Dear PAO,
My insured vehicle was stolen while parked near the restaurant where my family had dinner. Upon discovering that my car was no longer in the parking lot where I left it, I immediately reported the incident to the nearest police station, subsequently filed a claim with my insurance company, and submitted the requirements for proof of loss. After six months, the police recovered my car; however, I found that many of its parts were missing, unserviceable, or no longer functioning, including the tires and engine. Can the insurance company deny my claim on the ground that the car was recovered, despite having paid the premium in full?
Marjorie
Dear Marjorie,
No, your insurance company cannot simply deny your claim on the ground that your vehicle was already recovered. In Wijangco v. UCPB General Insurance Co., Inc. (GR 257086; April 23, 2025; Ponente: Associate Henri Jean Paul Inting), the Supreme Court ruled that the subsequent recovery of the vehicle does not negate its loss through theft:
“Anent the subsequent recovery of the subject vehicle, the Court finds that it is immaterial to the present case. Common sense dictates that the mere recovery of a stolen vehicle does not and will not erase the fact of theft. Several cases decided by the Court also laid down the rule that the subsequent recovery of a stolen motor vehicle does not negate theft, which is perfected from the moment of unlawful taking.
“The Court reiterates that Section 249 of the Insurance Code sets a definite time within which payment of the insurance claim must be made. When this period has elapsed and before the insured vehicle is recovered, payment for the loss of the vehicle is fixed and the insured cannot be compelled to receive the vehicle despite its recovery. The period to indemnify the insured for a lost vehicle is set by law because motor vehicle insurance contracts would be of insignificant value if the insured, who has a theft policy in its favor, should be forced to indefinitely wait on the chance of having the stolen vehicle recovered, or be compelled to incur the expense of buying a new vehicle and thereafter take the old one if recovered.”
In your case, six months had already lapsed before the vehicle was recovered. Moreover, many of the vehicle’s parts were missing, unserviceable, or no longer functioning, making the loss effectively permanent. Thus, your insurance company cannot lawfully deny your claim. Besides, Section 249 of the Insurance Code requires an insurer settle a non-life insurance claim within a maximum of 90 days from receipt of the proof of loss:
“SECTION 249. The amount of any loss or damage for which an insurer may be liable, under any policy other than life insurance policy, shall be paid within thirty (30) days after proof of loss is received by the insurer and ascertainment of the loss or damage is made either by agreement between the insured and the insurer or by arbitration; but if such ascertainment is not had or made within sixty (60) days after such receipt by the insurer of the proof of loss, then the loss or damage shall be paid within ninety (90) days after such receipt. xxx”
We hope that we were able to answer your queries. This advice was solely based on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Thank you for your continued trust and support.
