NOTES TO FINANCIAL STATEMENT
Premium and insurance balances receivables
| 2019 | 2018 | |
| AED | AED | |
| Due from policyholders | 46,879,288 | 31,395,059 |
| Due from brokers and agencies | 15,600,046 | 22,666,848 |
| Due from insurance and reinsurance companies | 9,317,032 | 4,284,271 |
| Due from related parties (Note 19) |
2,756,857 |
3,076,476 |
| 74,553,223 | 61,422,654 | |
| Expected credit loss |
(7,123,244) |
(6,663,119) |
| 67,429,979 | 54,759,535 | |
| Refundable deposits and other advances | 122,220 | 52,700 |
| Premium and insurance balances receivables – net |
67,552,199 |
54,812,235 |
Inside UAE:
In accordance with the Board of Directors’ Decision Number 25 of 2014 pertinent to the Financial Regulations for Insurance Companies, the company has categorized the insurance receivables as follows:
| 2019 | 2018 | |
| AED | AED | |
| Due from policyholders | 46,879,288 | 31,395,059 |
| Due from brokers and agencies | 15,600,046 | 22,666,848 |
| Due from insurance and reinsurance companies | 1,054,612 | 1,104,094 |
| Total |
63,533,946 |
55,166,001 |
The ageing for the insurance receivables inside UAE is as follows:
| 2019 | 2018 | |
| AED | AED | |
| 0 – 30 Days | 4,084,747 | 4,907,013 |
| 31 – 90 days | 13,151,471 | 16,157,064 |
| 91 – 180 days | 31,394,258 | 11,858,879 |
| 181 – 270 days | 5,921,942 | 9,250,696 |
| 271 – 360 days | 2,010,163 | 6,138,965 |
| More than 360 days | 6,971,365 | 6,853,384 |
| Total |
63,533,946 |
55,166,001 |
Outside UAE:
| 2019 | 2018 | |
| AED | AED | |
| Due from insurance and reinsurance companies |
8,262,420 |
3,180,177 |
The ageing for the insurance receivables outside UAE is as follows:
| 2019 | 2018 | |
| AED | AED | |
| 31-90 days |
8,262,420 |
3,180,177 |
Expected credit loss
| 2019 | 2018 | |
| AED | AED | |
| Beginning balance | (6,663,119) | (5,011,823) |
| Charge for the year | (460,125) | (1,651,296) |
| Ending balance |
(7,123,244) |
(6,663,119) |
