As rightly said by Kamesh, it is necessary to find out reason for the death before awarding any compensation.
Under Section 3(1) it has to be established that there was some causal connection between the death of the workman and his employment. If the workman dies as a natural result of the disease which he was suffering or while suffering from a particular disease he dies of that disease as a result of wear and tear of the employment, no liability would be fixed upon the employer. But if the employment is a contributory cause or has accelerated the death, or if the death was due not only to the disease but also the disease coupled with the employment, then it can be said that the death arose out of the employment and the employer would be liable.
In a case, the workman had been suffering from chest disease and was previously being treated for such disease. The High Court also noted that the job of the deceased was only to switch on or off and, therefore, the doctor had clearly opined that there was no scope for any stress or strain in his duties. In such case, the Supreme Court held that death did not arise out of and in the course of employment. [Jyothi Ademma v. Plant Engineer, Nellore, (2006) 5 SCC 513]
5th January 2012 From India, Madras