The Kedarnath tragedy
has killed thousands of devotees and death toll is likely to go up as thousands
of people are still missing. The relatives of the missing persons are praying day
and night for their near and dear ones to return but it is not clear that how
many days this operation will continue. The rescue operation is still on and
after military operation ends the State Government has to work hard for
restoring the things in the Kedarnath Valley. It is also true that hundreds of
dead bodies are also lying there and needs to be identified and if possible to
be handed over to the relatives of the deceased. The major challenge before the
Government is to identify the deceased person, but the recent news tells that
Government is going ahead with mass funeral next week. Looking at the present
condition in many cases either it will not be possible to identify the person
or still there will be hundreds of dead bodies which will not be traceable. In the
eyes of law person will not be declared dead until his/her body is recovered.
What will happen to their finances in the absence of valid death certificate is
also a major concern for the remaining family members. They will neither be
allowed to claim the money lying in the bank account nor will insurance company
or mutual fund house pay them unless they provide copy of death certificate. The
life of legal heirs is also likely to be majorly affected financially if the
problem is not addressed immediately. Legal heirs might have to also struggle
for day to day expense even they have sufficient money and investment in the
name of missing person.
If the dead body is not
found then what to do to claim the money and investment of missing person
requires immediate attention and people should know the provisions of the law
in this regard. Those who are dead are unlikely to come back but we should also
seriously think about the problems which living family members have to face for
their survival. As per section 108 of the Indian Evidence Act’1872 “Person is
presumed to dead who is unheard of for more than seven years by those who would
naturally have heard of him/her if he/she had been alive”. It means in the
absence of valid death certificate family members will not be able to even
touch the money and investment for another minimum seven years. The procedure
is also long. First family members have to file a missing complaint with local
police and after completion of seven years they have to approach appropriate court
for the necessary order stating the missing person is presumed to be dead. What
time court will take is also not clear, means delay of another six months to
one year time to claim the money. The Government has to seriously think about
this real life problem and have to review the provisions and reduce the time
required for declaring missing person dead particularly in case of natural
calamities like what happened in Kedarnath valley recently.
There is also another one
possibility if the State Government takes this seriously and acts immediately.
Section 10 of Registration of Births and Deaths Act’ 1969 gives power to State
Government to appoint any person in this behalf to notify birth or death or
both which occurred in such areas as may be prescribed. I think positive step
of Uttarakhand Government can solve many problems and give hope to many
families who have lost their bread earner. If the death of missing person is
notified by the State Government then on the basis of that it is possible to
apply for and get the death certificate.
Whether this will
happen or not nobody knows but it has highlighted the basic thing that we have
to plan for our finances so that in case of unfortunate event loved ones have
not to struggle financially in their life. It is important to open a bank
account in joint name with either and survivor basis and also advisable to invest
jointly with either and survivor basis. We have also to nominate one or two of
the family members in all investments wherever such facility available. It is also
important to execute a WILL in favour of loved ones so that there is no
confusion thereafter.
One should also note
that till you get the death certificate, pay the life insurance premium to
continue the policy as non payment of premium in time will lapse the policy. It
is also possible to claim the money, if the amount is small, on the basis of
indemnity bond filed with the concerned authority, if they agree do so. I also
request all the three regulators, RBI,IRDA and SEBI, to do the needful in this
regard so that legal heirs can easily get the money back and move forward in
their life.
This article first appeared at moneycontrol.com on 27th June'2013.
