�C. WIJANGCO, REPRESENTED BY HIS SON, ANDREW C. WIJANGCO, VS. UCPB GENERAL INSURANCE CO., INC..

Ruling

accordingly prepared the documents for submission and turned them over to UCPB Insurance's adjuster on October 10, 2006. Despite repeated follow-ups, the insurer did not approve the insurance claim. Thus, on March 11, 2007, Wilfrido, through counsel, wrote to UCPB Insurance to protest the delay in the processing of his insurance claim and made a formal demand against the insurer. On March 21, 2007, Wilfrido received a letter from UCPB Insurance informing him that: (1) the subject vehicle was recovered and is under the custody of the Traffic Management Group (TMG), Special Operations Division-Task Force Limbas; and (2) UCPB Insurance will hold the processing of Wilfrido's insurance claim and subsequently close its file on the matter within 60 days from the date of the letter in case no clearance from TMG (TMG Clearance) is issued after the said period. The letter relevantly reads: We refer to the subject claim. We wish to advise you that your vehicle is currently under the custody of Traffic Management Group (TMG), SOD Task Force Limbas and subject of their investigation. Please be informed that you are requested by TMG Task Force Limbas to visit their office at Task Force Limbas, Camp Crame, Quezon City. Meanwhile, we will hold the processing of your claim. Hence, we shall keep our file open for a period of (60) days from the date of this letter. In case no TMG clearance is issued after that period, we will regretfully close our file. On April 11, 2007, Wilfrido wrote a letter to the TMG to verify the status of the investigation. Wilfrido asserted in the letter that TMG did formally invite him in the on-going investigation. However, Wilfrido did not get any response from the TMG. In view of the circumstances, on June 15, 2007, Wilfrido filed a Complaint against UCPB Insurance for violation of the Civil Code and Presidential Decree No. 612, as amended by Republic Act No. (awÞhi( 10607 (Insurance Code), and for damages. The Complaint prayed for UCPB Insurance to pay Wilfrido the following sums of money: (1) PHP 1,800,000.00, representing the insurance proceeds due under the Insurance Policy; (2) damages in the form of attorney's fees equivalent to 10% of the amount insured; (3) double interest due on the insurance proceeds; (4) PHP100,00.00 moral damages and PHP 100,000.00 exemplary damages; and (5) costs of suit. In defense, UCPB Insurance argued that while the subject vehicle was reported as "carnapped," it was subsequently recovered by the police; hence, petitioner has no cause of action against it. UCPB Insurance further alleged that Wilfrido's insurance claim was fraudulent as there was no actual carnapping considering that: (1) the security guards of Tropical Hut executed handwritten statements that no unusual incident took place on the date and at the time of the purported carnapping incident; (2) the After Follow-Up Investigation Report (Investigation Report) issued by TMG Police Superintendent Atty. Eleuterio N. Gutierrez, Jr. (