Insurer's Refusal to Pay Benefits in Case of Intentional Death of the Beneficiary

Facts

Silvia S.-R. had taken out an accident insurance policy with the Insurance Company of North America, designating her husband Anton S. as the beneficiary in the event of her death. On September 17, 1987, Anton S. killed his wife Silvia S.-R. before committing suicide. Silvia S.-R.'s parents, Jules and Margrit R.-T., as legal heirs, asserted their right to the payment of the death benefit of 100,000 francs from the insurer. The Commercial Court of the Canton of Zurich granted their claim. The insurer appealed to the Federal Tribunal.

Considerations

The Federal Tribunal partially upheld the appeal. It considered that Art. 14 para. 1 IPA, which provides that the insurer is not obliged to pay the benefit if the policyholder or the beneficiary has intentionally caused the insured event, applies clearly and unambiguously. Contrary to the opinion of the Commercial Court, the fact that the beneficiary has intentionally caused the insured event releases the insurer from its obligation to pay the benefit, without distinction as to whether it is the right to the benefit as such or only the right of the culpable beneficiary that is extinguished.

However, the beneficiary's capacity of discernment at the time of the act is a prerequisite for the application of Art. 14 para. 1 IPA. If Anton S. was incapable of…