Dear Ashish,
It is made clear that so far it is not necessary to have insurance for gratuity payment as the Govt. have not issued any notification for compulsory insurance under section 4A of this Act. As there is no bar relating to age in getting gratuity & therefore I am giving this opinion that the employee is eligible to have gratuity from the employer if he completes five years of service.
According to section 4 the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share 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.
Section 4(2): for every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned.
I do not know much about LIC insurance.
Opinion submitted as requested.
Regards,
R.N.Khola