The Insular Life Assurance Company vs Ebrado, 80 SCRA 181

Fact:

On September 1, 1968, Buenaventura Ebrado issued by the Insular Life Assurance Policy No 009929 a whole-life plan with a rider for Accidental Death. Buenaventura designated Carponia Ebrado as the revocable beneficiary in his policy. He referred her as his wife.

On October 21, 1969, Buenaventura Ebrad died as a result of an accident when he was hit by a falling tree. Carponia filed with the insurer a claim for the proceeds of the policy as the designated beneficiary therein. Although she admits that she and the insured Buenaventura were merely living as husband and wife without the benefits of marriage. Pascuala de Ebrado, valid wife, also filed her claim as the widow of the deceased insured.

Issue: Can a common-law wife named as beneficiary in the life insurance policy of  legally married man claim the proceeds thereof in case of death of the latter?

Ruling:

In essence, a life insurance 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 Article739 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 a beneficiary in the life insurance policy of the persons who cannot make the donation.

Note following Articles from the Civil Code:

Article 2011 - "The contract of insurance is governed by special laws. Matters not expressly provided for in such special laws shall be regulated by this Code."

Article 2012 - "Any person who in forbidden from receiving any donation under Article 739 cannot be named beneficiary of a life insurance policy by the person who cannot be make a donation to him."

Article 739- "The donations shall be void:

1. Those made between persons who were guilty of adultery or concubinage at the title of donation.xx

In the case provided to in No.1, the action for declaration of nullity may be brought by the spouse of the donor or donee; and the guilt of the donee may be provided by preponderance of evidence in same action."