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
waec 2016insurance

The correct answer is A. no legal liability obligation

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.

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