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

A. no legal liability obligation

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.