Flashcards Studio

CrestaTech Manufacturing, Inc., a Manila-based plastics producer, owns a warehouse insured under a fire property policy with SecureGuard Insurance. A severe flood damages the warehouse and its inventory on June 8. CrestaTech promptly notifies SecureGuard on June 9 and hires an independent adjuster, who commences inspection within 3 days. CrestaTech later files sworn proof of loss on September 15. SecureGuard denies the claim on the ground that notice of loss and sworn proof of loss were not timely under PD 612, as amended by RA 10607. CrestaTech argues that the delay was due to the flood disaster and that SecureGuard had actual knowledge of the loss and began adjustment actions within days.   (a)Identify the controlling rule on Notice and Proof of Loss under PD 612, as amended by RA 10607. (b)Apply that rule to the facts to determine whether SecureGuard is precluded from paying the claim. (c)Discuss whether any equitable defenses such as waiver or estoppel could apply and under what circumstances.