Respected Sirs / Madam,
Facts:
Mr. A worked as a driver in a private limited company (“employer”). He was driving the company’s goods vehicle on duty. Goods vehicle hit on a container truck standing on the right side of the road. Mr. A died in that accident. The heir of Mr. A filed against the insurance company of the container truck for third party claims.
Queries:
1. Whether the employer company is liable to pay any compensation to the legal heir of Mr. A as his death was on duty?
2. Whether the employer company can avoid his liability saying that the heir of Mr. A filed against the insurance company of the container truck for third party claims?
3. Whether the heir of Mr. A has the right to get both third-party claims from the insurance company and compensation from the employer?
Please advise the legal rights of the heir of Mr.A in the above case against the employer company.
Your advice is highly appreciated.
Thank you.
From India, Kolkata
Facts:
Mr. A worked as a driver in a private limited company (“employer”). He was driving the company’s goods vehicle on duty. Goods vehicle hit on a container truck standing on the right side of the road. Mr. A died in that accident. The heir of Mr. A filed against the insurance company of the container truck for third party claims.
Queries:
1. Whether the employer company is liable to pay any compensation to the legal heir of Mr. A as his death was on duty?
2. Whether the employer company can avoid his liability saying that the heir of Mr. A filed against the insurance company of the container truck for third party claims?
3. Whether the heir of Mr. A has the right to get both third-party claims from the insurance company and compensation from the employer?
Please advise the legal rights of the heir of Mr.A in the above case against the employer company.
Your advice is highly appreciated.
Thank you.
From India, Kolkata
Dear friend,
1) The deceased driver being an employee as per sec.2(dd) of the EC Act,1923 and the accident took place during the course of his employment, as employer, the Company is liable to pay compensation to the dependent's of the deceased under the Act. However, since the legal heir has initiated claim for compensation under the Motor Vehicles Act,1882 against the insurer, he is precluded from staking a simultaneous claim under the E.C Act.
I think that the above answers all your three questions.
From India, Salem
60181) The deceased driver being an employee as per sec.2(dd) of the EC Act,1923 and the accident took place during the course of his employment, as employer, the Company is liable to pay compensation to the dependent's of the deceased under the Act. However, since the legal heir has initiated claim for compensation under the Motor Vehicles Act,1882 against the insurer, he is precluded from staking a simultaneous claim under the E.C Act.
I think that the above answers all your three questions.
From India, Salem
Sir, Thanks for your efforts and kind advise. I will communicate your reply to the legal heir of Mr.A. Thanks sir
From India, Kolkata
From India, Kolkata
Sir,
Your kind advise conveyed to the legal heir of Mr A.
On another matter he humbly asks your kind advise. EPF was not deducted from Mr A's salary. The employer company informed the legal heir of Mr A that Mr A was not eligible for PF contribution. So, Mr. A's legal heir lost the benefits available under PF schemes.
Please advise, whether Mr A was eligible for PF contribution or not. He joined company as a driver in 27-July-2017. He died in Dec 2019 on duty. We dont have Dec month salary details. His salary details are attached.
We request humbly your advise.
Thank you very much
From India, Kolkata
Your kind advise conveyed to the legal heir of Mr A.
On another matter he humbly asks your kind advise. EPF was not deducted from Mr A's salary. The employer company informed the legal heir of Mr A that Mr A was not eligible for PF contribution. So, Mr. A's legal heir lost the benefits available under PF schemes.
Please advise, whether Mr A was eligible for PF contribution or not. He joined company as a driver in 27-July-2017. He died in Dec 2019 on duty. We dont have Dec month salary details. His salary details are attached.
We request humbly your advise.
Thank you very much
From India, Kolkata
The deceased driver's salary was below Rs.15,000/-per month (Basic + DA) and hence was eligible for PF Membership from day one i.e. 27.07.2017.
If the Claimant approaches PF Authority for death benefits under Pension Scheme, Deposit Linked Insurance etc. I am not sure whether the EPFO will entertain their claim but for sure that EPFO will claim both the contributions (Employee & Employer) including administrative charges with Penal Damages & Interest from the company.
Now Please answer the followings:
1. Was the driver in your regular employment?
2. Any Appointment Letter was issued to him
3. What was payment mode cash / cheque and by whom: Direct by the company and or by some individual?
Had you covered him under both the PF & ESI Schemes, your entire problem would have been solved.
From your statement, it is not clear whether of your own you have informed the deceased family members or they approached you?
Your total liability with both the contributions, Admn. chr., Penal Damages with interest will not be less than 1 lakh rupees. You cannot escape from this liability if this matter goes to EPFO.
Instead, you call the claimant and informed that the deceased member himself had approached you and verbally requested for "Not to deduct any PF" from his salary so as to get extra take home salary in hand.
Reach for some amicable settlement by convincing the party at the earliest and try to settle the matter by a lumpsum compensation of around Rs.1.5 to 2L with written undertaking that the claimant has recd. the claim has full & final and there is no claims of whatsoever nature against the Company.
Please also note that the deceased employee is also eligible for 2 years Gratuity payment, if not paid.
Regards,
Suresh
From India, Thane
If the Claimant approaches PF Authority for death benefits under Pension Scheme, Deposit Linked Insurance etc. I am not sure whether the EPFO will entertain their claim but for sure that EPFO will claim both the contributions (Employee & Employer) including administrative charges with Penal Damages & Interest from the company.
Now Please answer the followings:
1. Was the driver in your regular employment?
2. Any Appointment Letter was issued to him
3. What was payment mode cash / cheque and by whom: Direct by the company and or by some individual?
Had you covered him under both the PF & ESI Schemes, your entire problem would have been solved.
From your statement, it is not clear whether of your own you have informed the deceased family members or they approached you?
Your total liability with both the contributions, Admn. chr., Penal Damages with interest will not be less than 1 lakh rupees. You cannot escape from this liability if this matter goes to EPFO.
Instead, you call the claimant and informed that the deceased member himself had approached you and verbally requested for "Not to deduct any PF" from his salary so as to get extra take home salary in hand.
Reach for some amicable settlement by convincing the party at the earliest and try to settle the matter by a lumpsum compensation of around Rs.1.5 to 2L with written undertaking that the claimant has recd. the claim has full & final and there is no claims of whatsoever nature against the Company.
Please also note that the deceased employee is also eligible for 2 years Gratuity payment, if not paid.
Regards,
Suresh
From India, Thane
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Nominee vs legal heir.pdf
CTC_SALARY_SLIP _FORM_(legal)(1 ).xls
HR-LEGAL FORMS.zip