G.R. NO. 147039, 27 January 2006, 480 SCRA 314

FACTS:

In the evening of July 27, 1988, the radio station of Radio Mindanao Network located at the SSS Building in Bacolod City was burned down causing damage in the amount of over one million pesos. Respondent sought to recover under two insurance policies but the claims were denied on the basis that the case of the loss was an excepted risk under condition no. 6 (c) and (d), to wit:
6. This insurance does not cover any loss or damage occasioned by or through or in consequence, directly or indirectly, of any of the following consequences, namely:
(c) War, invasion, act of foreign enemies, hostilities, or warlike operations (whether war be declared or not), civic war.
(d) Mutiny, riot, military or popular uprising, insurrection, rebellion, revolution, military or usurped power.
The insurers maintained that based on witnesses and evidence gathered at the site, the fire was caused by the members of the Communist Party of the Philippines/New People’s Army. Hence the refusal to honor their obligations.
The trial court and the CA found in favor of the respondent. In its findings, both courts mentioned the fact that there was no credible evidence presented that the CCP/NPA did in fact cause the fire that gutted the radio station in Bacolod.

ISSUE:

WON the insurance companies are liable to pay Radio Mindanao Network under the insurance policies?

HELD:

Yes.
The Court will not disturb the factual findings of the appellant and trial courts absent compelling reason. Under this mode of review, the jurisdiction of the court is limited to reviewing only errors of law. Particularly in cases of insurance disputes with regard to excepted risks, it is the insurance companies which have the burden to prove that the loss comes within the purview of the exception or limitation set up. It is sufficient for the insured to prove the fact of damage or loss. Once the insured makes out a prima facie case in its favor, the duty or burden of evidence shifts to the insurer to controvert said prima facie case.

*Case digest by Kharla Angelique B. Ko-Tubat, LLB-4, Andres Bonifacio Law School, SY 2018-2019