Recruitment/talent Acquisition, Career Counselling
Private Consultant On Labour Laws
Hr, Ir, Law, Disc. Matters
K C S Kutty
Labour Laws
+3 Others

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Dear SIr/Madam

One of cousin who works for a reputed public ltd pharma company passed away while traveling on work.

On 8th April, he was supposed to attend a meeting in Chennai alongwith his colleagues who would join from Bangalore. He was coming from Hubli (Karnataka). He alighted the bus at Bangalore and was walking to the auto stand when he collapsed suddenly. He had a stroke which paralyzed him on the right side and became unconscious.

Later, he was admitted to hospital and despite all our efforts for 4 days, he could not be saved.

He has one borther and 2 sisters who are nto so well todo. He was the person to goto in his family. With this loss, his family is in a very difficult situation.

Would like to know if the company is liable under law to compensate his dependents in these circumstances. If yes, what should be our expectations and how should we approach the company in this matter ? So far they have been very co-operative in helping with the cashless insurance when he was admitted to hospital. Now that he is gone, the family needs to cope up with the loss of financial support he was providing.

Your advice will be greatly appreciated.


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Dear Rajeev,
Please note that family shall get the compensation if person got injured during the course of employment. Please refer the below fact.
Payment of Compensation under EC Act 1923
The employee’s Compensation Act 1923 provides for Payment of Compensation to an employee if the personal injury is caused to an employee by accident arising out of and in the course of employment. His employer shall be liable to pay compensation in accordance with the provisions of this Act. i.e. (1) Death (2) Permanent Total Disability results from the injury (3) Permanent partial disability results from the injury (4) Temporary disablement whether total or partial, results from the injury.
Dear All,
Please contribute on topic.
Thanks & Be Safe,
Inderjeet Singh,
"Born to lead."
Hello Inderjeet Singh,
A query--the Act you referred to mentions "........caused to an employee by accident.........".
Would the situation Rajeev mentioned fall under the definition of an 'accident'?
Maybe the Legal expert members can give more clarity on any other options available to Rajeev?
Dear TS,
I'll get back to you shortly on this. This may not fall under the definition. But the thing is that whatever problem took place, it was during the course of employment. I'll clear it with experts & come back on forum.
Thanks & Be Safe,
Inderjeet Singh,
Hope the learned member will be able to give us a reply to the point. Forget about the disability - whether total or partial or temporary or permanent. " Here in this case the employee died on the way to perform duties related to his assigned job" Whether dependants of employee eligible for compensation ?

Dear Rajiv Some additional information is required to find the possibility of getting compensation. Will you be able to give that ?
Dear Anand, The applicability of Employee Compensation Act 1923 would be there only if the deceased was employed in manufacturing operations. But if he was employed for sales promotion the coverage would not be there. Although the mishap occured while he was on duty but it also needs to answer as to 'whether it arose out of employment' . A paralytic stroke is a natural phenomena and cannot qualify for being 'accident' unless the same was caused due to the stress and strain of work. From the brief description it is not clear as to whether such circumstances existed.
In the absence of coverage under the EC Act, the family can look forward to the voluntary welfare schemes which many of the organisations undertake for insurance coverage and the matter could be pursued further in that direction.
All employed persons not covered u/ESI will not be entitled for compensation u/EC Act.The person injured should be employee as per the definition of employee under schedule II of the Act.
Ok. Thank you for your clarifications. If I correctly understand, this is more applicable to the manufacturing sector than sales/service. Thanks Rajeev
Dear Mr. Kutty, please let me know what additional info you need ?
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