G.R. No. 60506, 6 August 1992, 212 SCRA 268

FACTS:

Lope Maglana met an accident that resulted to his death while driving his motorcycle on his way to work station. He was bumped by a PUJ jeep which was driven by Pepito Into and was operated and owned by defendant Destrajo, when he overtook another passenger jeep that was going towards the city. The point of impact was on the lane of the motorcycle and the deceased was thrown from the road and met his untimely death. Thereafter, the heirs of the deceased filed an action against Destrajo and the Afisco Insurance Corporation (AFISCO) for damages and attorney’s fees.

The lower court rendered a decision finding that Destrajo had not exercised extraordinary diligence as the operator of the jeepney and ordered him to pay for the damages. The second paragraph of the decision also ordered AFISCO to reimburse Destrajo whatever amounts the latter shall have paid only up to the extent of its insurance coverage, signifying only secondary liability. The heirs however, filed a motion for reconsideration with respect to the said second paragraph arguing that AFISCO should not merely be held secondarily liable because the Insurance Code providesthat the insurer’s liability is “direct and primary and/or jointly and severally with theoperator of the vehicle”, although only up to the extent of the insurance coverage.

ISSUE:

Whether or not AFISCO’s liability is direct and primary and/or solidary with Destrajo.

HELD:

Although the insurance policy clearly provides that AFISCO can be held directly liable by petitioners on the basis of the insurance contract, nonetheless, AFISCO may not be held solidarily liable with Destrajo since their respective liabilities are based on different grounds. The liability of the insurer is based on contract; that of the insured is based on tort. As such, petitioners have the option either to claim from AFISCO to the extent agreed upon in the contract and the balance from Destrajo or enforce the entire judgment from Destrajo subject to reimbursement from AFISCO to the extent of the insurance coverage.

*Case digest by Rosemarie G. Banatanto-Baliquig, LLB-4, ABC, SY 2018-2019