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    Prescriptive Period Rights To Subrogation of The Insurer

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    NiñoMaurin
    The document outlines guidelines for applying the statute of limitations in insurance subrogation cases in light of overturning past precedent (Vector). It establishes: 1) For pending cases, the statute of limitations that applied when the case was filed governs. This ranges from 4-10 years depending on filing date. 2) For future cases involving incidents before this ruling, insurers have up to 4 additional years to file but no more than 10 years total from payment. 3) For future cases involving incidents after this ruling, the statute of limitations is 4 years from the tort.

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    Prescriptive Period Rights To Subrogation of The Insurer

    Uploaded by

    NiñoMaurin
    73 views2 pages
    The document outlines guidelines for applying the statute of limitations in insurance subrogation cases in light of overturning past precedent (Vector). It establishes: 1) For pending cases, the statute of limitations that applied when the case was filed governs. This ranges from 4-10 years depending on filing date. 2) For future cases involving incidents before this ruling, insurers have up to 4 additional years to file but no more than 10 years total from payment. 3) For future cases involving incidents after this ruling, the statute of limitations is 4 years from the tort.

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    Prescriptive Period Rights to Subrogation of the Insurer

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    The document outlines guidelines for applying the statute of limitations in insurance subrogation cases in light of overturning past precedent (Vector). It establishes: 1) For pending cases, the statute of limitations that applied when the case was filed governs. This ranges from 4-10 years depending on filing date. 2) For future cases involving incidents before this ruling, insurers have up to 4 additional years to file but no more than 10 years total from payment. 3) For future cases involving incidents after this ruling, the statute of limitations is 4 years from the tort.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    73 views2 pages

    Prescriptive Period Rights To Subrogation of The Insurer

    Uploaded by

    NiñoMaurin
    The document outlines guidelines for applying the statute of limitations in insurance subrogation cases in light of overturning past precedent (Vector). It establishes: 1) For pending cases, the statute of limitations that applied when the case was filed governs. This ranges from 4-10 years depending on filing date. 2) For future cases involving incidents before this ruling, insurers have up to 4 additional years to file but no more than 10 years total from payment. 3) For future cases involving incidents after this ruling, the statute of limitations is 4 years from the tort.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Vicente G. Henson, Jr. vs.

    UCPB General
    Insurance Co., Inc.
    G.R. No. 223134. August 14, 2019

    With these in mind, the Court therefore sets the following guidelines relative to the
    application of Vector and this Decision vis-a-vis the prescriptive period in cases
    where the insurer is subrogated to the rights of the insured against the
    wrongdoer based on a quasi-delict:

    1. For actions of such nature that have already been filed and are currently
    pending before the courts at the time of the finality of this Decision, the rules on
    prescription prevailing at the time the action is filed would apply. Particularly:

    (a) For cases that were filed by the subrogee-insurer during the applicability of


    the Vector ruling (i.e., from Vector's finality on August 15, 201360 up until the finality
    of this Decision), the prescriptive period is ten (10) years from the time of payment
    by the insurer to the insured, which gave rise to an obligation created by law.

    Rationale: Since the Vector doctrine was the prevailing rule at this time, issues of
    prescription must be resolved under Vector's parameters.

    (b) For cases that were filed by the subrogee-insurer prior to the applicability of
    the Vector ruling (i.e., before August 15, 2013), the prescriptive period is four (4)
    years from the time the tort is committed against the insured by the wrongdoer.

    Rationale: The Vector doctrine, which espoused unique rules on legal subrogation


    and prescription as aforedescribed, was not yet a binding precedent at this time;
    hence, issues of prescription must be resolved under the rules prevailing
    before Vector, which, incidentally, are the basic principles of legal subrogation vis-a-
    vis prescription of actions based on quasi-delicts.
    2. For actions of such nature that have not yet been filed at the time of the finality of
    this Decision:

    (a) For cases where the tort was committed and the consequent loss/injury against
    the insured occurred prior to the finality of this Decision, the subrogee-insurer is
    given a period not exceeding four (4) years from the time of the finality of this
    Decision to file the action against the wrongdoer; provided, that in all instances, the
    total period to file such case shall not exceed ten (10) years from the time the insurer
    is subrogated to the rights of the insured.

    Rationale: The erroneous reckoning and running of the period of prescription


    pursuant to the Vector doctrine should not be taken against any and all persons
    relying thereon because the same were based on the then-prevailing interpretation
    and construction of the Court. Hence, subrogees-insurers, who are, effectively, only
    now notified of the abandonment of Vector, must be given the benefit of the present
    doctrine on subrogation as ruled in this Decision.

    However, the benefit of the additional period (i.e., not exceeding four [4] years)
    under this Decision must not result in the insured being given a total of more than
    ten (10) years from the time the insurer is subrogated to the rights of the insured (i.e.,
    the old prescriptive period in Vector); otherwise, the insurer would be able to unduly
    propagate its right to file the case beyond the ten (10)-year period accorded
    by Vector to the prejudice of the wrongdoer.

    (b) For cases where the tort was committed and the consequent loss/injury against
    the insured occurred only upon or after the finality of this Decision,
    the Vector doctrine would hold no application. The prescriptive period is four (4)
    years from the time the tort is committed against the insured by the wrongdoer.

    Rationale: Since the cause of action for quasi-delict and the consequent subrogation of


    the insurer would arise after due notice of Vector's abandonment, all persons would
    now be bound by the present doctrine on subrogation as ruled in this Decision.

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