NOTES TO FINANCIAL STATEMENT
Premium and insurance balances receivables
| 2020 | 2019 | |
| AED | AED | |
| Due from policyholders | 42,202,901 | 46,879,288 |
| Due from brokers and agencies | 14,310,160 | 15,600,046 |
| Due from insurance and reinsurance companies | 20,979,076 | 9,317,032 |
| Due from related parties (Note 18) |
891,043 |
2,756,857 |
| 78,383,180 | 74,553,223 | |
| Expected credit loss |
(8,025,259) |
(7,123,244) |
| 70,357,921 | 67,429,979 | |
| Refundable deposits and other advances |
81,350 |
122,220 |
| Premium and insurance balances receivables – net |
70,439,271 |
67,552,199 |
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:
| 2020 | 2019 | |
| AED | AED | |
| Due from policyholders | 42,202,901 | 46,879,288 |
| Due from brokers and agencies | 14,310,160 | 15,600,046 |
| Due from insurance and reinsurance companies |
1,376,272 |
1,054,612 |
| Total |
57,889,333 |
63,533,946 |
The ageing for the insurance receivables inside UAE is as follows:
| 2020 | 2019 | |
| AED | AED | |
| 0 – 30 Days | 2,863,520 | 4,084,747 |
| 31 – 90 days | 10,783,318 | 13,151,471 |
| 91 – 180 days | 15,840,747 | 31,394,258 |
| 181 – 270 days | 15,568,809 | 5,921,942 |
| 271 – 360 days | 6,647,949 | 2,010,163 |
| More than 360 days |
6,184,990 |
6,971,365 |
| Total |
57,889,333 |
63,533,946 |
Outside UAE:
| 2020 | 2019 | |
| AED | AED | |
| Due from insurance and reinsurance companies |
19,602,804 |
8,262,420 |
The ageing for the insurance receivables outside UAE is as follows:
| 2020 | 2019 | |
| AED | AED | |
| 31-90 days | 19,602,804 | 8,262,420 |
Expected credit loss
| 2020 | 2019 | |
| AED | AED | |
| Beginning balance | (7,123,244) | (6,663,119) |
| Charge during the year |
(902,015) |
(460,125) |
| Ending balance |
(8,025,259) |
(7,123,244) |
