Gratuity Insurance

Gratuity Insurance is a financial arrangement that helps employers meet their gratuity obligations to eligible employees. Under this arrangement, an employer purchases an insurance policy from an approved insurer and pays regular contributions or premiums. The insurer provides funds to meet the employer’s gratuity liability when employees become eligible for gratuity under applicable laws. This helps employers manage future financial liabilities and maintain sufficient funds for gratuity payments. Gratuity insurance can also support better financial planning and reduce the burden of making large lump-sum payments when employees retire, resign, or otherwise become eligible for gratuity.