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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
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.
Parties to a contract of insurance:
- Insurer – The person who undertakes to indemnify another by a contract of insurance is called the insurer [Section 6, The Insurance Act]. Every person, company, corporation, or association who holds a certificate of authority from the insurance commissioner, as elsewhere provided in this Act, may be an insurer. [Section 7, The Insurance Act].
- Insured – The person indemnified is called the insured [Section 6, The Insurance Act].
Who is a beneficiary?
The Insurance Act did not provide for a definition of a beneficiary. However, according to jurisprudence, a beneficiary is like a donee, because from the premiums of the policy which the insured pays out of liberality, the beneficiary will receive the proceeds or profits of said insurance. [The Insular Life Assurance Company, Ltd. vs. Carponia T. Ebrado, et al., G.R. No. L-44059 October 28, 1977]
Differences between an insured and a beneficiary
Based on the foregoing, these are the notable differences between an insured person and a beneficiary:
- The insured is a party to the contract of insurance, while the beneficiary is not a party to the contract of insurance.
- The insured is the person indemnified in a contract of insurance, while the beneficiary is a recipient of the proceeds or profits of said insurance.
- The insured designates the beneficiary, while the beneficiary is the person designated by the insured to receive the proceeds or profits of the insurance.
Related Articles:
- Liability of several insurers in double insurance
- Can a person take insurance on the life of another person and designate himself as the beneficiary?
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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