Respected Sirs / Madam,
Facts:
Mr. A worked as a driver in a private limited company ("employer"). He was driving the company’s goods vehicle on duty. The goods vehicle hit a container truck standing on the right side of the road. Mr. A died in that accident. The heir of Mr. A filed against the insurance company of the container truck for third-party claims.
Queries:
1. Whether the employer company is liable to pay any compensation to the legal heir of Mr. A as his death was on duty?
2. Whether the employer company can avoid its liability by stating that the heir of Mr. A filed against the insurance company of the container truck for third-party claims?
3. Whether the heir of Mr. A has the right to receive both third-party claims from the insurance company and compensation from the employer?
Please advise the legal rights of the heir of Mr. A in the above case against the employer company.
Your advice is highly appreciated. Thank you.
From India, Kolkata
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Facts:
Mr. A worked as a driver in a private limited company ("employer"). He was driving the company’s goods vehicle on duty. The goods vehicle hit a container truck standing on the right side of the road. Mr. A died in that accident. The heir of Mr. A filed against the insurance company of the container truck for third-party claims.
Queries:
1. Whether the employer company is liable to pay any compensation to the legal heir of Mr. A as his death was on duty?
2. Whether the employer company can avoid its liability by stating that the heir of Mr. A filed against the insurance company of the container truck for third-party claims?
3. Whether the heir of Mr. A has the right to receive both third-party claims from the insurance company and compensation from the employer?
Please advise the legal rights of the heir of Mr. A in the above case against the employer company.
Your advice is highly appreciated. Thank you.
From India, Kolkata
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The deceased driver, being an employee as per sec. 2(dd) of the EC Act, 1923, and the accident took place during the course of his employment. As the employer, the company is liable to pay compensation to the dependents of the deceased under the Act. However, since the legal heir has initiated a claim for compensation under the Motor Vehicles Act, 1882, against the insurer, he is precluded from staking a simultaneous claim under the EC Act.
I believe the above answers all three of your questions.
From India, Salem
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6108I believe the above answers all three of your questions.
From India, Salem
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Dear Sir, your kind advice has been conveyed to the legal heir of Mr. A.
On another matter, he humbly seeks your kind advice. EPF was not deducted from Mr. A's salary. The employer company informed the legal heir of Mr. A that Mr. A was not eligible for PF contribution. As a result, Mr. A's legal heir lost the benefits available under PF schemes.
Please advise whether Mr. A was eligible for PF contribution or not. He joined the company as a driver on 27th July 2017 and tragically passed away on duty in December 2019. Unfortunately, we do not have the salary details for the month of December. His salary details are attached.
We humbly request your advice.
Thank you very much.
From India, Kolkata
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On another matter, he humbly seeks your kind advice. EPF was not deducted from Mr. A's salary. The employer company informed the legal heir of Mr. A that Mr. A was not eligible for PF contribution. As a result, Mr. A's legal heir lost the benefits available under PF schemes.
Please advise whether Mr. A was eligible for PF contribution or not. He joined the company as a driver on 27th July 2017 and tragically passed away on duty in December 2019. Unfortunately, we do not have the salary details for the month of December. His salary details are attached.
We humbly request your advice.
Thank you very much.
From India, Kolkata
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PF Membership Eligibility and Employer Liability
The deceased driver's salary was below Rs. 15,000 per month (Basic + DA) and hence was eligible for PF Membership from day one, i.e., 27.07.2017. If the claimant approaches the PF Authority for death benefits under the Pension Scheme, Deposit Linked Insurance, etc., I am uncertain whether the EPFO will entertain their claim. However, it is certain that the EPFO will claim both the contributions (Employee & Employer) including administrative charges with penal damages and interest from the company.
Questions to Consider
1. Was the driver in your regular employment?
2. Was any appointment letter issued to him?
3. What was the payment mode: cash or cheque, and by whom? Was it direct by the company or by some individual?
Had you covered him under both the PF & ESI Schemes, your entire problem would have been solved. From your statement, it is not clear whether you informed the deceased's family members on your own or they approached you.
Your total liability with both the contributions, administrative charges, penal damages, and interest will not be less than 1 lakh rupees. You cannot escape from this liability if this matter goes to EPFO. Instead, you should call the claimant and inform them that the deceased member himself had approached you and verbally requested "not to deduct any PF" from his salary to get extra take-home salary in hand. Reach for some amicable settlement by convincing the party at the earliest and try to settle the matter by a lump sum compensation of around Rs. 1.5 to 2 lakh with a written undertaking that the claimant has received the claim in full and final settlement and there are no claims of whatsoever nature against the company.
Please also note that the deceased employee is also eligible for 2 years of gratuity payment if not paid.
Regards, Suresh
From India, Thane
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The deceased driver's salary was below Rs. 15,000 per month (Basic + DA) and hence was eligible for PF Membership from day one, i.e., 27.07.2017. If the claimant approaches the PF Authority for death benefits under the Pension Scheme, Deposit Linked Insurance, etc., I am uncertain whether the EPFO will entertain their claim. However, it is certain that the EPFO will claim both the contributions (Employee & Employer) including administrative charges with penal damages and interest from the company.
Questions to Consider
1. Was the driver in your regular employment?
2. Was any appointment letter issued to him?
3. What was the payment mode: cash or cheque, and by whom? Was it direct by the company or by some individual?
Had you covered him under both the PF & ESI Schemes, your entire problem would have been solved. From your statement, it is not clear whether you informed the deceased's family members on your own or they approached you.
Your total liability with both the contributions, administrative charges, penal damages, and interest will not be less than 1 lakh rupees. You cannot escape from this liability if this matter goes to EPFO. Instead, you should call the claimant and inform them that the deceased member himself had approached you and verbally requested "not to deduct any PF" from his salary to get extra take-home salary in hand. Reach for some amicable settlement by convincing the party at the earliest and try to settle the matter by a lump sum compensation of around Rs. 1.5 to 2 lakh with a written undertaking that the claimant has received the claim in full and final settlement and there are no claims of whatsoever nature against the company.
Please also note that the deceased employee is also eligible for 2 years of gratuity payment if not paid.
Regards, Suresh
From India, Thane
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Kerala HC- employee entitled to higher amt if recd from insurance co 18092017.pdf