G.R. No. L-602; March 31, 1947
ADELAIDA OCAMPO VDA. DE GOMEZ, demandante-apelante, vs. THE GOVERNMENT INSURANCE BOARD, demandado-apelado.

FACTS

Andres A. Gomez served as a provincial deputy assessor for the provincial government of Pampanga for a continuous period of 25 years, from August 8, 1914, until his death on February 28, 1938. His appointment was temporary, and he was not civil service eligible. On August 8, 1937, the provincial board of Pampanga passed a resolution to affiliate with the Government Service Insurance System (GSIS) under Commonwealth Act No. 186 . This affiliation was approved and made effective from February 28, 1938. Before his death, Gomez filled out a membership insurance form, naming his wife Adelaida Ocampo as beneficiary, which was received and filed by the GSIS. On February 28, 1938, the provincial treasurer deducted P2.70 from Gomez’s salary as his share of the first premium, with the province contributing an equal amount. This premium was sent to and received by the GSIS on March 10, 1938. On March 7, 1938, the provincial treasurer filed a claim on behalf of the widow for the insurance sum of P1,052. The GSIS board rejected the claim on the ground that Gomez was merely a temporary employee and therefore not insurable at the time of his death. The GSIS later refunded the premium of P5.40. The widow filed an action before the Court of First Instance of Pampanga, which ruled in favor of the GSIS, dismissing the complaint. Hence, this appeal.

ISSUE

Whether Andres A. Gomez, at the time of his death, possessed the qualifications to be considered a regular and permanent employee for the purpose of claiming the proceeds of his life insurance policy from the GSIS.

RULING

Yes. The Supreme Court reversed the lower court’s decision. It was established that Gomez, availing himself of the provisions of Commonwealth Act No. 177 (amending the Administrative Code), took a second-grade civil service examination on October 16, 1937, and passed it, although the result was announced after his death. The effects of this passing grade retroact to the date of the examination. The Court held that Gomez’s 25 years of continuous and satisfactory service constituted a superior test of his competence, making the required six-month probationary period inapplicable to him. For the purpose of the validity of his insurance, his success in the examination qualified him automatically for a regular and permanent appointment from the date of said examination. Therefore, he was insurable and, in fact, insured at the time of his death under Commonwealth Act No. 186 . This conclusion is bolstered by the fact that the GSIS accepted and issued a receipt for the premium paid. The Court emphasized the social and humanitarian purpose of the Government Service Insurance System and interpreted the law liberally to achieve social justice. The defendant was ordered to pay the plaintiff the sum of P1,052, with legal interest from the filing of the complaint, plus costs.