Dear Padmapriya,
If it is a natural death out of office hours not arising in the course or out of employment then obtain a death certificate original from the his legal heirs, obtain a legal heir certificate furnished by the government authorities from his legal heirs. Settle his PF, EDLI, Gratuity claims based on the Nomination forms submitted under EPF act and Gratuity,
If the nominees are not mentioned in the PF/ Gratuity, settle the claim to the legal heirs. This is because in many instances the employees nominate their parents when they are single and do not submit a fresh nomination after they get married.
Also obtain an indemnity bond from the legal heirs that the settlements are being made on the basis of the legal heir certificate and in the event of any claim from any other person, the person who has received the settlement will indemnify the company.
If it is a natural death, while he was working, ascertain whether the death arose in the course and out of employment. If it was due to the employment, if the employee is covered under ESI intimate the ESI authorities, if he is out of the purview of ESI, then check his compensation under the Workmen compensation act and settle the dues to the legal heirs.
In the event you have any ambiguity on the legal heir status then deposit it with the WC commissioner.
Settle the full and final settlement including bonus payable if any to the legal heirs
If the employee was covered under Personal Accident Policy, then settle the claim to the legal heirs. Please note Personal Accident cover is 24 hours worldwide and is irrespective of the fact as to whether the death arose in the course or out of employment.
If your company has extended any life cover as a fringe benefit settle this amount as well to the legal heirs
While you settle all the claims obtain the signatures of two witnesses with address, it is also recommended that all the settlements are made in the presence of a notary as a precaution.
After you have done all this, ensure that you file the records in the employees personal file and preserve this file till he would have attained superannuation if he was alive.
If you had a Gratuity policy with LIC, the gratuity claim will be settled as if he had superannuated from the company if he were alive. In other words the claim will be from his date of joining till his date of superannuation (if he was alive).
Regards
M.V.Kannan