GR 98414; (February, 1993) (Digest)
G.R. No. 98414 February 8, 1993
FIRST QUEZON CITY INSURANCE COMPANY, INC., petitioner, vs. THE HON. COURT OF APPEALS and DE DIOS MARIKINA TRANSPORTATION CO., respondents.
FACTS
On June 10, 1984, passenger Jose V. del Rosario boarded a bus owned by De Dios Marikina Transportation Co. (DMTC) at the Manila International Airport. While he was still on the running board, the bus suddenly accelerated, causing him to fall and be dragged, resulting in severe injuries requiring hospitalization, surgeries, and causing him to incur medical expenses and lost earnings. Del Rosario filed a complaint against DMTC. DMTC, in turn, filed a third-party complaint against its insurer, First Quezon City Insurance Company, Inc. The trial court ruled in favor of del Rosario, ordering DMTC to pay damages, and ordered the insurance company to indemnify DMTC in the sum of P12,000.00, based on the insurance contract. DMTC appealed to the Court of Appeals, which modified the decision by ordering the insurance company to indemnify DMTC the sum of P50,000.00. The insurance company filed this petition, seeking to limit its liability to P12,000.00 as specified in the insurance contract.
ISSUE
Whether the liability of the insurance company to indemnify the bus company for damages suffered by an injured passenger is limited to P12,000.00 per passenger or extends to P50,000.00 per accident under the terms of the insurance contract.
RULING
The Supreme Court granted the petition and modified the Court of Appeals’ decision. The insurance contract clearly set the maximum liability for damages arising from bodily injury at P12,000.00 per passenger and a maximum liability per accident at P50,000.00. Since only one passenger was injured in this accident, the insurer’s liability is pegged at P12,000.00 only. The P50,000.00 per accident limit means the insurer’s liability for any single accident will not exceed that amount regardless of the number of passengers injured. The trial court’s interpretation was correct. The insurance company is ordered to indemnify DMTC the sum of P12,000.00 only.