Heirs of Maramag vs. Maramag G.R. No.

181132 June 5, 2009 FACTS: Petitioners in this case are the legitimate heirs of deceased Loreto The petitioners were not named as beneficiaries in the insurance policies issued by Insular and Grepalife. Petitioners claim that Eva, the concubine of Loreto and a suspect in his murder, is disqualified from being designated of the insurance policies They further add that Evas children with Loreto, being illegitimate children, are entitled to a lesser share of the proceeds of the policies Thus, they prayed that the share of Eva and portions of the share of Loretos illegitimate children should be awarded to them, being the legitimate heirs of Loreto entitled to their respective legitimes.

ISSUE: Whether or not the proceeds should be awarded to the petitioners HELD: No. The insurance contracts are governed by specials laws Petitioners are third parties to the insurance contracts with Insular and Grepalife and thus, they are not entitled to the proceeds thereof. The Insular and Grepalife have no legal obligation to turn over the insurance proceeds to the petitioner. It is only in cases where the insured has not designated any beneficiary, or when the designated beneficiary is disqualified by law to receive the proceeds, that the insurance policy proceeds shall redound to the benefit of the estate of the insured.