The sudden death of a family member who was employed in a private job can be emotionally overwhelming. On top of grief, there are financial matters that need immediate attention. Understanding the role of a nominee can help ensure a smooth transfer of benefits and prevent delays in claiming entitled money.
1. Who Is a Nominee?
A nominee is a person designated by the employee to receive certain financial benefits in the event of the employee’s death.
Key Points:
- Nominees are named in EPF accounts, insurance policies, and gratuity forms.
- The nominee does not automatically inherit property but is entitled to specific financial benefits.
- Multiple nominees can be assigned with percentage shares specified.
2. Financial Benefits a Nominee Can Claim
If an employee passes away while in a private job, the nominee can claim the following:
a. Employees’ Provident Fund (EPF)
- The EPF corpus accumulated by the employee is paid to the nominee.
- The nominee can submit Form 20 & Form 10 to claim the amount.
- Death benefits under the Employees’ Pension Scheme (EPS) may also be applicable.
b. Gratuity
- Gratuity is paid to the nominee if the employee had completed 5 years or more of continuous service.
- Nominees can apply using the Form GRAT-2 and claim the gratuity from the employer.
c. Life Insurance & Group Insurance
- Many private companies offer group term life insurance.
- The nominee needs to submit the death certificate and policy documents to claim insurance payouts.
d. Pending Salary & Benefits
- Any unpaid salary, bonuses, or accrued leaves are payable to the nominee.
- Nominees should provide the employer with a death certificate and bank details to receive these payments.
e. Other Retirement Benefits
- Some companies provide additional retirement benefits like superannuation or pension schemes, which are also claimed by the nominee.
3. Documents Required for Nominee Claims
Death Certificate of the employee.
Nomination proof (EPF nomination form, insurance policy nomination).
Bank account details of the nominee.
Employer’s forms (EPF Form 20, gratuity claim forms, insurance claim forms).
Identity proof of the nominee (Aadhaar, PAN, passport).
4. Steps for the Nominee to Claim Benefits
Notify the Employer: Inform the HR department immediately.
Gather Documents: Collect death certificate, nomination forms, bank details, and policy papers.
Submit Claims: Fill and submit EPF, gratuity, and insurance claim forms.
Follow Up: Track the claim with the employer and EPFO or insurance company until funds are transferred.
Tip: It may take 2–6 weeks for most claims to be processed, depending on documentation and approvals.
5. Important Points to Remember
- Only officially nominated individuals can claim the funds directly.
- If no nominee exists, claims may require succession certificate or legal intervention.
- Nominees should keep multiple copies of all forms and certificates to avoid delays.
- Financial tasks include ensuring pending salaries, PF, gratuity, and insurance claims are properly transferred.
6. Conclusion
The role of a nominee is crucial in managing the financial aftermath of an employee’s death in a private job. By being aware of EPF, gratuity, insurance, and pending salary claims, nominees can secure the entitled benefits efficiently, providing financial support to the deceased’s family during difficult times.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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