May this article will help you.
1 Definition: An ex-gratia payment in this context is a payment made to an individual in respect of loss or damage to personal property in a situation where the County Council accepts no liability for the loss or damage but is willing to make some reimbursement without accepting liability. Most commonly such payments are made to employees in respect of personal property (including clothing or personal items such as spectacles) damaged or lost accidentally. Ex gratia payments are not made in situations where the loss is fully insured, either by the individual or the County Council
2. Funding: In the case of schools with delegated budgets, funding to make ex-gratia payments is included within the general delegated budget. There is no specific budget heading for this item as the payments concerned would normally be too small and infrequent to warrant specific provision. The decision as to whether or not to make an ex-gratia payment in individual cases rests with individual schools. Although this is not a matter for the Director of Education, in specific cases advice on practice may be sought from the County Council's Insurance Manager.
3. When to Consider Making an Ex Gratia Payment: Most claims are likely to be made by employees. These claims will normally relate to clothing or small personal items brought into school in the course of the working day. The loss or damage will normally be accidental. It does not have to be attributable to any fault or negligence on the part of the school and the making of an ex-gratia payment is not an admission of liability. Teachers' conditions of service (Appendix of the Burgundy Book) acknowledge that the school environment is one in which personal property might be subject to a greater than average risk of accidental loss or damage. They require schools to consider sympathetically any claims made by teachers in respect of loss or damage to property in the course of their job.
4. Making an Ex Gratia Payment: Ex gratia payments are intended to cover small losses. If a claim is made in respect of loss of more than £100 value, schools should seek advice from the insurance manager. If the object concerned is high in value, schools should consider whether or not is should have been brought into school in the first place, and whether it is or should be insured by the owner. Ex gratia payments are not intended to cover fair wear and tear. There should be evidence that the loss or damage is outside the usual areas such as spillage of food or drink, damage to vulnerable items of clothing, etc.
5. Motor Vehicles: The County Council does not accept any obligation to provide parking for employees' motor vehicles nor does it accept liability for loss or damage sustained while an employees vehicle is parked on County premises. The responsibility for insurance of a motor vehicle rests with the owner. Employees who use their vehicle on County business are required to have suitable insurance cover. Uninsured losses are (at least in principal) recoverable from any third party responsible for the damage. However, staff cars parked in school car parks may be at greater risk of suffering malicious damage by unknown persons and in such exceptional circumstances an ex-gratia payment may be appropriate. If, for instance, a school is satisfied that damage was caused maliciously in a way which relates to the teacher's (or other employee's) employment (e.g. by a pupil or parent) it should consider whether an ex-gratia payment is appropriate because the uninsured loss will not in practice be recoverable. The uninsured loss could include some compensation for loss of no-claims bonus or to help cover a reasonable excess in the employee's insurance policy.
6. Payments to People Who are Not Employees: In general ex-gratia payments will not be appropriate to people who are not employees. Contractors should have suitable insurance for themselves and their employees to cover such eventuality. Casual visitors such as parents or those attending school functions should not normally be considered unless there is clear fault on the part of the school, in which case the Insurance Manager should be consulted.. However, it may be reasonable to treat volunteers and school governors who have frequent business on school premises in the same way as employees.
7. Delegation: It is recommended that schools have a system which delegates to the headteacher the power to make occasional ex-gratia payments to employees - up to a specified amount of not more than (say) £100 on any one occasion and nor than a specified number of occasions in a year.
29th December 2006 From Pakistan, Karachi