Assoc. of Baptists vs. Fieldman

ASSOCIATION OF BAPTISTS FOR WORLD EVANGELISM, INC. VS. FIELDMEN’S INSURANCE CO., INC.

Justice Melencio-Herrera, 21 September 1983 Facts: Association of Baptists for World Evangelism, Inc. (Association), a religious corporation, insured a Chevrolet Carry- All vehicle with Fieldmen’s Insurance Co. Inc. under the latter’s Private Car Comprehensive Policy against loss or damage up to the amount of P5,000. On 1961, the Association placed the vehicle at the Jones Monument Mobilgas Service Station under the care of the station’s operator so that the vehicle could be displayed as being for sale. However, on January 1962, one of the gas station boys took the vehicle for a joy ride without the permission of the owner or the station operator. On its way back from the joy ride, the vehicle, due to some mechanical defect bumped an electric post causing actual damages valued at P5,518.61. The trial court rendered a judgment ordering Fieldmen to pay the Association the amount of P5,000 as indemnity for the damaged sustained by the vehicle. Issue and Holding: Whether or not there must be a prior criminal conviction for theft in order for the damage to the vehicle to be compensable under the Policy. NO Ratio: The Court finds that the Comprehensive Policy issued by the insurance company includes the loss or damage to the motor vehicle by “burglary or theft”. It is settled that the act of  the station bout constitutes theft within the meaning of the insurance policy and that recovery for damages to the car is not barred b arred by the illegal use of the car by one of the station boys. Moreover, in the absence of any provision in the policy, prior conviction for the crime of theft is not required to make the insurer liable under the theft clause policy. In a civil action for recovery on an automobile insurance, the question of whether a person using a certain automobile at the time of the accident stole it or not us to be determined by a fair preponderance of evidence and not by the rule of criminal crim inal law requiring guilt beyond reasonable doubt.