Karnataka Compulsory Gratuity Insurance Rules 2024

Karnataka Compulsory Gratuity Insurance Rules 2024

In exercise of the powers conferred by sub-section (4) of Section 4A of the 

Payment of Gratuity Act, 1972 (Central Act No. 39 of 1972), the Government of 

Karnataka hereby makes the following rules, namely;- 

Rules 

1. Title and Commencement.- (1) These rules may be called the Karnataka 

Compulsory Gratuity Insurance Rules, 2024. 

(2) They shall come into force from the date of their publication in the Official 

Gazette. 

2. Definitions.- (1) In these rules unless the context otherwise requires,- 

(a) “Act” means the Payment of Gratuity Act, 1972 (Central Act No. 39 of 

1972); 

(b) “employer” means an employer other than employer of an 

establishment belonging to or under the control of Central Government 

or State Government; 

(c) “form” means a form appended to these rules; 

(d) “nomination” means nomination made under section 6 of the Act; and 

(e) “section” means a section of the Act. 

(2) The words and expressions used and not defined in these rules but defined 

in the Insurance Act, 1938 (Central Act No. 4 of 1938), Life Insurance Corporation Act, 1956 (Central Act No. 31 of 1956) the General Insurance Business 

(Nationalization) Act, 1972 (Central Act No. 57 of 1972), the Insurance Regulatory 

and Development Authority Act, 1999 (Central Act No. 41 of 1999), the Payment of 

Gratuity Act, 1972 (Central Act No. 39 of 1972) and the Payment of Gratuity 

(Karnataka) Rules, 1973 shall have the same meanings respectively assigned to 

them in the said Acts. 

3. Obtaining Insurance for Payment of Gratuity.- (1) Every new employer 

shall subject to fulfillment of sub-section (2) of Section 4A of the Act, within a period 

of thirty days from the date on which these rules becomes applicable to such 

establishment shall obtain valid insurance policy in the manner as prescribed 

under sub-section (4) of Section 4A of the Act for his liability for payment towards 

the gratuity to all eligible employees under the Act from the Life Insurance 

Corporation of India or any other insurance company incorporated in accordance 

with the provisions of the Insurance Act,1938(Central Act No. 4 of 1938), the 

Companies Act, 2013 (Central Act No. 18 of 2013), the Insurance Regulatory and 

Development Authority of India Act,1999 (Central Act No. 41 of 1999) or any other 

law which is applicable to the insurance company in this regard. 

(2) The employer of an establishment which is in existence at the time of 

commencement of these rules shall obtain valid insurance policy within sixty days 

from the date of commencement of these rules. 

(3) The employer of the establishment who has obtained valid insurance 

policy shall make all payments by way of premium to the insurance company and 

renew the same periodically and intimate the same to the Controlling Authority 

within fifteen days from the date of renewal of the policy. The employer shall initiate 

the process of payment of premium and renewal of policy before the lapse of the 

policy. 

(4) Every employer shall exercise all due diligence for on-time payment of the 

premium and renewal of the policy.

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