FACTS:

The case involves a petition filed by the First Quezon City Insurance Company, Inc. (petitioner) to limit its liability to indemnify De Dios Marikina Transportation Company (DMTC, respondent) for the damages suffered by a passenger who fell off the bus. The undisputed facts state that the passenger, Jose V. del Rosario, boarded a DMTC bus at a bus stop. While the bus was moving slowly, the passenger lost his balance and fell off the bus, sustaining significant injuries. The passenger incurred medical expenses and lost earnings due to the injuries.

ISSUES:

1. Whether the insurance company's liability should be limited to the amount specified in the insurance contract.

2. Whether the insurance company should be liable for damages beyond the specified amount awarded by the court.

RULING:

1. The Supreme Court granted the petition and modified the decision of the Court of Appeals. The insurance policy clearly specified that the liability of the insurance company is limited to P12,000.00 per passenger and P50,000.00 per accident. The limit of P50,000.00 per accident means that the insurer's maximum liability will not exceed this amount, regardless of the number of passengers injured. Thus, the insurance company's liability for the damages suffered by the passenger is limited to P12,000.00 only. The trial court's interpretation of the insurance contract was deemed correct. Therefore, the Court reduced the award from P50,000.00 to P12,000.00.