Insurance
Ex-Gratia Payment — No Legal Liability
Making a goodwill payment to a claimant when there is no legal obligation under the policy.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Ex-Gratia Payments Expense | Expense (+) | 2,000.00 | - |
| Cash / Bank | Asset (-) | - | 2,000.00 |
💡 Accountant's Note
Ex-gratia payments are made for commercial, reputational, or humanitarian reasons without admitting liability. They are disclosed separately as they represent payments outside the policy contract.
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