Hi AnushkaK,
Prima facie, I don't think HR should probe the cause of death, etc., but should abide by documents available at the office or to be submitted by the family or claimants.
There are a set of commonly insisted documents:
1. Which should be filed with the employer:
a) Service history/book, if any, particulars-duly closed w.r.t. to date of separation (expiry of leave or date of death as the case may be);
b) Closed leave a/c
c) NOC from all departments-details of dues if any, like advances pending, etc.
d) Surrender of all co.properties
e) Nominations filed in respect of EPF/EPS/Gratuity/group-life insurance, DLI (If nomination papers are intact (including updated/filed). If covered by ESI, necessary compliance to be ensured.
f) Funeral expenses-as per policy
2. Family members/heirs side:
a) Nomination papers, if any, not submitted to the office, retained in their possession, duly authenticated by at least 2 witnesses.
b) Death certificate, if possible mentioning the cause of death and Post mortem report (this will help to claim any compensation that may be made available to the deceased as a special case, if applicable)
c) If nomination(s) are available at the office, there is no need for any delay to settle the F&F dues. However, if there is more than one claim, the office has to insist for:
i) Succession Certificate issued by the competent court or Revenue Officer.
ii) No Objection Sworn Affidavit by all the claimants specifying the name of the single claimant. Failing which there is a possibility of facing court cases.
iii) If there are minor children/dependents, the mother can swear the affidavit acting on behalf of the children.
iv) Address & ID proof (Adhaar card), PAN Card, Bank a/c passbook, Photos.
v) Indemnity bond declaring appropriately indemnifying the office against any cost, loss, or damages arising in the future.
vi) Acknowledgment/receipt of F&F settlement from the recipient(s).
In the likelihood of any delay in submission and processing the claims, it's better that the amount due, computed as per law, may be deposited with the Authorized Officer, Labour Dept. to avert accrued interest/non-compliance accusations.
There could be claims from others if the deceased employee borrowed/owed sums & for unsettled dues/disputes, if any, unless there are directives from the competent court, your office need not delay the settlements.
If you deem it necessary, before settlement, obtain a legal opinion from a reliable advocate based on the available documents to ensure the adequacy of action taken by you.
Also, use prescribed forms as per EPF, Gratuity/Bonus acts for issuing notices, settlement, etc.
It's desirable that compliance with all the above procedures is accomplished in a time-bound manner.