Death Claim Liability for Non-ESIC Employees: What Are a Company's Responsibilities?

Death Claim Liability for Non-ESIC Employees

I have a query regarding a death claim. For employees who are not covered under ESIC or are above the ESIC limit, if an employee dies either by accident or disease, what will be the liability of the company?

Regards,
Anil

If the accident occurs during employment and the disease is due to occupation, then the employer is very much responsible if the employee is not covered under ESI. Compensation is determined based on various factors such as age, wages as of the accident date, the disease itself, the impact on earning capacity due to organ loss, and other relevant factors. It is advisable to cover all employees under a workmen's compensation policy to prevent such issues.

Regards,
Kamesh

If the accident occurs in the course of employment and the disease is due to the occupation, then the employer is very much responsible. The employer has to provide compensation under the compensation act.

Apart from compensation under the revised Employees' Compensation Act for accidental death or death due to occupational disease, the family of the deceased is eligible for widow and children pension, and deposit-linked insurance benefits under the EPF Act.

Appreciate all your above responses. Kindly provide a little more clarity in this regard.

Employees, does it mean "all employees including officers, executives, managers, directors, etc."? What will be the maximum amount payable to an employee in case of an accident? If you can suggest any insurance that can cover all liabilities of the employer, please share.

Regards,
Anil

Dear Mr. Kamesh,

Can you please advise whether ESI would pay compensation to the family in case of the death of an employee who is covered under ESI? If yes, is there a specific method to arrive at the compensation based on their last drawn salary? Please advise.

Thanks, Ravi