, LTD ● While it is true that a small portion of the merchandise might
Topic: Fire Insurance have been consumed, and the evidence of its existence completely destroyed by the fire, yet in the very nature of FACTS: things, a large portion of it would not be destroyed, and some evidence would be left by which the amount, kind and ● Uy Hu is a corporation engaged in the purchase and sale of quality of it could be substantially ascertained and general merchandise determined. ● Uy Hu is insured by The Prudential Assurance - insured against fire and damage over the property, goods, wares, The judgment of the lower court is reversed and the complaint and merchandise for Php 30,000 dismissed, with costs. So ordered. ● A fire broke out May 10, 1926 ● Uy Hu then notified the Prudential Assurance and requested the payment of Php30,000 ● the Prudential then denied such payment of claim because of the fact that Uy Hu allegedly violated the clause under the insurance contract ● According to Prudential, Uy Hu made fraudulent claims and false declaration as to the fire that had happened ● Moreover, the claim is fraudulent because Uy Hu was claiming Php32,523 where in truth of the fact is that the majority of the merchandise was not in the warehouse at the time of the fire - only a small part of the warehouse was burned ● Lower Court: ruled in favor of Uy Hu, awarded Php16,000
ISSUE: Whether or not Uy Hu can claim the fire insurance policy proceeds
HELD:
● NO. Uy Hu is guilty of fraudulent claims and false declaration, hence the policy is deemed void ● Upon audit, the actual damages incurred by Uy Hu amounts to Php4,823.20 ● Moreover, when asked, Uy Hu’s representative Tan Chong U provided no explanation as to the whereabouts of the missing merchandise ● Lastly, the fraudulent intent of Uy Hu was properly evidenced by the photographs presented in court.