Under the statutory framework of the Employees' State Insurance Act, 1948, the Employees' State Insurance Corporation (ESIC) provides comprehensive social protection covering not only illness, disablement, and maternity, but also crucial compassionate assistance upon the demise of an insured worker. Funeral Expenses, governed under Regulation 95-E of the ESI (General) Regulations, 1950 and Section 46(1)(f) of the Act, represent a lump-sum statutory cash grant paid toward defraying the immediate costs of the funeral of a deceased insured person.
Statutory Increase: ₹20,000 Rate Notified in May 2026
Historically, the funeral expenses benefit was capped at ₹10,000, and later revised to ₹15,000 in March 2019. In a major welfare revision published by the Ministry of Labour and Employment, the statutory funeral benefit was officially enhanced to ₹20,000 with effect from May 8, 2026. This enhancement reflects inflation in municipal cremation and burial services across metropolitan and industrial centres.
Priority of Claimants: Who is Legally Entitled?
Regulation 95-E establishes an unambiguous statutory order of precedence regarding who can claim and receive the funeral grant:
- Eldest Surviving Member of the Family: The primary legal right vests in the eldest surviving member of the deceased worker's family (typically the spouse, or the eldest surviving adult son or unmarried daughter). The eldest family member is paid the full statutory amount upon furnishing proof of death without being required to submit itemized expenditure receipts.
- Other Person Who Actually Incurred Expenditure: Where the deceased insured person did not have a family, or was living away from his family at the time of death and the funeral was performed by another person or guardian, that person can claim the actual expenditure incurred, up to the statutory ceiling of ₹20,000. In such instances, receipts or a cremation/burial authority certificate must be attached.
Step-by-Step Claim Procedure and Form 22
To receive the funeral grant without administrative delay, the claimant must submit ESIC Form 22 (Claim for Funeral Expenses) at the local Branch Office where the deceased worker's Pehchan (Insurance) record was registered. The claim must be accompanied by:
- Original death certificate issued by the municipal authority or gram panchayat.
- Copy of the deceased worker's ESI e-Pehchan card showing insurance number.
- Identity and bank account details (cancelled cheque / passbook copy) of the claimant.
- Receipt from the crematorium, burial ground, or cemetery authority.
The statutory limitation period for filing the funeral benefit claim is six months from the date of death. Belated claims can only be entertained upon condonation of delay by the Regional Director for bona fide circumstances.