G.R. No. 168402, 6 August 2008


MSAS Cargo International Limited and/or Associated and/or Subsidiary Companies (MSAS) procured an “all-risk” marine insurance policy from ICNA UK Limited of London for its cargo, consisting of wooden work tools and workbenches purchased by consignee Science Teaching Improvement Project (STIP) which was later on received by Aboitiz and shipped to Cebu. However upon arrival, the checker noted that the crates were slightly broken or cracked at the bottom causing the cargo to be withdrawn by the representative of the consignee, STIP and delivered to Don Bosco Technical High School, Punta Princesa, Cebu City where it was received by Mr. Bernhard Willing who later on reported the damage to Aboitiz

Consignee filed a claim against ICNA who then paid consignee and a subrogation receipt was duly signed by Willig. ICNA then advised Aboitiz of the receipt signed in its favor but received no reply so it filed for collection at the RTC.


Whether or not ICNA can claim under the right of subrogation.


Yes. Only when that corporation is “transacting” or “doing business” in the country with a license necessary before it can institute suits. It may, however, bring suits on isolated business transactions, which is not prohibited under Philippine Law. The policy benefits any subsequent assignee, or holder, including the consignee, who may file claims on behalf of the assured.

*Case digest by Allain Jay Gumela, LLB-IV, Andres Bonifacio College Law School, SY 2018-2019