The Insular Life Assurance Company, Ltd. vs Ebrado GR No.

L-44059 October 28, 1977 80 SCRA 181 Facts: Buenaventura Cristor Ebrado was issued by the Insular Life Assurance an insurance policy on a whole-life plan for P5,882.00 with a rider for Accidental Death Benefits for the same amount. He designated Carponia T. Ebrado, his common-law wife, as his revocable beneficiary in his policy. In the policy he referred to her as his wife. Buenaventura died from a falling tree branch. Carponia filed a claim to the insurance company to get the proceeds as the designated beneficiary, admitting that the deceasedinsured and she lived together as husband and wife without the benefit of marriage. Pascual T. Ebrado, also filed a claim to the insurance company, this time claiming to be the legal wife Buenaventura. She asserts that she has a better right over the proceeds than Carponia who is a common-law wife. As the insurance company is at a loss as to whom to give the proceeds, it commenced an action for interpleader in court. Issue: Whether a common-law wife named as a beneficiary in the life insurance policy of a legally married man entitled to claim the proceeds thereof in case of the death of the latter. Held: A common-law wife named as a beneficiary in the life insurance policy of a legally married man cannot claim the proceeds thereof in case the death of the latter. The contract of insurance is governed by the provisions of the new civil code on matters not specifically provided by the insurance code. xxx When not otherwise specifically provided for by the Insurance Law the contract of insurance is governed by the provisions of the civil law regulating contracts. And under Article 2012 of the same Code, any person who is forbidden 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.xxx Under the Article 739, paragraph 1 specifically states those made between persons who were guilty of adultery or concubinage at the time of donation. Thus common-law spouses are barred from receiving donations from each other. Also conviction for adultery or concubinage is not required as only preponderance of evidence is necessary. 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 the premiums of the policy which the insured pays out of liberality, the beneficiary will receive the proceeds or profits of said insurance.