Dear Atty. Angela,

When my husband and I went to the supermarket, upon our exit, there were armed men who pointed gun at us and carnapped our vehicle. We reported this incident to the police after which we filed an insurance claim with proof of loss. Four months later, our insurance provider informed us that our vehicle had been recovered by the police officers. However, our vehicle is already heavily damaged with a lot of missing parts. Despite the insurance claim, there was no progress nor update given to us. Can we still pursue filing a case against the insurance provider even when our vehicle was reported to have been recovered?

Vito

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Dear Vito,

Yes, you are entitled to the full insurance proceeds based on the insurance claim of theft you filed with your insurance provider.

In the recent case of Wijangco v. UCPB, G.R. No. 257086 (23 April 2025), the Supreme Court clearly explained that, “Section 249 of the Insurance Code requires insurers to pay claims within specified periods after receiving proof of loss. Once this period lapses and before the insured vehicle is recovered, the insurer’s payment for the loss becomes final, and the insured cannot be compelled to accept the recovered vehicle. Insurance would lose its purpose if the insured had to wait indefinitely for recovery or was forced to buy a replacement only to have the original vehicle returned later.”

In your case, you filed your proof of loss immediately after the theft incident and that your insurance provider informed you of the vehicle’s recovery four months after — or well beyond the 90-day limit as specified under the law. Even when recovered, your vehicle is already unserviceable with several pilferage, making the vehicle effectively worthless.

Thus, just like in the case of Wijangco v. UCPB, the insurance must grant and release your insurance claim as the theft incident triggered the insurance provider’s liability to you despite the vehicle’s recovery.

Atty. Angela Antonio