Right of Revocation of a Beneficiary Clause in a Mixed Life and Death Insurance Policy

Facts

H.Y. and X. took out a mixed life and death insurance policy with M. SA (now [N. SA]). H.Y. was the policyholder, and he and X. were the insured persons. After H.Y.'s death, his heirs (A.Y., B.Y. and F.Y.) revoked the beneficiary clause in favor of X. and had the contract redeemed. X. then filed an action against [N. SA] to have the policy reinstated to its original terms.

Considerations

The DFC partially upheld X.'s appeal. It ruled that the right of revocation of a beneficiary clause provided for in Art. 77(1) IPA is a strictly personal right of the policyholder that is not transferred to their heirs, even when the policyholder's death does not coincide with the insured event. Consequently, H.Y.'s heirs were not able to validly revoke the beneficiary clause in favor of X. Therefore, X. retains her right to the monthly lifetime annuity of CHF 1,881 provided for in the original policy as of 31 March 2005, with interest at a rate of 5% per annum on the overdue monthly payments.

Howe…