Ex-Gratia Payment
Kartavya Desk Staff
Source: IE
Context: The Ministry of Railways provided Rs 10 lakh ex-gratia to families of 18 deceased in the New Delhi Railway Station stampede, distributing it entirely in cash.
About Ex-Gratia Payment:
• What is Ex-Gratia?
• Ex-gratia refers to a payment made as a goodwill gesture, not a legal obligation. The government provides ex-gratia relief in cases like accidents, natural disasters, and tragedies.
• Ex-gratia refers to a payment made as a goodwill gesture, not a legal obligation.
• The government provides ex-gratia relief in cases like accidents, natural disasters, and tragedies.
• Legal Framework Governing Ex-Gratia:
• No specific statutory law governs ex-gratia payments. The concerned ministry or department determines the amount and mode of disbursal. Railway ex-gratia payments follow the Railway Accidents and Untoward Incidents (Compensation) Rules, 1990.
• No specific statutory law governs ex-gratia payments.
• The concerned ministry or department determines the amount and mode of disbursal.
• Railway ex-gratia payments follow the Railway Accidents and Untoward Incidents (Compensation) Rules, 1990.
• Procedure for Ex-Gratia Payments:
• Verification of Identity: Aadhaar, legal heir certificate, and death certificate. Approval by Authorities: Competent authority sanctions the amount. Disbursal of Funds: Either cash (immediate relief) or bank transfer (final payment).
• Verification of Identity: Aadhaar, legal heir certificate, and death certificate.
• Approval by Authorities: Competent authority sanctions the amount.
• Disbursal of Funds: Either cash (immediate relief) or bank transfer (final payment).
• Modes of Payment: Cash: Immediate assistance for initial expenses (Railway guidelines permit up to Rs 50,000 in cash). Bank Transfer: Aadhaar-linked Direct Benefit Transfer (DBT) for full compensation. Cheque/NEFT: Preferred for large amounts, ensuring accountability and transparency.
• Cash: Immediate assistance for initial expenses (Railway guidelines permit up to Rs 50,000 in cash).
• Bank Transfer: Aadhaar-linked Direct Benefit Transfer (DBT) for full compensation.
• Cheque/NEFT: Preferred for large amounts, ensuring accountability and transparency.
• Difference Between Ex-Gratia and Compensation:
Aspect | Ex-Gratia | Compensation
Nature | Voluntary, goodwill-based | Legal obligation
Purpose | Immediate relief | Compensation for loss or damage
Legal Basis | No legal requirement | Defined under law
Approval | By government/officials | Decided by courts or statutes