SC: Insurers liable for theft claims despite car recovery

INSURANCE companies remain liable for theft claims even if a stolen vehicle is later recovered, the Supreme Court (SC) said, as it ruled that recovery does not nullify the insured’s right to payment under an insurance policy.

- Chloe Mari A. Hufana

In a 38-page decision penned by Associate Justice Henri Jean Paul B. Inting, the tribunal said theft is consummated once a vehicle is unlawfully taken, and later recovery — especially if delayed or in poor condition — does not erase the insurer's obligation.

“Common sense dictates that the mere recovery of a stolen vehicle does not and will not erase the fact of theft,” according to the ruling released on Tuesday.