Sudden Death on Retirement Day: Are Death Benefits Still Applicable?

One of the permanent employees died on his retirement date, i.e., at 11:30 PM after all his retirement benefits were paid to him. My query is whether the family of the employee would be entitled to death benefits that are available to an employee while in service.

No, he didn't die due to any accident while performing duty. The employee died in the hospital at 11:30 PM on 31.03.2012. (The employee's retirement date was 31.03.2012). The employee was in the hospital from 22.03.2012. All the retirement benefits were paid to him on 31.03.2012 before office closing time, i.e., 05:00 PM.

Rephrased Query:

1) In the above case, will the family of the deceased person be entitled to the death benefits given to active employees of the company?

2) If the retirement date of the employee is 31.03.2012, then at what time would it be considered that the employee is retired:
a) at 05:00 PM, the office closing time on 31.03.2012, or
b) 11:59:59 PM on 31.03.2012.

The employee was hospitalized while in service on 22-3-12. Even though he died on the date of retirement and after receiving retirement benefits, the liability to pay any compensation falls on the company if the following conditions are fulfilled:

1) The illness or injury should have been due to his employment.
2) The employment (company) should have been covered under Schedule II to the Employees' Compensation Act 1923.

Otherwise, there is no liability.

Normally, an employee stands retired from service at the closing hours of the office on the date of his retirement, and it depends upon the language of the relieving letter.

Regards,
B. Saikumar
Mumbai

In the instant case, the employee might have been paid all benefits applicable for retirement but died at 11:00 pm, probably at night. In the case of 11:00 am, it is daytime and falls within working hours, thus benefits on death can be claimed. However, at 11:00 pm, the employee is not eligible for death benefits.

Furthermore, the retirement order contains the date as the last working day with AN and not FN, clearly indicating that the employee is not expected to continue working the following day. The term of service ceases at the company's working hours, typically around 5 to 6 pm in this case.

If Sunday or any National Holidays fall on the last day of retirement superannuation, the day preceding it will be treated as the last working day.

I hope this clarifies your doubts.