Naidoo v Discovery Life Limited and Others

The appellant and the deceased were married in community of property. During the marriage, the deceased took out a risk-only life insurance policy with Discovery Life Limited, nominating the appellant as beneficiary. The policy had no investment or surrender value and paid out only on death. The deceased later changed the beneficiary nomination to his parents and siblings without the appellant’s knowledge or consent. After the deceased’s death, Discovery paid the policy proceeds to the newly nominated beneficiaries. The appellant claimed that the policy formed part of the joint estate and that the change of beneficiary without her written consent contravened s 15(2)(c) of the Matrimonial Property Act 88 of 1984.

The appeal was dismissed with costs. The second to fifth respondents were ordered to bear their own costs.

The case clarifies that risk-only life insurance policies do not form part of a joint estate in marriages in community of property and that changes to beneficiary nominations under such policies do not require spousal consent. It provides authoritative guidance on the interpretation of s 15(2)(c) of the Matrimonial Property Act and distinguishes between insurance policies that are assets and those that are not.