3.12 Recoveries and recourses in non-life insurance

In the case of some classes (types) of non-life insurance, following payment of claims or benefits, the insurer may assume claims against third parties (recoveries) or property rights to the insured property (recourses).

Recoveries are presented in the statement of the financial position under “other assets” and their value estimated at fair value level as at the actual date of the assumption reduces the costs of claims paid in the given period.

Estimated using actuarial methods value of expected future refunds of the company’s expenses due to assumption of claims against third parties and assumption of the right to the insured property is recognized under the balance sheet assets in “Estimated recoveries and recourses”.

Estimated values of recoveries and recourses, recognized in the accounting records in the given period, reduce the costs of creating provisions for claims outstanding for that period.