Hi, I need clarity on this matter.
An employee attempted suicide by consuming a tablet and received timely treatment in the hospital. He was scheduled to be discharged 7 days after the suicide attempt. However, he fell ill again on the same day and passed away due to a heart attack in the hospital 15 days later, which was the date of the suicide attempt. The post-mortem report stated that the cause of death was a natural heart attack.
My questions are:
1. Will the employee's family be able to claim death benefits such as gratuity and insurance from the company, and why?
2. The employer mentioned health and accidental insurance in the offer letter. Is a heart attack covered under accidental insurance?
3. If a heart attack is not covered under accidental insurance and an employee dies in the company due to a heart attack, what liability does the company have, especially if there is no life insurance for employees?
4. If the employer does not provide any information to the employee's family after his death, can the family file a case against the employer? If so, what is the process for filing a case?
5. This case is based in Bangalore, and I am residing in MP (the deceased employee's family). Can I file a case against the employer from my hometown if the employer is not communicating or responding adequately?
Please provide your suggestions that will assist in resolving this situation.
From India
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An employee attempted suicide by consuming a tablet and received timely treatment in the hospital. He was scheduled to be discharged 7 days after the suicide attempt. However, he fell ill again on the same day and passed away due to a heart attack in the hospital 15 days later, which was the date of the suicide attempt. The post-mortem report stated that the cause of death was a natural heart attack.
My questions are:
1. Will the employee's family be able to claim death benefits such as gratuity and insurance from the company, and why?
2. The employer mentioned health and accidental insurance in the offer letter. Is a heart attack covered under accidental insurance?
3. If a heart attack is not covered under accidental insurance and an employee dies in the company due to a heart attack, what liability does the company have, especially if there is no life insurance for employees?
4. If the employer does not provide any information to the employee's family after his death, can the family file a case against the employer? If so, what is the process for filing a case?
5. This case is based in Bangalore, and I am residing in MP (the deceased employee's family). Can I file a case against the employer from my hometown if the employer is not communicating or responding adequately?
Please provide your suggestions that will assist in resolving this situation.
From India
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Hello there,
I am answering some questions based on my knowledge.
1. Gratuity is not dependent on whether the employee is alive or deceased; if the employee completes 5 years of service with the employer, gratuity can be claimed. In the case of the employee's death, the nominee can receive the gratuity. Therefore, in your situation, please verify if the employee has served for 5 years or more.
2. Regarding insurance: if your company is affiliated with a private insurance provider, refer to the insurance manual for details on how the employee's family can make a claim. If not, consider the Employee State Insurance (ESI). If the employee is covered by ESI, their family can claim death benefits through ESI. In both scenarios, the employer acts as a third party for signatures and approvals.
3. Some companies may include a health and safety clause in the offer letter. This provision applies if an employee dies within the office premises due to a machine or employer-related accident. In your case, it seems these conditions may not be relevant.
For the 4th and 5th questions, I am unsure of what you are inquiring about. However, from what I gather, if the employee's death is linked to the employer, you have the right to claim compensation or take legal action against the employer. If the post-mortem report indicates a natural cause of death, there may be limited recourse. If the employer offers a death fund within the company, they may provide financial assistance.
I hope this clarifies the information for you.
From India, Hyderabad
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33I am answering some questions based on my knowledge.
1. Gratuity is not dependent on whether the employee is alive or deceased; if the employee completes 5 years of service with the employer, gratuity can be claimed. In the case of the employee's death, the nominee can receive the gratuity. Therefore, in your situation, please verify if the employee has served for 5 years or more.
2. Regarding insurance: if your company is affiliated with a private insurance provider, refer to the insurance manual for details on how the employee's family can make a claim. If not, consider the Employee State Insurance (ESI). If the employee is covered by ESI, their family can claim death benefits through ESI. In both scenarios, the employer acts as a third party for signatures and approvals.
3. Some companies may include a health and safety clause in the offer letter. This provision applies if an employee dies within the office premises due to a machine or employer-related accident. In your case, it seems these conditions may not be relevant.
For the 4th and 5th questions, I am unsure of what you are inquiring about. However, from what I gather, if the employee's death is linked to the employer, you have the right to claim compensation or take legal action against the employer. If the post-mortem report indicates a natural cause of death, there may be limited recourse. If the employer offers a death fund within the company, they may provide financial assistance.
I hope this clarifies the information for you.
From India, Hyderabad
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Our Firm Gratuity Trust Fund Consultant is an MSME registered with the Ministry of Micro, Small and Medium Enterprise with Registration Number UDYAM-DL-11-0013795. Our Consulting Firm is headed by Mr. Tikaram Chaudhary. He has almost 15 years of experience and specialization in providing consultation for actuarial, legal, insurance, and investment matters related to Old and New Gratuity Trusts as per various provisions of Accounting Standards (i.e., IndAS 19, AS 15 (Revised 2005), IAS 19 (Revised 2011) & USGAAP ASC 715) Indian Trust Act 1882, The Payment of Gratuity Act, 1972, The Payment of Gratuity Rules, 1973, Income Tax Act 1961, Income Tax Rules, 1962, Fourth Schedule of Income Tax Act, 1961 & relevant Acts/Rules.
Generally, Gratuity Trusts are formed by the most reputed Indian & Multinational Companies as per provisions of in terms of Part C of Fourth Schedule of Income Tax Act, 1961 in irrevocable System for compliance of Section 4A of the Payment of Gratuity Act, 1972 and getting the Tax Benefits available under Section 36(i)(v) and 10(25)(iv) of the Income Tax Act, 1961.
Gratuity Trust Fund Consultant is a Leading Corporate Consulting Firm that has served more than 1000 Most Reputed Indian & Multinational Companies with Actuarial Valuation, Legal, Gratuity Insurance, and Gratuity Trust Investment Solutions for Employee Benefits (i.e., Gratuity, Leave Encashment, Pension, PRMB, etc.).
GTFC is actively involved in providing End to End Consultation for effectively implementing Accounting, Actuarial, and Legal compliances of the Payment of Gratuity Act, 1972, The Payment of Gratuity Rules, 1973 & Accounting Standards (AS 15 Revised 2005, IndAS 19 & IAS 19-IFRS) applicable on Indian & Multinational Establishments. The details of Actuarial, Legal, Insurance, and Investment Compliances related to Gratuity Benefits and other Defined Benefits are as follows:
Gratuity Trust Solutions
The Payment of Gratuity Act, 1972 is applicable to all establishments (i.e., MNCs, Schools, Hospitals, NGOs, Trusts, and other business entities) having more than 10 employees in the past 12 months before the Balance Sheet date. For the purpose of effectively implementing the Payment of Gratuity Act, 1972, the following compliances and penal provisions (i.e., Refer Section 9 in the Payment of Gratuity Act, 1972) are imposed on Establishments by the Competent Authority (i.e., Deputy Labor Commissioner) regulating the Provisions of the Payment of Gratuity Act, 1972:
a. Registration of Establishment (i.e., Submission of Form A – Notice of Opening in DLC Office)
b. Maintenance of Records Nominees of Employees in Form F (i.e., For payment of Death Gratuity)
c. Maintenance of Records other Forms as prescribed in Rule 3 to 6 of the Payment of Gratuity Rules
d. Compulsory Gratuity Insurance – Compulsorily applicable to Indian, US, UK, UAE, Japanese, European, Asian Companies registered with DLC Offices in the jurisdiction of Karnataka, Telangana, and Andhra Pradesh.
e. Establishment of the CIT Approved Gratuity Trust for Compulsory Gratuity Insurance.
f. Investment of Gratuity Trust Money into Compulsory Gratuity Insurance through Group Gratuity Schemes of Insurance companies such as:
- SBI Life Insurance Company Limited
- Life Insurance Corporation of India
- Pramerica Life Insurance Limited
- Bajaj Allianz Life Insurance Co. Ltd
- ICICI Prudential Life Insurance Company Limited
g. The Process of Establishment of Gratuity Trust for Compulsory Gratuity Insurance requires Establishment to Involve in the following process:
I. Vetting of Board Resolution for Gratuity Trust Formation,
II. Vetting of Gratuity Trust Deed,
III. Vetting of Gratuity Trust Rules &
IV. Vetting of Application under Section 9 for Approval from CIT in terms of Rule 109 of Income Tax Rules, 1962
Furthermore, if there is any amendment happened in changes indicated below then Vetting of Deed of Variations and Applications to CIT are required by Trustees/Companies for taking Approvals from CIT for retention of CIT Approval for Gratuity Trust in terms of Part C of Schedule IV of Income Tax Act, 1961 for getting the tax benefits under Section under Section 36(i)(v) and 10(25)(iv) of Income Tax Act, 1961 even after the following changes: -
a) Change in Name of Trust,
b) Change in Address of Trust,
c) Change in Trustees,
d) Change in Investment Pattern of Gratuity Funds from 1 Insurer to another
e) Change in Benefit Formulae for Gratuity Benefits
f) Change in Retirement Age of Employees
g) Change in Object of Trust
h) Change in Trust Rules
i) For winding up of Trust due to winding up of the Company
j) For Transfer of Gratuity Fund from one Trust to another in the Event of Merger or De-merger
h. All matters related to Old Gratuity Trusts and Group Gratuity Schemes such as Vetting work of Deed of Variations, Application, Board Resolution, and Application to Bank, LIC & CIT in various events such as Merger, De-merger, Acquisitions, etc.
For more details, contact me at 9211637063.
From India, Delhi
Acknowledge(0)Amend(0)
Generally, Gratuity Trusts are formed by the most reputed Indian & Multinational Companies as per provisions of in terms of Part C of Fourth Schedule of Income Tax Act, 1961 in irrevocable System for compliance of Section 4A of the Payment of Gratuity Act, 1972 and getting the Tax Benefits available under Section 36(i)(v) and 10(25)(iv) of the Income Tax Act, 1961.
Gratuity Trust Fund Consultant is a Leading Corporate Consulting Firm that has served more than 1000 Most Reputed Indian & Multinational Companies with Actuarial Valuation, Legal, Gratuity Insurance, and Gratuity Trust Investment Solutions for Employee Benefits (i.e., Gratuity, Leave Encashment, Pension, PRMB, etc.).
GTFC is actively involved in providing End to End Consultation for effectively implementing Accounting, Actuarial, and Legal compliances of the Payment of Gratuity Act, 1972, The Payment of Gratuity Rules, 1973 & Accounting Standards (AS 15 Revised 2005, IndAS 19 & IAS 19-IFRS) applicable on Indian & Multinational Establishments. The details of Actuarial, Legal, Insurance, and Investment Compliances related to Gratuity Benefits and other Defined Benefits are as follows:
Gratuity Trust Solutions
The Payment of Gratuity Act, 1972 is applicable to all establishments (i.e., MNCs, Schools, Hospitals, NGOs, Trusts, and other business entities) having more than 10 employees in the past 12 months before the Balance Sheet date. For the purpose of effectively implementing the Payment of Gratuity Act, 1972, the following compliances and penal provisions (i.e., Refer Section 9 in the Payment of Gratuity Act, 1972) are imposed on Establishments by the Competent Authority (i.e., Deputy Labor Commissioner) regulating the Provisions of the Payment of Gratuity Act, 1972:
a. Registration of Establishment (i.e., Submission of Form A – Notice of Opening in DLC Office)
b. Maintenance of Records Nominees of Employees in Form F (i.e., For payment of Death Gratuity)
c. Maintenance of Records other Forms as prescribed in Rule 3 to 6 of the Payment of Gratuity Rules
d. Compulsory Gratuity Insurance – Compulsorily applicable to Indian, US, UK, UAE, Japanese, European, Asian Companies registered with DLC Offices in the jurisdiction of Karnataka, Telangana, and Andhra Pradesh.
e. Establishment of the CIT Approved Gratuity Trust for Compulsory Gratuity Insurance.
f. Investment of Gratuity Trust Money into Compulsory Gratuity Insurance through Group Gratuity Schemes of Insurance companies such as:
- SBI Life Insurance Company Limited
- Life Insurance Corporation of India
- Pramerica Life Insurance Limited
- Bajaj Allianz Life Insurance Co. Ltd
- ICICI Prudential Life Insurance Company Limited
g. The Process of Establishment of Gratuity Trust for Compulsory Gratuity Insurance requires Establishment to Involve in the following process:
I. Vetting of Board Resolution for Gratuity Trust Formation,
II. Vetting of Gratuity Trust Deed,
III. Vetting of Gratuity Trust Rules &
IV. Vetting of Application under Section 9 for Approval from CIT in terms of Rule 109 of Income Tax Rules, 1962
Furthermore, if there is any amendment happened in changes indicated below then Vetting of Deed of Variations and Applications to CIT are required by Trustees/Companies for taking Approvals from CIT for retention of CIT Approval for Gratuity Trust in terms of Part C of Schedule IV of Income Tax Act, 1961 for getting the tax benefits under Section under Section 36(i)(v) and 10(25)(iv) of Income Tax Act, 1961 even after the following changes: -
a) Change in Name of Trust,
b) Change in Address of Trust,
c) Change in Trustees,
d) Change in Investment Pattern of Gratuity Funds from 1 Insurer to another
e) Change in Benefit Formulae for Gratuity Benefits
f) Change in Retirement Age of Employees
g) Change in Object of Trust
h) Change in Trust Rules
i) For winding up of Trust due to winding up of the Company
j) For Transfer of Gratuity Fund from one Trust to another in the Event of Merger or De-merger
h. All matters related to Old Gratuity Trusts and Group Gratuity Schemes such as Vetting work of Deed of Variations, Application, Board Resolution, and Application to Bank, LIC & CIT in various events such as Merger, De-merger, Acquisitions, etc.
For more details, contact me at 9211637063.
From India, Delhi
Acknowledge(0)Amend(0)
Our Firm Gratuity Trust Fund Consultant is an MSME registered with the Ministry of Micro, Small, and Medium Enterprises with Registration Number UDYAM-DL-11-0013795. Our Consulting Firm is headed by Mr. Tikaram Chaudhary. He has almost 15 years of experience and specialization in providing consultation for actuarial, legal, insurance, and investment matters related to old and new gratuity trusts as per various provisions of accounting standards (i.e., IndAS19, AS 15 (Revised 2005), IAS 19 (Revised 2011) & USGAAP ASC 715), Indian Trust Act 1882, The Payment of Gratuity Act, 1972, The Payment of Gratuity Rules, 1973, Income Tax Act 1961, Income Tax Rules, 1962, Fourth Schedule of the Income Tax Act, 1961 & relevant Acts/Rules.
Generally, Gratuity Trusts are formed by the most reputed Indian & multinational companies as per provisions in terms of Part C of the Fourth Schedule of the Income Tax Act, 1961, in an irrevocable system for compliance with Section 4A of the Payment of Gratuity Act, 1972, and getting the tax benefits available under Section 36(i)(v) and 10(25)(iv) of the Income Tax Act, 1961.
Gratuity Trust Fund Consultant is a leading corporate consulting firm that has served more than 1000 most reputed Indian & multinational companies with actuarial valuation, legal, gratuity insurance, and gratuity trust investment solutions for employee benefits (i.e., gratuity, leave encashment, pension, PRMB, etc.).
GTFC is actively involved in providing end-to-end consultation for effectively implementing accounting, actuarial, and legal compliances of the Payment of Gratuity Act, 1972, The Payment of Gratuity Rules, 1973 & Accounting Standards (AS 15 Revised 2005, IndAS 19 & IAS 19-IFRS) applicable to Indian & multinational establishments. The details of actuarial, legal, insurance, and investment compliances related to gratuity benefits and other defined benefits are as follows:
1. Gratuity Trust Solutions
The Payment of Gratuity Act, 1972, is applicable to all establishments (i.e., MNCs, Schools, Hospitals, NGOs, Trusts, and other business entities) having more than 10 employees in the past 12 months before the balance sheet date. For the purpose of effectively implementing the Payment of Gratuity Act, 1972, the following compliances and penal provisions (i.e., Refer Section 9 in the Payment of Gratuity Act, 1972) are imposed on establishments by the Competent Authority (i.e., Deputy Labor Commissioner) regulating the provisions of the Payment of Gratuity Act, 1972:
a. Registration of Establishment (i.e., Submission of Form A - Notice of Opening in DLC Office)
b. Maintenance of Records Nominees of Employees in Form F (i.e., For payment of Death Gratuity)
c. Maintenance of Records other Forms as prescribed in Rule 3 to 6 of the Payment of Gratuity Rules
d. Compulsory Gratuity Insurance - Compulsorily applicable to Indian, US, UK, UAE, Japanese, European, Asian companies registered with DLC Offices in the jurisdiction of Karnataka, Telangana, and Andhra Pradesh.
e. Establishment of the CIT Approved Gratuity Trust for Compulsory Gratuity Insurance.
f. Investment of Gratuity Trust Money into Compulsory Gratuity Insurance through Group Gratuity Schemes of Insurance companies such as:
a. SBI Life Insurance Company Limited
b. Life Insurance Corporation of India
c. Pramerica Life Insurance Limited
d. Bajaj Allianz Life Insurance Co. Ltd
e. ICICI Prudential Life Insurance Company Limited
g. The Process of Establishment of Gratuity Trust for Compulsory Gratuity Insurance requires the Establishment to Involve in the following process: -
I. Vetting of Board Resolution for Gratuity Trust Formation,
II. Vetting of Gratuity Trust Deed,
III. Vetting of Gratuity Trust Rules &
IV. Vetting of Application under Section 9 for Approval from CIT in terms of Rule 109 of Income Tax Rules, 1962
Furthermore, if there is any amendment happened in changes indicated below, then Vetting of Deed of Variations and Applications to CIT are required by Trustees/Companies for taking Approvals from CIT for retention of CIT Approval for Gratuity Trust in terms of Part C of Schedule IV of the Income Tax Act, 1961, for getting the tax benefits under Section 36(i)(v) and 10(25)(iv) of the Income Tax Act, 1961 even after the following changes: -
a) Change in Name of Trust,
b) Change in Address of Trust,
c) Change in Trustees,
d) Change in Investment Pattern of Gratuity Funds from 1 Insurer to another
e) Change in Benefit Formulae for Gratuity Benefits
f) Change in Retirement Age of Employees
g) Change in Object of Trust
h) Change in Trust Rules
i) For winding up of Trust due to winding up of the Company
j) For Transfer of Gratuity Fund from one Trust to another in Event of Merger or De-merger
h. All matters related to Old Gratuity Trusts and Group Gratuity Schemes such as Vetting work of Deed of Variations, Application, Board Resolution, and Application to Bank, LIC & CIT in various events such as Merger, De-merger, Acquisitions, etc.
For more details, contact me at 9211637063.
From India, Delhi
Acknowledge(0)Amend(0)
Generally, Gratuity Trusts are formed by the most reputed Indian & multinational companies as per provisions in terms of Part C of the Fourth Schedule of the Income Tax Act, 1961, in an irrevocable system for compliance with Section 4A of the Payment of Gratuity Act, 1972, and getting the tax benefits available under Section 36(i)(v) and 10(25)(iv) of the Income Tax Act, 1961.
Gratuity Trust Fund Consultant is a leading corporate consulting firm that has served more than 1000 most reputed Indian & multinational companies with actuarial valuation, legal, gratuity insurance, and gratuity trust investment solutions for employee benefits (i.e., gratuity, leave encashment, pension, PRMB, etc.).
GTFC is actively involved in providing end-to-end consultation for effectively implementing accounting, actuarial, and legal compliances of the Payment of Gratuity Act, 1972, The Payment of Gratuity Rules, 1973 & Accounting Standards (AS 15 Revised 2005, IndAS 19 & IAS 19-IFRS) applicable to Indian & multinational establishments. The details of actuarial, legal, insurance, and investment compliances related to gratuity benefits and other defined benefits are as follows:
1. Gratuity Trust Solutions
The Payment of Gratuity Act, 1972, is applicable to all establishments (i.e., MNCs, Schools, Hospitals, NGOs, Trusts, and other business entities) having more than 10 employees in the past 12 months before the balance sheet date. For the purpose of effectively implementing the Payment of Gratuity Act, 1972, the following compliances and penal provisions (i.e., Refer Section 9 in the Payment of Gratuity Act, 1972) are imposed on establishments by the Competent Authority (i.e., Deputy Labor Commissioner) regulating the provisions of the Payment of Gratuity Act, 1972:
a. Registration of Establishment (i.e., Submission of Form A - Notice of Opening in DLC Office)
b. Maintenance of Records Nominees of Employees in Form F (i.e., For payment of Death Gratuity)
c. Maintenance of Records other Forms as prescribed in Rule 3 to 6 of the Payment of Gratuity Rules
d. Compulsory Gratuity Insurance - Compulsorily applicable to Indian, US, UK, UAE, Japanese, European, Asian companies registered with DLC Offices in the jurisdiction of Karnataka, Telangana, and Andhra Pradesh.
e. Establishment of the CIT Approved Gratuity Trust for Compulsory Gratuity Insurance.
f. Investment of Gratuity Trust Money into Compulsory Gratuity Insurance through Group Gratuity Schemes of Insurance companies such as:
a. SBI Life Insurance Company Limited
b. Life Insurance Corporation of India
c. Pramerica Life Insurance Limited
d. Bajaj Allianz Life Insurance Co. Ltd
e. ICICI Prudential Life Insurance Company Limited
g. The Process of Establishment of Gratuity Trust for Compulsory Gratuity Insurance requires the Establishment to Involve in the following process: -
I. Vetting of Board Resolution for Gratuity Trust Formation,
II. Vetting of Gratuity Trust Deed,
III. Vetting of Gratuity Trust Rules &
IV. Vetting of Application under Section 9 for Approval from CIT in terms of Rule 109 of Income Tax Rules, 1962
Furthermore, if there is any amendment happened in changes indicated below, then Vetting of Deed of Variations and Applications to CIT are required by Trustees/Companies for taking Approvals from CIT for retention of CIT Approval for Gratuity Trust in terms of Part C of Schedule IV of the Income Tax Act, 1961, for getting the tax benefits under Section 36(i)(v) and 10(25)(iv) of the Income Tax Act, 1961 even after the following changes: -
a) Change in Name of Trust,
b) Change in Address of Trust,
c) Change in Trustees,
d) Change in Investment Pattern of Gratuity Funds from 1 Insurer to another
e) Change in Benefit Formulae for Gratuity Benefits
f) Change in Retirement Age of Employees
g) Change in Object of Trust
h) Change in Trust Rules
i) For winding up of Trust due to winding up of the Company
j) For Transfer of Gratuity Fund from one Trust to another in Event of Merger or De-merger
h. All matters related to Old Gratuity Trusts and Group Gratuity Schemes such as Vetting work of Deed of Variations, Application, Board Resolution, and Application to Bank, LIC & CIT in various events such as Merger, De-merger, Acquisitions, etc.
For more details, contact me at 9211637063.
From India, Delhi
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