Ex gratia payment,
Definition of Ex gratia payment:
A prepayment payment is different from a mandatory payment because it is voluntary. Organizations, governments and insurers will usually compensate victims only if they are legally bound to do so.
Payment when there is no obligation or obligation to pay. For example, a one-time payment in addition to pension benefits for retired employees. An insurance claim can be a payment for which the insurer appears irresponsible. The former Gertia means goodwill in Latin. This is also known as prepayment.
An organization, government or insurance company pays individuals in advance for any loss or claim, but does not demand liability from the paying party. Ex-mortgage payments are considered voluntary because the paying party does not have to pay the person. In Latin, "ex gratia" means "help".
How to use Ex gratia payment in a sentence?
- Prepayment does not mean that the payer accepts responsibility for any damages.
- To promote goodwill, the company offers to pay the affected party.
- In the United States, ex-white payments are tax-exempt.
Meaning of Ex gratia payment & Ex gratia payment Definition