Definitions for "Ex Gratia Payment"
A payment made by the insurer to an insured out of grace or kindness.
Settlement of a claim by an insurer, even though the company does not feel it is legally obligated to pay. Settlement is made in order to prevent an even larger expense to the company as a result of having to defined itself in court, or for goodwill purposes.
an exceptional vehicle used only when there is no statutory, regulatory or policy vehicle to make the payment