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Know your policy
Everything you need to know
What is Gratuity Insurance
Jewellers Block: Your Precious Assets’ Best Friend!
Think of jewellers block insurance as a 24/7 guard for your bling! It’s specialised coverage that protects jewellery, diamonds, precious stones, and cash throughout their entire journey, whether they’re sitting pretty in your showroom, travelling with your salesperson, or being exhibited at trade shows. From a single gold ring to crore-worth diamond collections, this policy covers theft, fire, transit risks, and mysterious disappearances. It’s like having a security team, fire brigade, and detective agency all rolled into one policy, minus the drama!
Why Is This Policy Vital for Jewellers?
Because Gratuity Is Mandatory, But Bankruptcy From It Isn’t!
Under the Payment of Gratuity Act 1972, every organization with 10+ employees MUST pay gratuity (15 days salary × years of service) to employees completing 5 years. For 100 employees averaging ₹50,000 monthly salary, gratuity liability can reach ₹5-7 crore! Karnataka, Telangana, and Andhra Pradesh mandate compulsory gratuity insurance. It’s the difference between “planned retirement benefit” and “sudden cash crisis.” It’s survival insurance for responsible employers!
Know your policy
Understand your insurance before buying
What Gratuity Insurance Covers
Retirement Gratuity
Full payout on completion of qualifying service.
Resignation Payout
Gratuity payable on voluntary resignation after eligible tenure.
Death Benefit
Payable to nominee irrespective of service period.
Permanent Disablement
Full gratuity if employee is permanently disabled.
Superannuation Benefit
Covered on retirement at superannuation age.
Voluntary Retirement
Gratuity included under VRS settlement.
Termination Gratuity
Payable on termination not due to misconduct.
AS-15 Compliance
Actuarial valuation as per accounting standards.
Actuarial Valuation
Annual liability assessment by certified actuary.
Fund Management
Professional management of gratuity trust fund.
Tax Benefits
Contributions and payouts eligible for tax exemptions.
Investment Returns
Fund growth through managed investment options.
Who Needs Gratuity Insurance
All Employers with 10+ Employees
Mandatory under Payment of Gratuity Act 1972 for organizations with 10 or more employees providing statutory retirement benefits.
Karnataka/Telangana/AP Businesses
Compulsory gratuity insurance legally mandated in these states; non-compliance attracts penalties and legal action.
Growing Startups & SMEs
Companies scaling rapidly need systematic gratuity funding preventing future cash flow crises when employees retire in batches.
Manufacturing & Industrial Units
Blue-collar workforce with 20-30 year tenures create massive gratuity liabilities requiring professional fund management.
IT & Service Companies
High employee turnover and competitive salaries create complex gratuity calculations requiring insurance fund discipline.
Family Businesses
Traditional companies with long-serving employees need gratuity security ensuring family reputation and employee trust remains intact.
Types / Add-ons Commonly Offered
Unit-Linked Gratuity Plan
Market-linked returns with fund switching options.
Traditional Gratuity Plan
Guaranteed returns with conservative investments.
Hybrid Gratuity Scheme
Combination of guaranteed and market-linked returns.
Life Insurance Cover
Death benefit equal to future gratuity liability.
Actuarial Valuation Service
AS-15 compliant annual liability assessment.
Contribution Flexibility
Annual, half-yearly, quarterly payment options.
Inclusions & Exclusions
✓Inclusions
- Retirement Benefit — Full gratuity payment (15 days × years of service × last drawn salary) on completion of 5+ years continuous service.
- Death Benefit — Gratuity payable to nominee/family irrespective of service period if employee dies during service.
- Permanent Disability Gratuity — Full gratuity payment if employee becomes permanently disabled during employment.
- Resignation/Termination — Gratuity payable to employees completing 5+ years service regardless of reason for leaving.
- Tax Benefits — Employer contributions tax-deductible as business expense; employee receives up to ₹20 lakh tax-free under Section 10(10).
✗Exclusions
- Less Than 5 Years Service — Employees serving less than 5 years ineligible (except death or disablement cases).
- Termination for Misconduct — Gratuity can be forfeited wholly/partially if employee dismissed for moral turpitude or willful damage.
- Contract Employees — Temporary, contract, and consultants typically excluded unless specifically included in policy.
- Apprentices & Trainees — Training period employees not covered under standard gratuity schemes.
- Unpaid Leave Exceeding 3 Months — Extended unpaid leave may break continuity of service calculation.
Faq's
(15 × Last drawn basic salary × Years of service) / 26 for monthly-paid employees. Simple formula, complex liability!
Mandatory in Karnataka, Telangana, Andhra Pradesh for 10+ employees. Highly recommended nationally despite being optional elsewhere!
Yes! Employees must nominate family members who'll receive gratuity in case of death during service!
Contributions up to 8.33% of employee salary are tax-deductible as business expense. Save taxes while funding gratuity!
If gratuity is insured, employees receive benefits from insurance fund. Without insurance, becomes company's unsecured debt!
No! Funds held in irrevocable trust exclusively for employee benefits. Company can't touch it—that's the security!