Section 9 in Life Insurance Corporation of India Class-I Officers (Revision of Terms and Conditions of Service) Rules, 1985
9. Gratuity.
(1)(a)A permanent Class-I Officer who has been in continuous service of the Corporation (including regular salaried 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 the 1st September, 1956) andi. whose services are terminated by the Corporation for any reason whatsoever; orii. who voluntarily resigns from the services of the Corporation; OR(b)a permanent Class-I Officer -i. who dies while in service of the Corporation;ORii. who retires from the service of the Corporation;ORiii. whose service is determined either due to continued illness or accident incapacitating him from the proper discharge of his duties;ORiv. whose services are dispensed with owing to reduction of staff or re-organisation of establishment;shall be eligible for the payment of gratuity.(2)The gratuity admissible to Class-I Officer under sub-rule (1) shall be at the rate of one month's terminal basic pay for each completed year of continuous service or part thereof in excess of six months (inclusive of regular salaried service with the Insurer) subject to a maximum of 15 months' basic pay upto 30 years of service, and for service over 30 years, half-a-month's terminal basic pay for each completed year of service or part thereof in excess of six months :Provided that any period spent by such Class-I Officer on extra-ordinary leave exceeding 12 months during the entire period of his service shall be excluded.(2A)[ The gratuity admissible to a class-I Officer shall be determined in accordance with the provisions of sub-rule(2)or calculated under the Payment of Gratuity Act, 1972 (39 of1972), whichever is more favourable to him.] [Notified in Gazette of India dated 30.8.1999 and has come into force w.e.f. 24.5.1994.](3)[ In the case of a Class-I Officer who has been promoted from Class-III cadre on or after the 1st day of April, 1973 and dies or retires after promotion the gratuity payable to him shall be] [9(3) as amended by Amendment Rules, 1989 notified on 25.7.1989 (came into force w.e.f. 1.8.1987).](a)[ the amount of gratuity admissible under sub-rule (2) or sub-rule (2A); [Notified in Gazette of India dated 30.8.1999 and has come into force w.e.f. 24.5.1994.]or(b)the amount of gratuity which such employee would have been entitled to had he continued as a Class-III employee when the gratuity become due and payable;]whichever is higher.(4)Subject to any lien the Corporation may have on the amount of gratuity admissible to a Class-I Officer, the Corporation shall pay the Officer or his nominee or nominees or if no nomination is made or is subsisting, his heirs, the amount of gratuity admissible under this rule.(5)[ Notwithstanding anything contained in the forgoing sub- rules -(i)Where the penalty of dismissal is imposed on a Class-I Officer for any act involving violence against the management or other employees or any riotous or disorderly behaviour in or near the place of employment or for an offence involving moral turpitude provided that such offence is committed by him in the course of his employment, the gratuity payable to him shall stand wholly forfeited.(ii)Where the penalty of compulsory retirement, removal from service or dismissal is imposed on a Class-I Officer for any act involving the Corporation in a financial loss, the gratuity payable to him shall be forfeited to the extent of such loss.]
