Seeking Advice on Claiming Employer Compensation for Road Accident Death on Duty

One of my relatives died in March 2011 in a road accident while traveling on official duty. Please advise me on whether we can claim compensation from the employer under the Workman Compensation Act. We have already filed a court case for a claim under the Motor Vehicle Act. The compensation from the employer will be an additional claim. He is not covered by PF & ESI.

In case the incident happened after 01.06.10 and he was an insured person under ESI, the accident will be considered as an employment injury, and his family will receive Dependant benefit.

Regards,
Bala

Compensation Under the Workmen's Compensation Act

Compensation under the Workmen's Compensation Act shall be payable by the employer since the accident causing death occurred while on duty. However, if compensation was or is payable by the insurers of the vehicle involved in the accident, then the employer need not pay compensation. The compensation award of the MACT (Motor Accident Claim Tribunal) would be sufficient. I believe that a person cannot benefit from different insurers for the same subject matter insured. I have gone through a similar case wherein ESI's plea was accepted, stating that insurers of the vehicle had paid compensation.

Regards,
Madhu.T.K

Dear All, I agree with Mr. Madhu that one cannot claim benefits from more than one source. To my knowledge, when traveling in a vehicle with insurance, the insurance company will provide compensation directly.

Regarding Other Benefits

If ESI or ECA is applicable, then his dependents may claim a pension. If I am mistaken, kindly correct me.

Regards, Shaikh

Understanding Compensation Under the ESIC Act

Sec. 53 of the ESIC Act creates a bar against receiving or recovering compensation or damages under any other law. An insured person or his dependents shall not be entitled to receive or recover, whether from the employer or the insured person or from any other person, any compensation or damages under the WC Act 1923 (now Employees' Compensation Act) or any other law for the time being. Only one forum can be chosen, either WC or MV Act 1988. I fully endorse the view expressed by Madhu TK.

Regards,
RL Dhingra, Advocate & Labour Law Consultant

Can you provide me with a copy of the "Compensation Award of MACT (Motor Accident Claim Tribunal)" so that I may refer to it and settle one of my cases?

Thanks,
AK Sharma

By compensation award under MACT, I mean the compensation as decided by the MACT in the concerned case only.

Regards,
Madhu.T.K

If an employee is insured under the ESI Act, then only employee compensation will be given by the company in case of death in a road accident while traveling on office premises.

Regards,
Sweta

One way to obtain compensation from both sources is to settle employee compensation amicably (provided your employer holds such a policy) and file a lawsuit to get compensation under MACT.

The employee is not covered under ESIC, so that part is settled. There is no question of compensation by two insurers.

Compensation Under the Workmen's Compensation Act

Does the WC Act say anything about lower or nil compensation in case of receiving compensation from any other source? I thought it was the independent liability of the employer.

Regards

Compensation Claim Under Motor Vehicle Act

In this case, the employee is not covered under ESI. A claim has been filed under the Motor Vehicle Act for compensation from the vehicle insurer. The employee died while traveling on official duty in transport hired by the company/employer. The company would like to pay some compensation on their own. Please advise whether we can accept it without any problem with our claim under the Motor Vehicle Act. At some stage, our claim under the Motor Vehicle Act should not be rejected with the reason that the employer has already paid compensation.

Regards,
LAL

I think a similar argument was made by United India in a case about 15 years ago. They claimed that a lower amount was payable as the victim had life insurance. The Supreme Court declared that the insurance company's liability did not diminish simply because the victim had the foresight to provide protection for his family.

A similar principle will apply to you. You will need to search for that Supreme Court decision and read it. The only thing perhaps that you need to see is if your company is getting the compensation from their insurance company, in which case they may protest.

Employer's Liability in Employee's Death During Office Hours

The liability of an employer in the event of an employee's death in a road accident during office hours is a significant issue. The employee in question was on a probation period of 7 days and was enrolled in ESIC. However, the other party responsible for injuring the employee has escaped from the scene. Now, what is the employer's liability regarding compensation for the employee? A settlement of a salary amounting to Rs. 7500 has been reached.

Please reply.

Regards,
Seema

Clarification on Compensation Claims Under the Employees' Compensation Act

You have made it very clear that the employee was not covered by the ESI Act. Therefore, he would be covered by the provisions of the Employees' Compensation Act if he satisfies the definition of "employee" as defined under section 2(dd) of the Act. You have stated that a claim has already been filed before the MACT claiming compensation for the death due to an accident. Please see section 3(5) of the Employees' Compensation Act. According to this subsection, if a civil suit is filed by an employee claiming damages for any injury, he loses the right to claim compensation under the Employees' Compensation Act.

Though this section does not specifically state that the dependents of the employee who institute a civil suit for the death of an employee cannot claim the benefit of the EC Act, section 2(dd)(iii) of the EC Act says that the term employee would include the dependent of the employee if the injured employee is dead. Therefore, the bar placed by Section 3(5) of the EC Act is applicable to the dependents of the deceased employee as well. As an application under MACT had been filed, no claim for compensation under the EC Act would be entertained. If the employer makes some payment, at best it could be set off against the Award of the MACT Tribunal.

The Motor Vehicles Act has to be studied to answer this issue. But it is advisable not to accept the payment made by the employer until the MACT Tribunal gives its Award.

Regards

When an employee dies in a road accident while traveling on official business, several factors come into play regarding compensation. The specific compensation package and benefits may vary depending on the organization's policies, local regulations, insurance coverage, and the circumstances of the accident. However, here are some common considerations:

Life Insurance Benefits:

Many organizations provide life insurance coverage to their employees as part of their benefits package. If the employee had life insurance coverage, their designated beneficiaries (usually family members) would be entitled to receive the insurance proceeds. The amount of the life insurance benefit and the eligibility criteria may vary based on the employee's position, salary, and the terms of the insurance policy.

Accidental Death and Dismemberment (AD&D) Insurance:

Some employers offer AD&D insurance as part of their benefits package, which provides additional coverage in the event of accidental death or severe injury. If the employee had AD&D insurance, their beneficiaries may be entitled to receive a lump-sum payment or other benefits specified in the policy.

Workers' Compensation:

Depending on the jurisdiction and local laws, the employee's death may be covered under workers' compensation insurance if the accident occurred during the course of employment. Workers' compensation benefits may include compensation for medical expenses, funeral expenses, and survivor benefits for the deceased employee's dependents. The process for filing a workers' compensation claim and determining eligibility varies by jurisdiction and may involve coordination between the employer, insurance provider, and relevant government agencies.

Travel Insurance:

If the employee was traveling on official business, the organization may have travel insurance coverage that provides benefits in the event of accidents, illness, or other emergencies during travel. Travel insurance may cover medical expenses, emergency medical evacuation, repatriation of remains, and other related costs. The coverage and benefits provided by travel insurance policies may vary, so it's essential to review the policy terms and conditions.

Additional Benefits and Support:

In addition to insurance benefits, organizations may offer additional support to the deceased employee's family, such as financial assistance, counseling services, or assistance with practical matters. Employers may also provide support to employees who are affected by the loss, such as grief counseling or time off to cope with the situation.

In summary, the compensation and benefits available to the family of an employee who dies in a road accident while traveling on official business may include life insurance benefits, AD&D insurance benefits, workers' compensation benefits, and travel insurance benefits, depending on the specific circumstances and coverage provided by the employer. It's essential for employers to communicate clearly with employees and their families about available benefits and provide support during such difficult times.