Ex Gratia Payment

typical_blonde

Sorry to be such a dunce but, 18 months ago next door's property caused considerable damage to ours. Went through our insurance company and despite me chasing and chasing the claim has still not been settled. My excess has not been repaid and I have lost my no claims bonus.

Now, owner of next door has said that his insurance company are sending us a cheque as an Ex Gratia payment.

My question is, when (if) we receive such a payment do we have to forward it to our insurance company or is it ours because of the stress etc that we have endured.

Am really worried that we'll end up getting into trouble over this.

Any help greatly appreciated.

chanz4

you need to speak to your insurance, the other company may pay them

typical_blonde

chanz4 wrote: »

you need to speak to your insurance, the other company may pay them

The owner of the property next door has quite specifically said that the cheque will be coming to us.

rs65

if your insurers have paid for repairs and the neighbours insurers are reimbursing repairs then the cheque should go to your insurers or you have gained.

rs65

Why is it an ex gratia payment?

lisyloo

It really isn't clear what the cheque is for.
If it's for repairs that your insurer has paid for then it would have to be passed on. Normally one insurer would pay another so this would be odd. Perhaps your neighbour has got it wrong.
Another possibility is that this is a gesture of goodwill for your uninsured losses and compensation for hassle/stress. If that's the case then it sounds like it's yours.

kingstreet

lisyloo wrote: »

this is a gesture of goodwill for your uninsured losses and compensation for hassle/stress. If that's the case then it sounds like it's yours.

I think this is the most likely explanation.

chanz4

dont go by what your neighbour says, wait until it arrives and you will know for sure/

2sides2everystory

If a payment is made ex gratia from one party to another, it's not based on any admission of liability or contract and so it is no-one else's business as long as it remains unconditional and does not rely on the recipient giving anything in consideration for it e.g. a new piece of paper which says "I agree this is full and final settlement of all claims and liabilities in respect of such and such ... signed XX" In that case, if the recipient's own insurers had clearly already exercised their right of subrogation (sorry big word - you'll have to look it up) in the matter, then the OP have no remaining right to sign a paper like that. But if no paper, just a nice cheque, then I can't see any comeback is possible - anyone?

chanz4

i suppose its all dependant what the letter says, thats why I would wait until its recieved.

typical_blonde

Thanks everyone - all of you have been very helpful. Will just wait and see if the cheque does turn up, but tbh I'm not holding my breath! Will let you know if it turns up and what the letter says!