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Prem PRAKASH RAI (ENGINEER)     10 December 2015

Employees death relief scheme

At present my company is not having any employee death relief scheme. We are 40 employees in the company and we want to ensure our group against any mishappening, We have planned to contribute a sum of Rs 8 Lacs and we want to keet it as the Insurance sum assured for any employee who dies. Now the question is in which kind of bank account this money shall be kept as in normal savings acc it will attract tax. 

Our scheme is to continuously deposit a monthly sum of 500 per employee (Rs 20000 per month for 40 employees) so that the amount in the account will keep growing. The money in the account will be purely used for death insurance. If everything goes fine and no death takes place, the whole amount will be shared equally by all employees. Please suggest in order to implement a plan like this how shall we proceed.

 5 Replies

Adv. Yogen Kakade (+ 91 9225510883)     10 December 2015


What kind of company is this? whether this is a manufacturing Industry? 

If the nature of business of your company is such that the death of an employee is likely while certain process.. then it is mandatory for the employer to cover it's employees with insurance.. even otherwise.

Bother your employer to do so.

Adv. Yogen Kakade

Jurycon Incorporation

Advocates & Consultants

Prem PRAKASH RAI (ENGINEER)     10 December 2015


Its a power plant. Its a joint venture of NTPC. You may visit the website at . Actually accidental insurance is there from the company. In case of NTPC, in the event of death of any employee, Rs 50 is deducted from all other employees salary and collected amount is given to deceased person's family. But being joint venture, the same facility is not extended to us. We want to start a self contributory scheme like this with 4o employees and we want to go as per plan mentioned in the first post on this topic. Please suggest. Please let me know in case i shall give more information.

Kumar Doab (FIN)     10 December 2015

You may form a union of employees or become member of employee's unionaffilliated with trade union.

The Unions can later form 'Works committee' that is an authorioty as per ID Act.

The union do have personal accident schemes for its members.

The employer is liable under Employee Compensation Act.

Are you provided with PF,ESIC?



Prem PRAKASH RAI (ENGINEER)     10 December 2015

Yes Sir. We are entitled for all other allowances like PF gratuity and others as per pay scales of NTPC/any other PSU. Employees at our company have been recruited through NTPC Et exam but we are posted on payrole on the joint venture company that is APCPL( Joint venture of NTPC, HPGCL and IPGCL). Company provides us Group Accidental insurance of Rs 4.5 Lakhs and Group Personal Accidental Insurance Scheme which provides 50 times of Basic+DA at time when the mishappening occurs. In addition to that, there is one policy in NTPC to contribute 50 rs per person for immediate relief to the family of deceased person. we like to form a group for immediate relief for the families of employees of our company. Is the association only option. Can it not be done through employee welfare club or any other method. Associations are generally taken negatively by the management. Our sole purpose is to insure ourselves.

Kumar Doab (FIN)     10 December 2015

Download job advt,job application,interview call letter, offer letter, appointment letter and all rues/policies mentioned in appointment letter and retain these carefully.


Try the option under Employee's co-operative and Employee's welfare etc.................

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