The beneficiary in the contract of life insurance as a derogation from the law of succession

Abstract

This study gives an analysis of the status of the third party beneficiary in the comparative study of life insurance and succession as well as the combining elements of the two realms. Previous theses such as that of Dr. Elizabeth Ganado and Dr. Veronica Vella have dealt with the provisions of life insurance in the Civil Code and the contractual elements of such institution. Dr. Antonella Navarro on the other hand, specifically dealt with the contract of insurance as one which is in favour of third parties. The introduction of the specific rules relating to life insurance in many instances served as derogations from those regimes that have long been established within Maltese Law. This work analyses these derogations from the point of view of the beneficiary: whether merely designated and/or accepted, and whether designated in the policy or in a will. Since the Civil Code (Amendment) Act became part of our law in 2005, jurisprudence regarding this Act is minimal. As yet, we do not have any landmark judgments which would serve to convince the court that certain matters raised in this thesis reflect the true current social exigencies. A life policy generally takes decades to mature, and so far life insurance companies have not encountered many problems from the promulgation of Act XI of 2005 which need to be decided by the courts. Although many feel that such problems are yet to be raised, the fact that few claims have been instituted before the court reflects the fact that Act XI of 2005 was in fact a needed amendment to our Civil Code, which reduced the burdens on our Courts. The aim of this thesis, therefore, is to render the position or status of the beneficiary more transparent vis-à-vis the policyholder, the life assured, the testator, and the heir and legatee, among others.