Gratuity
- An agent shall be eligible for gratuity:
(i) If he has worked continually and for fifteen or more qualifying years, and
(a) He is not below sixty years of age ; or
(b) is found to be of unsound mind by a court of competent jurisdiction ;
(ii) if he has been confirmed in his appointment, and
(a) he dies while his agency is subsisting or
(b) his appointment as an agent is terminated on becoming physically and mentally incapacitated for carrying out his functions as an agent. - An agent may, before he has attained the age of 59 years, by notice in writing to the Divisional Manager, request that his eligibility for gratuity may be determined on completion of 65 years of age.
- Gratuity admissible shall be at the eligible rate for each qualifying year for the first 15 qualifying years and at half the rate for subsequent 10 qualifying years. Maximum gratuity payable shall not exceed ` 300000.
- Gratuity is payable to an Agent, or his nominees or heirs.
- No Gratuity is payable to an employee of the corporation for the period of his employment as agent.
- Where once gratuity is paid, no further gratuity is payable even if the agency is continued.
- Once gratuity is paid to a terminated agent, fresh agency can also be granted but gratuity will not be paid again. (Cir: Mktg/ZD/18/2012 dated 06/03/2012).
- Gratuity is not payable if his agency is terminated due to disqualifications as given below:
A) If he is found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction.
B) if any judicial proceeding , has been found to have knowingly participated in or connived at any fraud, dishonesty or misrepresentation against the Corporation or any of its subsidiaries or against any person having official dealing with Corporation or any of its subsidiaries, Prerana – Gratuity / 153
C) If he has failed to discharge his functions and failed to comply with the code of conduct as set out in regulation 8 and regulation 14, and directions issued by the Authority from time to time, to the satisfaction of the competent authority;
D) If he acts in a manner prejudicial to the interests of the corporation or to the interest or its policy holder.
E) If evidence comes to its knowledge to show that has been allowing or offering to allow rebate of the whole or any part of the commission payable to him.
F) if the competent authority is satisfied that either directly or indirectly the agent is involved in embezzlement of premiums or cash collected from policyholders or prospects or on behalf of Insurer, and he has been knowingly involved in or connived at any fraud, dishonesty, misrepresentation, misappropriation, cheating and forgery against the Corporation or its policyholders or any of its subsidiaries or against any person having official dealings with the Corporation or any of its subsidiaries;
G) If it is established that the agent has acted with a view to defrauding the Corporation.