ANG KA YU vs. PHOENIX ASSURANCE CO. LTD.

ANG KA YU vs. PHOENIX ASSURANCE CO. LTD.

1 CAR 704 28 September 1961
FACTS:
Ang Ka Yu, herein petitioner, was engaged in the business of dyeing and washing clothes. This
would require his clients to deliver and deposit to the petitioner such clothes that would require his
service. He acquired from Phoenix Assurance Co. Ltd., herein respondent, a policy insuring the
effects of his business. When the clothes he had in his possession were lost, Ang Ka Yu sought to
recover from Phoenix Assurance. However, the latter refused the claim and denied liability on the
ground that the petitioner was a mere possessor of said items, and therefore did not have any
insurable interest to the same.
ISSUE:
Whether or not the petitioner, allegedly being a mere possessor, has an insurable interest in the
property of concern.
HELD:
Yes. A person to whom clothes are delivered for dyeing or washing has insurable interest on such
clothes, because destruction of the textiles will mean pecuniary loss to him as he will be deprived of
the compensation he would be entitled to for dyeing the same, not to mention his pecuniary liability
for labour and expenses.
A person who is interested in the safety and preservation of materials in his possession belonging to
third parties because he stands either to benefit from their continued existence or to be prejudiced
by their destruction, has an insurable interest thereon which is not necessarily limited to the extent of
his liability to the owners thereof. A person having mere right of possession of property may insure it
to its full value and in his own name, even when he is not responsible for its safekeeping.