Cappings

Cappings refer to the maximum limits or caps set on the amount of financial benefits, payments, or claims that one can receive within a specific system or policy. They are used to control costs and prevent excessive payouts. For example, an insurance policy might have a cap on the total amount payable in a year. Similarly, in social benefits, there might be a cap on the maximum benefit amount. Cappings help manage financial resources effectively, ensuring sustainability and fairness by limiting individual or collective payouts to predefined maximum levels.