Service gratuity is available only for the period of service till death. At the same time, if your company has taken any Gratuity policy from the LIC with a specific clause of death benefits then only the dependents of the deceased will get gratuity based on the superannuation age declared by the company. As such if no such policy exists, the gratuity payable will be limited to just 15 days pay because the deceased had only 1 year and 4 months and that fraction of 4 months will any way be ignored. On the other hand, if you have had your gratuity invested in LIC and there exists a death cum gratuity provision, then the LIC will do a calculation of gratuity which the deceased would otherwise be entitled had he completed his superannuation date, 58 or 60, as the case may be.