Question of the Day – EX-GRATIA PAYMENT
QOTD March 19,2026
Consider the following statements regarding ex-gratia payment:
- It is a payment made out of goodwill without recognising any legal obligation.
- Governments often provide ex-gratia payments to victims of disasters or accidents.
- It is a compulsory payment mandated by law in all situations.
Which of the statements given above are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (b) 1 and 2 only
Explanation:
Statement 1 is correct
Ex-gratia payments are made voluntarily as a gesture of goodwill and not due to legal liability.
Statement 2 is correct
Governments frequently announce ex-gratia payments to provide relief to victims of disasters, accidents or tragedies.
Statement 3 is incorrect
Ex-gratia payments are not compulsory under law and depend on government decisions.
Why in news–
Ex-gratia payment is frequently in news when governments announce financial assistance to victims of disasters, accidents or other unforeseen events. Recently, governments have announced ex-gratia compensation to families of people who lost their lives in disasters and accidents. Such payments are given as a form of relief and support without any legal obligation, often through disaster relief funds like the National Disaster Response Fund.
News-DA not a discretionary or ex gratia payment, say employees in affidavit to HC – The Hindu
There are more questions from this topic that you should practice to make your concepts stronger.
Practice Questions (PQ)
PQ1.Consider the following statements regarding ex-gratia assistance in India:
- Ex-gratia payments may be provided by governments to families of victims of natural disasters.
- Such payments are generally provided as immediate relief before detailed compensation mechanisms operate.
- Ex-gratia assistance automatically establishes legal liability of the government.
Which of the statements given above are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (b) 1 and 2 only
Explanation:
Statement 1 is correct
Governments often provide ex-gratia payments to families affected by natural disasters.
Statement 2 is correct
These payments are usually given quickly as immediate relief before other compensation processes.
Statement 3 is incorrect
Ex-gratia payments do not imply admission of legal liability.
PQ2. Consider the following statements regarding relief payments in disaster situations:
- Ex-gratia payments are always fixed by courts and cannot be announced by governments.
- Governments may announce ex-gratia payments from disaster relief funds.
- Ex-gratia payments are usually provided as humanitarian relief rather than legal compensation.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (b) 2 and 3 only
Explanation:
Statement 1 is incorrect
Ex-gratia payments are not fixed by courts and are usually announced by governments.
Statement 2 is correct
Governments may provide such payments from relief funds during disasters.
Statement 3 is correct
Ex-gratia assistance is humanitarian relief and not legal compensation.
PQ3. Consider the following statements regarding ex-gratia payments:
- Ex-gratia payments are generally discretionary in nature.
- They are often announced after accidents, disasters or tragic incidents.
- Ex-gratia payments are legally enforceable rights for citizens.
Which of the statements given above are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3
Answer: (c) 1 and 2 only
Explanation:
Statement 1 is correct
Ex-gratia payments are discretionary and depend on government decisions.
Statement 2 is correct
They are often announced after accidents or disasters to support affected families.
Statement 3 is incorrect
Citizens cannot legally claim ex-gratia payments as a right.
Previous Year Question (UPSC Prelims)
With reference to the Disaster Management Act, 2005, consider the following statements:
- It provides the legal framework for disaster management in India.
- It led to the establishment of the National Disaster Management Authority (NDMA).
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) both 1 and 2
(d) neither 1 nor 2
Answer: (c) both 1 and 2
Explanation:
Statement 1 is correct
The Disaster Management Act, 2005 provides the institutional and legal framework for disaster management in India.
Statement 2 is correct
The Act established the National Disaster Management Authority to frame policies and guidelines for disaster management.