Will insurance policy benefitial than gratuity scheme?

Respected sir
In a Metalergical Company, his owner wants to adopt insurance policy instead of gratuity scheme. For insurance he is going to bare 50% of premium till maturity. The agent told that from first day anything happen with workers( Natural or accidental death) the his family will get Rs. 10 lakh /20lakh. Another important thing is that the maturity amount is more than 20 lakh which is taxfree, while maximum gratuity limit for private sector is Rs. 20 lakh only.
In gratuity scheme in case of death gratuity will be as per his service only.
what is your expert suggestion?

Respected sir
In a Metalergical Company, his owner wants to adopt insurance policy instead of gratuity scheme. For insurance he is going to bare 50% of premium till maturity( Up to retirement of worker). The agent told that from first day anything happen with workers( Natural or accidental death) the his family will get Rs. 10 lakh /20lakh. Another important thing is that the maturity amount is more than 20 lakh which is taxfree, while maximum gratuity limit for private sector is Rs. 20 lakh only.
In gratuity scheme in case of death gratuity will be as per his service only.
what is your expert suggestion?
Quionses...
1) If death of worker occurs before 5 years of servicing with monthly salary of Rs 65000/-
Insurance conpany going to pay Rs. 10 Lakh and Rs 20 lakh in case of accidental death.
What will be the gratuity amount?
2) Tax free limit of gratuity for private sector is Rs 20 lakh only.
While insurance maturity amount which is more than 20 lakh which is taxable.
2)

Employer has to go by scheme as laid down by Payment of Gratuity Act.
The provisions of IT need to be studied properly as payment of gratuity beyond 20 Lakhs will be taxable.

What is the Sum Assured for worker/employee? Is it based on the salary drawn by him / her?
Accidental or natural death the employee will get Rs.20L / Rs.10L respectively but what happens if the employee alive after his retirement? and how much insurance amount he will get in place of gratuity?
Is there any criteria or calculation which confirms that his/her salary for gratuity purpose will be so and so at the time of his/her retirement? What happens if he quits job after 5 years of services? Why employee should bear 50% premium when gratuity is available for him free of cost after 5 yrs. of continuous service.
If your company is really concern with employee welfare, cover all your employees under "Term Life Insurance with minimum coverage of Rs.10L. Group Term Life Insurance provides cover to your employees as long as they are in your employment. So think for this type of policy where you can provide subsidised contribution and deduct nominal contribution from employees with their consent.
Regards,
Suresh

It is tricky and do not think it will work that way. The employees may not get if they leave the company to work elsewhere even after putting up more than 5 years of service, which under Payment of Gratuity Act it has to be done. Maybe the employer is trying to mix-up things and the amount of premium may be less as it is group policy. Better to have Gratuity Act intact and anything over and above may be accepted and not in lieu of it.