FIRST QUEZON CITY INSURANCE COMPANY INC v CA

GR No. 98414; 8 February 1993

FIRST QUEZON CITY INSURANCE COMPANY INC v COURT OF APPEALS and DE DIOS MARIKINA
Petitioner TRANSPORTATION CO (DMTC)
Respondent
Grino-Aquino., J.
Petition for Review
After sending off certain seamen at the departure area of MIA, Jose del Rosario proceeded to
the loading and unloading zone for public utility bus stop to wait for a passenger bus bound
for QC.
Jose saw a DMTC with a signboard Pasay to QC. As the bus approached the stop at a
crawling pace, several passengers boarded it with Jose as the last one.
While Jose was on the bus running board with his hand on the doors handle bar, the bus
sped forward at a high speed, causing Jose to lose balance and fall from the bus. Jose clung to
the handle bar causing him to be dragged by the bus along asphalted road. Screaming in paid,
passengers shouted and bus driver, Agpalo, stopped abruptly. Agpalo fled from the scene
FACTS:

leaving the buss and Jose.

Joses right leg extensively lacerated, had to undergo major surgical operation. Then a second
major surgical operation was perfrmed on the same leg. Jose was confined for 40 days
incurring medical expenses amounting to P69,444.41, which were advanced by his employer
Maglines. Jose had to reimburse on a staggered basis by salary deduction.
Petitioner filed a complaint against DMTC and Agpalo. Agpalo was later dropped as party
because he could not be served with summons.
DMTC filed a ordered DMTC to pay Jose and for First QC Insurance to indemnify DMTC.
P12,000 as specified in insurance contract
DMTC appealed. CA modified decision increasing First QCs payment to DMTC.
W/N First Quezon City Insurance is liable to pay more than the limit specified in insurance
ISSUE:

contract

No.
HELD:

The insurance company clearly passed the maximum limit of petitioners liability for damages
arising from death or bodily injury at P12k per passenger and its maximum liability per
accident at P50k.
Since only one passenger was injured in the accident, the insurers liability for damages
suffered by passenger is pegged to the amount of P12,000 only.
RULING:

The limit of P50k per accident means that the insurers liability for any single accident will not
exceed P50k regardless of number of passengers killed or injured therein.
The bust company may not recover from the insurance company more than P12k per
passenger killed or injured, or P50k per accident even if under the judgment of the court, the
erring bus operator will have to pay more than P12k to each injured passenger.
The trial courts interpretation of the insurance contract was the correct interpretation.
Hence, the award of damages to Jose is modified by reducing it to P12,000.