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This is a clause in the policy that provides that the policy shall be void if the insured procures additional insurance without the consent of the insurer. The purpose is to prevent over-insurance and thus to avert the possibility of a perpetration of fraud. It is a warranty that entitles the
insurer to rescind in case of breach.
General Insurance and Surety Corp. v. Ng Hua, 106 Phil 1117
The “other insurance clause” may be subject to waiver but the waiver must either be express or if it is to be implied from conduct mainly, said conduct must be clearly indicative of a clear intent to waive such right. There must be clear showing that the insurer knew about the violation of the clause.
insurer to rescind in case of breach.
General Insurance and Surety Corp. v. Ng Hua, 106 Phil 1117
The “other insurance clause” may be subject to waiver but the waiver must either be express or if it is to be implied from conduct mainly, said conduct must be clearly indicative of a clear intent to waive such right. There must be clear showing that the insurer knew about the violation of the clause.
