One of our casual labour died in factory premises - they do not have ESI Or EPFO. What we can do now?

Respected Senior, One of our casual labour died in factory premises , they do not have ESI Or EPFO. What we can do now.
Because labour inspector told according to WC policy calculation you pay 6 lakh to his family. His payment is 12000/-
Please suggest, its very urgent.

Even casual labor or his dependent is entitled to compensation under the EC Act,1923 if he sustains injury or dies as the case be in an employment accident while engaged on any work connected with the trade or business of the employer. Since it is a case of death, you have to calculate the compensation based on his monthly wages and the factor relevant to his his age as set out in Schedule IV of the Act and deposit the amount forthwith the Commissioner for Employees Compensation for your area. Beware that any payment paid behind the back of the Commissioner would not be treated as payment.

Thanks sir ,
his age is 32 years and what factor we use for calculation because we have not purchase any EC policy.

Dear Kumar,
The amount of calculation is as follows:
1) Completed age of the employee = 32 years
2) Relevant factor = 203.85 [ As per Schedule IV ]
3) Monthly wages = Rs.12000-00 but limited to Rs.8000-00
4) Amount of compensation = 50% of monthly wages X Relevant Factor [ Sec.4(1)(a)] i.e., 4000 X 203.85 = Rs.8,15,400-0
In addition to the above sum, you have to pay a sum of Rs.5000-00 towards Funeral Expenses and reimburse the medical expenses [Sec.4(2A)], if any incurred by the employee.
You may check the above calculation.

Thanks sir for your valuable query..