Ex-gratia payment is made where there is
-
A.
no legal liability obligation -
B.
legal liability obligation -
C.
need to refund a premium -
D.
delay in payment of compensation
Correct Answer: Option A
Explanation
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.