Compensation for Covid-19 deaths: This is what the law says

Can a family seek government compensation following the death of a family member due to Covid-19? If so, what should be the amount of compensation? These questions could be answered when the Supreme Court pronounces its verdict on a petition filed by two lawyers who sought compensation of Rs. 4 lakh each for the families of those who died of Covid-19. Over the past year, the central government has expressed financial constraints regarding the payment of compensation to families who have lost one or more members as a result of Covid-19.

 Plea for compensation
Disputes have been filed with the Supreme Court seeking ex gratia (out of kindness and grace) compensation in cases of Covid-19 deaths. The petitioners also sought direct government instructions for issuing death certificates in cases of death due to Covid-induced complications.

The Law
In April 2005, the Disaster Management Act was notified. In 2015, a government notification fixed the ex gratia compensation amount at Rs 4 lakh to the family of each person who died from a national disaster. On March 14, the central government notified the Covid-19 pandemic as a national disaster under the Disaster Management Act. According to section 12 of the Disaster Management Act, the family of a victim of a notified disaster is entitled to ex-gratia compensation of Rs 4 lakh. The petitioners used it to support their argument. Financial assistance is also available for people who have lost their livelihood due to a national disaster.

Government Response
The central government had issued a notification for ex gratia compensation of Rs 4 lakh to the families of those who died from Covid-19 in March 2020. On June 11, the central government appeared to reverse its position when it told the Supreme Court that ‘the issues are real and are being addressed’. The government cited ‘scarce resources’ as the reason for not agreeing to ex gratia compensation for Covid last week.

The government argued that any additional burden imposed through ex gratia would reduce the funds available for other health and welfare programs. On the other hand, the government approved ex gratia payments of Rs 2 lakh to the 16 workers who died in the first wave of the Covid-19 pandemic due to the lockdown that took place during the locking down of railway lines during the pandemic.

Economic Analysis
Supreme Court justices will decide the case. It would be challenging to direct the government to pay ex gratia compensation. Since the outbreak of Covid-19 in India began, about 3.90 lakh deaths have been recorded. Covid compensation at Rs 4 lakh a death would be nearly Rs 15,500 crore. This is why the government in its earlier affidavit to the Supreme Court called the demand for Covid compensation a ‘narrow and pedantic approach’. The report said the number of deaths from Covid-19 would continue to rise since the pandemic was not yet over.

It may not be easy for the families affected by Covid to get compensation if and when ordered by the Supreme Court or approved by the government. The death certificate is the primary reason. Death certificates issued by hospitals or health agencies, in most cases, mention cardiac arrest or respiratory failure as causes of death. A post-mortem is not conducted to determine the cause of death of a patient suffering from Covid-19. Death due to black fungus among Covid-19 survivors is also related to the pandemic. DM Act does not declare black fungus a national disaster. The petitioners argued, in their plea, that the right of the family members to know the cause of death should be granted by the Supreme Court.

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States receiving compensation from Covid 
Despite the lack of a Union notification on Covid compensation, some states have already announced ex gratia payments for pandemic-related deaths. New Delhi has announced an ex gratia compensation of Rs 5 lakh for those who died of COVID-19 as a result of short-supply of oxygen. Bihar announced ex-gratia compensation of Rs 4 lakh in cases of Covid-19 deaths. In Covid-19 death cases, Madhya Pradesh and Karnataka have announced ex gratia compensations of Rs 1 lakh. Karnataka only provides financial assistance to BPL (below poverty line) families.