Emergency - 4 Employees Died In An Accident Outside The Factory

Dear All,

There was a road accident near Hoskote, Bangalore, where a private bus and a KSRTC bus were involved, resulting in more than 15 passengers losing their lives, including 4 of our employees. The Labour Minister, Labour Commissioner, Deputy Labour Commissioner, and Labour Inspector were present at the hospital when the deceased bodies were being identified.

I am reaching out with a significant issue. It's an emergency, and I kindly request your assistance in ensuring that the families of the employees who tragically passed away in the accident, and who were contracted with our company as principal employers, receive the maximum benefits. We have already covered the funeral expenses and ambulance costs. However, we also need to ensure that these employees are compensated under ESI. Your suggestions in this matter would be greatly appreciated.

Regards,
Ramkishore

Hi,

Please go through this link: http://www.team-bhp.com/forum/everyt...-accident.html.

Regards,
Anita

Dear Mr. Ram Kishore,

It's sad news, but if you want to know about the full benefits, please call me on my cell number. I will help you to the best of my knowledge.

Thanks,
Pawan Bhatia
09812585353

Hi Ram,

The news is shocking. I express my deep condolences. Please call me; I can surely guide you on this.

Kalyan Roy
09008444824

You can reach me at 09961266966 as not all details can be shared here.

Varghese Mathew

Hello Everyone,

While joining others to condole the incident, it's also nice to see offers of direct help from the members. I guess that's what makes CiteHR different.

@Ramkishore--I am sure you will get the right and accurate advice from the members. All the best.

Regards,
TS

First of all, there are a few issues that need to be clarified:

1) As you mentioned, this was a road accident involving two vehicles maintained by the government authority.

2) The four individuals who lost their lives were employees in your company; therefore, they are considered employees on your behalf.

3) At the time of the accident, they were not employed, which implies they were not working during the incident. If they were deemed to be under employment, standard employment laws would apply.

4) This was a public incident that tragically affected the public, including your employees.

5) In such public incidents, responsibility falls on the governmental authorities.

6) The law operates impartially and without emotion, ensuring equal treatment for all victims, including your employees.

Hence, any compensation determined by the authorities or judiciary will apply equally to all victims without favoritism.

7) Regarding compensation from the employer or company, employment laws provide clear guidelines.

Should the employer wish to offer additional compensation beyond legal requirements, such actions are encouraged by the law. While the law mandates a minimum compensation amount, any voluntary amounts exceeding this threshold are permissible.

The case is likely already under investigation, and you may submit an application on behalf of all victims to seek additional compensation or damages, including pursuing legal avenues if necessary.

I hope this explanation clarifies matters to a reasonable extent. Please feel free to raise any further concerns for discussion.

BSSV has raised the right questions for you to analyze your situation right now. More importantly, you should be worrying about the criminal cases that may be filed by the Labour department against your MD, directors, etc., under various provisions that provide such action. Do not waste your time thinking about how that can be possible. What you need to do is watch out for the police trying to act on these complaints against your higher officials. You need to get in touch with a labor lawyer who can handle such a situation. This may not look appropriate to say in normal times, but in the given emergency, I need to inform you that we/our team have handled such situations all these years. Given your situation, it needs preemptive action from your side. We are available to help you; please communicate in case of further action.

Regards,
HANSI
9341263271

At the time of the accident, were they on duty, meaning were they coming to the factory or performing any work for the factory? If yes, then they need to follow the guidelines outlined in our employment act. However, if they were not on duty, then the company cannot take any action; they can only provide a sum of money as a goodwill gesture to the employees. For more details, please contact 9676771014.

Regards,
ALAM

We pray that his soul may rest in peace, and may God give more strength to their families in this hard time.

Really good suggestions from members!

Thank you so much, Anita, Kalyan Roy, Varghese Mathew, and Rajiv for your immediate replies. Special thanks to Pawan Bhatia for suggesting welfare initiatives for employees affected by the recent unfortunate incidents over the phone and TS...

Thank you, Hansi, for giving a caution call. Already, due to my good rapport in the Labour Office and with contractors, we were safe from the situation. All our MD/Directors/Myself/Staff/Employees/Contractors were present at the hospital where the postmodern bodies were handed over to their family members. We all empathized/sympathized with their family members, and we were part of their sadness.

Apart from this, some relatives of the deceased employees were demanding compensation, so we made it clear to them, and we all attended their funerals. 😢😢

Hello Ramkishore,

There are a few aspects that come out very glaringly in this thread:

1. Your company, as well as your employees/colleagues, can really relax with someone like you in HR—seriously... no pun intended, please.
2. The level/quality of advice—and more importantly, 'timely' advice—being given by the members only validates/corroborates the positive reputation that CiteHR has built up over the years.
3. I guess this only raises the bar of responsibility of the members to maintain and further enhance the quality of interaction—both in terms of solutions/suggestions and timeliness—in the future.

All the best.

Regards,
TS

When road accidents happen within the radius of 1.5 km from the workplace, this would be construed to be "arising out of employment." I remember some case laws on this. Let me check whether I could elicit. In that case, the immediate employer (contractor) will be responsible for compensation. The principal employer will be made a party as he has vicarious responsibility. All these things would be possible only when it is provided the accident happened within that vicinity.

Otherwise, as this is purely the involvement of two vehicles, the victims will be treated as one among the public. The immediate employer/principal employer will have no say in this. However, since they worked with the organization, probably, on humanitarian grounds, the principal employer may take part in their grief by paying some amount from their exchequer. Even employees can contribute their one day's salary or something to ease help in the crisis. Legally, the Labour office cannot bind the contractor/employer, if so.

I suggest there is a policy available with "The New India Assurance" (or any such insurance). Formerly, it was known as "Nagrik Suraksha" policy, now being referred to as Group Personal Accident Policy. The premium works out to Rs.900/- per annum per employee. This is a named policy covering any risk arising out of any accident. In case of any eventuality, the legal heirs of the victim get Rs.8.00 or a little above as accidental benefit. In case of any injury, there is coverage to the extent of Rs.1.0 lac or Rs.2.0 (as we want). This will take care of fracture, motorbike skidding. One more thing. When I say accident, it also covers an accidental fall in the bathroom and fractures his leg or arm. It is 24 hours coverage. It is a small amount; probably, your organization can look for such protection. Try!

V. Balaji

Dear Friend,

At the outset, I too join in sending my condolences to the departed souls. As my friend BSSV suggested, the accident took place out of employment. Hence, they will not receive any benefits from ESI. However, the legal heirs can claim the funeral benefit of Rs. 10,000/- from the concerned local office. Kindly get in touch with the local office Manager.

There are some decisions to be made; if your employees had been traveling on duty or on the way to work, you can take up the issue with the ESI authorities. In such cases, you have to send the Accident Report in Form No. 12 to the local office concerned. Kindly check with the ESI Manager of the local office.

As a gesture, your Management or the contractor can assist their families in whatever way is convenient for you. As a principal employer, you do not have any obligations under labor law. On humanitarian grounds, if you provide some financial help or a job to a family member, it will go a long way in alleviating their suffering.

Always remember, wise heads prevail.

G.K. Manjunath, Sr. Manager-HR

Hello friend,

Condolences to the families of the deceased. It is a very sad situation. It is good that as an employer, you have concern for them. This situation falls under vicarious liability as per the law of torts. It is established that the employee is considered to be at the workplace until they reach their home, as per numerous case laws. I suggest meeting with labor department officials to discuss the best course of action in such circumstances, as they handle numerous cases daily across the state.

The first step is to communicate with the household of the deceased and work towards a prompt settlement of PF and ESI benefits for the nominees. Feel free to contact me at any time for further details.

Regards, Shama Sundar
Advocate and Labour Law Consultant
94814 27154

Dear Ram Kishore ji,

First of all, I express my deep condolence for families of victims.

You being an employer or principal employer wish to help the families of victims in getting the maximum benefit for Employees who died in an accident.

You said that all the victims are covered under ESIS. I believe they are also covered under EPF.

You have not mentioned whether the victims were commuting from their house to place of work or from place of work to their house. This is very importance factor for applying notional extension for claim compensation under ESIS and under Employees’’ Compensation Act 1923.

Since the employees are covered under ESIS, you are not liable to pay compensation under the Employees’ Compensation Act 1923.

You need to help the families of victims in getting the compensation under ESIS scheme such as funeral expenses and Dependant's benefit. You need to help the families of victims in settlement of EPF dues including pension and Insurance under EDLI. You need to pay Gratuity under the Gratuity Act.

The compensation claim under road accident are settled under Motor Vehicles Act, 1988, The police officer under whose jurisdiction the accident occurred is required to forward the report to the Motor Accidents Claims Tribunal (MACT) within 30 days and the Claims Tribunal considers such report as an application for compensation. You need to help the families of victims to get this compensation.

God bless you for helping the families of victims. Kindly share your experience and knowledge gained in settling these issues.

Thanks and regards.

Keshav Korgaonkar

Dear All,

After my reply to Mr. Ram Kishore ji as above, now I wish to draw the attention of you all to the Section 53 of ESI Act which deals with a Bar against receiving or recovery of compensation or damages under any other law.

This bar is against receiving or recovery of compensation or damages from the employer and not from stranger to the contract of employment, according to a Division Bench of the Kerala High Court consisting of Justice R Basant and Justice C T Ravikumar.

A claim for compensation in tort against a stranger can co-exist with a claim for benefits under the ESI Act. The expression “any other person” in Section 53 of the ESI Act does not take in a stranger who by his negligence caused the accident. The expression takes within its weep only such other person who is sought to be made liable under or on the basis of the contract of employment to compensate the employee for the employment injury suffered by him. If an injury is suffered in a motor accident and such injury is also an employment injury the Section 53 does not bar the claim in tort under Section 166 of the Motor Vehicles Act against a stranger or tort-feasor; but it bars the claim against the employer under any other law, including the Motor Vehicles Act.The insurance coverage under the ESI Act is in addition to and not in substitution of the other remedies against a stranger (to the contract of employment), the Bench ruled.

This is for your information and further discussions.

Thanks and regards.

Keshav Korgaonkar

First of all, do not panic. The following will provide an answer to your query.

1) Were the employees returning or coming to attend duties? If the answer is yes, it is the vicarious responsibility of the employer to pay legal dues.

2) If the answer to the above question is no, whatever help your company has provided will fall under social responsibility.

Dear All,

Further to my inputs on section 53 of the ESI Act, which deals with the bar against receiving or recovery of compensation or damages under any other law, and quoting a case law of the Division Bench of Kerala High Court, I now wish to draw your kind attention to a recent judgment of the Supreme Court (LLR SC 295), which states that accident compensation received under ECA will be adjusted under MVA. This judgment is reported in LLR March 2013. Kindly view my posting at: [link no longer exists - removed]