How Should Employers Handle a Nominee Refusing Death Claim Amounts?

Handling Non-Acceptance of Death Claim Amounts

What should an employer do if the nominee of an employee is not accepting the death claim amount, such as mediclaim and FnF?

If there is any dispute regarding the F&F, you can approach the Labour department and deposit the amount payable with the DLO, if required. This is very important if the F&F includes gratuity payable. However, if the dispute concerns the amount of insurance or the claim settlement of the bills produced in support of the mediclaim policy, then you should involve the service providers of the insurance.

First of all, ascertain who all the legal heirs are for the deceased employee after verifying all legal documents such as the legal heir certificate and other proofs like the marriage certificate. Arrive at the full and final settlement amount in equal proportion. Inform them and obtain their consent over the phone. Execute receipts party-wise and also a declaration on a 100/500 Rupees stamp paper where all parties must sign, acknowledging acceptance of the full and final settlement and agreeing not to make any other claims in the future.

In general, the spouse and children are considered legal heirs. If the mother of the deceased is alive, she can be added as a dependent, and an equal share can be provided.

After ascertaining the legal heir as per the documents available on records with the employer, send a registered AD letter to his/her last known address stating what all dues are payable in respect of the deceased employee. Mention a particular date and time at which the legal heir is to be called into the office. Mention what all documents are needed to be carried which ascertain him/her as the legal heir.

Keep all the necessary documentation like letters, receipts, etc., ready.

If the legal heir does not respond or does not attend until the specific date, then you can proceed as mentioned by our esteemed members above.

You need to mention what the reasons are for the non-acceptance of the benefits. In the absence of these details, the suggestions may not help you much, and you will not get the right or appropriate suggestion to act upon.