An employee of our company working as a Mechanic ( his monthly salary was 9500/- per month) He met with an accident while repairing a machine at customer site. A few days later unfortunately he passed away in a hospital.
we are covered under ESI and already submitted all the relevance documents in this case.
We have also put claim for the group personsl accident insurance policy taken by the company
In addition to that >>>>
Now after discussion with his family our company has decided to pay a lump sum Rs. 10 lac in the name of his daughter ( he was survived with his wife and a daughter)
Plz give your Valuable opinion ..
1. What will be the accounting treatment in the books of the company? Is it allowed as an expense?
2. What are Legal issues or formalities or documentation required?