G.R. No. L-27703 July 31, 1970
MANILA SURETY & FIDELITY CO., INC., petitioner, vs. WORKMEN’S COMPENSATION COMMISSION and MARIA P. MALLARI, respondents.

FACTS

Simeon Mallari was employed as a laborer by the Pineda Furniture Store in Baguio City from 1947 until his death on May 3, 1965. On that date, during working hours and inside the shop, he was stabbed to death by a fellow employee. His widow, Maria P. Mallari, with eight minor children dependent on him for support, filed a claim for compensation. The store owner, Adela Pineda, had obtained Workmen’s Compensation Policy DG-WC-312 from Manila Surety & Fidelity Co., Inc., effective from May 1, 1965, to May 1, 1966. The policy covered “seven (7) shop workers” without naming them, with a maximum liability of P15,000 per employee, and a premium of P364.50 was paid. The Workmen’s Compensation Commission, affirming the Referee’s decision, held the death compensable and ordered the surety company to pay compensation benefits to the dependents, absolving the furniture store from direct liability. The surety company appealed, contesting the compensability of the death and whether Mallari was covered by the policy.

ISSUE

1. Whether the death of Simeon Mallari, resulting from a stabbing by a co-employee during work hours and at the workplace, is compensable under the Workmen’s Compensation Act.
2. Whether Simeon Mallari’s death was covered by the terms of the workmen’s compensation insurance policy issued by Manila Surety & Fidelity Co., Inc. to the Pineda Furniture Store, despite the policy’s limitation to “seven (7) shop workers” without specific names and the employer’s contention that Mallari was assigned to a different shop location.

RULING

1. Yes, the death is compensable. The killing occurred inside the shop during working hours. The claimant did not present the reason for the stabbing, but the employer and the surety company failed to prove that it arose from a purely personal quarrel unrelated to Mallari’s work. In the absence of contrary evidence, the death is presumed to have arisen out of and in the course of employment.
2. Yes, the death was covered by the insurance policy. The policy did not specify the names of the seven covered employees. Under Section 30 of the Workmen’s Compensation Act, as amended by Republic Act No. 4119 , which introduced compulsory insurance, the insurance carrier is liable for compensation payments regardless of policy conditions limiting coverage to specific locations, classes of employees, or operations. The “full coverage” rule applies, meaning defenses based on non-enumeration or location are not available against the employee. The policy’s schedule indicated it covered “Any person in the Insured’s immediate service,” which included Mallari. Any other interpretation would defeat the purpose of the compulsory insurance system to ensure prompt payment of benefits with minimal legal formality. The judgment of the Workmen’s Compensation Commission was affirmed.