John Alexander S.

Belderol INSURANCE

Association of Baptists for World Evangelism, Inc. v. Fieldmens Insurance Co.,Inc.

GR No. L-28772 September 21, 1983

FACTS:

Plaintiff (herein Petitioner) Association of Baptists for World Evangelism, Inc., a domestic religious
corporation, insured with the Fieldmens Insurance Co., Inc under its Private Car Comprehensive Policy a Chevrolet
Carry-all, up to a maximum indemnity of 5,000.00, in case of loss or damage to the vehicle. In 1961, Dr. Antonio
Lim, the representative of the association, displayed the Chevrolet for sale at the Jones Monument Mobilgas Service
Station at Davao City, under the care of the stations operator. However, on January 1962, instead of keeping it safe,
one of the boys at the Jones Monument Mobilgas Service Station, Romeo Catiben, took the Chevrolet for a joy ride
without the prior permission of Lim. On its way back to Davao City, the Chevrolet, allegedly due to some mechanical
defect, accidentally bumped an electric post causing actual damages to the tune of 5,518.61.

When defendant resisted payment, suit was brought by plaintiff to recover on the insurance indemnity. As
per the terms of the contract, the trial court ordered the defendant insurance company to indemnify the association
the amount of P5,000.00 for the damage sustained by the vehicle. On appeal, defendant interposed the defense that
Catiben had not yet been proven to be guilty of theft, so recovery on the policy cannot be had.

ISSUE:

Is a prior conviction for theft required in order to recover on a comprehensive policy payable upon loss or
damage to the vehicle?

HELD:

No. Prior conviction of Catiben is not necessary. The insurance company is liable to pay the association.

The comprehensive policy issued by the insurance company includes loss of or damage to the motor vehicle
by burglary or theft. It is settled that the act of Catiben in taking the vehicle for a joy ride to Toril, Davao City,
constitutes theft within the meaning of the insurance policy and that recovery for damage to the car is not barred by
the illegal use of the car by one of the station boys. There need be no prior conviction for the crime of theft to make
an insurer liable under the theft clause of the policy. Upon the facts stipulated by the parties it is admitted that
Catiben had taken the vehicle for a joy ride and while the same was in his possession he bumped it against an
electric post resulting in damages. The act is theft within a policy of insurance.

In a civil action for recovery on an automobile insurance, the question whether a person using a certain
automobile at the time of the accident stole it or not is to be determined by a fair preponderance of evidence and
not by the rule of criminal law requiring proof of guilt beyond reasonable doubt. Besides, there is no provision in
the policy requiring prior criminal conviction for theft, in the absence of any provision in the policy to the contrary.

Judgment of the trial court was AFFIRMED.