SC: Insurers still liable for stolen vehicle claims

The Supreme Court ruled that insurance companies remain liable for theft claims even if a stolen vehicle is eventually recovered.

Associate Justice Henri Jean Paul B. Inting, for the SC's Third Division, ordered UCPB General Insurance Co., Inc. to pay Wilfrido C. Wijangco for the loss of his stolen Jaguar.

The incident occurred when Wilfrido's son was held at gunpoint and his car was stolen.

Although the vehicle was recovered by the Traffic Management Group (TMG), UCPB placed the claim on hold, requiring a TMG investigation clearance.

The Supreme Court reinstated the Regional Trial Court's decision, emphasizing that theft is complete once a vehicle is unlawfully taken, and recovery does not erase the fact of theft.

The high court stressed that allowing insurers to avoid claims based on vehicle recovery would undermine the purpose of insurance.