FREE LEGAL ADVICE IN DEAR PAO COLUMN

Dear PAO,

My girlfriend’s mother died leaving no last will and testament. Her mother has a Life Insurance with various companies and organizations. She was living with her mom but instead of her, her grandmother was declared as beneficiary. Her mother’s siblings are the ones processing the papers for the proceeds of the said insurance. However, she found out that she is being excluded from receiving any share in the insurance proceeds. We badly need your opinion on this. Dear Johair,

Under Presidential Decree No. 612 or the Insurance Code of the Philippines, a contract of insurance is an agreement whereby one undertakes for a consideration to indemnify another against loss, damage or liability arising from an unknown or contingent event ( Section 2 (1), PD 612).

On the other hand, life insurance is a kind of insurance the purpose of which is to indemnify the beneficiary in the event the person insured passes away, injures himself or suffers physical disability, among others. Section 179 of the Insurance Code defines life insurance as follows:

“Sec. 179. Life insurance is insurance on human lives and insurance appertaining thereto or connected therewith.”

The beneficiary in life insurance may be anybody so designated in the policy by the insured. Likewise, the insured may change the beneficiary at will, unless he expressly waives the same in the policy (Section 11, PD 612).

Thus, since as mentioned in your narration, your girlfriend is

Johair not a beneficiary in the Insurance Policy of her mother, it follows that she is disqualified to receive the proceeds thereof. Section 53 of PD 612 aptly provides:

“Sec. 53. The insurance proceeds shall be applied exclusively to the proper interest of the person in whose name or for whose benefit it is made unless otherwise specified in the policy.”

Based on the foregoing, it is clear that your girlfriend is not entitled to receive the insurance proceeds of her mother considering that she is not one of the designated beneficiaries in the policy. Her mother could have at least included her as one of the beneficiaries but unfortunately she failed to do so. However, her grandmother may be generous enough to share a portion of the said insurance proceeds with her.

Again, we find it necessary to mention that this opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when the facts are changed or elaborated.

We hope that we were able to enlighten you on the matter. Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net.