DIGEST: BPI and FGU Insurance Corp. vs. Laingo

ISSUE INVOLVED:

1.       An insurance agent is bound to communicate to its beneficiaries their right to claim upon the insurance policy.

FACTS:

Rheozel applied for a 2 in 1 premium savings account with BPI which grants death or disability insurance coverage to its depositors through its partner insurance company - FGU. Thus, Rheozel was issued a policy. Rheozel died and two years after his death it was only when Rheozel’s family learned of the said insurance coverage. Thus they filed a claim before the FGU. The claim was denied for the reason that the terms in the policy indicate that notice of claim shall only be made within three months from death or disability.

RULING: 

BPI acted as agent of FGU Insurance with respect to the insurance feature of its own marketed product. An agent is one who binds himself to render some service or to do something in representation of another. Agency is created from intention of the parties to it. BPI facilitated for the collection of necessary documents for the endorsement for prompt approval in the FGU. Rheozel did not interact with FGU directly, every transaction is coursed through BPI.

BPI as agent of FGU had the primary responsibility to give proper notice of the existence of the insurance coverage and the stipulation in the insurance contract for filing a claim on Rheozel’s death.

 Relationship of agency and principal is a fiduciary one. Thus, BPI had the obligation to carry out the agency by informing the beneficiary not only the existence of the insurance contract but also the accompanying terms and conditions thereof. BPI had all the opportunities to inform the family of the existence of the insurance policy when the family caused the withdrawal of the savings account of the deceased.