- Statute
- Civil Code
- Article
- Art. 2207
- Topic
- Actual or Compensatory Damages
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE XVIII DAMAGES
- Chapter
- CHAPTER 2 Actual or Compensatory Damages
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
If the plaintiff's property has been insured, and he has received indemnity from the insurance company for the injury or loss arising out of the wrong or breach of contract complained of, the insurance company shall be subrogated to the rights of the insured against the wrongdoer or the person who has violated the contract. If the amount paid by the insurance company does not fully cover the injury or loss, the aggrieved party shall be entitled to recover the deficiency from the person causing the loss or injury.
Intellegal Wiki · In plain terms
When insured property is harmed by someone's wrong or breach of contract and the owner is indemnified by the insurer, the insurance company steps into the owner's shoes (subrogation) and may pursue the wrongdoer for what it paid. If the insurance payout does not fully cover the loss, the owner can still recover the remaining shortfall from the person who caused it.
An editorially maintained plain-language explanation of this provision — not legal advice.
Intellegal Wiki · How the courts apply it
In C.V. Gaspar Salvage & Lighterage Corporation v. Lg Insurance Company, the Supreme Court held: A foreign insurer may sue on an isolated transaction without a Philippine license; upon paying the insured it is validly subrogated under Article 2207, and a common carrier under Article 1732 is presumed negligent and bound to extraordinary diligence.
One leading Supreme Court case applying this provision.
Cases applying this article
- Filcon Ready Mixed v. Ucpb General Insurance Company G.R. No. 229877
- Keihin-Everett Forwarding Co. v. Tokio Marine Malayan Insurance Co. G.R. No. 212107
- Vector Shipping Corporation v. American Home Assurance Company G.R. No. 159213
- Rcj Bus Lines v. Standard Insurance Company G.R. No. 193629
- San Ildefonso Lines v. Court of Appeals G.R. No. 119771
- The Philippine American General Insurance Company v. Court of Appeals G.R. No. 116940
- C.V. Gaspar Salvage & Lighterage Corporation v. Lg Insurance Company G.R. No. 206892
- Aboitiz Shipping Corporation v. Insurance Company of North America G.R. No. 168402
Other Supreme Court decisions also apply this article.