The Supreme Court has clarified that if both parents of a child have died due to Covid-19, the child will be entitled to a compensation of Rs 50,000 for the death of each parent. A clarification was sought by the State of Assam as to whether each of the children of the deceased parents will be provided the ex-gratia payment by the state (in case there is more than one child), i.e. Rs 50,000 compensation to be given to each of the children.

The bench of Justices MR Shah and BV Nagarathna said on March 14, 2022: “In fact, our earlier order is very clear and that ex gratia payment of Rs. 50,000/- shall be qua each death. Therefore, it is observed and clarified that if there are more than one child, any of the child—only one child/family member as the case may be shall get the ex gratia payment of Rs.50,000/-.

“It is further observed and clarified that however in case both the parents have died in that case the child/children shall get Rs.50,000/- qua each death i.e. one for the deceased father and another for the deceased mother,” noted by the bench in its order.

The centre also informed the Supreme Court that it will file details of alleged fake applications for Covid-19 compensation. Solicitor General Tushar Mehta has suggested that an inquiry into alleged fake death claims could be entrusted to the auditor-general’s office. Justice Shah observed: “We never visualised that this kind of fake claims could come. It’s a pious world. We never thought this scheme could be misused. And if officials are involved, it makes it even worse.”

On the last hearing held on March 7, 2022, the apex court had expressed concern over the fake certificates of Covid-19 deaths issued by medical practitioners for ex-gratia, stating that this may prevent real beneficiaries from getting their due.

The Court repeatedly had expressed displeasure over the laxity of state governments on compensation during the hearing of the plea moved by Gaurav Kumar Bansal seeking ex-gratia payments to families of the Covid-19 deceased.

The bench had observed that some doctors were preparing fake certificates to justify Covid-19 deaths. Tushar Mehta had suggested to the Court that it may direct that whoever applies, gets the compensation, but there may be a direction that there should be a fixed date and it cannot be an endless process.

In fact, the Court had on February 4, 2022, directed all states to provide full particulars regarding details of compensation given to the concerned State Legal Service Authority (SLSA), including orphans, within a week. Apart from this, the states were also directed to appoint an officer to coordinate with SLSAs to ensure that the compensation reached all eligible victims.

The bench also directed states to ensure payment of compensation within 10 days of receipt of the claims. Further observing that many states were rejecting applications, the bench directed that it shall not be rejected on technical grounds, and if there was a glitch, the state must give them to cure it. “The ultimate goal of the state is to provide some solace to the concerned victim’s family,” the bench said and observed that the rationale was to ensure that it reached all persons who had not approached it as and when such particulars were given.

During the hearing, Justice Shah said that no state had given any details and only figures were given. The bench also said that compensation cheques given by Karnataka had bounced and the state should take care that this does not happen in future.

On January 19, the apex court had pulled up state governments for failing to disburse claims to the next of kin of Covid-19 victims. The Andhra Pradesh chief secretary had apprised the Court that payments to 28,000 claimants had been made. Another 10,000 claimants were left, of which 5,000 had been cleared and would be paid in the next three days. The official said 6,000 rejected claims would be examined by the grievance redressal committee suo motu. He also assured the Court that the government would ensure that not a single claimant who was eligible for compensation was deprived. The Court told the Bihar chief secretary that the government needs to make more efforts to give compensation to the victims.

The Supreme Court had also directed state governments to share complete details about the number of Covid-19 deaths as well as information uploaded on the Bal Swaraj portal with their respective SLSAs. Apart from this, the Court also directed the governments to take judicious steps to ensure compensation and rehabilitation of children orphaned due to the coronavirus, based on the information uploaded on the Bal Swaraj portal.

Looking into the peculiarity of the situation, the Court observed that more effort was needed to reach the eligible persons/kin/family members of the ones who had succumbed to Covid-19. It directed states to reach out to those children who had lost both parents or surviving parents and whose particulars were already uploaded on the Bal Swaraj portal, so that compensation could be paid to them. It further directed the concerned states to share full information/ particulars on the Bal Swaraj portal.

The Court also made it clear that in case the recipient was an orphan, the compensation amount should be deposited directly to the child instead of any family member. It also directed all state governments that whenever claims were rejected, the reason/s for rejection must be communicated to the claimants and they must be given an opportunity to rectify their claims. It was clarified by the Court that no claims can be rejected on technical grounds.

In Andhra Pradesh, the total claims received so far were 42,924 against the official toll of 14,527 and the government has accepted 37,571 claims while rejecting 4,297 applications. The Maharashtra government refused compensation to 61,848 claimants out of the total number of 2,27,107 applications it had received. The official death toll was 1,42,705 and it paid compensation to 1,32,092 families. In Uttar Pradesh, 37,007 applications were received against the official death figures of 23,073 and the state had accepted 29,622 claims and rejected 1,527. The Gujarat government approved 87,045 claims and disbursed compensation amount to 82,605 families, while rejecting 8,994 applications. Telangana rejected 2,752 claims out of total 31,053 applications.

On June 30, 2021, the Court had directed the National Disaster Management Authority to recommend guidelines for ex-gratia assistance on account of loss of life to the family members of persons who died due to Covid-19, as mandated under Section 12(iii) of the Disaster Management Act, 2005 for the minimum standards of relief to be provided to those affected by the Covid-19 pandemic.

—By Mansi Sharma and India Legal Bureau

The Supreme Court on February 4 directed all states to provide full particulars regarding details of compensation given to the concerned State Legal Service Authority (SLSA), including orphans, within a week. Apart from this, the states were also directed to appoint an officer to coordinate with SLSAs to ensure that the compensation reached to all eligible victims.

The division bench of Justices MR Shah and BV Nagarathna expressed displeasure over the laxity of state governments on paying compensation during the hearing of a plea moved by Gaurav Kumar Bansal seeking ex-gratia payments to families of those who died due to Covid-19.

The bench also directed the states to ensure payment of compensation within 10 days of receipt of the claims. Further observing that many states were rejecting applications, the bench directed that it shall not be rejected on technical grounds, and if there is a glitch, the state must give them to cure it. “The ultimate goal of the state is to provide some solace to the concerned victim’s family,” the bench said and observed that the rationale was to ensure that it reached all persons who had not approached as and when such particulars were given.

During the hearing, Justice Shah said that no state had given any details and only figures were given. The bench also said that compensation cheques given by Karnataka had bounced and the state should take care that this does not happen in the future.

On January 19, the apex court had pulled up state governments for failing to disburse claims to the next of kin of Covid-19 victims. The Andhra Pradesh chief secretary had apprised the Court that payments to 28,000 claimants had been made. Another 10,000 claimants were left, of which 5,000 had been cleared and would be paid in the next three days. The official said 6,000 rejected claims would be examined by the grievance redressal committee suo motu. He also assured the Court that the government shall ensure that not a single claimant who was eligible for compensation was deprived. The Court told the Bihar chief secretary that the government needs to make more efforts to give compensation to the victims.

The Supreme Court on January 19 had also directed state governments to share complete details about the number of Covid-19 deaths as well as information uploaded on the Bal Swaraj portal with their respective SLSAs. Apart from this, the Court also directed the governments to take judicious steps to ensure compensation and rehabilitation of children orphaned due to the coronavirus, based on the information uploaded on the Bal Swaraj portal.

Looking into the peculiarity of the situation, the Court observed that more effort was needed to reach the eligible persons/kin/family members of the ones who had succumbed to Covid-19. It directed states to reach out to those children who had lost both parents or surviving parents and whose particulars were already uploaded on the Bal Swaraj portal, so that compensation could be paid to them. It further directed the concerned states to share full information/ particulars on the Bal Swaraj portal.

The Court also made it clear that in case the recipient was an orphan, the compensation amount should be deposited directly to the child instead of any other family member. It also directed all state governments that whenever claims were rejected, the reason/s for rejection must be communicated to the claimants and they must be given an opportunity to rectify their claims. It was clarified by the Court that no claims be rejected on technical grounds.

In Andhra Pradesh, the total claims received so far is 42,924 against the official toll of 14,527 and the government has accepted 37,571 claims while rejecting 4,297 applications. The Maharashtra government has refused compensation to 61,848 claimants out of the total number of 2,27,107 applications it has received. The official death toll is 1,42,705 and it has paid compensation to 1,32,092 families. In Uttar Pradesh, 37,007 applications were received against the official death figures of 23,073 and the state has accepted 29,622 claims and rejected 1,527. The Gujarat government has so far approved 87,045 claims and disbursed compensation amount to 82,605 families, while rejecting 8,994 applications. Telangana rejected 2,752 claims out of total 31,053 applications.

On December 7, the top court asked the states which had not yet created the online portal for uploading data on the Covid deceased to create a specific portal related to compensation and give information to the people using TV and radio in order to promote it. The bench reprimanded the Maharashtra government and said it had not yet released compensation to anyone and this was not acceptable. The Court also said that the Maharashtra government should start paying compensation immediately, otherwise the Court will have to act strictly.

Last year, on November 29, the apex court had suggested that there should be proper publicity for the purpose of raising awareness about the compensation plan. The central government submitted that an online portal will be developed within two weeks where compensations could be claimed for cases of death due to Covid-19. “This model of the central government to provide compensation for the deaths due Covid-19 should be adopted by all the states as well,” the Court added.

Earlier on October 4, the Supreme Court had directed the National Disaster Management Authority (NDMA) to pay Rs 50,000 each to the families of those who died due to the pandemic. A bench, led by Justices MR Shah and AS Bopanna, further directed the NDMA to frame guidelines for payment of ex-gratia compensation for deaths caused by Covid-19.

Earlier on September 23, the apex court had expressed contentment over the central government’s decision to provide an ex-gratia amount of Rs 50,000 as financial help to the family of persons who died due to Covid-19. The government in an affidavit filed on September 22, had apprised the Court that the NDMA had recommended an amount of Rs 50,000 each as ex-gratia payment to families of deceased persons, including those involved in relief operations or associated in preparedness activities subject to cause of death being certified as Covid-19.

The Court in its judgment on June 30, 2021, had passed the following directions:

• We direct the National Disaster Management Authority to recommend guidelines for ex-gratia assistance on account of loss of life to the family members of the persons who died due to Covid-19, as mandated under Section 12(iii) of DMA 2005 for the minimum standards of relief to be provided to the persons affected by disaster—Covid 19 pandemic—over and above the guidelines already recommended for the minimum standards of relief to be provided to persons affected by Covid-19.
• The appropriate authority is directed to issue simplified guidelines for issu­ance of death certificates/official documents stating the exact cause of death, i.e., “Death due to Covid-19”, to the family members of the deceased who died due to Covid-19.
• The Union of India to take appropriate steps on the recommendations made by the Finance Commission in its XVth Finance Commission Report in consultation with other stakeholders and experts.

—By Shivam Sharma and India Legal Bureau

The Supreme Court on June 30, 2021 directed the National Disaster Management Authority (NDMA) to lay down guidelines for the minimum standard of relief, including payment of ex-gratia assistance to family members of people who succumbed to Covid-19.

The top court in its judgment said: “We direct NDMA to form guidelines for ex-gratia compensation for family members of persons who succumbed to Covid as per minimum standards of relief. The reasonable amount to be provided is left to the wisdom of national authority.”

The apex court, therefore, made it abundantly clear that as far as the Covid-19 pandemic was concerned, it was a disaster under the Disaster Management Act (DMA).

The Court also asked NDMA to provide ex-gratia compensation to families of Covid-19 victims. Its response came after a batch of petitions sought directions to the state and central governments to provide ex-gratia compensation.

The pandemic over the past year has ravaged Indian households. According to the recent estimate by the Centre for Monitoring Indian Economy, incomes of 97 percent households in the country has been adversely impacted by the pandemic. Since the pandemic began, unemployment numbers have shot up to an unprecedented high and the scale of devastation unleashed by the second wave of the pandemic has been indeterminable and fears of a third wave are only rising as the coronavirus continuous to mutate.

In March 2020, Union home minister had declared Covid-19 as a disaster and notified it under the DMA. Section 12 of DMA mandates ex-gratia assistance on account of the loss of life, damage to houses and for restoring means of livelihood.

The Supreme Court in its ruling stated that the language of Section 12 of the DMA was clear and unambiguous. The Court noted that Section 12 of the law used the word “shall” in reference to guidelines and concluded that the provision was mandatory, and therefore, the centre was legally obligated to pay ex-gratia compensation under DMA.

Sub-Section (3) of Section 12 provides for ex-gratia compensation to people who have died or suffered any kind of loss due to a disaster. The collective reading of the Section makes it clear with the use of the word “shall” and “ex-gratia” that it is mandatory for the centre under the law to provide the compensation immediately.

The central government’s disaster management authority has the legal and ethical responsibility to provide compensation to people who have lost their lives or suffered losses during Covid-19. The High Courts across the country have already pulled up the central government for its lack of preparedness in handling the pandemic and the crippling medical infrastructure which led to the death of so many people. The government authorities have also been pulled up for negligence with regard to the timely supply of medicines and other drugs for the treatment of Covid-19. Therefore, for them to provide compensation is not merely a legal or statutory obligation but also a moral and ethical responsibility.

The Court rejected the centre’s contention that it was not bound to make ex-gratia payments since Covid-19 was different from other natural disasters, such as floods and earthquakes, and therefore, DMA will have to be interpreted to mean that such a scheme on ex-gratia was only recommendatory and not mandatory. The government’s affidavit also stated that an ex-gratia amount of Rs 4 lakh could not be paid for Covid-19 deaths as it was beyond fiscal affordability, and the finances of the central and state governments were under severe strain.

Emphasising that the beneficial provision of the legislation must be literally construed so as to fulfil the statutory purpose and not frustrate it, the bench noted that once Covid-19 had been notified as a disaster, it was mandatory to contemplate a scheme for ex-gratia payment for loss of life due to the infection.

“Not recommending any guidelines for ex-gratia assistance on account of loss of life due to Covid pandemic, while recommending other guidelines for the minimum standards of relief, it can be said that the National Authority has failed to perform its statutory duty cast under Section 12 and, therefore, a writ of mandamus is to be issued to the National Authority to recommend appropriate guidelines for ex-gratia assistance,” the bench said.

The bench also noted that there was no document on record to show that after a recommendation of the Finance Commission against a scheme for ex­gratia payments, there was any decision made by the PM-led NDMA, which was statutorily mandated to issue these guidelines. “Ex-gratia assistance on account of loss of life is part of minimum standards of relief, which must be considered by the National Authority while providing for the minimum standards of relief to be provided to the persons affected by disaster in the present case, Covid-19 pandemic,” the bench said.

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At the same time, the bench highlighted that the courts must draw a line when it comes to matters of financial implications and it was cognisant that Covid-19 was different from the other disasters/natural disasters for which ex-gratia assistance was provided.

No state or country had unlimited resources, said the bench, pointing out that the central government was also required to take various measures in different sectors, such as public health, employment and providing food and shelter to people and migrants.

“There shall not be any justification to provide for the same amount by way of ex-gratia assistance as provided in the case of other disasters/natural disasters, i.e., Rs 4 lakh. The government has to decide its own priorities and reliefs to different sectors for different reliefs… What reasonable amount to be offered towards ex-gratia aid is left to the wisdom of National Authority,” the bench said.

—By Abhinav Verma and India Legal News Service

The Supreme Court will pronounce its judgment in petitions seeking directions to the Centre to provide ex-gratia monetary compensation of Rs 4 lakh each to families of people who died due to Covid-19. 

A three-judge bench led by Justices Ashok Bhushan, Vineet Saran and M.R. Shah will pronounce their verdict through video conferencing in the pleas filed by Advocates Gaurav Kumar Bansal and Reepak Kansal. 

In its affidavit, the Central government has told the Supreme Court that it cannot afford to pay Rs 4 lakh each to the families of people who have died due to Covid-19. The government has also said the disaster management law mandating compensation applies only to natural disasters such as earthquakes, floods, etc, it said.

The bench of Justice Ashok Bhushan and Justice M.R. Shah had sought the Centre’s response on its Covid compensation policy and death certificates after a petition asked for at least Rs 4 lakh each for victims.

In its 183-page affidavit filed on Saturday night June 19, the Centre said: “If an ex-gratia of Rs 4 lakh is given for every person who loses life due to Covid-19, the entire amount of SDRF may be spent on this item alone, and total expenditure may go up further.”  

“If the entire SDRF funds get consumed on ex-gratia for Covid-19 victims, the states may not have sufficient funds for organizing Covid-19 response, for provision of various essential medical and other supplies, or to take care of other disasters like cyclones, floods, etc. Hence, the prayer of the petitioner for payment of ex-gratia to all deceased persons due to Covid-19 is beyond the fiscal affordability of the State governments,” it said.

Further, it submitted that, “In the case of various disasters, for which such ex-gratia is provided under SDRF norms, the disaster is of a short and finite duration, occurring and ending quickly. Covid-19, on the other hand, is a global pandemic, which has affected all the countries in the world. Within our country, it has affected all the States/Union Territories, which have experienced several waves of Covid-19 cases. There is no precedent of giving ex-gratia for an ongoing disease or for any disaster event of long duration, extending for several months or years.”

The Central government said granting ex-gratia for one disease, while denying the same for those accounting for a larger share of mortality, would not be fair or proper. “It would create unfairness and invidious discrimination between persons suffering from one disease and those suffering from another. Further, unlike floods, earthquake, cyclone, etc., during the present Covid-19 pandemic, thousands of crores of rupees have been spent by Central Government and State Governments on prevention, testing, treatment, quarantine, hospitalization, medicines and vaccination etc. and it is still continuing. It is not known that how much more is required. Thus, Central and State Governments are taking all possible measures to prevent and prepare for future waves of Covid-19.”

Furthermore, it made it clear that under the Disaster Management Act, 2005, Section 12, it is the “National Authority”, which is empowered to recommend guidelines for the minimum standards of relief, including ex-gratia assistance. This is the function entrusted to the Authority by-law passed by the Parliament. It is well settled through numerous judgements of the Supreme Court that this is a matter which should be performed by the authority, to whom it has been entrusted and not one where the Court will substitute its own judgement for the decision to be taken by the Executive, the Centre submitted.

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The court has also sought response on an issue regarding death certificates/ any letter to the families of deceased, stating the cause of death. Regarding which, the Centre submitted that Covid death will be mentioned in death certificates of every victim. Doctors who fail to certify Covid deaths will be penalised, the affidavit said.

“All deaths with a diagnosis of Covid-19, irrespective of co-morbidities, are to be classified as deaths due to Covid -19. The only exception could be where there is a clear alternative cause of death, that cannot be attributed to Covid -19 (e.g. accidental trauma, poisoning, acute myocardial infarction, etc), where Covid-19 is an incidental finding,” the Centre said.