Insurance Case Digest: Malayan Insurance Co, Inc. v CA (1986)

G.R. No. L-59919 November 26, 1986

Lessons Applicable: Motor Vehicle Liability Insurance - Authorized Driver Cause (Insurance)

Laws Applicable: 

FACTS:

• Aurelio Lacson ,owner of a Toyota NP Land Cruiser, Model 1972, bearing Plate No. NY-362 and with engine Number F-374325 insured with Malayan Insurance Co
• Dec. 1, 1975: Aurelio brought it to the shop of Carlos Jamelo for repair
• Dec. 2, 1975: Rogelio Mahinay, together with Johnny Mahinay, Rogelio Macapagong and Rogelio Francisco took and drove the Toyota Land Cruiser and it met an accident with Bo
• Carlos reported the incident to the police and instituted a criminal case for Qualified Theft against his employees
• Rogelio Mahinay pleaded guilty and was convicted of theft
• Aurelio was not allowed to claim on the ground that the claim is not covered by the policy inasmuch as the driver of the insured vehicle at the time of the accident was not a duly licensed driver
• Trial Court: favored Aurelio
• CA: Affirmed

ISSUE: W/N the taking of the vehicle by another person without permission or authority from the owner or person-in-charge thereof is sufficient to place it within the ambit of the word theft in the policy

HELD: YES.

• The damages therefore were sustained in the course of the unlawful taking
• Bacolod IFCs interest in the insured vehicle was in the amount of P2,000.00 only compared to plaintiff's P26,000.00 it is well to presume that Bacolod IFC did not deem it wise to be impleaded as party-plaintiff in this case. This inaction on the part of BIFC will only show that it was not really interested to intervene.