Scribd
Upload
135 views3 pages

Insular Life v. Ebrado

The insured took out a life insurance policy and designated his common-law wife as the beneficiary. However, he was still legally married to his wife. After he died in an accident, both the common-law wife and legal wife claimed the insurance proceeds. The insurance company filed an interpleader action to determine who was entitled to the proceeds. The court held that under the Civil Code, a common-law spouse cannot receive donations from someone who is still legally married to another. Since designating a beneficiary is a type of donation, the common-law wife could not be the beneficiary and the legal wife was entitled to the insurance proceeds.

Uploaded by

Francis Puno
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
135 views3 pages

Insular Life v. Ebrado

The insured took out a life insurance policy and designated his common-law wife as the beneficiary. However, he was still legally married to his wife. After he died in an accident, both the common-law wife and legal wife claimed the insurance proceeds. The insurance company filed an interpleader action to determine who was entitled to the proceeds. The court held that under the Civil Code, a common-law spouse cannot receive donations from someone who is still legally married to another. Since designating a beneficiary is a type of donation, the common-law wife could not be the beneficiary and the legal wife was entitled to the insurance proceeds.

Uploaded by

Francis Puno
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

General rules of civil law should be applied to resolve any void in the Insurance Law,

aspronounced in Article 2011 of the NCC.A contract of insurance is personal in


character.

FACTS:

Buenaventura Cristor Ebrado was married to Pascuala Ebrado. During his lifetime, he
was livingwith his common-law wife, Carponia Ebrado, although he was not legally
separated from his legalwife. Buenaventura was issued by The Insular Life Assurance
Co., Ltd., Policy No. 009929 on awhole-life plan for PhP 5,8882.00 with a rider for
Accidental Death Benefits for the same amount.Buenaventura designated Carponia
Ebrado as the revocable beneficiary in his policy.Buenaventura died as a result of an
accident when he was hit by a falling branch of a tree. As theinsurance policy was still in
force, The Insular Life Assurance Co., Ltd stands liable to pay thecoverage.Carponia
Ebrado, his common-law wife, filed with the insurer a claim for the proceeds of the
policyas the designated beneficiary therein. Pascuala Vda. de Ebrado also filed her
claim as the widowof the deceased insured. She asserts that she is the one entitled to
the insurance proceeds, notthe common-law wife.In doubt as to whom the insurance
proceeds shall be paid, the insurer, The Insular Life AssuranceCo., Ltd, commenced an
action for Interpleader before the CFI of Rizal.

ISSUE: Can a common-law wife of a man who was not legally separated from his legal
wife be abeneficiary of his life insurance plan?

HELD/RULING

No.The Insurance Act (RA 2327, as amended) or even the new Insurance Code (PD
No. 612, asamended) does not contain any specific provision grossly resolutory to the
question at hand.Section 50 of the Insurance Act, which provides that “(t)he insurance
shall be applied exclusively tothe proper interest of the person in whose name it is
made,” cannot be interpreted that it includesthe beneficiary because a contract of
insurance is personal in character. The general rules of civillaw should be applied to
resolve this void in the Insurance Law.Article 2011 of the New Civil Code states: “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 of the same Code states
that, “any person who is forbidden from receiving anydonation under Article 739 cannot
be named beneficiary of a life insurance policy by the personwho cannot make a
donation to him.” Therefore, common-law spouses are barred from receivingdonations
from each other.Article 739 provides:“The following donations shall be void:Those made
between persons who were guilty of adultery or concubinage at the time of
thedonation;Those made between persons found guilty of the same criminal offense, in
consideration thereof;Those made to a public officer or his wife, descendants or
ascendants by reason of his office.

You might also like