An ex-gratia payment is a one-time financial assistance given by the Government or an employer out of goodwill, without any legal obligation. The term ex-gratia literally means “out of grace”. But if the policy is framed for provision of Ex-Gratia, department ought to have followed the policy in granting Ex-gratia.
It is not a matter of right, unlike pension, gratuity, or compensation payable under a statute.
Ex-gratia is usually paid to:
- Provide immediate relief
- Mitigate hardship or distress
- Support families in exceptional or tragic circumstances
Who Are Authorised to Receive Ex-Gratia Payments?
The eligibility depends on the specific government policy, scheme, or notification, but generally the following categories are covered:
Families of Deceased Government Employees
Ex-gratia is commonly paid when a government employee dies or seriously injured
- While in service
- Due to accident
- Due to violence / terrorism / extremist activities
- Due to natural disasters
- During election duty or disaster relief duty
The ex-gratia is Usually paid to Spouse, Dependent children or and Dependent parents
Armed Forces, para-military/CAPFs Personnel
Ex-gratia payments are sanctioned for:
- Battle casualty
- Accidental death in service
- Death during operations
- Death due to enemy action / terrorist attacks
- Death during training or duty
The unique nature of military service, characterised by exposure to extreme risks, hostile environments, and operational hazards. The Government of India has, from time to time, evolved structured ex gratia schemes to provide immediate financial relief to the Next of Kin (NoK) of deceased personnel or to personnel who suffer grievous disability.
The Ministry of Defence (MoD) has issued multiple policy letters governing ex gratia payments, the most significant being:
- MoD letter dated 22.01.2016 (as amended from time to time), consolidating ex gratia provisions for death and disability. Earlier policies including MoD letters dated 31.01.2001, 10.12.2004, and 24.09.2012. Service-specific instructions issued by Army, Navy, and Air Force Headquarters. These policies classify cases of death and disability and prescribe fixed amounts payable depending upon the nature of the incident. Under prevailing policy, death of Armed Forces personnel is broadly classified into the following categories:
(a) Death in Action (Battle Casualties)
This includes death during:
- War or war-like operations;
- Counter-insurgency or counter-terrorist operations;
- Operations against armed militants or external aggression.
(b) Death Due to Terrorist or Enemy Action in Non-Operational Areas
Includes death caused by:
- Terrorist attacks;
- Enemy action while not formally deployed in declared operational zones.
(c) Death During Operational Duties
Covers death during:
- Military exercises;
- Operational training;
- Movement of troops, convoys, or equipment for operational purposes.
(d) Death Due to Accidents While on Duty
Includes death due to:
- Accidents involving military vehicles, aircraft, ships, or weapon systems;
- Accidental explosions, fires, or mishaps during duty hours.
(e) Death Due to Natural Causes While in Service
This category generally attracts lower or nil ex gratia, depending upon policy applicability, as such cases are primarily governed by pensionary benefits.
Ex Gratia is also paid incase of Disability and Invalidment apart from death, ex gratia is also admissible in cases of severe disability sustained during service.if the Disability is attributable to or aggravated by military service;
About the Author
Wg Cdr Ajit Kakkar (Retd) is a practising advocate. He holds MA LLB, LLM, MDBA (HR) MBA (Sports Management) Dip in international trade law and dip in Intellectual Property Rights, he appears before Supreme Court of India, Delhi High Court, the Central Administrative Tribunal (Principal Bench), the Armed Forces Tribunal (Principal Bench).
Disclaimer: This article is intended for general information and does not constitute legal advice. Rules, office memoranda and case law evolve; readers should obtain advice specific to their facts before acting.