Case name (full citation)/Legislation:
PPS Insurance Company v Mkhabela (159/2011) [2011] ZASCA 191 (14 November 2011).

Area of law:
Deceased Estates/Insurance Law.

Brief facts/summary:
Mmatishibe Louisa Magdeline Sebata (“the daughter”) was the owner of a life policy which PPS Insurance Company, First Appellant, had issued to her. She had nominated her mother, Helen Mmapule Mkhabela, as the beneficiary of the policy in the event of her death, but reserved the right to change or cancel the nomination ‘at any time’. The mother passed away on 26 May 2007. The daughter died afterwards, on 12 August 2007, thus the proceeds of the policy fell due, but  the daughter had failed to nominate another beneficiary.

Simon Michael Mkhabela, Respondent and executor of the mother’s deceased estate, claimed the proceeds of the policy belonged to her estate. The issue to be decided was whether the mother’s estate was entitled to the proceeds due to the fact that she had pre-deceased the daughter.

The matter went from the South Gauteng High Court, to a full bench to the Supreme Court of appeal. The SCA held that a nominated beneficiary who predeceases the owner of an insurance policy has no right to any benefit of the policy at the time of her death.

The SCA further held that;

(a)   until the death of the daughter, the mother only had an expectation of claiming the benefit of the policy she thus had no vested right to the benefit;
(b)   The mother’s expectation expired at the same time as her death, there was no enforceable right that was transmissible to her estate;
 (c)   the benefit remained with the daughter until her death, when it fell into her estate.

Importance/value:
This case is of importance as it gives an indication as to when benefits accrue should the beneficiary pre-decease the owner of such policy.

WEBSITE DISCLAIMER: Save for the contents of this disclaimer, the content of this website is provided for general information purposes only and should not be construed as, and does not constitute, legal or other professional advice. To the extent that you wish to place reliance upon any information contained on this website, you do so totally at your own risk and we accept no responsibility for any loss or damage whatsoever, howsoever arising. In addition, the hyperlinks provided on this website are provided for convenience only. We make no representations or warranties whatsoever in respect of the accuracy, completeness and/or reliability of any information, opinions, data and/or content provided on such linked website, nor do we endorse or take any responsibility for the content of any such linked website.