First Integrated Bonding & Insurance Co., Inc. vs. Hernando, et.

al
G.R. No. L-51221 July 31, 1991

Facts

Silverio Blanco was the owner of a passenger jeepney which he insured against liabilities for
death andinjuries to third persons with First Integrated Bonding and Insurance Company, Inc.
for P30,000. The said jeepneydriven by Blanco himself bumped a five-year old child,
DeograciasAdvincula, causing the latter's death. The boy’sparents filed a complaint for damages
against Blanco and First Insurance, which was granted by the lower court. FirstInsurance filed a
petition for certiorari contending that the victim’s parents have no cause of action against it
becausethey are not parties to the insurance contract and that they may only proceed against
the driver based on theprovisions of the New Civil Code.

Issue

W/N an injured party for whom the contract of insurance is intended can sue directly the
insurer

Held

YES. The injured for whom the contract of insurance is intended can sue directly the insurer.
The general purpose of statutes enabling an injured person to proceed directly against the
insurer is to protect injured persons against the insolvency of the insured who causes such
injury, and to give such injured person a certain beneficial interest in the proceeds of the policy,
and statutes are to be liberally construed so that their intended purpose may be accomplished.
It has even been held that such a provision creates a contractual relation which inures to the
benefit of any and every person who may be negligently injured by the named insured as if such
injured person were specifically named in the policy