The
Insular Life Assurance Company, Ltd. vs. Ebrado
(Insurance
Law)
80
SCRA 181 (G.R. No. L-44059)
October
28, 1977
Petitioners/Appellants: |
Carponia
T. Ebrado and Pascuala Vda. de Ebrado |
Respondents/Appellee: |
The
Insular Life Assurance Company, Ltd. |
J. Martin:
FACTS:
Buenaventura
Ebrado was issued by the Insurance Life Assurance Co. Ltd, a whole life plan
for ₱
5,882.00 with a rider for Accidental Death Benefits for the same amount.
Buenaventura Ebrado designated Carponia T. Ebrado as the revocable beneficiary
in his policy. He referred to her as his wife.
Buenaventura
C. Ebrado died when he was accidentally hit by a falling branch of a tree. As
the insurance policy was in force, the insurer stands liable for ₱11,745.73.
Carponia
T. Ebrado filed her claim although she admits that she and the insured were
merely living as husband and wife without the benefits of marriage.
Pascuala
Vda. de Ebrado also filed her claim as the widow of the deceased insured.
ISSUE:
Whether
Carponia T. Ebrado is entitled to the benefits even she was only the common law
wife of the insured.
HELD:
No.
The general rules of Civil Law should be applied to resolve the void in the
Insurance Law Article 2011 of the New Civil Code states that: “the contract of
insurance is governed by special laws. Matters not expressly provided for in
such special laws shall be regulated by this Code.” When not otherwise
specifically provided for by the Insurance Law, the contract of life insurance
is governed by the general rules of the civil law regulating contracts. And
under Article 2012 of the same Code, “any person who is a bidder from receiving
any donation under Article 739 cannot be named beneficiary of a life insurance
policy by the person who cannot make a donation to him. “Common law spouses are
definitely barred from receiving donations from each other.
In
essence, a life insurance policy is no different from a civil donation insofar
as the beneficiary is concerned. Both are founded upon the same consideration
liberality. A beneficiary is like a donee, because from the premiums of the
policy which the insured pays out of liberality, the beneficiary will receive
the proceeds or profits of said insurance. As a consequence, the proscription
in Article 739 of the New Civil Code should equally operate in life insurance
contracts. The mandate of Article 2012 cannot be laid aside any person who
cannot receive a donation cannot be named as beneficiary in the life insurance
policy of the person who cannot a donation. Under American Law, a policy of
life insurance is considered as a testament and in construing it, the courts
will, so far as possible treat it as a will and determine the effect of a
clause designating the beneficiary by rules under which wills are interpreted.
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