Contract of Insurance

I prefer saving my money with the bank rather than investing it with any insurance agency except compulsory social security services.

Just like any other kind of contract, the Contract of Insurance has a personal characteristic. It takes effect only between the parties, his heirs and assigns. Under the Pour Autrui Doctrine, the contracting parties must have clearly and deliberately conferred a favor upon such a third person in order the latter may be allowed to avail himself of a benefit granted to him by the terms of the contract. Therefore, a third person, not a party to a contract cannot validly file an action against parties thereto and cannot generally demand the enforcement of the same EXCEPT in Motor Vehicle Insurance.

Parties to an Insurance Contract

1. Insurer

- Banks cannot be insurers.

2. Insured

- Any person with capacity to contract and having an insurable interest in the life or property insured. A public enemy who is a citizen of the country with which the Philippines may be at war cannot be insured.

- Insurable interest is the interest which the law requires a person making a contract of insurance to have in the person or thing insured to prevent the contract from becoming a wagering contract.

3. Beneficiary

- The person designated to receive the proceeds of the policy when the risk attaches.

Classes of insurance

1. Life Insurance > dependent upon human life
2. Non-life Insurance, which may be:

a.) Fire Insurance.
b.) Marine Insurance.
c.) Casualty Insurance.
d.) Suretyship