Group Gratuity Scheme

Gratuity is a statutory benefit to the employees as per Gratuity Act which mandates the payment of Gratuity as per the years of service rendered. A person is eligible to receive gratuity only if he has completed minimum five years of service with an organisation. However, it can be paid before the completion of five years at the death of an employee or if he has become disabled due to accident or disease. It is a non-participating, non-linked, fund-based variable insurance policy.

Key Features:

Guaranteed interest rate

Built in Insurance arrangement for the employees for future service

Insurance cover for future service gratuity

Fund management under interest accumulation system

Claim settlement on exit as per company rules/gratuity act


On death of the life insured during the term of the policy while in service before the retirement age, the Sum assured, along with the gratuity benefit, under the basic plan is payable, provided the policy is active.

On retirement of a Member, the Gratuity Benefit will be paid as specified under the scheme.

The Premium or contribution by the policyholder is done on an annual basis.


The policy offers Accidental Benefit Rider, where on the demise of the policyholder as a result of accident, during the policy’s term, an additional amount that is equal to Accident Benefit Rider Sum assured is paid to the Nominee.

The contribution made by the employer is treated as business expenses and exempted under Sec37(1) of Income Tax Act 1961.

The gratuity amount received by the employee is taxable when it exceeds an amount of 20 lacs.