sic itur ad astra

Insurance Law | Insurable Interest Spouses Nilo Cha and Stella Uy-Cha leased commercial premises from CKS Development Corporation for one year. Lease contract stipulated that: Lessees cannot insure their goods against fire without lessor’s written consent . If insured without consent, the policy is deemed assigned to the lessor (CKS). Despite this, the Cha spouses insured their merchandise for ₱500,000 with United Insurance without CKS’s consent. On the day the lease expired, a fire occurred in the leased premises. CKS demanded that United pay the insurance proceeds directly to it based on the lease stipulation. United refused; CKS filed a complaint against United and the Cha spouses. RTC: Ruled in favor of CKS; CA: Affirmed (with modification). Whether the lease stipulation automatically assigning fire insurance proceeds to CKS is valid . Fire insurance is a contract of indemnity . Under Sec. 18, Insurance Code , insurance is enforceable only for one with an insurable interest . ...

Insurable Interest In Life and Health Section 10.  Every person has an insurable interest in the life and health : (a) Of himself , of his spouse and of his children ; (b) Of any person   on whom he depends wholly or in part for education or support ,  or in whom he has a pecuniary interest ; (c) Of any person   under a legal obligation to him  for the payment of money, or  respecting property or services ,  of which death or illness might delay or prevent the performance ; and (d) Of any person   upon whose life any estate or interest vested in him depends. Classes of insurable interests Insurable interest may be: insurable interest in the insured's own life , or  insurable interest in the life of another person.  Where the insurance is on the life of another, the owner of the insurance policy is different from the "subject" of the insurance–the person whose life is insured.  The owner may, in turn, be the beneficiary or th...