The Workmen Compensation Act, 1923 recognizes both the employees of an organization, and their dependents as beneficiaries, worker compensation insurance entitle both to receive the monetary benefit.
The dependent is entitled to the insurance benefit in case of a workplace accident or injury, resulting in the death of an employee. However, the survivor benefits are passed only to eligible dependents under the workmen compensation insurance agreement.
Key Takeaways
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Dependency Proof: To qualify for a claim, a survivor (other than a widow/minor child) usually has to prove they were wholly or partially dependent on the worker’s income at the time of death.
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The Living Worker Rule: If a worker is injured but alive (like Ratan Kumar), the benefits (such as the 25% salary benefit and medical costs) are paid directly to the worker, not to the dependents.
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Nomination is Essential: Every employee should nominate at least one dependent. If there are multiple, the compensation is distributed according to the proportions provided by the worker.
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Preferential Order: The Act follows a strict hierarchy. For example, a widow and minor son are prioritized over extended relatives like minor siblings or widowed sisters.
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Widower Coverage: The policy is gender-neutral regarding survivors; as seen in Gayatri’s case, a disabled widower is a valid beneficiary entitled to direct compensation.
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Contract Worker Inclusion: Dependents of contract workers (like Sumitra Devi) are equally entitled to benefits, provided the employer has secured the mandatory WC insurance.
Every employee must nominate at least one dependent. So, in the case of multiple dependents, the amount is distributed among the nominated members as provided by the worker.
However, to qualify as a valid dependent, the claimant has to prove that he/she is wholly or partly dependent (financially) on the deceased.
The following people are eligible to get monetary benefits under the WC policy.
- Widow of the deceased
- A widower
- Minor son
- Unmarried daughter
- Widowed mother
- Parents of the deceased
- Paternal grandparents if parents of the deceased are not alive
- Legitimately adopted son
- Legally adopted unmarried daughter at the time of father’s death
- A minor sibling or a widowed sister
- Widowed daughter-in-law
- A minor child of a pre-deceased son
- Minor child of a pre-deceased daughter (only if the minor has no parent alive)
Dependents are considered in the same preferential order as mentioned above.
To know about the probable compensation receivable by the worker in different scenarios, see How to Calculate a Settlement in a Workman’s Comp Injury?
Cases on Dependents in W.C. Insurance
Dependent Spouse & Minor Children
Jignesh is an employee of a transportation company in India. He is a driver with the firm and has to deliver inter-city consignments. The Workers Compensation Insurance policy bought by his employer also covers Jignesh. Jignesh is a married man, with two kids. He has a married daughter, and a minor son. Jignesh is the sole breadwinner of his family.
Jignesh meets with an accident while delivering a consignment. He dies while receiving treatment in the hospital. The law entitles Jignesh’s wife as the beneficiary since she is financially dependent on Jignesh and the legal guardian of the minor children.
In case the wife was not there, the minor son of Jignesh will be eligible to receive the benefit.
Benefit Payable to the Worker
Similarly, Ratan Kumar, a driver with Fast Courier, met with an accident and was in the hospital for one month. Also, he was on bed rest for another 2 months before he could report to work. For this period, the insurer paid the benefit of 25% of his salary along with the hospital expenses.
This benefit was payable directly to Ratan as he was alive and not to his family members or dependents.
Read More: Who Should Buy Workers Compensation Policy?
Dependent/ Partially Dependent Parents
In another case, Sumitra Devi, a contract worker at Wadhwa Fashion Works, met with an accident at work and died. She was single and lived with her parents at the time. In this case, the parents received the benefit payable by the workmen’s compensation insurance of the company.
The parents, however, only partially depended on Sumitra’s income.
Summary Table: Eligible Dependents and Priority
| Priority Tier | Eligible Dependent(s) | Qualifying Condition |
| Immediate Family | Widow, Widower, Minor Son, Unmarried Daughter. | Presumed financially dependent on the deceased. |
| Parents | Widowed Mother, Father. | Can be wholly or even partially dependent. |
| Extended Family | Minor siblings, widowed sisters, and a widowed daughter-in-law. | Must prove financial reliance if parents are not alive. |
| Grandparents | Paternal Grandparents. | Eligible only if the parents of the deceased are not alive. |
| Next Generation | Minor children of the pre-deceased son/daughter. | For pre-deceased daughter’s kids: only if no parents are alive. |
| Adopted Members | Legitimately adopted son/unmarried daughter. | Must be legally adopted at the time of death. |
Disabled Husband
Gayatri Prajapati- a contract worker – works at Bhali Autos India Ltd. Her husband, Raman Prajapati, was disabled and runs a puncture shop near their house. Gayatri meets with a fatal accident at the workplace, and the employer becomes eligible to pay compensation under the W.C. Act.
Bhali Autos has bought the W.C. insurance for such scenarios, and the insurer pays the compensation directly to Raman, the widower, or Gayatri.
Knowing who is eligible to receive benefits from the workers’ compensation policy is important before purchasing the policy.
Frequently Asked Questions (FAQs)
1. If an employee has not nominated anyone, who gets the compensation?
A) In the absence of a formal nomination, the compensation is paid to the “eligible dependents” as defined by the preferential order in the Workmen’s Compensation Act. The claimant will typically have to provide legal heir certificates or proof of financial dependency to the insurer or the Commissioner.
2. Can a married daughter claim compensation if her father dies at work?
A) Generally, the Act specifies “unmarried daughters” as primary dependents. However, if a married daughter can prove she was still wholly or significantly dependent on her father’s income (for instance, if she is widowed or her husband is disabled), she may have a grounds to claim.
3. Does the insurance company pay the dependents if the worker is injured but still alive?
A) No. As illustrated by the case of Ratan Kumar, if the worker survives the accident, the medical expenses and wage-loss benefits are paid directly to the worker. Dependents only receive the “Survivor Benefit” in the event of the worker’s death.
4. Are parents eligible if they were only “partially” dependent on the deceased?
A) Yes. As shown in the case of Sumitra Devi, parents who were only partially dependent on their daughter’s income are still eligible to receive the monetary benefits under the WC policy.
5. What happens if there are multiple minor children?
A) The compensation amount is usually distributed among the eligible dependents. If the widow is alive, she often receives the sum as the legal guardian of the minor children. If she is not, the amount is held or distributed for the benefit of the minor sons and unmarried daughters.
About The Author
Rahul Kumar
MBA Finance
With a wealth of experience in the insurance industry, Rahul is a seasoned writer specializing in articles related to workmen compensation policies (WC policies) for SecureNow. With 12 years of experience in the field, he has acquired in-depth knowledge and expertise in workmen compensation insurance, understanding its complexities and nuances. Their insightful articles provide valuable insights into the importance of WC policies for businesses and employees alike, offering practical advice and guidance on navigating the intricacies of insurance coverage. Trust him to deliver informative and engaging content, backed by years of experience and a passion for educating readers about insurance-related topics.
