Accounting treatment of insurance claim.

Please clarify the query.. what type of insurance claim...????  Status of Assessee????

teh assessee is a company and the claim recd is under cash less accidental policy.

For Example :- Insurance claim received from Oriental Insurance Company.

Entry :- 

Bank/Cash                         a/c                      Dr.

      To Oriental Insurance Company   a/c

( Being payment received from Insurance company )

when the claim is finalised (if it is a accident claim)

Insurance company                     dr.

                 To Insurance Claim

if you have occurred a loss like goods/asset, then the above entry will be

Insurance company                     dr.

                 To purchases/asset

when cash is received

cash/bank                                      dr.

             to insurance company

yes absolutely agree with nidhi mam

what is treatment if the claim if it is a vehical insurance claim? The claim received for repairs of vehicle.....

Dear All, 

             What Will be Accounting Treatment for Insurance Claim Received Against CAR Policy (Contractor All Risk Policy)

Dear Friends

i have a case regarding insurance claim received from insurance company.. (some of the business premises got destroyed due to heavy wind storm.. ) 

the amount 10,50,080/- the company received in the FY 2017-18...

a) is it income of the company...?

   we  are not considered as a income of the company.. & we recorded as a current liablities in the  name of insurance suspense.. is it correct

Dear Team,

I have insurance claim case under cashless settlement. Our company car got accident and repairing cost is around 83000/-. We got the invoice from insurance company(collaborated with car company) for the amount of Rs 83000/- for repairing the vehicle. We have paid Rs 2000 as cash since carwash and some other service extra to car company. The car company told us the cost of Rs 81000/- will be covered under insurance claim and the claim amount will directly reimbursed to car company by insurance company. The only expense we have incurred Rs 2000/- for extra service. In this case what will be the accounting entry and and how can we treat the transaction in books. We have GST invoice raised by the party against our GSTIN. Please advise

Thanks,

Arunkumar G

Dear team,

in my company we are getting many insurance claim of our vehicle accident and we generating invoice against of  claims and also depositing GST.

now my query is:- Is this claim amount will count my sale or else.

Good Morning !

In my opinion, Insurance claim is received against a reimbursement of expenses actually incurred in case of vehicle accident. In such cases, Repairs & Maintenance A/c is debited and Bank A/c is credited. While getting Insurance claim, we are getting either partial or full reimbursement of expenses actually incurred and as such this is not an income and no Sales with GST invoice to be raised. Simply book Insurance claim receivable Debit and Repairs & Maintenance vehicle credit. Then Bank A/c debit and Insurance Claim receivable  credit when payment received. Insurance companies generally do not reimburse GST amount where ITC is availed. If they pay the GST also, then we need to reverse the ITC by debiting Repairs & Maintenance and crediting GST receivable.  

Please note that Insurance claim receivable a/c is booked only when a reimbursement is virtually certain that it will be received if the entity settles the obligation. This means when Insurer accepts the claim and Surveyor confirms the amount of claim accepted by the insurer.