LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Ranveer (Assistant)     20 September 2016

Indemnity for claiming provident fund

Hi, I am an NRI and my father recently passed away while he was working in a public sector/ financial services in India. He made me nominee for his PF and gratuity. I was filling the paperwork sent by his employer and PF application had an indemnity bond stating that "I indemnify employer against all claims, costs, charges, damages and demands which may be raised against me as a consequence of their having paid the PF amount to me".

Now my question is that I don't know financial details of my father. As a kid, I knew he used to have lot of credit card debts. Do I become responsible for his debt by accepting to being nominee on his PF?

Another thing is that this Indemnity document has to be stamped. How do NRI's do that outside of India? Do consulate stamp papers?



 5 Replies

P. Venu (Advocate)     20 September 2016

A nominee is only a trustee on behalf of the legal heirs. Though a legal heir, there could be other legal heirs (mother, siblings). As the nominee, you are receving the funds on behalf of all of them and you are obliged to take care of their rights in the funds so recived. The indemnity   bond, as I understand, is meant to take care of subsequent claims from other legal heirs, if any.


Shashikant V. Patil (Lawyer)     20 September 2016

Shri Venu is right to advise.  However, you have to furnish indemnity on stamp paper as required by PF Organisation.

G.L.N. Prasad (Retired employee.)     20 September 2016

It is just a formality in all cases and you need not worry about a procedural document.  In India, even for obtaining a duplicate draft or claiming amount as legal heir from Bank such indemnity letter is required.  When you are executing any document to the Govt, do not worry about the procedural formalities.

Kumar Doab (FIN)     20 September 2016

Expert Mr. P. Venu has explained.


Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     20 September 2016

If Your father PF Account Is Inactive For More Than 3 Years(E.G You Have Neither Transferred Nor Withdrawn The PF For Last 3 Years), And If You Need To Settle The Claim, You May Need To Submit Indemnity Bond

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Post a Suggestion for LCI Team
Post a Legal Query