ANALYSIS OF LEGAL PRACTICE IN CASES OF INHERITANCE FOR INSURANCE PAYMENTS

 Pursuant to Article 1229 of the Civil Code, insurance payments (insurance indemnity) are inherited on a general basis, and if the insurer in the personal insurance contract has appointed a person to whom the right to receive the insurance payment in the event of his death is transferred, this right is not part of the inheritance.

 Thus, the rule on the inclusion of entitlements to insurance payments in the inheritance does not apply only to the legal relationship of voluntary life insurance in favor of a third party.

 This is confirmed by the case law. In particular, in the decision of the Konotop district court of Sumy region № 577/5573/15-c of March 31, 2016, the case was considered in the suit of PERSON_2, acting in the interests of a minor son to a private joint-stock company Ukrainian Joint Stock Insurance Company Asuka, a public company Pravex-Bank commercial bank on collection of insurance payment in the amount of 20 000 UAH 00 kopecks.

 The court upheld the claim in this part, arguing its decision as follows: PERSON_5 (father) died on 26 July 2014. During his lifetime he did not leave the covenant. Article 1229 of the Civil Code of Ukraine provides that insurance payments (insurance indemnity) are inherited on a general basis. If the policyholder in the personal insurance contract has nominated a person to whom the right to receive the insurance payment should be transferred in the event of his death, this right is not part of the inheritance. It follows from the foregoing that the rule on the inclusion of entitlements to insurance benefits in the inheritance does not extend only to the legal relationship of voluntary life insurance in favor of a third party. According to Art. 1261 of the Civil Code of Ukraine, first of all, the right of inheritance by the children of the heir, including those conceived during the life of the heir and born after his death, the spouse who survived him and the parents, and in accordance with Art. Art. 1268 - 1270 of the Civil Code of Ukraine the heir is entitled by law to accept or not inherit the inheritance. In these circumstances, the court considers that the insurance payments under the borrower's insurance contract of April 2, 2014 should be made to the heir PERSON_5, who died on July 26, 2014 - to his minor son PERSON_3, born November 14, 2001, represented by his legal representative mother PERSON_2.

 In addition, receiving insurance payments does not indicate actual inheritance. Of interest is the decision of the Yevpatoria City Court of the Autonomous Republic of Crimea No. 106/4706/13-c dated August 1, 2013, in which PERSON_1 filed a lawsuit with PERSON_2, PERSON_3 to determine an additional term for filing a claim for inheritance. The reasons are motivated by the fact that on 06.10.2007 she married PERSON_4, who worked as a sailor. Her husband, while performing his duties, was on a voyage on a seagoing ship that collided with a Chinese vessel, causing him to die. After the death of her husband, she did not apply to the notary's office for a declaration of inheritance within the statutory period, since the husband did not have any property that was inherited. In addition, she considered that she had inherited the inheritance after the death of her husband by applying to her husband's place of employment for financial assistance and to the Industrial Accident Insurance Fund with a request for her to pay insurance payments in connection with her husband's death. She later applied for an inheritance application, but was refused an inheritance certificate due to a missed deadline.

 However, the court denied the claim on the ground that the sum insured is not included in the estate, if the contract was concluded in favor of the beneficiary. According to Part 1 of Art. 1218 of the Civil Code of Ukraine includes all the rights and duties that belonged to the heir at the time of opening the inheritance and did not terminate as a result of his death. The claimant's indemnity payments and material assistance from the company where the deceased worked were not part of the inheritance. Based on the above, it is well established that the plaintiff did not inherit but received specific payments, which is not an inheritance.