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Death Of Employee - Terminal Payments

(Querist) 11 November 2008 This query is : Resolved 
Employee No. 8989- Mr Antone Ananth – Date of Birth : 13-Sep-1980::: Date of Joining in company: 13-Sep-2006 and died on the spot in a tragic Road Accident on 12th March 2008 at 09.30 hours while coming to office.
On joining, he gave all nominee declarations in favour of his father both for his Gratuity and PF
On 20.08.2007, he got married. After marriage he did not file any fresh nominee declaration. We have on record his marriage registration church certificate proof.
Now his settlements / terminal benefits have all been ready for Gratuity, Insurance, payroll including leave salary, prorata pay etc
Mrs Ansala, widowed wife has staked claim for the entire terminal benefits because (a) her parents paid huge dowry + expenses on marriage and now on huge debts.. and more importantly (b) her father-in-law demands that to retain all terminal benefits within the family.. but she is not willing for it, (c) her Father-in-Law is already in employment in Railways (oral information to us).
She has not taken the Legal Heir Certificate (LHC) because the local Taluk Office have insisted that the LHC will be issued only citing the three persons as legal heirs with equal share (i,e, Father-in-law, mother-in-law & widowed wife) such that her father-in-law & mother-in-law will get 2/3rds share of the terminal benefits and that the widowed wife shall be paid only 1/3rd share only

Our views:

Family pension will be paid only to the wife as per PF Rules
For PF, Gratuity, Insurance etc, we are informed that in many government organisations the process followed is that even if the deceased has not submitted the Nominee name change after the marriage, it doesn't matter. The Marriage Registration proof will do. So she becomes the beneficiary of PF, Insurance etc. His wife becoming the “undeclared Nominee” overrides all the previous nominee declarations given by him. Marriage Regn certificate appears enough. Hence they make the payment to the widowed wife

Owing to the non-prevalence in the name change for nomination soon after marriage legally here, this rider option is automatically made in to effect. If the employee is unmarried, his settlement goes to his declared nominee i.e. (father/mother/ brother etc) or any legal heir in succession by default.
Now we have on hand the marriage Church Certificate and she has promised to get us the Govt certificate in a few days time

Expert Opinion required

In the light of the above circumstances, please advise to whom to pay these terminal benefits above now ready for a) PF, (b) Gratuity, (c) Insurance (d) payroll including leave salary, prorata pay etc, and in what ratio.
smilingadvocate (Expert) 11 November 2008
In your case inspite of giving thegiving the name of the nominee the other heirs will also get the share in the benefits the mere providing nomination in some body name the other legal heris does not lose their right of share
Srinivas.B.S.S.T (Expert) 12 November 2008
follow your rules
Murali Krishna (Expert) 12 November 2008
Wife will get family pension, other settlement benefits as per departmental rules. Once an employee is married, as per the pension rules, his earlier nomination does not subsist. Hence, wife will get all the benefits.

As far as PF is concerned, it will normally be disbursed as per the nomination in view of PF Act.

In all the cases, department some times ignorently asks for succession certificate. However, it is not required when all the other documents are there to prove that your client is wife (widow).
Suresh Kr. Mitruka (Expert) 12 November 2008
Widow will get the family pension, if the marriage is not disputed by her father in law and mother in law. Other benefits like PF and gratuity etc. be shared equally amongst the father-in-law, mother in law and widow, irrespective of the declaration, if they come together in settlement in as much as the nominees are only the custodian of the benefit, but not the legal heirs. Or alternatively, in case of disputes, we should insist for getting the Succession Certifiate.
K.C.Suresh (Expert) 13 November 2008
Nominee is just nominated for collecting the benfits. That does bot men that he has sol right over it. He must give it to the legal heir. Here wife is the right person. So approch the court for the benefits and stop payment father in law.


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