Legal Considerations for Handling a Fatal Accident on Company Premises in India

Posted On - 9 August, 2024 • By - Suma RV

Handling a fatal accident at the company premises in India involves a complex array of legal, procedural, and support responsibilities. This detailed guide outlines the steps to be taken immediately following such an incident, including reporting requirements, documentation, and support for affected parties. It also includes specific considerations regarding occupier liability and contractual obligations.

Immediate Response and Reporting

  •  Immediate Actions:

– Medical Attention: Take Injured to Hospital: Promptly transport any injured person to the nearest hospital for medical treatment. Immediate care is crucial for stabilizing the condition and preventing further harm.

– Medical Review: Ensure that no one is declared dead without a formal medical review. Only a qualified medical professional can officially declare death, which is necessary for legal and insurance purposes.

  • Reporting to Authorities:

Police: 

– Immediate Notification: Report the incident to the local police station immediately. The police will record an FIR (First Information Report) and begin an investigation, which is essential for legal and insurance processes.

– Investigation: Cooperate fully with the police investigation. Provide all relevant documentation, including accident reports, witness statements, and CCTV footage.

– Inspector of Police: Further Inquiry: An Inspector of Police may conduct a more detailed inquiry. Ensure that all interactions with the Inspector are documented, and provide any requested information promptly.

  •  Reporting to Other Authorities:

 – Employee State Insurance (ESI): Notification: If the deceased was an employee covered under the ESI Act, report the incident to the ESI Corporation or other authorities as applicableto facilitate compensation and benefits claims

– Claim Filing: Submit a claim with ESI for compensation. Include necessary documentation such as medical reports, FIR, and proof of employment.

  • Inspector of Factories:

– Immediate Report: Under the Factories Act, 1948, report the incident to the Inspector of Factories within the stipulated time Provide detailed information about the cause, circumstances, and safety measures in place.

– Inspection and Investigation: The Inspector will assess compliance with safety regulations and workplace conditions. Cooperate fully during this process and provide all necessary records and information.

  • Explosives License Authority (if applicable):

– Immediate Report: If the incident involves explosives or hazardous materials, report it to the Explosives License Authority or relevant regulatory body. This is critical for compliance with regulations governing the handling and use of explosives.

– Documentation: Provide detailed information about the incident, including the type of explosives, handling procedures, and safety measures in place. This helps the authority assess compliance and safety standards.

  • Authorities under the Employees Compensation Act (if applicable)

Documentation and Evidence Preservation

  •  CCTV and Entry/Exit Logs:

– CCTV Retention: Preserve CCTV footage from the time of the incident. This footage is crucial for understanding the sequence of events and verifying the circumstances leading to the death.

– Entry/Exit Logs: Maintain and review records of entry and exit logs for all personnel and contractors on the premises. These logs assist in establishing who was present at the time of the incident.

  • Internal Documentation:

– Incident Report: Prepare a comprehensive internal incident report. This should include witness accounts, evidence collected, immediate actions taken, and any preliminary findings from the internal investigation.

– Photographs and Videos: Take photographs and videos of the accident site and any relevant conditions or equipment. Visual evidence is vital for investigations and insurance claims.

  •  Contracts with Contractors:

Detailed Contractual Terms:

– Scope of Work: Contracts with contractors should clearly define their responsibilities, including handling heavy or hazardous materials. This ensures clarity on duties and expectations.

– Liability Waivers: Include clauses that address liability for accidents and deaths. Contractors should agree to assume responsibility for ensuring their employees are qualified and that safety protocols are followed.

– Insurance Requirements: Contractors should maintain adequate insurance coverage for accidents and liability. Verify the validity and extent of their insurance policies.

  • Coordination Among Contractors:

– Task Coordination: Ensure effective coordination and communication among multiple contractors involved in handling heavy equipment or hazardous materials. Document all coordination efforts and safety measures taken.

– Regular Updates: Conduct regular meetings or updates to ensure alignment and address any safety concerns. Ensure that all parties involved are aware of their roles and responsibilities.

Technical Skills and Training:

– Verification of Skills: Verify that contractors’ employees have the necessary technical skills and training for the tasks assigned. Review certifications, training records, and prior experience.

– Safety Compliance: Ensure that all safety regulations and protocols are followed. Conduct regular safety audits and provide training to contractors’ employees to maintain compliance.

Handling Goods and Equipment Post-Incident

  •  Custody of Goods:

– Secure Custody: In the event of a death, secure all goods and equipment in the contractor’s custody. Document the condition and status of these items to prevent loss or tampering.

– Release Procedure: Establish a procedure for releasing goods to the contractor or their representatives, ensuring compliance with legal requirements and addressing any liability issues.

Inventory Management: Maintain detailed records of inventory managed by the contractor. Track the movement, condition, and storage of goods before and after the incident.

Support and Communication

  •  Express Condolences and Support:

– Condolences to Family: Extend heartfelt condolences to the family of the deceased. Offer support and assistance during this difficult time. Inform the family about the steps being taken and their rights.

– Family Communication: Keep the family informed about the investigation and compensation process. Offer assistance with any immediate needs they may have.

  • Support for Injured Parties:

– Medical Care: Ensure that injured parties receive appropriate medical care and support. Follow up on their condition and provide assistance with any claims or compensation they may be entitled to.

On-Site Management and Safety

  •  Barricading the Accident Site: Barricade the accident site to prevent unauthorized access. This helps preserve the site for investigation and ensures safety for other employees and contractors.
  • Stop Work: Cease all work in the affected area until clearance is given by the factory inspector. This prevents further accidents and allows for a thorough investigation.

Updating Accident Register:  

– Accident Register: Update the accident register with detailed information about the incident. This should include the nature of the accident, individuals involved, and any actions taken.

– Compliance: Ensure that the accident register complies with legal requirements and is accessible for review by relevant authorities.

  •  Occupier’s Liability:

 – Definition and Scope: Under Indian law, an occupier is someone who has control over a premises, including its safety and working conditions. Occupiers are responsible for ensuring the safety of their premises and protecting employees and third parties from harm.

– Duties: The occupier must maintain a safe working environment, comply with safety regulations, and ensure that all necessary precautions are taken to prevent accidents.

– Liability for Death: In the event of a death, the occupier may be held liable if it is found that there was negligence in maintaining safety standards or if proper safety measures were not in place.

  • Legal Responsibilities:

– Compensation: The occupier may be liable for compensation under the Employees Compensation Act, 1923, or similar legislation. Compensation claims should be processed promptly to provide financial support to the deceased’s family.

– Negligence Claims: The family of the deceased may file a negligence claim against the occupier if it is determined that the death resulted from inadequate safety measures or failure to adhere to safety regulations.

Examples and Practical Applications

  • Example 1: Heavy Equipment Accident

– Scenario: A contractor handling heavy machinery has an accident resulting in an employee’s death.

– Actions: Report the incident to the police, ESI, and Inspector of Factories. Preserve CCTV footage and entry/exit logs. Verify the contractor’s insurance and compliance with safety regulations. Barricade the site and stop work until clearance is received. Address occupier liability if negligence is identified.

  • Example 2: Hazardous Material Exposure

– Scenario: A contractor handling hazardous materials faces an exposure incident leading to a third-party death.

– Actions: Notify the police, ESI, Inspector of Factories, and Explosives License Authority if applicable. Review the contractor’s training and safety measures. Report the incident and ensure proper documentation and coordination. Extend condolences to the family and update the accident register. Address occupier liability and compensation claims.

  • Example 3: Construction Site Accident

– Scenario: A construction site accident results in the death of a worker employed by a subcontractor.

– Actions: Report the death to the police and relevant authorities. Verify the subcontractor’s insurance and compliance with safety standards. Ensure coordination between the main contractor and subcontractors. Barricade the site and cease work until clearance is given. Address potential negligence claims and occupier liability.

  • Example 4: Fire Incident

– Scenario: A fire in a warehouse causes the death of a third party.

– Actions: Notify the fire department, police, and insurance company. Preserve CCTV footage and entry/exit logs. Review safety protocols and coordination among contractors managing the warehouse. Extend condolences to the family and provide support. Address occupier liability if negligence is found.

  • Example 5: Falling ObjectsScenario:

(Falling objects from a construction site lead to the death of a passerby)

– Actions: Report the incident to the police and insurance company. Preserve evidence such as photographs and videos of the site and any relevant conditions. Review safety measures and ensure that the contractor responsible for the site has complied with all safety regulations. Barricade the site and cease work until clearance is received from the factory inspector. Extend condolences to the affected family and provide necessary support. Evaluate the occupier’s liability and ensure compensation is processed as per legal requirements.

  • Example 6: Vehicle Accident

– Scenario: A company vehicle involved in transporting goods causes an accident resulting in a death.

– Actions: Report the incident to the police and insurance company. Preserve vehicle logs, driver records, and CCTV footage. Verify the driver’s qualifications and the vehicle’s compliance with safety standards. Barricade the site if necessary and stop work until clearance is received. Extend condolences to the deceased’s family and provide support. Address any liability issues and ensure compensation is processed according to legal standards.

  • Example 7: Explosives Incident

– Scenario: An incident involving explosives results in the death of an employee or third party.

– Actions: Report the incident to the police, ESI, Inspector of Factories, and Explosives License Authority. Provide detailed information about the type of explosives, handling procedures, and safety measures. Preserve all relevant evidence, including CCTV footage and photographs. Cease work and secure the site until clearance is received. Extend condolences to the family of the deceased and provide necessary support. Review and address occupier liability and ensure compliance with safety regulations.

Summary and Conclusion

The legal responsibilities of the occupier, including ensuring safety and managing liability, play a crucial role in addressing fatal incidents at company premises.

1. Immediate Actions and Reporting: Ensure prompt medical care, report to police and relevant authorities, and preserve evidence such as CCTV footage and entry/exit logs.

2. Documentation and Evidence: Maintain detailed records, including incident reports, photographs, and videos. Ensure compliance with legal reporting requirements to bodies like the ESI Corporation, Inspector of Factories, and Explosives License Authority.

3. Contractual Obligations: Ensure detailed contracts with contractors that outline responsibilities, liability waivers, and insurance coverage. Verify contractor qualifications and safety compliance.

4. Support and Communication: Extend condolences to the affected family, provide support and assistance, and ensure clear communication throughout the investigation and compensation process.

5. Occupier’s Liability: Understand and address the occupier’s legal obligations regarding safety, negligence, and compensation claims. Ensure compliance with safety regulations to prevent future incidents.

6. Examples and Applications: Utilize practical examples to guide actions in various scenarios, ensuring that all legal and procedural requirements are met.

By adhering to these guidelines and maintaining thorough documentation and communication, companies can effectively manage the complexities associated with such incidents, ensuring legal compliance and providing necessary support to affected parties.

Contributed By – Aakarsh Chandranahu

King Stubb & Kasiva,
Advocates & Attorneys

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