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. On Dec. 1, 1975: Aurelio brought it to the shop of Carlos Jamelo for repair. On 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.
 Manila Mahogany Manufacturing Corporation v.

Court of Appeals and Zenith Insurance Corp.

[G.R. No. L-52756 October 12, 1987]

FACTS:

Petitioner Manila Mahogany insured its Mercedes Benz 4- door sedan with respondent Zenith Insurance, which was bumped and
damaged by a truck owned by San Miguel Corporation. For the damage caused, respondent company paid petitioner five
thousand pesos (P5,000.00) in amicable settlement. Petitioner's general manager executed a Release of Claim, subrogating
respondent company to all its right to action against San Miguel Corporation. Respondent company wrote Insurance Adjusters,
Inc. to demand reimbursement from San Miguel Corporation of the amount it had paid petitioner. Insurance Adjusters, Inc.
refused reimbursement, alleging that San Miguel Corporation had already paid petitioner P4,500.00 for the damages to
petitioner's motor vehicle, as evidenced by a cash voucher and a Release of Claim. Respondent insurance company thus
demanded from petitioner reimbursement of the sum of paid by San Miguel Corporation. Petitioner refused. Hence, respondent
company filed suit in the City Court of Manila for the recovery of said money.

ISSUE:

Whether or not petitioner Manila Mahogany should reimburse private respondent Zenith Insurance on the ground that San
Miguel Corporation already paid the former.

RULING:

Yes. When Manila Mahogany executed Release of Claim discharging San Miguel Corporation from "all actions, claims, demands
and rights of action that now exist or hereafterarising out of or as a consequence of the accident" after the insurer had paid the
proceeds of the policy- the compromise agreement of P5,000.00 being based on the insurance policy-the insurer is entitled to
recover from the insured the amount of insurance money paid. Since petitioner by its own acts released San Miguel Corporation,
thereby defeating private respondents, the right of subrogation, the right of action of petitioner against the insurer was also
nullified.