Maria Cristina S.

Muyrong

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.

Time came when Buenaventura died from a falling tree branch. Carponia filed a claim to
the insurance company to get the proceeds as the designated beneficiary. She admits however
that the deceased-insured 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 govern by the provisions of the new civil code on matters
not specifically provided for in 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.”