G.R. No. L-28093 January 30, 1971
Lessons Applicable: Invalid Designation (Insurance)
FACTS:
- Jose Consuegra contracted two marriages.
- First with Rosario Diaz
- 2 children who predeceased their father: Jose Consuegra, Jr. and Pedro Consuegra
- Second with Basilia Berdin while marriage is still subsisting
- 7 children: Juliana, Pacita, Maria Lourdes, Jose, Rodrigo, Lenida and Luz, all surnamed Consuegra
- Consuegra did not designate any beneficiary who would receive the retirement insurance benefits due to him
- Rosario Diaz filed a claim with the GSIS asking that the retirement insurance benefits be paid to her as the only legal heir of Consuegra, considering that the deceased did not designate any beneficiary
- GSIS: legal heirs were Rosario Diaz (1/2 or 8/16), Basilia Berdin and their seven children (1/2 or 8/16) (1/16 each)
- Basilia Berdin and her children filed petition for mandamus with preliminary injunction in CFI
- RTC: dismissed the case
- Basilia Berdin and her children appealed contending that because the deceased Jose Consuegra failed to designate the beneficiaries in his retirement insurance, the appellants who were the beneficiaries named in the life insurance should automatically be considered the beneficiaries to receive the retirement insurance benefits (Thus, excluding Rosario Diaz)
ISSUE: W/N the beneficiaries named in the life insurance should automatically be considered the beneficiaries to receive the retirement insurance benefits
HELD: NO. appealed from is affirmed
- The insured in a life insurance may designate any person as beneficiary unless disqualified to be so under the provisions of the Civil Code
- And in the absence of any beneficiary named in the life insurance policy, the proceeds of the insurance will go to the estate of the insured
- Retirement insurance is primarily intended for the benefit of the employee — to provide for his old age, or incapacity, after rendering service in the government for a required number of years. If the employee reaches the age of retirement, he gets the retirement benefits even to the exclusion of the beneficiary or beneficiaries named in his application for retirement insurance. The beneficiary of the retirement insurance can only claim the proceeds of the retirement insurance if the employee dies before retirement. If the employee failed or overlooked to state the beneficiary of his retirement insurance, the retirement benefits will accrue to his estate and will be given to his legal heirs in accordance with law, as in the case of a life insurance if no beneficiary is named in the insurance policy.
- with respect to the right of the second wife, although the second marriage can be presumed to be void ab initio as it was celebrated while the first marriage was still subsisting, still there is need for judicial declaration of such nullity
