The Insular Life Assurance Company, Ltd. vs.
Ebrado
(Insurance Law)
80 SCRA 181 (G.R. No. L-44059)
October 28, 1977
Petitioners/ Carponia T. Ebrado and Pascuala Vda.
Appellants: de Ebrado
Respondents/ The Insular Life Assurance Company,
Appellee: 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.
