Navigating Claims After a Tragic Loss: What Can We Seek from the Security Agency?

My father was working as a security guard in a private security agency. He had taken proper leave by submitting a leave application, but during travel, he died in a train accident. I want to know what we can claim from the security agency in the absence of his Provident Fund (PF). Please explain the rules and regulations of the labor act in India, specifically in Madhya Pradesh.

Since your father did not travel for official purposes (as you mentioned he was on approved leave), the security agency is not liable to pay any compensation. Check with the security agency whether they have any private insurance (like group life insurance, accident policy, etc.). He is eligible for Gratuity even if he was with them for less than 5 years. If he is covered by ESI, you can apply for Rs. 10,000 funeral expenses. I hope that in the PF, you are applying for EDLI in addition to PF & EPS.

Dear sir,

Kindly describe EDLI and how can I apply for it? My father has passed away at the age of 54, and the retirement age should be around 65, so the gratuity amount will be given at 11 times his half of the basic salary. As you are aware, my father was on leave, and unfortunately, he passed away during travel, making the insurance company liable to pay the insurance money.

Regards,
Satyam Singh

EDLI - Employee Deposit Linked Insurance
This is an insurance cover for employees registered in PF. In case of the death of the member during employment (or in service), the nominee, family members, or legal heir can receive the insured amount.

Amount Calculation Formula
A = Last drawn Basic (Maximum Rs. 15,000) X 30
B = PF Balance / 2 = Maximum Rs. 1,50,000
EDLI Amount = A + B = Maximum Rs. 6,00,000

This amount will be received by the applicant (nominee, family members, or legal heir) in addition to the PF amount and Pension Benefits. I have attached the EDLI application form and instructions.

Gratuity Calculation
Gratuity = Last drawn Basic X 15/26 X No. of years of service (Maximum 10 Lacs). If he is covered by insurance (life/accident), you are eligible to claim.

Regards,
[username]

Dear Trivedi,

Please find the attachment that explains your query.

Cheers!

Dear sir,

My father was employed on a contract basis as a security guard. As you are aware, security guards fall under the labor category and he had life insurance. Are we eligible to claim for contract-based employees? My father worked in Madhya Pradesh. Is there any specific plan for such cases?

Kindly revert.

Regards,
Satyam Singh

Mr. Satyam,

Please clarify whether he worked on a contract basis (a limited period contract signed between the agency and your father) with the security agency or if he is a regular employee of the security agency where he worked as a security guard in a company/factory as a contract employee (contract between the agency and the company/factory).

He is eligible for whatever I have mentioned previously.

FYI, you need to contact only the agency and not the company/factory where he worked. The company/factory has nothing to do with this.

Let me know for any further clarifications.