Seeking Guidance on LWF Benefits for Family After Employee's Road Accident Death

Earlier, I had posted about WC benefits for an accidental death case, and it was very helpful input from many senior and experienced individuals. A special thanks to Umakanthan.M Sir. In continuation of my earlier post, I need another help from all of you. I need to know what the benefits are under LWF (Labour Welfare Fund) in the case of an associate's accidental death.

Compensation for Accidental Death

In the event of an associate's death in a road accident, how many types of compensation will be eligible for the associate's family members?

I kindly request all senior and experienced individuals to please share your valuable input in this regard.

Death benefits from the Labour Welfare Fund

Death benefits from the Labour Welfare Fund will depend upon the rules and benefit provisions of the Fund, and there is no uniform rule for such funds across India. The benefits available under certain funds (such as different Welfare Funds in Kerala) may include death benefits (not compensation) to dependents, even if the death is due to reasons not related to employment, like a road accident. In some cases, it will be restricted to deaths during the course of employment, which may be extended to road accidents where the employee was traveling as part of his employment.

Apart from benefits from Welfare Funds, the employee's dependents would be entitled to benefits from EDLI (Employees' Deposit Linked Insurance) from the Employees' Provident Fund Organisation. This is apart from the PF accumulations and pension as admissible.

In case the accident has taken place while the employee was traveling as part of his employment, obviously, his dependents will get a pension from ESI Corporation. The road accident and subsequent death will be construed as death due to employment injury, even if the mishap happened not on duty but after his scheduled duty time but within the time when he normally comes to the office or goes home back from the office and at the place he normally commutes to and from the office.

In addition to the above, the employer is liable to pay gratuity provided the company is covered by the Payment of Gratuity Act. This is required to be paid even if he has not completed five years of service.