In the first case, the policy of the company does not matter. What matters in state, is whether the death comes under whatever is defined in the employee compensation act. The act covers all cases of death or disablity of all employee as long as it is during and in the course of employment.
In your case, it is now a question of whether the illness was in the course of employment, whether the employment and the fact that he was on a trip had anything to do with his illness and whether it was a contributing factor to to his death.
If his death was due to the fact that he was on the company's business and was on a tour for the work of the company, then the act applies and the compensation is applicable under the act irrespective of what the company's policy is.
However, please note that The compensation under the act would be limited based on the salary ceiling, currently at Rs.8000 per month. If you feel that the employees family is eligible, you need to file an application for the same with the labour commissioner of the concerned office. He will evaluate the case and asked the company to respond, and finally decide on the compensation amount if applicable