v. JOSE P. CASTRO, ET AL.

  • G.R. No. L-60937 May 28, 1988 - WALTER ASCONA LEE, ET AL. v. MANUEL V. ROMILLO, JR., ET AL.

  • G.R. No. L-61223 May 28, 1988 - PEOPLE OF THE PHIL. v. CONRADO L. MERCADO

  • G.R. No. L-61464 May 28, 1988 - BA FINANCE CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. L-66884 May 28, 1988 - PEOPLE OF THE PHIL. v. VICENTE TEMBLOR

  • G.R. No. 77047 May 28, 1988 - JOAQUINA R-INFANTE DE ARANZ, ET AL. v. NICOLAS GALING, ET AL.

  • G.R. No. L-38303 May 30, 1988 - HONGKONG & SHANGHAI BANKING CORPORATION v. RALPH PAULI, ET AL.

  • G.R. No. L-43866 May 30, 1988 - PETRONIO COLLADO, ET AL. v. HAROLD M. HERNANDO, ET AL.

  • G.R. No. L-48757 May 30, 1988 - MAURO GANZON v. COURT OF APPEALS, ET AL.

  • G.R. Nos. L-67158, 67159, 67160, 67161, & 67162 May 30, 1988 - CLLC E.G. GOCHANGCO WORKERS UNION, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-24842 May 31, 1988 - REPUBLIC OF THE PHIL. v. ALEJANDRO CARDENAS

  • G.R. No. L-36480 May 31, 1988 - ANDREW PALERMO v. PYRAMID INSURANCE CO., INC.

  • G.R. No. L-36773 May 31, 1988 - REPUBLIC OF THE PHIL. v. COURT OF FIRST INSTANCE OF CAMARINES SUR, ET AL.

  • G.R. No. L-54290 May 31, 1988 - DON PEPE HENSON ENTERPRISES, ET AL. v. IRINEO PANGILINAN, ET AL.

  • G.R. No. L-57650 May 31, 1988 - CATALINO Y. TINGA v. PEOPLE OF THE PHIL.

  • G.R. No. L-59801 May 31, 1988 - LEONOR P. FERNANDEZ, ET AL. v. FRANCIS J. MILITANTE, ET AL.

  • G.R. No. L-67948 May 31, 1988 - PEOPLE OF THE PHIL. v. NAPOLEON MONTEALEGRE

  • G.R. No. 78775 May 31, 1988 - JOSE UNCHUAN v. COURT OF APPEALS, ET AL.

  • G.R. No. 80774 May 31, 1988 - SAN MIGUEL CORPORATION v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-81805 May 31, 1988 - VAR-ORIENT SHIPPING CO., INC., ET AL. v. TOMAS D. ACHACOSO, ET AL.

  • G.R. No. 82330 May 31, 1988 - DIAL CORPORATION, ET AL. v. CLEMENTE M. SORIANO, ET AL.

  • G.R. No. 82568 May 31, 1988 - ALFREDO R.A. BENGZON, ET AL. v. COURT OF APPEALS, ET AL.