Greetings Sandsky,
As informed by our learned members Gratuity payable to you has been explained to you.
As regards Gratuity scheme with LIC of India.
a) The company's form a trust and then deposit the gratuity liability indicated by LIC based on an actuarial valuation done every year.
b) The actuarial valuation is done based on the data provided by the employer.
c) This fund also earns interest but the interest is for the principal amount deposited by the employer and there is no benefit that accrues to the employee technically.
d) If an employee resigns from the organisation and is eligible to receive Gratuity, the company files an application with LIC
e) LIC releases the amount claimed after verification of the data provided by the employer to the Gratuity fund maintained by the employer. However, the gratuity is paid by LIC until there is fund deposited by employer lying with it.
f) The employer in turn releases the amount to the employee.
g) If the employer remits a risk premium to LIC, LIC releases Gratuity for the period of service rendered by him and also for the period he would have continued in service if he were alive till his superannuation from the company.
Trust the matter is clear.
Regards