Gratuity insurance
vivek kumar
(Querist) 25 January 2016
This query is : Resolved
Dear sir;
I have a doubt that under gratuity insurance scheme
1. When should employee be insured under Group insurance(At the time of joining or on completion of 5 years)?
2. suppose we make a annual premium of 100 employee in a year say jan 2012 and in year feb 2012 a 10 new employee joins then wen should we include in insurance mean next year jan 2013 or same month.?
3. if emploee joins and meet with death after 1 month and not covered in Gratuity insurance then who will pay gratuity till his retirement age?
regards
Vivek Kumar
Kumar Doab
(Expert) 25 January 2016
Compulsory Insurance as cited in Payment of Gratuity Act and corresponding Gratuity rules notified by many states (providing for Compulsory Insurance for Gratuity)......................and Group Insurance are two different things.
Employee should be member from Day1, in both.
It is for the benefit of employer.
vivek kumar
(Querist) 25 January 2016
still not clear,
pls reply question wise
Kumar Doab
(Expert) 25 January 2016
All questions have been replied, to the best of understanding.
The establishment may send the query further, to the labor Law Consultant engaged by it.Thus no personnel in establishment shall err and bear the onus of error.
vivek kumar
(Querist) 25 January 2016
sir;
i am new learner of HR labour law and facing these issues so i would appreciate your answers
some body told me that employee are only covered in gratuity insurance after five year
but i think its not possible because if they are covered after five years and meet with accident before that then lic will not give benefits up to retirement
in that case employer will be resonsible.
Devajyoti Barman
(Expert) 26 January 2016
academic query though Mr Doab rightly replied.
Kumar Doab
(Expert) 26 January 2016
@ Vivek Kumar,
Academic queries are discouraged in this section.
Real legal problems/issues are encouraged and moderated.
Your adviser is grossly wrong and you have understood it.Don't go to him/her again.
The employers would want/designate as authorized signatory..........the HR personnel to handle labor laws/service matters/legal maters and save money, but transfer the onus on someone and take the blame. While HR personnel are neither lawyers/consultants for labor-service matters not lawyers.
Hence such matters should be entrusted to respective experts.
Payment of Gratuity Act 1972 provides for penalty and punishment with jail time for 'WHOEVER' that avoid to pay.
Therefor first of all learn from mentors those who know and also who shall advise you to meddle into only issues that are your domain, ONLY.....................and to entrust other issues to respective experts.
