A claimant who is not legally entitled to a claim under an insurance contract may be offered a payment on?
Answer Details
When someone makes a claim under an insurance policy, the insurance company assesses whether they are legally entitled to receive payment based on the terms of the contract. If the claimant is not legally entitled to the payment, the insurance company may still choose to make a payment to them on an ex-gratia basis.
An ex-gratia payment is a payment made voluntarily by the insurance company, even though they are not legally obliged to do so. This can be done for various reasons, such as to maintain good customer relations, to avoid negative publicity, or to settle a dispute without going to court.
However, the insurance company may limit the amount of the ex-gratia payment and may require the claimant to sign a waiver or release of any further claims related to the loss. It is important for the claimant to understand that accepting an ex-gratia payment does not necessarily mean that they are entitled to make a claim under the insurance policy in the future.
The other options mentioned - constructive total loss basis, partial loss basis, and advice of loss basis - are different methods for calculating the amount of payment that a claimant may be entitled to receive under the terms of the insurance contract. These options do not apply to situations where the claimant is not legally entitled to a claim under the contract.