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Republic of the Philippines

National Capital Judicial Region


REGIONAL TRIAL COURT
Branch 11, Quezon City

King Defante and John Defante


Plaintiff,

-versus- Civil Case No. 11111


For: Sum of Money
Brandon Versoza
Defendant.
x-------------------------------------------------x

Kitem D. Kadatuan, Jr.,


Third-Party Plaintiff,

-versus-

Life Saver Insurance Co., Inc.


Third-Party Defendant.
x-------------------------------------------------x

ANSWER TO THIRD-PARTY COMPLAINT

COMES NOW, the Third-Party Defendant, by counsel, and unto this


Honorable Court, most respectfully states:

1. It admits the allegation in Paragraph 3.

2. It admits the allegation in Paragraph 4.

3. It denies the allegation in Paragraph 5.


DEFENSES

4. The Insurance Contract between the Third-Party Plaintiff and


Third-Party Defendant in this case ceased to take effect as the
former defaulted in payment of premium for two consecutive
months, which is one the stated grounds for cancellation of the
insurance policy.

The Insurance Contract is hereto attached and made an integral


part hereof as Annex A.

The written instrument, in which a contract of insurance


is set forth, is called a policy of insurance. 1

An insurance premium is the consideration paid an


insurer for undertaking to indemnify the insured against
a specified peril.2

The actual payment of premium is a condition precedent


to the validity of an insurance contract. 3

1
Section 49, Title 6, of R.A. 10607 (The Insurance Code)

2
Gulf vs. Phil. Charter, 458 SCRA 550

3
Ayala vs. Ray Burton, 355 Phil. 475

Contractual limitations on insurance policies prevail


over the statutory limitations, as well as over the
exceptions to the latter, because the rights of the parties
flow from the contract of insurance.4

It is settled that the terms of the policy constitute the


measure of the insurers liability.5

An insurer is entitled to payment of the premium as soon


as the thing insured is exposed to the peril insured
against. Notwithstanding any agreement to the contrary,
no policy or contract of insurance issued by an insurance
company is valid and binding unless and until the
premium thereof has been paid, except in the case of a
life or an industrial life policy whenever the grace period
provision applies, or whenever under the broker and
agency agreements with duly licensed intermediaries, a
ninety (90)-day credit extension is given. No credit
extension to a duly licensed intermediary should exceed
ninety (90) days from date of issuance of the policy.6
4
Philam vs. Ansaldo, 234 SCRA 511

5
Fortune vs CA, 244 SCRA 308

6
Section 77, Title 8, of R.A. 10607 (The Insurance Code)

5. The policy between the Third-Party Plaintiff and Third-Party


Defendant in this case became void for failure of the former to
make payment of the premium.
The principle of cash to carry requires payment of the
premium before the contract of insurance can be valid
and binding. The philosophy behind this principle is that
the insurer, upon issuance of the policy, is immediately
exposed to liability for the risks insured against, hence, it
is entitled to be paid premium for extending protection to
the insured immediately upon such exposure.

Payment of the premium is a condition precedent to, and


essential for, the efficaciousness of the contract of
insurance.7

The rule is that under policy provisions that upon the


failure to make a payment of a premium or assessment at
the time provided for, the policy shall become void or
forfeited, or the obligation of the insurer shall cease, or
words to like effect, because the contract so prescribes
and because such a stipulation is a material and
essential part of the contract.8
7
South vs. CA, 244 SCRA 744

8
Phil. Phoenix vs. Woodworks, 92 SCRA 419

PRAYER

WHEREFORE, premises considered, it is most respectfully prayed


that judgment be rendered in favor of answering Third-Party Defendant and
against the Third-Party Plaintiff as follows:
1. That Third-Party Complaint be dismissed with costs against the Third-
Party Plaintiff.

2. Third-Party Defendant likewise prays for such other and further


reliefs to which it may be entitled.

Quezon City, 15 January 2017.

Group C and Associates


Counsel for Third-Party
Defendant
555 Century Tuna Bldg.
San Marino, Quezon City

By:

Atty. Arvin Caesar D. Figueroa


IBP 124/Feb. 13, 2018/Rizal
PTR 131/ Jan. 30, 2019/Manila
MCLE Compliance No. 1246
Copy Furnished:

ATTY. KEVIN T.TANINGCO


Counsel for Plaintiff
#123 Glorietta de Manila Compound
San Sebastian St., Quiapo, Manila
Commission Serial 108
Until December 31, 2030
Roll of Attorney 12345
IBP 124/Feb. 13, 2018/Rizal
PTR 131/ Jan. 30, 2019/Manila
MCLE Compliance No. 1246

VERIFICATION AND CERTIFICATION

I, Cha Cha Allorde, the President of Life Saver Insurance Company,


of legal age, married, and residing 290 Padre Rada Street, Quezon City,
state under oath that I have read the answer and that the allegations stated
in it are true and correct and of my personal knowledge and/or based on
authentic records.

I also certify under oath that (a) I have not previously filed any
action or suit involving the same issues in any court, tribunal, or quasi-
judicial agency; (b) that, to the best of my knowledge, no such action or
suit is pending therein; and, (c) that if I should thereafter learn that the
same action or suit has been filed or is pending in another court, tribunal, or
quasi-judicial agency, I shall report that fact within five (5) days therefrom
to the court.

IN WITNESS WHEREOF, I have hereunto affixed my signature


this 15th day of January, 2017, Quezon City, Philippines.

Cha Cha Allorde

SUBSCRIBED AND SWORN to before me this 15th day of January


2017 at #153 Glorietta de Toro Compound, Quezon City, affiant, XXX,
exhibited to me his Drivers license 2012105350, issued on June 19, 2016,
at the Land Transportation Office in Quezon City.

ATTY. Winnie D. Pooh


NOTARY PUBLIC
Until December 31, 2020
#153 Glorietta de Toro Compound
Quezon City
Commission Serial 108
Until December 31, 2030
Roll of Attorney 12345
IBP 124/Feb. 13, 2018/Rizal
PTR 131/ Jan. 30, 2019/Manila
MCLE Compliance No. 1246

Doc. 20;

Page 4;

Book 9;

Series of
2017.

[EXPLANATION: DUE TO TIME CONSTRAINT AND LACK OF


MANPOWER, THIS COMPLAINT WAS SERVED TO THE OTHER
PARTY BY REGISTERED MAIL]