Irrespective of whether the company has linked up with LIC for the Gratuity, the company is liable to pay the Gratuity to the nominee of the deceased employee. As per the act, if no nomination has been made, then the gratuity will be payable to the deceased employee's heirs, and where any such nominees or heirs is a minor the shares of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
The company is liable to pay gratuity for 20 years if the deceased employee had completed 20 years of service with your establishment.
Cheers, A.B. 25th October 2016 From India, Mumbai