Release of Claims Template for India

A Release of Claims is a legal agreement where one party gives up their right to sue or seek compensation from another party for specific incidents or disputes. In India, these documents commonly appear in employment settlements, insurance payouts, and accident compensation cases under the Indian Contract Act, 1872.

When you sign a Release of Claims, you're formally acknowledging that you've received fair compensation and won't pursue further legal action about that particular matter. Companies often require these releases during severance agreements or when settling workplace disputes to protect themselves from future litigation while ensuring employees receive their agreed-upon benefits.

Use a Release of Claims when settling disputes or ending business relationships to prevent future legal complications. Common situations include employee severance packages, resolving workplace accidents, settling contract disputes, or closing insurance claims under Indian law. The document becomes crucial during mergers and acquisitions, where companies need clean breaks from past liabilities.

This release proves especially valuable in high-stakes settlements involving significant compensation or complex disagreements. For example, manufacturing companies often require it after workplace injury settlements, and IT firms use it during mass layoffs or project dispute resolutions. Getting it signed before making settlement payments protects both parties by clearly marking the end of legal obligations.

• Settlement Agreement And Release Of All Claims: Most comprehensive type, covering all possible current and future claims between parties
• Mutual Release Of Claims: Both parties release each other from claims, common in business partnership dissolutions
• Separation Agreement And Release: Specifically for employment terminations, including severance terms
• Vehicle Accident Release Of Liability Form: Focused on motor vehicle incidents under Motor Vehicles Act
• Accident Release Of Liability Form: General accident liability release for personal injury settlements

• Employers and HR Managers: Draft and implement Release of Claims during layoffs, resignations, or workplace dispute settlements
• Corporate Legal Teams: Review and customize release documents to ensure compliance with Indian labour laws and company policies
• Insurance Companies: Use releases to finalize claim settlements and prevent future liability under insurance regulations
• Departing Employees: Sign these documents to receive severance benefits or settlement amounts
• Business Partners: Execute mutual releases when dissolving partnerships or ending joint ventures
• Legal Counsel: Advise clients on release terms and negotiate modifications to protect their interests

• Identify Parties: Gather full legal names, addresses, and contact details of all involved parties
• Document Incidents: List specific events, dates, and claims being released with clear details
• Calculate Compensation: Determine exact settlement amounts and payment terms under Indian contract law
• Check Authority: Confirm signing authority for corporate entities matches company records
• Draft Release: Use our platform to generate a legally-sound Release of Claims that includes all mandatory elements
• Review Terms: Verify all claims, rights, and obligations are clearly stated in simple language
• Plan Execution: Arrange for proper witnessing and notarization as required by local regulations

• Identification Section: Full legal names and details of all parties, including corporate entities
• Consideration Clause: Clear statement of compensation or value exchanged, as required by Indian Contract Act
• Release Language: Specific description of claims being released, including known and unknown claims
• Governing Law: Express statement that Indian law governs the agreement
• Non-Revocation: Statement confirming the release is final and binding
• Execution Details: Date, signature blocks, witness provisions, and notarization requirements
• Severability Clause: Protection if any provision becomes invalid
• Entire Agreement: Confirmation that this document represents the complete understanding

A Release of Claims is often confused with a Release Deed, but they serve distinct purposes under Indian law. While both involve giving up rights, their scope and application differ significantly.

• Legal Purpose: A Release of Claims specifically addresses legal disputes or potential lawsuits, while a Release Deed typically transfers property rights or interests
• Timing of Effect: Release of Claims usually takes effect after a settlement payment, while a Release Deed operates immediately upon execution
• Registration Requirements: Release Deeds often need mandatory registration under the Registration Act when involving immovable property, while Release of Claims generally don't
• Consideration: Release of Claims always requires valid consideration under Indian Contract Act, while Release Deeds may be executed without monetary consideration
• Scope: Release of Claims focuses on specific incidents or disputes, while Release Deeds permanently transfer broader property rights or interests