Mumbai, Aug 12: HDFC Standard Life Insurance is offering corporates services in management of funds to meet their statutory liabilities toward payment of gratuity. The life insurer is offering companies the choice of outsourcing the entire gratuity liability management, which includes an actuarial valuation or a basic fund management service.

For employers payment of gratuity is a statutory requirement. While the benefits are defined — 15 days of pay for every year in service — how the employers meet this liability is left to them. “There are three types of companies; those who do nothing and have a pay-as-you-go system, those who make provisions towards gratuity liabilities and those who have set up a dedicated fund to meet gratuity liabilities,” said Satwalekar.
The gratuity policy is a part of the solutions that HSL is making available under its group business which includes group life insurance and group pensions. The company has recently added Microsoft India and five Godrej group companies to its corporate clientele. Bureau Report