Section 77 in Life Insurance Corporation of India (Staff) Rules, 1960
77. Gratuity.
(1)[(a) A permanent employee who has been in continuous service of the Corporation (including service with the insurer) for not less than 15 years (excluding period of probation or temporary service in respect of employees recruited on or after 1.9.1956); and(i)whose services are terminated by the Corporation for any reason whatsoever; or(ii)who voluntarily resigns from the service of the Corporation; or](b)a permanent employee(i)who dies while in the service of the Corporation;(ii)who retires from the service of the Corporation; or(iii)whose services are determined either due to continued illness or accident incapacitating him from the proper discharge of his duties; or(iv)whose services are dispensed with owing to reduction of staff for reorganisation of establishment;Will be eligible for the gratuity benefits.(2)[ Gratuity admissible to an employee shall be at the rate of one month's terminal basic pay including special pay, for each completed year of continuous service (inclusive of regular salaried service with the insurer) in respect of first 15 years and at the rate of half a month's terminal basic pay including special pay for each completed year of further continuous service; so, however, that the total gratuity admissible shall not exceed a maximum of 20 month's terminal basic pay including special pay or Rs. 30,000/- whichever is less.] [Notified in Gazette of India, Part-III Section 4 dated 7.8.1971.]Note: For the purpose of this [sub-rule] [Substituted 'sub-regulation' by Notification No. G.S.R. 459(E), dated 30.6.2021 (w.e.f. 23.7.1960).] any period spent by an employee on extraordinary leave, exceeding 12 months during the entire period of his service shall be excluded.(2A)[ In case of a Class I Officer who has been promoted from Class III cadre on or after the 1st day of April, 1973 and who dies or retires after promotion, the gratuity payable to him shall not be less than the gratuity that would have been payable to him if his services had been terminated while he was in Class III cadre.] [Notified in Gazette of India, Part-III Section 4 dated 4.11.1978.](3)[ Notwithstanding anything stated above, in the case of transferred employee, gratuity payable under this [rule] [Notified in Gazette of India, Part-III Section 4 dated 7.8.1971.] shall in no case be less than the gratuity to which the employee would have been entitled if the termination of his service had taken place on 31.8.1956.] [Notified in Gazette of India, Part-III Section 4 dated 7.8.1971.](3A)[ Where an employee is an employee in Class III or Class IV gratuity admissible in his case shall be determined in accordance with the provision of the foregoing [sub-rules] [Notified in Gazette of India, Part-III Section 4 dated 4.5.1974.] or calculated (subject to the terms of the proviso herein) under the payment of Gratuity Act, 1972, as it stands on 24th January,1974 (hereinafter referred to as the said Act), whichever is more favourable to him:Provided that -(a)While calculating the gratuity under the said Act the monthly salary of an employee shall be deemed to be his terminal basic pay (including special pay), Dearness Allowance and additional Dearness Allowance;(b)the provisions of the said Act shall be applied notwithstanding that his monthly salary as above is over Rs. 1,000/- ;(c)in the case of an employee who dies while in the service of the Corporation after having completed 15 years of continuous service; the gratuity under the said Act shall be calculated at the rate of one month's salary for every completed year of service, and in all other cases at the same rate as specified in the said Act; and(d)where the gratuity calculated under the said Act in the manner specified herein exceeds Rs. 20,000/- the gratuity payable shall be deemed to be Rs. 20,000/- only.](4)[ Subject to any lien the Corporation may have on the amount of gratuity admissible to an employee, the Corporation shall pay the employee or his nominee or nominees or if no nomination is made or is subsisting, his heirs, the amount of gratuity admissible under this [rule] [Notified in Gazette of India, Part-III Section 4 dated 7.8.1971.].(5)Notwithstanding anything contained in the foregoing [sub-rules] [Substituted 'sub-regulation' by Notification No. G.S.R. 459(E), dated 30.6.2021 (w.e.f. 23.7.1960).] -(i)where the penalty of dismissal is imposed on an employee for any act involving violence against the management or other employees or any riotous or disorderly behaviour in or near the place of employment, the gratuity payable to him shall stand wholly forfeited; and(ii)where the penalty of compulsory retirement, removal from service or dismissal is imposed on an employee for any act involving the Corporation financial loss, the gratuity payable to him shall stand forfeited to the extent of such loss.]
