Is There a Scheme for LIC to Handle Gratuity Payments on Retirement? Let's Discuss

Hi All,

I would like to know if there is any scheme or anything in place when Gratuity on retirement of employees is paid by LIC. If there is such a scheme, please provide me with the details of the scenario.

Thank you.

Dear Member,

Gratuity is paid by the LIC if the employer has taken insurance from the LIC against his liability for payment towards the gratuity under the Payment of Gratuity Act, 1972. We have section 4A on compulsory insurance under this Act, but this provision has not been made applicable so far by the Govt. For more details, you may go through this section of this Act.

Regards,
R.N.Khola

Hi All,

I would like to know if there is any scheme or anything when gratuity on retirement of employees is paid by LIC. If there is anything, please let me know the scenario.

Hi! Mr. Khosla has rightly guided you. If your employer agrees to gratuity through LIC, please go for that because LIC charges you a very low premium for this. Furthermore, if the employee dies while in service before retirement, the gratuity is paid by LIC for the remaining period also, i.e., up to retirement age.