Novel gratuity scheme for SCCL staff

Singareni Collieries Company (SCCL) crossed another milestone on Thursday by launching a unique scheme "" Group Gratuity Life Assurance Scheme "" under which LIC will settle the gratuity claims of the employees.

The scheme will also provide payment of future service gratuity to the dependents of the employees who die in harness, in addition to the gratuity normally payable for the past service rendered.

SCCL has created a Gratuity Trust to manage the scheme which includes not only the management representatives but also the representatives of trade union as the trust members.

SCCL has to deposit a total of Rs 587 crore with LIC as part of the scheme. It proposes to deposit Rs 200 crore in 2003-2004. As the first installment, R H Khawaja, the managing director of SCCL, handed over a cheque for Rs 140 crore to S R Krishnaswamy, the executive director of LIC, here today.

"This scheme provides risk coverage beyond the work place, which was hitherto unavailable to the employee," Khwaja said.