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Gargi Ranade (Company Secretary)     11 March 2016

Hindu succesion act

Dear all, We are Pvt. Ltd. Co. , one of our employee expired suddenly on one fine morning due to heart attack. as a part of incentive we have term life insurance policy securing our employees at large. within a span of every three years Company compulsorily acquires fresh nomination details from all the employees. however , such nomination is on simple plain form signed by employee. My query is as under ? 1. we have the form duly signed by employee stating that all the benefits should passed on to his wife. on the basis of this nomination can we make all payments to his wife? 2. do we as a Company liable to observe the rules of the sucession act and make the payment only on the basis of rules prescribed by suceesion Act? 3. if we make entire payment to his wife on the basis of nomination form and get the indemnity signed by the wife stating that she is only legal heir and she will make the loss good if any claim arise in future , will it sufficiently protect the interest of the Co?? do we need to take this indemnity on the Stamp Paper


 3 Replies

KS Johal   11 March 2016

The indemnity does not have to be on stamp paper but if the company feels that there is a likelihood of a further claim then it is always advisable to do that. Even if this indemnity is not on stamp paper then as you have stated The Liability will come on to the individual ie the wife if there are any further claims or if there were problems with regards to her taking the money according to the succession act. Technically the indemnity does not have to be on stamp paper.
1 Like

Suneet Gupta (     11 March 2016

The payment can be made to the wife as per the Nomination. It is the responsibility of the wife to divide the money received as per the Will of the person or as per the applicable Succession Act. You can take an Undertaking and Imdemnity from the wife that she will divide the money as per the applicable law and keep the Company indemnified of all claims. The indemnity and undertaking should preferably be notarized (better proof). Usually Notary signs only on Stamp Paper and therefore Rs.100/- stamp paper is advised, but is not necessary if the notarization can be on plain paper.

1 Like

Gargi Ranade (Company Secretary)     12 March 2016

Thank you very much Johal Ji & Gupta Ji, for your kind reply.

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