Proceeds of life insurance | The Manila Times

INSURANCE

Dear PAO,

My father procured life insurance five years ago, and I was designated as the beneficiary in the insurance policy. He made this to ensure that I will have enough funds to finish my education in the worst case that he leaves this world early. Unfortunately, my father was involved in a car accident and died last month. Since I have to pay my tuition soon, I want to know how long it will take for me to receive the life insurance proceeds of my father.

Mela

Dear Mela,

Please be informed of Section 248 ng Republic Act 10607, otherwise known as “The Insurance Code of the Philippines,” which states that:

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“Section 248. The proceeds of a life insurance policy shall be paid immediately upon maturity of the policy, unless such proceeds are made payable in installments or as an annuity, in which case the installments, or annuities shall be paid as they become due: Provided, however, That in the case of a policy maturing by the death of the insured, the proceeds thereof shall be paid within sixty (60) days after presentation of the claim and filing of the proof of death of the insured. Refusal or failure to pay the claim within the time prescribed herein will entitle the beneficiary to collect interest on the proceeds of the policy for the duration of the delay at the rate of twice the ceiling prescribed by the Monetary Board, unless such failure or refusal to pay is based on the ground that the claim is fraudulent.”

Based on the above-stated law, the proceeds of a life insurance should be received by the beneficiaries within 60 days after the presentation of the claim and filing of the proof of death of the insured to the insurance company. If the insurance company fails to pay the proceeds of the insurance within the said period, the beneficiary will be entitled to collect interest on the proceeds of the policy for the duration of the delay.

In other words, you should receive the proceeds of the life insurance of your father within 60 days upon filing of your claim and presenting the proof of your father’s death to his insurance company.

We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]


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