WAEC - Insurance (2016 - No. 40)
Ex-gratia payment is made where there is
no legal liability obligation
legal liability obligation
need to refund a premium
delay in payment of compensation
Paliwanag
ex gratia payment. A sum of money paid when there was no obligation or liability to pay it. For example, a lump sum payment over and above the pension benefits of a retiring employee. In insurance claims, it may take the form of payment for which the insurer did not appear to be liable.