The last portion of your post is not clear - Whether you mean to say that the Isurance Company refuses to admit the claim on the ground that the deceased could not have been on duty in view of the odd hour of the accident? When the employer admits that the employee was on duty when he met with the accident based on the documents and evidence of witnesses, the Insurer can not shirk his responsibility in a casual manner. So, the exact contention of the Insurance Co should be available for further comments. Any way, if the dependents of the deceased employee file a claim for Compensation under the E.C Act,1923 against both the employer and the insurer, the Commissioner would decide it.
When the W.C Ins.Policy covers the Area Supervisor, the Insurer can not refuse to admit the claim for the reason cited unless the investigation conducted by them strongly suggested that at the time of accident he was not on duty. Anyway, check with the other employees whether they told anything contrary to the investigator.As I told earlier, you can admit the employment and the accident happened during the course of employment and plead that the liability for compensation lies with the Insurance Company before the W.C Commissioner when the case comes up for hearing.
What has described by Mr.Umakanthan is very much correct. However,
Pl.ensure the following aspects:
1) If the deceased was your employee;
2) and has been covered under the policy;
3) and you can prove that pertinent premium/contribution has been remitted to the insurer;
4) he was on duty and died in the course of employment
then the insurer cannot deny the claim.