Group Gratuity Scheme
Fund and insure your statutory gratuity liability for employees.
Understanding Group Gratuity Scheme.
A Group Gratuity Scheme helps employers pre-fund their statutory gratuity liability under the Payment of Gratuity Act, 1972 through an approved gratuity trust. Contributions are tax-efficient under Section 36(1)(v) and the optional life-cover component pays future-service gratuity if an employee passes away.
Funding gratuity through an approved trust converts an accrued liability into a managed asset and protects cash flow from large payout shocks.
What's actually inside this cover.
- Actuarial valuation of liability
- Approved gratuity trust set-up
- Tax-efficient employer contributions
- Optional life-cover component
- Funding of accrued gratuity liability
- Future-service life cover (if opted)
- Investment management of gratuity fund
Actual cover is subject to insurer wording, sub-limits, deductibles and exclusions. Please read the policy wordings carefully before concluding a sale.
How we place it.
One team — from the first conversation to the first claim.
- 01
Profile and exposure review with a Labdhi expert
- 02
Wording, sub-limit and pricing comparison across leading insurers
- 03
Cover binding with the optimal terms and add-ons
- 04
Renewal review and end-to-end claims support
When it actually pays.
Illustrative scenarios — real outcomes depend on insurer wording.
Long-tenured employee retires; full gratuity paid out without cash-flow shock.
Employee passes away mid-career; life-cover component pays future-service gratuity.
Why Labdhi for this?
As a licensed insurance broker, Labdhi compares wordings, sub-limits and pricing across multiple insurers, structures the policy around your real exposures, and supports you end-to-end through documentation, renewals and claims.
Is your Group Gratuity Scheme cover actually enough?
Most people discover the gap in their protection at the worst possible moment — at claim time. Shield360™ is our 4-minute risk profiler that scores your long-term protection, highlights gaps, and gives you a personalised report you can download.
- Protection Score
A single 0–100 number showing how well-covered you really are.
- Gap Analysis
Identifies under-cover across life, health, income and assets — instantly.
- Downloadable Report
Branded PDF with your scores, gaps and suggested next steps.
More in Group & Employer Life.
Employer-administered term cover for employees on a master policy.
Fund your accumulated leave-encashment liability through an approved scheme.
Retirement income planning through approved superannuation schemes.
Protect your company against the financial loss of losing a key person.