Dear All,
One of our employees passed away after a terminal illness, and he did not mention a nominee for the same.
He is married and has a 1-year-old daughter. His father and mother are retired, well-settled, and have one more middle-aged son who is also well-settled.
The parents are super senior citizens with sufficient savings, a house, and LIC amounts of the deceased.
The deceased employee had listed his wife as the nominee in the PF form, which is clear with no issues on that front.
The spouse resides with the in-laws but is requesting the entire claim be paid to her and the minor daughter. We, as a company, requested a No Objection Certificate (NOC), but the spouse is unable to provide one, citing potential family disputes.
The insurance company stated they will pay to whomever we designate, as this is a Group policy taken by the organization.
The question is, can we make the entire payment to the spouse as she is the one who arguably deserves it most, and would this pose a legal challenge? Could the deceased employee's father go to court if we pay the amount to his daughter-in-law?
Regarding the Full and Final Settlement, can this be made directly to the spouse?
Looking forward to your responses.
From India, Vadodara
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One of our employees passed away after a terminal illness, and he did not mention a nominee for the same.
He is married and has a 1-year-old daughter. His father and mother are retired, well-settled, and have one more middle-aged son who is also well-settled.
The parents are super senior citizens with sufficient savings, a house, and LIC amounts of the deceased.
The deceased employee had listed his wife as the nominee in the PF form, which is clear with no issues on that front.
The spouse resides with the in-laws but is requesting the entire claim be paid to her and the minor daughter. We, as a company, requested a No Objection Certificate (NOC), but the spouse is unable to provide one, citing potential family disputes.
The insurance company stated they will pay to whomever we designate, as this is a Group policy taken by the organization.
The question is, can we make the entire payment to the spouse as she is the one who arguably deserves it most, and would this pose a legal challenge? Could the deceased employee's father go to court if we pay the amount to his daughter-in-law?
Regarding the Full and Final Settlement, can this be made directly to the spouse?
Looking forward to your responses.
From India, Vadodara
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Hi,
One way out for the below query:
The question is, can we make the entire payment to the spouse as she is the one who deserves it more than anyone, and will this cause a legal hurdle? Can the father of the deceased employee go to court if we make the payment to his daughter-in-law?
Ask the spouse to submit an undertaking from the parents - that the amount to be disbursed to the wife of the deceased employee and submit it to you to process the payment.
Please ensure all nominations are in order for the rest of the employees. If not, hold their increments/incentive payouts, etc., until they nominate. Otherwise, it will be a headache for you in the future.
Another way - Deposit the F&F, Gratuity, and any other payments pending from you in the employee's salary account as you would otherwise deposit if the employee retires. Let the family take up with the bank to whom those account access needs to be given. Typically, one of them would have access to the account info.
Thanks.
From India, undefined
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9One way out for the below query:
The question is, can we make the entire payment to the spouse as she is the one who deserves it more than anyone, and will this cause a legal hurdle? Can the father of the deceased employee go to court if we make the payment to his daughter-in-law?
Ask the spouse to submit an undertaking from the parents - that the amount to be disbursed to the wife of the deceased employee and submit it to you to process the payment.
Please ensure all nominations are in order for the rest of the employees. If not, hold their increments/incentive payouts, etc., until they nominate. Otherwise, it will be a headache for you in the future.
Another way - Deposit the F&F, Gratuity, and any other payments pending from you in the employee's salary account as you would otherwise deposit if the employee retires. Let the family take up with the bank to whom those account access needs to be given. Typically, one of them would have access to the account info.
Thanks.
From India, undefined
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Dear Sir,
Taking the inheritance from the in-laws is not preferred by my spouse as the in-laws are asking for a share, even though they are aged and financially stable. They intend to give all their money and current properties to their other son, who is unmarried and middle-aged.
Thank you for suggesting transferring the funds to the bank. Could you please provide detailed guidance on this matter?
Thank you.
From India, Vadodara
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Taking the inheritance from the in-laws is not preferred by my spouse as the in-laws are asking for a share, even though they are aged and financially stable. They intend to give all their money and current properties to their other son, who is unmarried and middle-aged.
Thank you for suggesting transferring the funds to the bank. Could you please provide detailed guidance on this matter?
Thank you.
From India, Vadodara
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Hi,
Undertaking from parents will not be valid. Tomorrow, they might take a different stand that they were forced to sign the undertaking, etc.
The right process is to ask for a Legal Heir Certificate issued by the respective State Government from the nominee of the employee. In the legal heir certificate, normally, the surviving spouse, children, father, and mother will be included. You can distribute the benefits equally to all nominees as per the Legal Heir Certificate.
However, in case of a dispute among nominees about the percentage of sharing, who will get more, etc., then advise them to get a Succession Certificate. A Succession Certificate will be issued by a competent civil court certifying a rightful person to be the successor of a deceased person. The civil court will analyze all facts based on the evidence provided before the court before issuing the Succession Certificate. Once the Succession Certificate is obtained, you can release the settlement as per the directive of the court.
From India, Madras
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Undertaking from parents will not be valid. Tomorrow, they might take a different stand that they were forced to sign the undertaking, etc.
The right process is to ask for a Legal Heir Certificate issued by the respective State Government from the nominee of the employee. In the legal heir certificate, normally, the surviving spouse, children, father, and mother will be included. You can distribute the benefits equally to all nominees as per the Legal Heir Certificate.
However, in case of a dispute among nominees about the percentage of sharing, who will get more, etc., then advise them to get a Succession Certificate. A Succession Certificate will be issued by a competent civil court certifying a rightful person to be the successor of a deceased person. The civil court will analyze all facts based on the evidence provided before the court before issuing the Succession Certificate. Once the Succession Certificate is obtained, you can release the settlement as per the directive of the court.
From India, Madras
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Hi,
Adding to the above, obtaining a Succession Certificate can be a time-consuming process, and the Court may not issue it immediately as it involves many steps. Therefore, it should be kept as a last resort.
I recommend reaching out to the involved parties and advising them to try and come to a mutual agreement. It should be explained to them that if they cannot reach a consensus, the Company will have no choice but to request a Succession Certificate, which will be a lengthy procedure.
Regarding the PF Claim, even if the deceased employee was married with a surviving wife and child, the surviving mother will also be considered. It is uncertain whether the PF office required a Legal Heir Certificate from the nominees when submitting the PF claim forms. The nominees are eligible for PF, EDLI, and Monthly Pension benefits.
From India, Madras
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Adding to the above, obtaining a Succession Certificate can be a time-consuming process, and the Court may not issue it immediately as it involves many steps. Therefore, it should be kept as a last resort.
I recommend reaching out to the involved parties and advising them to try and come to a mutual agreement. It should be explained to them that if they cannot reach a consensus, the Company will have no choice but to request a Succession Certificate, which will be a lengthy procedure.
Regarding the PF Claim, even if the deceased employee was married with a surviving wife and child, the surviving mother will also be considered. It is uncertain whether the PF office required a Legal Heir Certificate from the nominees when submitting the PF claim forms. The nominees are eligible for PF, EDLI, and Monthly Pension benefits.
From India, Madras
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Dear sir / madam, any way to opt out of 1) NOC from parents and 2) succession certificate to sort the said matter.
From India, Vadodara
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From India, Vadodara
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Hi As already stated it is advisable to proceed as per legal process either as per legal heir certificate or succession in case of dispute as to who should get more %.
From India, Madras
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From India, Madras
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any lawyer in this group expert in group term insurance and such cases please guide
From India, Vadodara
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From India, Vadodara
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Group Insurance Scheme in Lieu Of EDLI.doc
IndiaFirst Group Term Plan in lieu of EDLI 17.11.2014.pdf
Fixed term employment extended.jpg