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What is the theft clause?

 

It is that which includes theft as among the risks insured against. Where a car is unlawfully and wrongfully taken without the knowledge and consent of the owner, such taking constitutes “theft” and it is the theft clause, not the authorized driver clause which should apply. (Palermo v. Pyramid Inc., G.R. No. L-­‐36480, May 31, 1988)