AN ACT AMENDING CERTAIN SECTIONS OF PRESIDENTIAL DECREE NUMBERED FOURTEEN HUNDRED AND SIXTY, OTHERWISE KNOWN AS THE INSURANCE CODE OF 1978

• Number: Batas Pambansa Blg. 874
• Sections: 7

Section 1

SECTION 1. Section Twenty-seven of Presidential Decree Numbered

Fourteen hundred and sixty, otherwise known as the Insurance Code of

1978, is hereby amended to read as follows:

"SECTION 27. A concealment whether intentional or unintentional

entitles the injured party to rescind a contract of insurance."

Section 2

SEC. 2. Section Forty-five of the same Code is amended to read as

follows:

"SECTION 45. If a representation is false in a material point,

whether affirmative or promissory, the injured party is entitled to

rescind the contract from the time when the representation becomes

false. The right to rescind granted by this Code to the insurer is

waived by the acceptance of premium payments despite knowledge of the

ground for rescission."

Section 3

SEC. 3. Section one hundred eighty of the same Code is amended by

inserting as Section 180-A thereof the following:

"SECTION 180-A. The insurer in a life insurance contract shall be

liable in case of suicides only when it is committed after the policy

has been in force for a period of two years from the date of its issue

or of its last reinstatement, unless the policy provides a shorter

period: Provided, however, That suicide committed in the state

of insanity shall be compensable regardless of the date of commission."

Section 4

SEC. 4. Section Three hundred eighty-four of same Code is hereby

amended to read as follows:

"SECTION 384. Any person having any claim upon the policy issued

pursuant to this Chapter shall, without any unnecessary delay, present

to the insurance company concerned a written notice of claim setting

forth the nature, extent and duration of the injuries sustained as

certified by a duly licensed physician. Notice of claim must be filed

within six months from date of accident, otherwise, the claim shall be

deemed waived. Action or suit for recovery of damage due to loss or

inquiry must be brought in proper cases, with the Commissioner or the

Courts within one year from denial of the claim, otherwise the

claimant's right of action shall prescribe."

Section 5

SEC. 5. The seventh paragraph, Section Four hundred sixteen of the

same Code is amended to read as follows:

"Any decision, order or ruling rendered by the Commission after a

hearing shall have the force and effect of a judgment. Any party may

appeal from a final order, ruling or decision of the Commissioner by

filing with the Commissioner within thirty days from receipt of copy of

such order, ruling or decision a notice of appeal to the Intermediate

Appellate Court in the manner provided for in the Rules of Court for

appeals from the Regional Trial Court to the Intermediate Appellate

Court."

Section 6

SEC. 6. Any provision of law, decree, rule or regulation or any

portion thereof which is inconsistent with this Act is hereby repealed.

Section 7

SEC. 7. This Act shall take effect immediately upon its approval.

Approved: June 12, 1985.